Case Study: Automated Shipping System Retrofit for

E-Commerce Fulfillment Center 

overhead view of e-commerce fulfillment and shipping center

Overhead view of Fulfillment and Shipping Facility. (photo credit: SilMan Industries)

PROJECT SCOPE  

System Integration, Design & Engineering, Consultation & Analysis,  Project Management, Mechanical & Electrical Engineering, Warehouse Controls Systems, Millwright/Mechanical & Electrical Installation

INDUSTRY

E-Commerce Retail

The Warehouse Automation Situation

Article Summary

Distribution and fulfillment centers commonly face challenges related to inefficient order fulfillment processes, limited capacity, accuracy, and responsiveness. Outdated warehouse automation systems such as sorting and conveyance equipment combined with constrained facility footprints make it challenging to handle fluctuating order volumes and meet rising consumer expectations for speedy delivery. 

The SilMan System Integration Team tailored a shipping system retrofit to overcome these universal growing pains for a leading distribution e-commerce operation through various upgrades. These upgrades ranged from new high-speed automated sortation systems to custom-engineered equipment integrations and retrofits. 

Our one-team philosophy provided unmatched value via seamless collaboration and accountability across design conception through ongoing post-implementation support. With in-house professionals executing every project phase, SilMan once again demonstrates its commitment to a vibrant vendor-client dynamic that fosters true partnership.

Automated Warehouse Project Overview

The project centered on a major upgrade to an existing fulfillment center’s automated shipping sorter system, aimed at enhancing sorting capabilities. The client wanted to increase the number of shipping sort destinations from six to twenty-two. This expanded granularity would enable higher volumes of orders to be processed while also reducing labor hours and decreasing the overall time it takes to fulfill and ship orders.

The upgrade was performed within the facility’s existing footprint, which added a layer of complexity to the project. However, SilMan Industries provided an integrated solution that involved the replacement and reconfiguration of conveyor systems, print-and-apply stations, and other critical components of the fulfillment process. The newly upgraded system will handle over 40 units per minute, effectively increasing the client’s order fulfillment capacity and adding granularity to the sortation process.

The Warehouse Automation Challenge

The automated shipping system project presented several pivotal challenges that demanded SilMan Industries tap its substantial creative problem-solving capabilities and conveyor systems design expertise.

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Integration with Existing Sortation Systems

Creating a unified system required seamlessly integrating the new sorting equipment and conveyors into the fulfillment center’s current order pack-out infrastructure. Furthermore, the full integration and installation were to be completed within two weeks. This integration was critical for continued operations and highly complex, given the need to bridge new and legacy technologies. The SilMan team conducted in-depth analyses of requirements to craft the solution.

Space Optimization for Warehouse Automation Systems

The project required the development of an optimal layout that added significant functionality within the facility’s confined existing footprint. Expanding the facility’s square footage would have added excessive costs, and delays were not an option. Creative space planning was vital. By rethinking the positioning of infrastructure and streamlining flow paths, the SilMan solution minimized the area consumed.

Handling Conveyor System Diversity

With the expanded conveyor system capabilities, efficiently processing a wider diversity of carton sizes and polybag package types was mandatory. This required various automated components to convey objects of varying shapes and weights gently yet securely. The result handles the entire spectrum of dimensions and weights at peak efficiency.

Throughput Distribution Enhancement

Increasing order processing capacity to handle higher rates during peak demand surges was deemed mission-critical to support the client’s rapid growth trajectory. Yet the bottlenecked nature of existing infrastructure made getting there exceptionally problematic. Only by tapping decades of conveyor throughput expertise and the latest technologies could SilMan enable this leap in speed and precision.

Through deep vertical knowledge and collaborative culture, SilMan Industries engineered solutions to these warehouse distribution challenges. The resulting materials handling breakthrough sustainably increases output within a zero-footprint expansion.

Warehouse Automation System Solution

SilMan Industries engineered a multi-pronged technical warehouse automation solution leveraging its broad in-house expertise:

Advanced Sorting Technology

Installing a high-velocity 22-destination TGW/MHS bi-directional NBS sorter was pivotal for radically enhanced sorting accuracy tied to zip codes. This robust, industrial-grade equipment offers the configurability needed for future growth and peak loads.

Warehouse Distribution Equipment Retrofitting

SilMan’s intricate understanding of material handling synergies enabled the incorporation of existing conveyors, scanners, and other automation devices, saving costs and minimizing changes. Targeted new conveyor modifications, such as a spiral curve, were required to complete the system.

Custom Engineering Design

With every client’s operational environment unique, SilMan deployed its engineering teams early on to create tailored mechanical, electrical, and controls designs that  matched the client’s precise specifications, equipment, workflows, and objectives. No off-the-shelf solution can deliver such a customized fit.

Controls and Software Integration

To enable a unified infrastructure, SilMan utilized UNISON, the company’s proprietary WCS, for advanced standardized controls and software for seamless communication between the sorters, label applicators, scanners, print/apply, in-line weight and dimensioning, and the client’s warehouse management system. This interconnectivity delivers real-time visibility and responsive automation.

On-site and Remote Support

SilMan leveraged both on-site and remote support staff before, during, and after deployment to methodically align all hardware, software, and controls for precision performance. Ongoing fine-tuning and refinement continue to optimize uptime and throughput.

By leveraging SilMan’s breadth of experience in delivering bespoke materials handling solutions, the comprehensive solution elevated a constrained facility to new heights of efficiency, precision, and scalability.

Projected Fulfillment Impact

By all key metrics, the fulfillment center upgrade is expected to deliver tremendous benefits:

Increased Fulfillment Capacity

The state-of-the-art sorter and optimized layout empower the facility to handle higher throughput, which directly expands the volume of orders that can be fulfilled daily.

Reduced Labor, Time, and Shipping Costs

Automated sorting and conveyance substantially reduce manual labor requirements and processing durations. Orders traverse the system rapidly to accelerate delivery timelines and provide precision during internal package sortation.

Furthermore, zip code level specificity provides efficiencies to the client’s parcel carrier, reducing the client’s shipping expense.

Error Reduction

Advanced controls, full integration between equipment, and accuracy-enhancing updates have minimized the opportunity for human errors, improving quality assurance and client services.

Together, these impactful improvements will drive significant productivity and throughput gains long into the future. Easily quantifiable reductions in operating expenses combined with enhanced client service levels deliver a high return on investment that cements the solution’s success. With labor shortages and demand uncertainty, the upgrade’s gains become even more crucial over time.

Innovative Outcomes for Distribution, Parcel & Manufacturing 

SilMan Industries takes a multidisciplinary approach to providing comprehensive solutions for industrial and warehouse clients. In-house design, engineering, fabrication, controls, installation, and project management capabilities, paired with self-performed civil, mechanical, and electrical teams, SilMan operates as one team able to handle complex system integration projects. 

Discover more about the in-house Material Handling Solutions that drive SilMan’s one-touch “Under One Roof” service.

Automated Fulfillment System Equipment

Project Partners

Conveyor MHS / TGW
Print/Apply Panther
Scanners Cognex
In-Motion Scale Wipotec
Warehouse Control System SilMan Industries, Unison WCS

SilMan Your Partner for Industrial Projects

SilMan Industries’ integrated approach to project logistics brings immense value by consolidating all required capabilities under one roof. By self-performing nearly every aspect of complex industrial upgrades while facilitating collaboration across involved stakeholders, SilMan delivers solutions optimized for the singular challenges at hand rather than imposing one-size-fits-all prescribed applications.  

This multidisciplinary coordination perfectly addresses the intricate obstacles confronting high-volume distribution and fulfillment centers. SilMan offers turnkey account ability spanning conceptual engineering reviews to post-implementation enhancements by directly owned expertise: 

  • Structural, mechanical, electrical, automation, controls, and software domains 

This enables both holistic assessment during planning phases and agile corrections when unpredictable hiccups emerge during execution.

Rather than transactional vendor relationships, SilMan strives to build long-term partnerships empowered by accountability, transparency, effective communication, and relentless commitment to quality. Getting every detail right is personal for the tight-knit SilMan team across technical competencies and project management. 

Moreover, by providing ongoing support, SilMan ensures continuous optimization after go-live rather than disappearing, as many Integrators do. This emphasis on adding value above and beyond initial contracts establishes trust–the essential currency for partnerships poised for expansion.

About the Company

SilMan Industries (previously SilMan Construction) is based in San Leandro, Calif., with Engineering and Field Operations offices in Tupelo, Miss. The firm provides integrated turnkey solutions in the Industrial, Manufacturing, Distribution, and Public Works sectors.

Notably, in 2010 SilMan Industries was contracted to dismantle and remove the NUMMI assembly line in Fremont, Calif., transport the equipment, and reinstall the system in Blue Spring, Miss., establishing Toyota Motor Manufacturing Mississippi (TMMMS). This high-visibility project ignited the company’s meteoric growth, laying the foundation for SilMan’s national service area.

For more information, please visit www.silmanindustries.com/about.

Frequently Asked Questions for Shipping System Retrofit

Is a shipping system retrofit more cost-effective than building a brand-new fulfillment center?

Yes, often significantly. A shipping system retrofit is more cost-effective than new construction because it utilizes the existing facility footprint and structure, minimizing expensive civil construction. The capital investment for a retrofit focuses primarily on technology like new sorters and controls. SilMan's integrated approach bridges new and legacy equipment to maximize ROI within a tight budget and timeline.

How do you minimize operational downtime during a major sorter system upgrade?

Operational downtime is minimized by implementing a strategic, phased plan that can be executed during non-peak hours or planned facility shutdowns. The key is precise coordination and self-performing the mechanical and electrical work. For this project, the full integration and installation of the 22-destination sorter were completed within a strict two-week window to ensure continuous operation.

What is the biggest challenge when integrating new automation with a legacy conveyor system?

The main challenge is achieving seamless data flow between new automation and legacy equipment. This requires updating the Warehouse Control System (WCS) and the controls layer. SilMan addresses this by using its proprietary UNISON WCS to unify the communication between modern high-speed sorters, older conveyors, scanners, and the client's existing Warehouse Management System (WMS).