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Pressures on Warehouse
Supply
Make-buy analysis
Network Design
Receiving
Order quantity
Putaway
i improves product d t availability il bilit high volume, low cost transportation purchase economies JIT systems mass customization E-Commerce distribution
Warehouse Mission
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Traditional Functions
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Value-adding Roles
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storage location
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customization center
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flexibility center
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inventory handling
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shipping center
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Smaller, more frequent transactions Greater number of SKUs and customers More value added services More returns More international orders Faster cycle times Less margin for error L Lower skilled kill d employees l working ki with ih greater level of technology
PEOPLE
ASSETS
SPACE
Asset #1 - People
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Critical resource
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flexible
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intelligent
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economical
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Asset #2 - Equipment
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Supportive tools
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conveyors forklifts
promotes safety
Asset #3 - Space
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Scarce commodity y
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most difficult, costly and time consuming to expand cubic capacity must be used effectively aisle space must be minimized dead space must be avoided
Centre of Excellence - Supply Chain Management Institute of Logistics
Ownership of facilities
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Private, public, or contract? Site selection Location Design and layout Configuration and product layout
Facility development
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Labour operations
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Private
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owned d or l leased d facilities Rented facilities Partial use variation of public warehousing dedicated resources
Public
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Contract
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General merchandise Special commodity Cold storage Household goods Bonded--used to postpone import duties and excise taxes until g good is sold Bulk storage
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Warehouse Activities
Proportion of Time and Money Spent on Major Activities
60 50 40 30 20 10 0
Receive/Put-away Picking Shipping Support
Warehouse Activities
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Receiving
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all activities related to accepting freight from a carrier, evaluating the condition of the freight, and assuming ownership of the freight
Put-away
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all activities related to the movement of product away from the receiving area to storage locations within the warehouse or to the shipping area for immediate delivery
Centre of Excellence - Supply Chain Management Institute of Logistics
Warehouse Activities
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Order Picking
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the process of selecting goods from the warehouse and assembling them for customer orders
Replenishment
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maintaining an adequate inventory in picking locations for the timely selection of customer orders
Shipping
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the planning, consolidation, loading, and dispatch of customer orders from the warehouse facility
Shipping Principles
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Accuracy Related
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double check destination prior to loading mark products clearly provide driver with load diagram
adequate staffing
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proper scheduling to ensure productivity dont let replenishment get too far behind or ahead flex staff when necessary perform f accuracy checks h k sequence work effectively
Financial
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Productivity
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activity based costing Putaway accuracy Inventory accuracy Picking accuracy Shipping accuracy
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Quality
z z z z
Units shipped vs. vs hours used Storage density Equipment uptime Labor performance
Utilization
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Efficiency y
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Warehouse performance
Performance Analysis
Warehouse productivity [Lines per Hour]
25
2 24
12 120 75 0 48
99.97%
99.98%
2 95 99.5%
Warehouse performance
Dock to Stock Cycle Time
Institute of Logistics
Warehouse performance
Inventory Accuracy
Institute of Logistics
Warehouse performance
Shipping Accuracy
Institute of Logistics
Warehouse performance
Order Turns Times (Order Cycle Time)
Institute of Logistics
Focus of current logistics operators Improving customer service by working more closely with suppliers, customers & other partners in the supply chain
A WMS
Senior level executives now realize that the automated warehouse is as much a part of e-commerce and e-fulfillment as the Internet. - Supply Chain Yearbook
Warehouse Management
Implement a true execution system using system directed tasks and task management
RF / Barcode Only
Improve accuracy and reduce latency of existing transactions
Manual Inventory
Record transactions and track balances
Low
Small
Large
Business Pressures
Just-in-Time Delivery
How can I improve the speed of warehouse operations? How do I integrate operations to reduce order processing time?
Inbound Internal Processing
Guaranteed Availability
How can I improve order promise accuracy? How do I create a global view of inventory?
Outbound
Move
Transfer Customer Orders Returns to vendors Transfers Planning Purchasing Manufacturing Fulfillment Seamless S l Integration
Count
Benefits
Eliminates costly man al processes manual Meet customer needs Automates corrective actions Permits analysis Reduces packaging errors and costs Increases efficiency Reduces shipment and handling errors
Material Status
Automated task dispatches / instructions Multi tasking, Reduced travel times & ability to handle greater volume of material Streamlined faster receipt processing Directed put away Increased speed & efficiency of transactions Increased picking efficiency Packing & labeling Reduction in shipping errors Increased velocity of material flow Greater visibility & higher inventory accuracy Improved stock rotation & reduced obsolescence Reduction in inventory levels
Inbound processes:
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Outbound shipments:
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Inventory management:
z z z z
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Data entry needs: Reduced efforts & increased accuracy Process automation with material handling device integration
Resource Utilization
Locator Locator
Slot Dynamically Based on Velocity, Size, etc. Control C t l Hazardous H d Materials / Co-Mingling Handle Task Exceptions with Reason Codes
Optimize the Use of Storage Locations Minimize Mi i i Inventory I t Fragmentation Reduce Chance of Obsolescence
LPN, LPN content, LPN summary, material, serial, location, shipping, shipping contents, WIP contents Flexible configuration of labels Adapt to changing requirements
=
Barcode Support z Automatically Track All Related Product Information
z
Inventory Utilization
Receive
Inspect
Deliver
PutPut -Away
Inventory
Pick Release
Pick
Drop
Ship
Direct Receipt
Direct Ship
Directed Picking
Automatically group tasks & reduce picking time
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Resource Utilization
Wave Picking: Tasks dispatched line by line to picker Cluster Picking: Interleaving, sequencing tasks for various orders Order Picking: One order / job schedule at a time Zone Picking: All pick for order in a given location Bulk Picking: Picks for several orders from same location Pick and Pass/ Label Picking Paper Based & User defined Pick grouping
z z z
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Rules-Driven Processes
Flexibly Meet Business Needs
Directed Picking & Stock Allocation
Directed Put Away Task Assignment to warehouse workers Compliance labeling
Inventory Utilization
Transaction
(e.g. (e g Pick for customer shipment)
Business Rule for Stock Rotation: First look for lots with less than days shelf l th 30 d h lf life Then sort the available lots on the basis of FEFO
System Suggestions
Warehouse Labor Hours Inventory Write-offs Total Inventory Shipping Errors Management Time Inventory Counting Hours
Sources: eSync
Superior RF Architecture
Eliminating Middleware Eliminates Complexity
RF Base Station (Router) LAN or WAN Mobile Transaction Server Application / pp Data Base
RF Device
SQL Net
No Client
Lightweight
Scalable Central,
Choices traceability
Movement Vehicle Satellite ULD (air) Active RFID SemiPassive RFID Passive RFID Bar Code Paper Master Carton
Container (sea)
Pallet
Item
z
z
Barcode vs RFID
RFId
Read more than one item at a time
Barcode
9 9 9 9 9 9
8 8 8 8 8 8
Need for Physical handling to capture the media details Able to resist water damage
Computer System
Reader sends info/data to computer system for collecting, logging and processing
HF RFID
UHF RFID
Wifi RFID
Cordless Phone
Cell Phone
Microwave EAS
TV AM FM
10 KHz
100 KHz
1 MHz
10 MHz
100 MHz
1000 MHz
2.45 GHz
300 GHz
RFID
Shrink Wrappers
Pallet Jacks
Mobile Carts
Container
Bar Bar code & 2D labels Optical cards, tags, labels RF tags
Pallet
Bar code & 2D labels Optical cards, tags RF tags
Multipack
Bar B code, d 2D labels l b l Optical cards, tags Embedded RF tags
Part
Bar code, 2D label Inscribed part # Embedded RF tags
Pick to Light :
Features : Directs the picker with a light to indicate the pick location and number indicating the quantity
Pick to Display
Features : Directs the picker with a light to indicate the pick location, A number indicating the quantity, Can add text to the display and/or play an audio file to remind the operator t of f the th action ti they th are to t take, t k A digital image of the item being picked can also be added to the display.
Features : Facilitates two-way communication between warehouse workers and warehouse Management system (WMS) software. Warehouse workers receive verbal instructions (from the WMS) and respond verbally to them through a headset and microphone, working through a microcomputer that each employee wears on a belt. Voice recognition systems are paperless and, better still, leave employees eyes directly focused on the task at hand and their hands unencumbered.
Features : Facilitates two-way communication between warehouse workers and warehouse Management system (WMS) software. Warehouse workers receive verbal instructions (from the WMS) and respond verbally to them through a headset and microphone, working through a microcomputer that each employee wears on a belt. Voice recognition systems are paperless and, better still, leave employees eyes directly focused on the task at hand and their hands unencumbered.
Benefits : Improved productivity, reduced customer returns, reduced employee training, higher employee retention, more accurate inventory accounting. Applications abound, Order selection being the most widely used application. But also adept at handling receiving,put-away, replenishment, sortation, truck loading, and cycle counting functions.
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Working : The Host computer receives a work file from the Warehouse Management System (WMS), These text based instructions are converted into speech commands, The Instructions are placed in a prioritized queue, The worker hears the command, The worker confirms after execution by speaking into the head set.
Quantified benefits
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A retailers ware house handling 550,000 cases per month @ $15 a case, for total sales of $100 million a year, experienced : Order accuracy improved to 99.8% from 99.3%. Lost sales shrank to $200,000 from $700,000 Resulting gain of $500,000 exceeded the onetime cost of $450,000 to implement a voicerecognition system in this warehouse.
Consumer Goods
Packaging Perspective
Pallet Load
1000 kg
2 4 kg
15 - 24 kg
Laminate, Rigids,Cartons .
Strategic Tactical Operation
Retail pack
Promotions Consumer pack Retailer pack
Dist. Pack
X Secondary route Primary & secondary routes Secondary route Primary route In plant storage only
Retail packs
Hi-Cone Strapping Banding
Export
SKD vehicles packed in plywood Issues of crate fabrication, availability Difficult to unpack & dispose at overseas customer Eco unfriendly
STRETCH WRAPPING
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Wrapping is for holding the load & stability Wrapping for unitisation and protection from dust
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Selection of Material depends on the type of product, end usage and supply chain
Safe Product dispatches Blocking & Bracing-Air Bags & Void Fillers
Reduces the transit damages by securing the load firmly with the container No matter how tightly a load is positioned, either by fork truck or by hand, a build-up of small voids will remain. These voids are eliminated by air bag compacting and positioning the load for securement.