Food Logistics serves the entire food supply chain industry with targeted content for manufacturers, retailers, and distributors.
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24 J U LY 2014 ❯❯ FO O D LO G I S T I C S W W W . F O O D L O G I S T I C S . C O M the system. Therefore, the system works well for companies with fast and unpredictable growth rates. This is especially useful in light of the increasing demand for omnichannel order fulfillment. Flexibility is also important as warehouse managers hope to incorporate new efficiencies as technology evolves. The split case picking function has not been fully automated yet, Wulfraat notes. "Eventually we will replace the person who does the actual order picking at the workstation with a robot," he says. He expects that visual recognition software combined with automated robotic arms with grasping capability will enable this within the foreseeable future. Omnichannel fulfillment is not the only factor contributing to SKU prolif- eration, however. Rising export trade opportunities have contributed to it in recent years, as has the growth of niche food and beverage markets and an increase in convenience foodservice formats. The declining cost of automation over time, in conjunction with increasing labor costs, also encourages distribution warehouses to invest in automa- tion, notes Sean O'Farrell, market development director at Dematic Corp., the provider of automation solutions. "Our Multishuttle has created some very flexible options for companies," he notes. Mixed case picking expands Mixed case picking has become critical as wholesalers address SKU pro- liferation. Wirtz Beverage, a Cicero, Ill.-based beverage distributor, found hav- ing 12 pick modules in a centralized warehouse invaluable for improving the speed of delivery throughout Illinois, notes Richard "Rocky" Ruane, regional director of warehouse operations. The company found itself in a quandary when its sales doubled in 2008 to $8 million. They were shipping product from three buildings. Manage- ment, wanting to centralize its ware- house and operate more efficiently, turned to W&H; Systems, an integrator, to design a facility that would allow the company to improve delivery time and take on more volume. The planning and design took about nine months S P E C I A L E D I T I O N 3PLs Deliver Omnichannel Service Using SPS Commerce Inc.'s Cloud-Based Network L ogistics companies including DM Fulfillment and TAGG Logistics have chosen to integrate to SPS Commerce Inc.'s cloud-based, universal network in their omnichannel fulfillment businesses. With a single connection to SPS Commerce, these logistics firms support their customers' trad- ing partner omnichannel fulfillment requirements, including the rapidly expanding direct-to-consumer delivery model. "Suppliers and retailers are looking to their 3PL partners to meet the ever-changing expectations of today's consumer for rapid delivery of a rapidly-expanding assortment of products," says Peter Zaballos, vice president of marketing and product at SPS Commerce. "By connecting once to the SPS universal network, 3PLs can support their omnichannel customers by seamlessly fulfilling orders originating from stores, mobile apps, e-commerce sites and other channels. 3PLs taking advantage of these agile capabilities are leading the omnichannel era." In 2013, TAGG Logistics integrated its business to the SPS Commerce universal network. The SPS Commerce solu- tion integrates with TAGG's internal systems, which include a warehouse management system (WMS) and transportation management system (TMS), delivering automated scalability to support TAGG's growing customer base. "TAGG's focus is to help our clients grow across multiple sales channels, from e-commerce to big box retailers. The SPS universal network provides a critical capability we depend on enabling our clients to sell more products across multiple shop- ping channels, especially when each week seems to bring new channels and fulfillment requirements," says Tod Yazdi, a prin- cipal at TAGG, "We've been able to seamlessly and efficiently process orders from channels as diverse as client websites, Amazon, Walmart and even Facebook and Groupon." Currently, TAGG is connecting to a broad range of high-vol- ume customers and their trading partners and continues to add connections from within the growing SPS network. In early 2014, DM Fulfillment added SPS's universal net- work integration to its omnichannel fulfillment capabilities, accessing hundreds of retailers with a single connection. This advancement enables the company to deliver its branded fulfill- ment services to new and growing customers faster and with fewer internal resources. "DM Fulfillment's mission is all about agility and speed," says Bob Klunk, managing director at DM Fulfillment. "Our fulfillment services reach 99 percent of U.S. shoppers in one to two days using ground transportation. With SPS's universal network, we can effortlessly connect to any of the hundreds of retailers in the network to support our customers' growth. Con- sumer demands are advancing quickly, and with the capabili- ties the SPS universal network provides, we remain one of the fastest, most responsive omnichannel fulfillment providers." DM Fulfillment is utilizing the SPS network to do business with retailers including Walmart, Drugstore.com, eBags, Rite Aid, Roundy's, Target, Walgreens and others. SSI Schaefer's ergonomic solutions reduce loads to be moved. Dematic's Multishuttle allows vehicles to operate on multiple levels of a rack. One vehicle pulls a tote onto the shuttle while another places a carton onto a staging/storage shelf.