Creating cost efficiency by reducing injuries in the warehouse
Jul 27, 2010 Comments (0)
But with so many issues effecting businesses in today's economic climate, why are material handling problems such a concern? Pieter Feenstra, Managing Director of Swisslog UK believes that the answer lies in the "anticipated tightening of legislation and of increased awareness surrounding the many repercussions of staff injury caused by badly designed material handling solutions." Companies wising up to these impacts are keen to improve their solutions to eliminate injuries in the warehouse and also to reduce the associated costs. "This is reinforced by rising costs in other parts of the supply chain as companies seek to create overall cost efficiency," says Pieter.
Impacts of injuries
Impacts of sickness absence costs alone can be substantial. Research shows that the total cost per employee per year of sickness is approximately 9% of payroll costs, but "companies should also consider other (often hidden) costs such as increased insurance premiums incurred by accidents caused in the workplace," advises Pieter. "MSDs and back pain alone costs UK employers 600m per year without considering other incidents often common to warehouse environments such as trapping or crushing body parts / clothing."
Injuries also lead to reduced productivity; either of an individual who continues to work whilst in discomfort or of a complete site, where productivity can be quickly affected by a reduced workforce. "This can soon lead to customer orders not being satisfied and thus result in serious financial penalties," says Pieter.
Companies are also faced with tightening material handling regulations throughout Europe. "Whilst the UK often lags behind some other European countries, more stringent regulations are soon expected to be enforced here too," predicts Pieter. "Specifically, the maximum limit for weight manually lifted per shift is soon expected to be lowered throughout the EU which will have major implications for any site with manual operations in place." Within Europe, Denmark's material handling regulations are possibly the most strict. Whilst still based on European regulations, Denmark's interpretation places employee welfare at the highest priority regardless of the effect on costs. This strict outlook sees Denmark paving the way for the rest of Europe.
Resulting Trends in the Industry
The many issues surrounding injuries in the warehouse discussed above provide companies with a strong business case for investment in improving their material handling solutions and are clearly driving a trend towards less intensive manual automation. Since it is evident that employee productivity can be increased by automating certain processes within a warehouse, more and more companies are looking at the many options available; a popular option being pockets of automation (standalone areas of automation, only where justified). "Fully automated picking/packing solutions in particular can enable large efficiencies," says Pieter, "especially in the retail industry where e-commerce has taken over a large percentage of total orders demanding picking solutions to deal with smaller and more sophisticated orders."
As companies are keen to reduce the strain which heavy lifting can have on employees, the UK also sees a drive for innovations in ergonomic pick/pack stations where lifting is replaced with sliding at ergonomic heights. "Such solutions have been proven to reduce work related injuries, increase operator productivity and ensure a comfortable working environment. When employees are comfortable, they can work for longer periods and are more likely to improve productivity levels."
Swisslog has worked with a number of customers to provide ergonomic solutions and reduce the costly repercussions caused by MSDs and other injuries caused in the warehouse. Experienced system designers can identify and propose often simple changes to a site layout, which can have a huge impact on its daily productivity. An example of such a modification is an ergonomic work station installation for a leading retailer (pictured). "Here, a sloped discharge shute delivers garments to the ergonomic work station where the operator places them into storage totes, thus eliminating the need for the them to twist and turn," explains Pieter. Another example is for a major European book distributor (also pictured) where "heavy books are collated into cartons on a sliding pick table."
It is only a matter of time before UK regulations are tightened and companies should start to prepare for this now.