A Vocal Change

Logistics Insight Asia, 1/11/2007

Looking for productivity improvements in its warehouse, this Australian retailer found its expectations surpassed after replacing RF picking with voice technology.

Dick Smith Electronics is a major Australian retailer of computer, communications, electronics and entertainment products are sold through a network of over 200 nationwide stores as well as online.

The company had been using RF picking in its 10,500 square meters warehouse for over five years, and while this delivered the high levels of order accuracy required, it was limited in terms of ways to increase productivity. Maintaining the RF equipment was also becoming a significant on-going expense, running into an annual six-figure sum.

Voice picking was identified as a potential replacement technology after seeing it in operation at a number of Dematic customer sites. Dick Smith representatives also visited a number of other voice picking installations and discussed concerns with the technology, including potential health issues. The company began using voice for picking in March 2006. And three months later, the entire system was fully operational, with 85 voice terminals online.

ON THE UP
In planning for the voice picking project, Dick Smith Electronics had budgeted for a 5-7 percent productivity gain. But after the first two weeks of implementation, it realized this was a conservative estimate as productivity gains hit 10 percent. And within a month, the productivity improvement wasconsistently over 20 percent.

As for accuracy, this had been one of the concerns the client when evaluating the technology, i.e. maintaining the high picking accuracy rate achieved with RF picking, which was typically over 99.7 percent. But it has, even improving on that figure and continuing to trend upwards, albeit at a fairly slow pace.

To ensure accuracy without the need for scanning locations and products, Dick Smith’s pickers verify they have reached the correct location by reading a randomly assigned check digit on the slot. This makes the system virtually foolproof, eliminating costly picking errors and improving customer service levels.

JUSTIFYING IT
A significant advantage when switching from RF to voice is that, like RF, voice also requires a mobile computer. At Dick Smith, the Vocollect Talkman devices utilize the existing RF data communications network so there were no substantial wireless network set-up costs.

Maintenance costs associated with the use of RF terminals and scanners have come down considerably since switching to voice. The annual maintenance bill had been running at around $100,000, mainly from RF equipment being damaged inuse.

The Talkman mobile computer is worn on the waist, well out of harm’s way, and the only maintenance required to date has been a couple of replacement headphone sets. Overall, maintenance costs have reducedby about 80 percent.

Through consistently achieving an improvement in the order of 22 percent, plus the significant savings in maintenance costs, the ROI on the project will be considerably shorter than initiallybudgeted for three years.

POSITIVE RESPONSE
There were questions related to the health aspects of wearing the headset and voice computer. These were discussed and resolved by providing details of research that confirms there are no health risks associated with voice picking. Staff quickly began to enjoy the freedom from havingeyes and hands free for picking.

Being able to pick with both hands greatly reduces the incidence of straining during lifting actions and, by negating the need to carry, read and enter data into a terminal, Voice also eliminates repetitive keystrokes and repetitive actions such as scanning. Thus, voice is actually safer than RF for pickingapplications.

Almost without exception, the response has been very positive. DC Supervisor, Craig Valentine:“While a few of us were skepticalat first, everyone has quicklybecome accustomed to voiceand I don’t think any of us wouldlike to go back to the old wayof picking. Voice quite simplymakes the job easier, it makesthe job safer, and it also makesthe job more satisfying.”