See video material-handling system at a power plant

chaotic storage / random storage

(article) published in may 2011 (ref : http://www.ssi-schaefer.de/blog/en/order-picking/chaoticstorage-amazon/)
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How can something be random on purpose? Well, Amazon, the worlds largest online retailer,
stores its goods in a chaotic disorder. But only at first glance, because theres order behind the
apparent disarray. Its called chaotic storage.
How does chaotic storage work?
A warehouse for chaotic storage sometimes also known as random storage is basically a
shelving system holding the products. So far, it doesnt differ from a warehouse with fix storage
positions. What makes a chaotic storage system so special is the flow of material. This starts at the
goods-in section: the warehouse staff takes incoming goods to the shelving system, where they
are placed in unoccupied shelf positions. Each shelf space has a unique barcode and every product
as well. The staff uses handheld scanners to record the shelf space and the corresponding
product, thus telling the computer, where the goods are located.
When an incoming order requires these goods to be picked, the computer compiles a picking list.
It then sends order pickers to exactly those shelf spaces where the requested products can be
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found, according to the database. In order to keep this database current, each article that is
removed from the shelf needs to be scanned again.
By the way, chaotic storage does not imply automatic storage. Although it is possible to operate a
chaotic storage system automatically, it is not always the best alternative. Amazon for instance,
still needs quite a lot of manpower, because a simulation of the storage processes showed that
hiring warehouse staff was more economical than automation.
What are the advantages of chaotic storage?
Chaotic warehouses are much more flexible than conventional ones and can respond to changes
in the product range much easier. This reduces the amount of planning, because neither the range
of products as a whole nor the sales volume of particular goods, need to be known or planned in
advance.
In addition, chaotic storage allows to use the available storage space more efficiently, because
freed-up space may be refilled immediately. In a storage system with fixed positions on the other
hand, some shelf space is always reserved for certain articles, even if their actual stocks are
considerably lower.
Chaotic storage is a time saver, not just when stocking up on goods but also during order picking.
Incoming goods are simply placed in free spaces on the shelves. The computer will then create
picking lists with optimised routes whenever someone orders products. This way, the distance the
warehouse staff needs to cover is shortened. Furthermore, picking lists at Amazon are not sorted
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by order, which means that the picked products have to be combined to shipments in an
additional step.
The amount of training required by new employees is also remarkably lower when using chaotic
storage. It is not necessary for them to memorise the entire warehouse layout or even single
storage locations. This will allow you to replace staff more easily or hire seasonal workers during
peak times.
What are the requirements for chaotic storage?
Intuitively, most people would store similar goods together, virtually sorting them according to
predefined characteristics. This would place all books in one section of the warehouse and all toys
in another section. But thats not necessary in a chaotic storage system. The products only need
to share the most basic requirements with regard to storage (i.e. temperature, humidity). Further
characteristics dont have to be considered. In a chaotic warehouse, all kinds of different articles
may lie directly next to each other, such as books, toys, sport equipment, electronics, DVDs,
jewellery and digital cameras. Exceptions are made for fast-moving articles, because it wouldnt
be worth storing them, and those items which are too heavy or bulky for normal storage
operations. Articles like these have to be stored separately. Perishable goods are also not suitable
for chaotic storage.
Needless to say, all the goods have to be barcoded and entered into the database. The same holds
true for all possible storage spaces. The computer also needs a kind of map of the entire
warehouse, enabling it to compute optimised picking routes.
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Chaotic storage is dependant on a reliable warehouse management system. If the computer

would freeze or lose data, warehouse operations would need to be suspended until the problem
is solved.
This type of storage is particularly interesting for distribution centres handling a large number of
items with small stocks each. This usually is the case in the online retail business.
Also, orders with articles from different categories are a common occurrence there, so storing
them according to categories would not yield any advantages. Quite the contrary: the staff at
Amazon takes care not to place articles from the same category directly adjacent to each other.
This improves order picking accuracy because mix-ups are much less likely.
The term chaotic storage is by the way only justified from a human point of view, but is not at
all correct from the standpoint of a computer. For a warehouse management software, a chaotic
storage system is nothing more than a sequence of calculations and database operations.
>>

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Largest warehouses

Pic i : Internal view of the warehouse where Aalsmeer Flower Auction (worlds largest) takes
place. This warehouse, 990,000 m2 (10.6 million ft2) in size, is the worlds 3rd largest building and is
worlds largest building used as a warhouse. Each weekday, 19 million flowers and two million
plants are sold.

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Pic ii : Atl logistics center, hongkong is the worlds 2nd largest warehouse (worlds 13th largest
building), 5.5 L m2 (6 million ft2) in size.
See video atl logistics center.asx
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Warehousing activities done by 3pl companies

i.

kitting
combining W, X, Y and Z into A
x, y, z may be components which by themselves cannot be used by the consumer.
example :
an indian computer-manufacturer manufacturers cpus (w) at his factory in noida (delhi). he
imports lcd displays (x) from south korea. these displays arrive by ship and land at madras
port. he purchases keyboards (y) from a manufacturer in bangalore and mouse (z) from a
hyderabad-based manufacturer.
situation : this company sells its products all over india. mrs shah - a resident of vile parle,
bombay - has booked a desktop model.
Option 1 :
bring X, Y and Z to noida. Pack them with X. (This activity is kitting) Despatch the package to
customer in vile parle by a 2pl or 3pl company.
Distances travelled (to the nearest 00 km) :
X (madras to noida) : 2,200 km
Y (bangalore to noida) : 2,400 km
Z (hyderabad to noida) : 1,500 km
W + X + Y + Z (noida to bombay) : 1,400 km
Total distance travelled : 7,500 km
Option 2 :

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Outsource the logistics to a 3pl company that has warehouses in madras, bangalore,
hyderabad and bombay.
Bring the W from noida, X from madras, Y from bangalore and Z from hyderabad to
warehouse in bombay. At the bombay warehouse, the employees of the 3pl company will
package W, X, Y & Z together. (This is kitting) Then it will deliver the package to the customer
in vileparle.
Distances travelled (to the nearest 00) :
W (noida to bombay) : 1,400 km
X (madras to bombay) : 1,300 km
Y (bangalore to bombay) : 1,200 km
Z (hyderabad to bombay) : 800 km
W + X + Y + Z (bombay warehouse to customer in vile parle) : less than 50 km
Total distance travelled : 4,700 km
Distance travelled in option 2 is less than that in option 1. this implies less cost of
transportation and less transportation time. Hence, the manufacturer will opt for option 2.
{note that we have not considered the weights of the consignments. (In option 1, [W+X+Y+Z]
is transported from noida to bombay while in option 2, only W is transported over this
route.) Had the weights been considered, option1 would have been even more financially
unappealing.}
In option 1, kitting is done by the manufacturer itself. In option 2, kitting is done by the 3pl
company.

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ii.

packing
manufacturer might analyse his packing activity and might come to a conclusion that
a. he can earn more money by using the area devoted to the packing section, for a
manufacturing activity of another type, or
b. he can earn more money by leasing that area out or
c. it will be cheaper to carry out this labour-intensive activity far away from the city (in
which his factory is located) where labour is much cheaper.
Hence, he will then inform his 3pl company to carry out the packing activity and pay that
company for doing so.

iii. labelling
(reasons same as those for packing)
In short, activities i, ii and iii are activities outsourced by a manufacturer to 3pl company.

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do you notice any problem ?

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Dock leveller enables the loading personnel to solve the height-difference problem. Such a dock
leveller is called pit-d.l. or recessed-d.l. because it sits in a pit / recess beneath the dock floor,
behind the dock door.

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A dock-leveller (sold by bay equipment company)

see video telescopic dock-leveller
In simple cases, dock plates and dock boards are used. dock plates and dock boards are simply
metal-ramps. Dock plates are usually made of aluminium while dock boards are usually made of
steel.

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A dock plate sold by expresso uk ltd. It is made of aluminium, weighs 17 kg and can handle max
load 600 kg.

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A dock board made by copperloy co, having aluminium floor and steel side-curbs. (side curbs
prevent run-off)

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Dock plates / boards have a diamond pattern (embossed) on their upper surfaces, to prevent
slippage of wheels of the carts / vehicles using them.
A height differential of between 7 and 8 inches generally requires a 6-foot-long (1.8 m) leveller for
an electric pallet-carrier. A height differential of between 17 and 18 inches generally requires a
12-foot-long (3.7 m) leveller for a petrol-engine fork-lift.

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An ibc for liquids

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An IBC for food products

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Flexible ibc (fibc)

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fibc

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FIBCs sold by Waterplex co (of Australia)

Volume: up to 1,000 litres

All materials are certified as Food Grade
Filling and Discharge : Top fill and discharge
Two ply PE liquid film + PP fabric outer
Dimensions : 1050 wide x 1050mm long x 970mm high
Valve : PP 2" or 3" UM

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what is this ? (another pic below)

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Mezzanine
it is a flat surface constructed between the ceiling and a floor. (generally, it covers a part of the
floor, not the entire floor) Thus, it serves as a floor to objects placed on it and as a ceiling to
objects placed below it.
In industrial structures / buildings, a mezzanine is generally constructed from modulara steel
construction systems (angles, beams, floor plates connected by nut&bolts).
a --- modular => the components can fitted to each other in different ways to meet different
needs. Hence, the components are neutral of the final design of the structure / equipment. (that
is why, using modular kitchen equipment, a kitchen can be implemented in hundreds of designs)

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Pallet racks
Pallets are often placed on racks. This allows for storage of a quantity of pallets more than a
quantity had the pallets had been placed simply on the ground.

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pallets stored on racks

the above is selective pallet racking (depth of the racks = 1 pallet)

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what are these multicolour objects on racks ?

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Pallets are placed by forklift on nested carts riding on inclined rails. Each pallet is then pushed
back by subsequent pallet loading, exposing the next cart. When removing product, the forklift
takes out the front pallet, allowing the pallets on carts behind it to roll gently to the front of the
racking. in short, the nested carts enable easy placement and retrieval of pallets on the racks.

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Pic g
In the above pic of 3pallet-deep push-back racking, blue carts hold the rear-most pallets (first in,
last out) while the the red carts hold the front-most pallets (last in, first out). The yellow carts hold
the middle pallets.
See videos (2)

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what do you think this is ?

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Pic a

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Pic c

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drive-in pallet racking

What is the difference between systems shown in pics a & c ?
Pic a is of single-entry type
Pic c is of double-entry type. In this type, the rack system is stabilized by a beam in the center
(blue line).

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What do you think this is ?

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drive-through pallet racking

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