FALL 2024

144 THE DISTRIBUTOR’S

144 THE DISTRIBUTOR’S LINK ROBERT FOOTLIK THE “5-STAR” WAREHOUSE – THE VISION - SEASON 1, EPISODE 1 from page 108 The floors are shiny, lighting bright, equipment sparkling and eye-catching signage draws our attention to specific areas such as receiving and shipping, individual OEM customer stocking locations, return areas by vendor name and overhead lighting that projects information and denotes hazards on the warehouse floor. What we do not see immediately is fixed automation, conveyors and other “modern” equipment. Our host explains with a smile that we will understand why as we look at the micro operations. “New equipment and methods are always under review,” he stated. In The Heart Of The Distribution Process We learn that there is no warehouse; it is truly a Distribution Center. Products move in and out on a controlled, planned and fully organized basis. Nothing is held for very long and all of the inventory is constantly “in play.” For critical and common commodities, the inventory is tracked from raw materials, through the vendor manufacturing processing, in transit and continuously monitored for exceptions and delays. Long-term vendor relationships enable this synergy, down to the individual pieces, cases, pallets and trucks. With this knowledge, it is then possible to be comfortable with a high rate of inventory turns without sacrificing customer satisfaction. “At 5-Star we can absolutely guarantee on time delivery unless there is disruptive disaster. We do not make promises lightly.” Directly outside the window a large LED screen greets us with a welcoming message and our company logo. The animated display even welcomes us by name. The next message on the screen captures the essence of the 5-Star corporate philosophy, “Our Customers expect perfection… and WE DELIVER IT EVERY DAY WITH EVERY ORDER.” Wow! Clearly, the operation is organized, neat, devoid of drama and almost surgically clean. Just then, a pallet mover passes without an operator. We learn that there are now two of these vehicles that perform long distance moves. Each is directed by a Warehouse Management System (WMS) based on an algorithm that identifies the timing required for the move, size, weight, distance and other factors. Anyone in the operation can request this service if there is some special need. Slowly this technology is being rolled out for pallet placement within the racking system. The Return on Investment (ROI) for automated, autonomous movement by forklift under study, but the technology and ROI have not yet converged. Then a third piece of robotic equipment that constantly scrubs and clean the floors travels purposefully down an aisle. Essentially, it is a very large “Roomba” to insure that the floors are sparkling clean at all times. While typically deployed at night, the equipment can be summoned by anyone who sees a need for a clean-up. The return is not great in terms of cost, but this maintains a high standard for warehouse cleanliness. Obviously, the floors are devoid of errant stretch film, broken pallets and other debris. Looking down a pallet aisle, every upper load is stretch wrapped and identified with a large QR or bar code label. There is a numbering system in place with similar labels. Not immediate obvious is the occasional drone overhead that verifies stock locations continuously. This is “a place for everything and everything in place” taken to a much higher level. The number of miss-stocks has gone to zero and 5-Star is working on an Artificial Intelligence (AI) analysis to develop correlations for stock locations and overstock. At this point, the first 8’ height of the pallet racks utilizes fixed picking locations and the top of the racks are random. Our host informs us that refinement of picking location/ overstock will ultimately be based on factors such as usage, product affinity, and seasonality as more data is developed. This will then become the basis for autonomous forklift movement. As the data is developed, the objective is to be able to move loads in and out of any pallet position without human intervention. The time for this is not now, but 5-Star’s Information Technology Task Team is preparing for a driverless future. CONTINUED ON PAGE 145

MWFA FSTNR WEEK ’24 TABLE TOP SHOW AND FASTENER BASH - AUGUST 20, 2024 CONTINUED ON PAGE 155 ROBERT FOOTLIK THE “5-STAR” WAREHOUSE – THE VISION - SEASON 1, EPISODE 1 from page 144 In the shelving area, pallet racks, carton flow racks and conventional shelving are fully integrated along a circular picking path. Pickers operating under the direction of the WMS follow a route with racking on their left side and face out shelving at the end of all the shelving rows. From our elevated vantage point, we see that customer centric storage areas are delineated by overhead signage. Our guide explains that there are many subtle aspects to this operation, many of which are proprietary. By picking multiple orders simultaneously and packing the materials directly into shippable containers expensive conveyors and automation has been avoided. In fact, the current layout while human oriented now, is designed for fully mobile robotic picking in the future. In the interim, the operation is so efficient there is no ROI for conveyors or robot pickers…yet. Continuing The Tour Obviously, from the conference room window many critical areas such as receiving, returns, shipping and packing are not visible. It is time to take a closer look at the operations and facility. As we head downstairs, one thing is abundantly clear: every one of the staff from the front door to the back door seems to be extraordinarily happy. Things run smoothly, without drama and as we move into the heart of the operation undoubtedly there will be even more to learn. Over the next issues of this magazine, the articles will reveal what makes 5-Star Supply so unique and how it came to be conceived and implemented. Our hosts have promised to be candid, informative and insightful. From our dialogue, it is clear that they might be both proud of their company, and perhaps interested in acquiring ours. Either way it will be an interesting and informative tour. Watch for Series 1, Episode 2-“It Starts With the People” in the next issue of Distributor’s Link Magazine. ROBERT FOOTLIK