Why We Have A Warehouse ? 1. 2. 3. 4. 5.

To better match the supply and demand To consolidate the product To reduce the transportation cost To improve customer service To provide value added processing / deferred product differentiation

Supply Chain is the sequence of processes through which product moves from it origin to customer Stock Keeping Unit (SKU) is the smallest physical unit of a product tracked by the organization and unique identifier for each product / service Honeycombing can be defined as waste of space resulting from partial depletion and inability to use remaining space in the pallet. Tie is the term used to describe the pattern of boxes / cartons in a layer. Load Stabilizers Stretch Wrap, Shrink Wrap, Adhesive tapes etc., DC Operating Cost Receiving Put away Order Picking Check, Pack & Ship Returns % 15% 10% 55% (Travel 50%,Search 15%,Extract 15%,Paper/Misc 20%) 15% 5%

SKU / Pick Density If a warehouse area has high SKU density then it is likely to achieve high no. of picks Assigning Pick Face Locations for various SKUs 1. Calculate average cases / pcs picked per order 2. Calculate no of visits to the location (Pallet Qty/Average cases per order) 3. Arrange data in descending order - no. of visit to location 4. Higher the number, pick face should be closure to the shipping area Warehouse Layouts 1. U Shaped or Cross-docking a. Receiving and shipping located in the same side of the warehouse b. Appropriate when product movements has strong ABC skew c. Provides flexibility between Receiving and shipping d. More efficient usage of Fork Lift e. Limited set back area f. Expansion possible in other three sides of the warehouse

2. Flow Through a. Receiving and shipping is done in opposite sides of the warehouse b. Appropriate for high volume warehouse c. Preferable when building is narrow at receiving & shipping side of the warehouse

Assigning Fast Pick / Forward Pick Locations 1. Arrange sku wise data of (a) no. of LTP (Less than pallet) picks per pallet (b) Qty Picked (c) Pallet Ti x Hi or UPP 2. Calculate b / c x a and arrange data in descending order. 3. Lower the number, it is a candidate for direct pick from rack location. 4. Higher the number, most convenient locations to be allocated 5. If no of fast pick locations available are less, locations to be allocated from top of the list and sku in the bottom should be picked through direct pick from rack location. Slotting Slotting means assigning items or SKUs to the correct storage location. The goal is to make fast moving products easily accessible without large amounts of walking required to pick them. Determine where to store each SKU, what storage method to use and how much to store by capturing the following slotting measures: 1. Popularity: The no. of requests for a SKU during a certain period. 2. Cube-per-order: Average volume of the SKU per order 3. Volume: Total volume of a SKU shipped during the period. 4. Pick density: The number of requests per CBM of a SKU Points to be considers while slotting: - Increase picking accuracy by separating similar products to avoid proximity picking errors. - Reduce possibility of injuries by placing SKU in ergonomically best location - Reduce product damage by organizing heavier product first in the pick path, ahead of crushable product - Group products with similar case height for easy palletization & reduction of damages - Reserve/bulk stocks to be stored in the same aisle as fast pick location Re-slotting to done on regular frequency once in 3 months or whenever new product range is introduced since SKUs profile keep changing.