1. Swanson
Health Products
Optimization of the order picking process
through gradual automation
Case Study
Swanson Health Products
Fargo, ND, USA

2. case study - Swanson Health Products
Health consciousness advocate
Swanson Health Products, a leading direct - to - consumer marketer of dietary supple-
ments was founded in 1969 by Leland Swanson, Sr. Swanson Health Products is the
realization of one man’s dream of bringing wellness to the world.
Today, the company, run by Leland’s son, Lee, carries
on that dream, reaching millions of health conscious
people in the United States and around the world
via mail order catalogs and an expansive website.
The products range from vitamins to dietary supple-
ments, natural products for hair, skin and nail health
as well as healthy foods.
The 140,000 ft2
(13.200 m²) warehouse, located in
Fargo, North Dakota, is in the same building as the
core activities of the company such as professional
positions, call center and customer care center, as
well as manufacturing and distributing. The company
offers around 15,000 products, which are shipped
globally, and is committed to the highest level of ser-
vice possible, offering a 100% satisfaction guaran-
tee policy. In addition to the Fargo facility, Swanson
Health Products operates distribution facilities in
the Reno Nevada area and Harrisburg Pennsylvania.
 Conveying system  Filling point
 Schaefer Carousel System and workstation u S-Pemat - Collecting Belt

3. The collaboration with SSI Schaefer first started in
2006 when Swanson Health Products (SHP) turned
to SSI Schaefer’s expertise in leading distribution
technologies in order to undergo a remodeling of its
order picking processes at the Fargo facility. The de-
cision came in the wake of a significant growth in
market demand which resulted in a rapid expansion
of the product range.
In this competitive market, SHP was compelled to
reorganize its warehouse to offer optimal quantities
with a high service level and short delivery times,
and to optimize the distribution service process.
The success of the first project that resulted in the
flawless installation of an SSI Schaefer Carousel Sys-
tem convinced SHP to choose SSI Schaefer as a long
term partner to help the company increase the effici-
ency and the capacity of its warehouse step by step.
Base of partnership with SSI Schaefer: Project Objectives / Requirements:
The main challenges were:
`` Short installation time during ongoing operations
`` Adaptation of several new interfaces within the
existing systems
`` Respond to the changing needs of the customer
with flexibility
The principle objectives were to:
`` improve the order picking accuracy and throughput
`` increase the quality of service
`` grow the available product range
`` improve the worker interface with
the automated systems
`` improve the information flow
`` increase the number of orders per day
`` increase the warehouse capacity and the
inventory management visibility

4. case study - Swanson Health Products
Solution by SSI Schaefer
SSI Schaefer designed the automated warehouse in Fargo in several phases hand
in hand with SHP, in order to reveal the company’s potential, one change at a time.
Phase 3:
Extension of the Schaefer
Carousel System - 2011
In 2011, a cluster of four
additional SCS modules and
a 2nd
pick-to-tote workstation
were installed in order to
maximize productivity and
throughput. The second
system allowed SHP to
reduce operational cost and
increase fulfillment volume.
During Phase 3 the SMC
was integrated into the SCS
sytem in order to provide
inventory replenishment
on demand to all 8 SCS
modules.

5. Phase 1:
Sufficient storage capacity
with the implementation of
a Schaefer Carousel System
- 2008
In 2008, SHP decided
to equip the warehouse
with a Schaefer Carousel
System (SCS) to provide
sufficient storage for the
increasing number of SKUs
and for future growth of the
product range. The system,
which included three high-
density storage modules,
became fully operational
in September of 2008. In
June of 2009, an additional
high-density module was
installed to help with the
addition of new SKUs.
Phase 4:
Automation of the fast mo-
vers with the implementati-
on of the A-Frame - 2011
After the automation of slow
movers, the increase in
storage capacity, and with the
optimization of productivity,
SHP took a big step towards
efficiency and decided to au-
tomate the fast moving area.
SSI Schaefer therefore
implemented an A-Frame for
the picking of the approxima-
tely 400 fastest SKUs.
Phase 2:
Dynamic storage & retrieval
of the slow movers with the
installation of the Schaefer
Miniload Crane - 2010
In 2010, Schaefer imple-
mented a one aisled SMC
combined with a “Goods to
Person” workstation and
thereby automated the
company’s slow moving
area. The system was
integrated to optimize
performance and space, and
allowed SHP to extend their
SKUs range by an additional
5,000 to 7,000 – SKUs.
Phase 5:
Future implementation
of an additional Miniload
Crane due to the further
increase of SKUs.
According to the SSI
Schaefer Director of
automated systems,
Ross Halket, “The key
factor to the success of
this project relies in the
great communication
and the deep respect
that the companies have
for each other. SHP
trusted SSI Schaefer
with this solution and
SSI Schaefer took it
upon itself, as a reliable
partner, to empower SHP
and help the company
successfully take its first
steps into the world of
automation.”

6. case study - Swanson Health Products
SHP has installed one SCS - eight carousels; two
pods of four. The installation happened in three sta-
ges over four years. There was one Miniload instal-
led in 2010 and one A- Frame in 2011.
The Schaefer systems all interfaces with SHP’s
AS400. The SHP management information system
team worked with the Schaefer team to integrate
the two systems and continues to work together
to troubleshoot issues. The SSI Schaefer systems
have had a positive impact on the SHP facility. They
have helped to increase productivity, reduce labor
costs and lower cost per order.
Schaefer Carousel System - High dynamics in the
most confined space:
`` The Schaefer Carousel System is a storage
and retrieval system that follows the “Goods to
Person” principle.
`` The system installed in Fargo is composed of
two clusters of four modules connected to two
Pick to Tote workstations.
`` The SCS helps increase the picking and storage
capacity with a performance of up to 250 double
cycles / carousel per hour.
`` It also allows for a 50% gain in storage density
(11,264 storage places) and offers the possibility
of an unlimited product range as well as the pre-
cise administration and checking of inventories.
Schaefer Miniload Crane - The storage and retrieval
unit for maximum storage capacity:
`` The Schaefer Miniload Crane is the perfect solu-
tion for maximum usage of vertical storage and
minimum use of floor space at the same time.
`` The one-aisle Schaefer Miniload Crane (SMC)
implemented in Fargo was installed for the
storage and retrieving of the slow movers in the
warehouse.
`` With a load capacity range from 110 lbs to 660
lbs, (50 kg to 300 kg), a length of 150 ft, (46
m) and double-deep storage with one tower, the
SMC installed in Fargo can achieve a perfor-
mance of up to 180 double cycles per hour.
`` The SMC offers storage capacity of 9,024
storage locations and therefore perfectly meets
SHP’s requirements in terms of maximum use of
space as well as short order lead times.
A-Frame - Automatic picking system for fast
moving products:
`` SSI Schaefer equipped the warehouse with
an A-Frame to hold some of the high volume
products. The particularity of the system instal-
led is that it is used for the picking of round
products only.
`` The system implemented in Fargo consists of
10 modules each with 72 channels where the
products are stacked vertically and the orders
are handled at a rate of 4 items per second.
`` The vertical stacking system design allows for
short distances for replenishment while the
machine is operating to fill orders. This helps
increase the productivity and contributes consi-
derably to the excellent cost/performance ratio
of the system.
Customer
Statement
“ SSI Schafer provided a
systems approach which
included all aspects of
material handling, goods
to man and fully automa-
ted picking methods. This
integrated design allowed
Swanson Health Products
to develop a relationship
with one supplier in order
to maximize productivity,
increase throughput and
most importantly improve
customer service levels.”
(Statement from Terry Kraft,
Director of Operations,
Swanson Health Products)
Implemented SSI Schaefer Systems and their
impact on the Client’s Facility

7. Facts and Figures
System Key Figures
Our Scope of Supply and Services
Conveying System
Carton conveyors for different carton sizes
Picking Systems
Automatic Picking
S-Pemat 10 modules
Channels/module 72
Semi - automatic Picking
Pick to Tote Workstations 3
Storage & Retrieval Systems
Schaefer Carousel System 8 modules
64 carriers
22 Levels
11,264 Storage places
Schaefer Miniload Crane 1 Aisle
9,024 Storage places
Totes
Totes with dividers – seamless integration of load units with equipment; more SKUs per cube
Software Solution
WAMAS C
Warehouse Size 140,000 ft2
(Building is 220,000 ft2
)
System Size 108,000 ft2
(10,000 m²)
SKUs 15,000
Units/Day 55,000 – 70,000 (Fargo Facility)
Degree of Automation 85%
Number of Shifts/Day 2 Shifts of 8 hours

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