Awana Clubs uses a voice picking system to reduce errors and speed returns and replenishment.
Order errors were having a direct impact on
Awana Clubs International’s bottom-line performance.
Its error rate averaged 9% and could
climb as high 40% during its busy season providing
youth and children’s ministry programs and materials
to more than 12,000 churches in the U.S. and 4,100
churches outside the country.
Awana’s (Streamwood, Ill., www.awana.org) 82,000-
sq.-ft. distribution center in Schaumburg, Ill., ships directly
to registered churches and stocks 2,400 items,
ranging from books and pamphlets to games, trophies,
apparel, and small novelty items such as pens, pins, stickers and bookmarks. The DC
handles more than 160,000 orders
per year, with an average of nineplus
items per
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order. It averages 20
items per order during its peak season
from August to October. To better
serve customers and improve efficiency,
the non-profit organization
has implemented voice technology
throughout the DC.
Seven years ago, it took Awana 11
days to ship an order. “We started
making a lot of changes to meet the
goal of ‘out the door in 24 [hours],’”
explains Steve Hale, director of distribution.
The company added a
second shift and hired temporary
workers during its busy season.
These changes enabled Awana to cut
its shipping time to one day for 99%
of orders, but created new problems.
“When we brought in temps, there
were tons of errors,” Hale says.
Following its paper-based process,
products were picked and sent to
packing stations where 70% of orders
were audited. During the busy
months, only 50% were checked before
shipping. As a result, many orders
were shipped with errors at an
estimated $13 cost per error.
The problem was alleviated with
the implementation of voice-picking
technology from Lucas Systems
(Sewickley, Pa., www.lucasware.com).
Awana chose to use the voice system
from Lucas, named Jennifer, because
of its lower cost, the promise for a
faster return on investment, and easy
acceptance by employees. Installed
in 2004, use of the system expanded
incrementally in 2005 and 2006.
Awana now uses voice technology
to support receiving, replenishment
and returns processing.
Flawless
Implementation
The implementation process was
lead by a team of Lucas engineers
and Awana staff. Lucas took the lead by asking questions, setting parameters
and determining what needed
to be accomplished before the system
was deployed. The information collected
was used to create an engineering
study that was used to guide the implementation of the voice-directed
picking system.
Lucas customized the technology
to fit Awana’s order fulfillment processes
and requirements. Included
were new label printing, short filling and quality control capabilities. Hale says he was
pleased that the Lucas engineers did not propose any
changes to his operations unless the change could improve
processes already in place.
“The implementation was flawless. The key is to
manage the project closely and keep an eye on the
milestones. You must have someone on your side that
knows your system inside and out. You can’t just expect
the vendor to do it all,” Hale says.
The voice system tells order pickers which items
and what quantities to pick. Pickers verbally confirm
(using a three-digit check string printed on the item
location) the quantities and items as they are placed in
the appropriate tote for the order. According to Hale,
verbal confirmation plays a big part in improving accuracy—
incorrect counts were its number-one cause
of errors. Pickers also tell the system if a slot is empty.
The system immediately relays that information to
managers and employees at a short filling area.
Besides voice picking capabilities, Lucas also helped
install quality control functions using barcode scanning
at the packing stations. From a maximum of 70%
order accuracy before voice technology, Awana is now
checking every order that ships. “Our order accuracy
out the door is virtually 100%,” Hale says.
Accuracy and productivity gains resulting from the
voice technology exceeded expectations. “Jennifer
paid for itself in less than 13 months, and we didn’t
even capture the full cost benefits of fewer errors.”
Beyond Order Picking
In 2005, Awana started rolling out Jennifer in other
areas. “While accuracy was the main goal of the picking
application, productivity was the big driver for
adding voice in returns, receiving and replenishment,”
Hale says.
Previously, employees in the returns area would
manually look up customer and product codes and
tag each returned item with the appropriate location.
With the voice technology, they say the customer or
invoice number and the item number, and the system
instructs them to place the item in a numbered tote.
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