DC Velocity, January 2006
Inbound: Quicker Picks
Staff Reporter
First RFID, now pick-and-pack technology? For consumer goods manufacturers, it appears that the stakes to play in Wal-Mart’s game are about to go up. If they want to keep customers like the mega-retailer happy, these suppliers may have little choice but to automate their pick-and-pack operations.
As for what’s behind this latest development, it’s all about costs. In their unrelenting quest to slash supply chain expenses, the big retailers have shifted more distribution-related tasks to their suppliers. Paul Lightfoot, CEO of AL Systems, told his audience at November’s AL Systems Knowledge Conference. (AL Systems sells light-, voice- and RF-directed picking and packing solutions.) Retailers content to receive cases and pallets of merchandise are now demanding store-specific less-than-full-case shipments. As one AL Systems customer comments, “Each box is specific to the fulfillment needs of [the] store. It’s never consistent. Some might need two pieces each of five styles. Others will need 30 of just one.”