May/June 2005

By introducing voice picking, Argos has improved on an already impressive pick accuracy rate, and in the process has acquired some useful insights into effective deployment. Sharon Clancy reports

You might think a pick accuracy of up to 98.5 per cent on store replenishment operations would be considered impressive enough, especially in an operation on the scale of Argos, one of the UK's leading multi-channel retailers. The organisation has to deliver to no fewer than 600 stores, dealing with up to 17,000 stock-keeping units in larger stores.

However, in 2004 Argos began moving its store replenishment distribution centres over to voice- rather than paper-based picking; and on these operations, pick accuracy has since risen to a remarkable 99.8 per cent.

Because Argos was continually on the lookout for ways to improve accuracy and performance, right back in 2000 it started monitoring voice-based picking system development, waiting for systems to become more technically advanced and robust.

 

By 2003 the time had come, and a small pilot was launched at the Basildon distribution centre, using a Voxware voice application. The exercise was restricted to the mezzanine floor of the warehouse, explains WMS project manager Eddie Mcgilveray, because the deployment involved not just voice, but also a change from the narrow-band RF frequencies used by Argos previously to spread-spectrum.

"We wanted to avoid the cost of deploying spread-spectrum technology until we had proof that the solution we were planning would work in practice," Mcgilveray explains. So the pilot used just two wireless access points.

Argos chose Voxware partly because this supplier's architecture supported Argos's warehouse management systems, and also because the long-life batteries available on second-generation voice terminals would last a whole shift. Mcgilveray also thinks the organisation may benefit from being an early user of Voxware products in Europe, and working directly with the manufacturer rather than through a reseller. "We hope that our experience can help shape development on the equipment and ease of use, which will benefit us directly in the future," he says.

The trial taught Mcgilveray and his team some valuable lessons, which they were able to use to ensure success in the wider deployment. "The technology was going to be critical to our operations, so we could not afford to have any problems."

Argos is now reassured that the system is indeed resilient, but the organisation still maintains its paper back-up, partly for flexibility. Voxware's VoiceLogistics application integrates the voice capability with Argos's OMI Triceps WMS, which can still issue paper pick lists if there is a problem with the voice system or a shortage of employees trained to use it.

Mcgilveray recommends integrating the voice application with the WMS. "It maximises flexibility and speeds up the roll-out to other distribution centres. You can always configure the pick as a paper or voice, and you can train workers in small groups at a sensible pace."

The Basildon pilot proved so trouble-free that roll-out to other DCs was started in July 2004 in Mossend, with Wolverhampton being rolled out through peak trading. "We would not normally consider any operational changes at peak sales times, but we were confident that we could pick using either method," Mcgilveray says.

"The trial and initial deployment provided valuable feedback as to how we should set up the RF network and WMS interface - it was a good learning experience all around," he explains.

"Voice experts know about voice and RF vendors know about RF. Putting the two together is not just a plug-and-play exercise." For example, says Mcgilveray, while OMI had previously interfaced its product with voice applications on Triceps, it had not done this on the customised application Argos was using.

Communicate

There is a general resistance to change in any workplace, says Mcgilveray, who strongly recommends that both managers and floor staff be included in the project team on an exercise like this. "We did that, and it meant if there were any concerns and issues they could be raised at an early stage." As well as reassuring staff that voice technology helps to achieve improved performance through removing effort, Argos managers also focused on the health and safety gains of voice - on benefits such as the fact that eyes-free and hands-free operations make for a safer working environment.

Benefits

Performance gains have been achieved not because people are working harder, but because of small improvements in the way they carry out pick operations. They no longer have to tick boxes or attach labels to items, for example. "You also get good discrete information about the operation," says Mcgilveray. "There is real-time information, and updates on picks have been shortened, for example."

Pick accuracy has improved to 99.8 per cent, compared with 98.5 per cent on non-voice sites. "A one per cent rise in pick accuracy may not sound like much," admits Mcgilveray, "but when you are shifting millions of items a year, that results in a huge improvement in our operations."

The other major benefit has been a reduction in staff training time - something that has become increasingly significant in view of the gradual increase in the number of multilingual workers in the UK. Because the Voxware system uses voice recognition, all it needs to know is how a particular employee responds to a given word or number prompt. The response can be English with a Scottish, Welsh or Cornish accent, for example, or in Polish, Spanish or Bulgarian.

The future

The voice system is currently deployed at Mossend, Wolverhampton and Basildon, and is used by over 200 Argos employees. By October, more distribution centres will be using voice applications. However, Mcgilveray and his team are investigating extending voice beyond picking to include loading and reverse flow operations such as overstocks and returns. "Once you are committed to voice you have to sweat the asset to maximise the ROI."

Making the most of voice picking - Six tips from argos

1. When deploying voice, consider the life of the implementation. Can it be used with future planned developments?
2. Do engage the staff as early as possible.
3. Emphasise working smarter, not harder.
4. Stagger staff training, especially during seasonal peaks.
5. Consider which operations voice applications might be deployed on besides picking to maximise your investment.
6. Do maximise the flexibility that VoiceLogistics integration with the WMS gives you to cut down on non-relevant phrases; it shortens staff training times. Use extra prompts to ensure accuracy on high-risk items. Maximise beginner and expert modes in peak seasons to enable new and temporary staff to use voice.

Argos Fact file

• Argos is part of GUS plc, a catalogue-based multi-channel retailer.
• UK's largest non-food retailer by sales volume with $3.4 billion sales in 2004
• 28,000 employees
• 600 stores with up to 17,000 SKUs in larger stores
• 66 per cent of UK households have an Argos catalogue
• 14 distribution centres:

  • 6 RDCs
  • 3 DCs for store replenishment
  • 3 for large goods home delivery
  • 2 for small goods home delivery