For the last eight years, HCL Logistics has been fulfilling an especially challenging role—supplying defense contractors with critical equipment and parts that are used to manufacture land-based military vehicles.
Like many growing companies, HCL Logistics, based in London, Ontario, reached a point where its existing warehouse setup was no longer meeting its needs. Rather than laying new pieces of equipment or software on top of the problem, the company instead searched for a strategic, end-to-end materials handling solution.
That year, it test piloted two vertical lift modules (VLMs). As automated high-bay warehousing systems that are equipped with modular designs that operate on the goods-to-person principle, the VLMs handled the kitting portion of a specific customer’s contract.
“Once the two units were installed, we used a wait-and-see strategy to see how they would work for us,” says HCL Logistics president Tim Van Holst, who noticed positive results soon after the installation, including 10 times more employee efficiency. “Based on the efficiencies and the space savings that we gained, we grew the system from two units to 21 VLMs.”
Combined with a high-density pallet system and narrow-aisle racking, the setup reduced HCL Logistics’ required warehouse space by about 100,000 square feet. And, to further round out its end-to-end solution, it also installed a radio shuttle system to move large items that once required considerable navigation and logistical coordination.
“Our radio shuttle is positioned about 30 feet away from our receiving area,” Van Holst says. “Our larger products now occupy a 4 x 4-foot skid, which equates to about a 50% space savings for the area where we store our larger materials.”
“We’ve seen a 15% efficiency improvement as a result of the VLMs and the wire guidance system that’s incorporated into them,” he adds. “For large products, the radio shuttle system has doubled our efficiency, in terms of shortening up the amount of driving and materials handling time.”
Other key gains include inventory accuracy improvement—from a previous 98% to a current 99.5%. Cumulatively, Van Holst estimates that the solution could potentially save the company $3 million a year on adjustments and inventory alone.
Kardex Remstar
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