Lunch Lesson Six - Technology

Pickers receive instructions

From one of its warehousing operations in Stoke-on-Trent, Exel logistics delivers chilled and frozen food to Nisa Today, which has local stores around the country.

Just two years ago, the company installed a new technical system, which has transformed the way the business is run.

Turning their backs on the old techniques of a bit of paper and a pencil tucked behind the ear, the comings and goings of products is all managed through a headset communication system.

It took four months and £300,000 to install on the shop floor but the company reckons that by cutting down on mistakes and increasing productivity it has saved as much as that in the first year alone.

Instructions

Here's how it works: Pickers, as they're called, walk around with a headset and microphone that are linked to a central computer.

The computer works out where deliveries need to go and gives the picker directions through their headset.

The worker then verbally confirms what they've done before receiving another set of instructions from the computer.

It takes a short while for the system to get used to each worker's voice, but it's able to cope with any accent.

Then the picker simply waits for it to tell them where to take the goods to be delivered.

Bonus

The deliveries for each store are piled up in cages, each of which has a number, and the headset voice informs the picker which number cage to go to.

Productivity in the warehouse has improved

When they arrive, they read out the number and are told how many goods to put in the cage.

Once this is done, the picker confirms what they've done and is guided off to the next cage and the next delivery.

Trainers say that the basics of the system can be picked up within minutes, which is an added bonus when it comes to recruitment and training costs.

Improvement

The company estimates that it makes around 10,000 deliveries a week and that's why the new technology is so important.

The new process has halved the number of mistakes made and accuracy is now at 99.8%.

In addition, because the food they're moving around is either chilled or frozen, it has a limited shelf life - and that makes it even more important to get it all out quickly and accurately.

Operations manager Ed Ross is happy that production at the warehouse has increased too.

He says: "The number of cases an hour that a guy can put in a cage has improved from around 115 this time last year to just under 130 now, so a significant improvement there."

Success

Just as importantly, it makes for a better working environment.

Staff are much happier operating the new system and find that it's particularly useful in the freezer area where the temperature is kept at a constant minus 20 degrees C.

It means workers don't have to try to write numbers down while wearing clumsy gloves, or worse still, have to take them off in order to mark down deliveries.

One of the warehouse pickers, Malcolm, says: "This is a hundred times better. It's quicker, easier and no errors."

Overall, the introduction of this new technology has been so successful for Exel Logistics, that it is now looking at installing it at similar plants around the country.

---

Student Guide

---

Training is fast and effective

Pick and win

Once upon a time, people walked around stores with a clip-board and a list of items to be collected.

It worked quite well but people always made mistakes.

A moment's distraction and you get the number from one line and the item from the next - and things start to go wrong!

Nisa Today is one of the country's largest groups of convenience stores.

It's a voluntary chain, so independent retailers choose to join because of the benefits it offers.

Its success depends on getting its distribution right because customers get fed up when products they want are out of stock.

Its distribution centre has to be efficient so Exel, the logistics company, runs it for them using the latest in voice technology.

Just think...

Why is important for Nisa Today to get the products ordered by a store delivered accurately?

What might happen if they don't?

How does it work?

This is a busy site, picking and packing over 26m cases per annum and acting as hub making over 10,000 deliveries a week to 3,500 Nisa Today outlets.

The warehouse is full of chilled products - ranging from cheese and yoghurts to lettuces and broccoli.

They have to be selected and dispatched to Nisa Today's 3,500 stores across the country.

Each member of staff has a voice recognition terminal attached to their belt and this gives them instructions from the computer system about which items to select and where to put them - cases of products are put together for different stores.

Accuracy has improved dramatically

At each stage they confirm their actions, so there is a double checking process.

The system is so clever that it recognises six languages and different accents and dialects.

Picking up different accents means that staff can come from anywhere in the country.

With this system, the company has achieved 99.8% accuracy in the orders that go out.

Not bad when there are 26m cases every year - how often do you get the wrong things in your school bag?

At the end of the shift the terminal goes back into its slot to be recharged.

Just think...

How does the system help Nisa Today to reduce costs?

How would the company decide it was worth installing?

How does the system encourage independent supermarkets to become part of the Nisa Today network?

Better working

An efficient business needs efficient staff who stay with the company.

A chilled warehouse might not be the most attractive place to work - it's cold!

Everyone is provided with proper clothing to keep them warm but it used to be hard to juggle sheets of paper and tick things off when wearing thick gloves designed to keep the cold out.

The new system makes the staff much happier, as they can keep their hands in their pockets!

It's also easy to learn - it only takes 20 minutes to pick up how it works.

This makes it much easier to bring in temporary staff when necessary.

Just think... Why are the staff happier working with the new system?

How does this improve motivation?

Why are they likely to work more efficiently if they are well motivated?

How does it help the business?

The introduction of new technology can be a gain to a business but it is not always as successful as this. What might go wrong when new technology is introduced?