Impact of new identification and tracking technologies on a distribution center

Automatic identification is a broad term given to a host of technologies that are used to help machines identify objects. Automatic identification is often coupled with automatic data capturing technology as companies with interests in logistics want to identify items, capture information about them and somehow enter the data into a computer without having employees type it in. The aim of automatic identification systems is to increase efficiency, reduce data entry errors, and free up staff to perform more value-added functions. This paper addresses different issues related to the use of new automatic identification and data capturing technologies in Distribution Centers, paying special attention to another important effect of the use in these facilities of such technology: the automation of Material Handling operations to foster flexibility of internal routing. After presenting a specific highly automated distribution facility, this work analyzes the impact of those new developments. Some layout changes are proposed and duly justified, leading to the proposal of new approaches to be used for future designs.