5 Ways To Improve Warehouse

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5 ways in which a company can improve their warehose operations.

5 Ways To Improve Warehouse

  1. 1. 5 Ways to Drive the Most Efficiency from Your Warehousing Operation Drew Forte Director Supply Chain Improvement
  2. 2. Agility in Logistics <ul><li>Agility has emerged as a key theme in supply chain execution… </li></ul>|
  3. 3. Agile Execution | “ Everybody’s got plans … until they get hit.” <ul><li>-Mike Tyson </li></ul>
  4. 4. Agility in Logistics <ul><li>Hits to the plan: </li></ul><ul><ul><li>Supply disruptions </li></ul></ul><ul><ul><li>Port congestion </li></ul></ul><ul><ul><li>Weather events </li></ul></ul><ul><ul><li>Customs delays </li></ul></ul><ul><ul><li>Inland delays </li></ul></ul><ul><ul><li>Demand variation </li></ul></ul><ul><ul><li>SKU proliferation </li></ul></ul><ul><ul><li>Changing sizes and characteristics of items being handled </li></ul></ul><ul><ul><li>M&A </li></ul></ul><ul><ul><li>Increased multi channel commerce </li></ul></ul><ul><ul><li>High fuel costs </li></ul></ul>|
  5. 5. Agility in Logistics <ul><li>Keys to surviving a hit: </li></ul><ul><ul><li>Visibility of the event </li></ul></ul><ul><ul><li>Broad impact assessment </li></ul></ul><ul><ul><li>Rapid re-planning </li></ul></ul><ul><ul><li>Effective execution </li></ul></ul>|
  6. 6. Warehouse Strategy – WHY? | <ul><li>The top pressure companies face is to “do more with less”. </li></ul>|
  7. 7. Warehouse Strategy – WHAT? | <ul><li>Agility is the most sought-after distribution goal… </li></ul>Top Actions Logistics Executives Are Taking in Distribution: |
  8. 8. Warehouse Strategy – HOW? | <ul><li>First Process, then Software, then MHE </li></ul>|
  9. 9. Five Ways… | <ul><li>Get 110% out of your WMS! </li></ul><ul><li>Agile Material Handling Equipment </li></ul><ul><li>Capture cube and weight of every SKU! (6 reasons why) </li></ul><ul><li>Implement Slotting & Solve the Rubik’s Cube in Your DC </li></ul><ul><li>Yard Management – Why Most Companies Miss the Mark </li></ul>5 Ways to Drive the Most Efficiency from Your Warehousing Operation |
  10. 10. <ul><li>Over-customization of WMS in the 1990’s has left many companies with legacy applications that no longer meet their needs </li></ul><ul><li>New generation of WMS features Service Oriented Architecture (SOA) </li></ul><ul><li>SOA allows for configuration of software while still making upgrades practical </li></ul>Get 110% out of your WMS! 1 |
  11. 11. Get 110% out of your WMS! | © AberdeenGroup 2007 1 |
  12. 12. Get 110% out of your WMS! | Source: AberdeenGroup, August, 2007 <ul><li>Best in Class companies are about 65% more likely to practice zone picking and batch picking. </li></ul>1 <ul><li>Advanced Pick Methodologies… </li></ul><ul><ul><li>Waveless Picking…the next frontier? </li></ul></ul>|
  13. 13. Get 110% out of your WMS! | Source: AberdeenGroup, August, 2007 1 <ul><li>Advanced Replenishment Methodologies… </li></ul>|
  14. 14. <ul><li>Technology such as photo-cell accumulation allows more sizes and weights of SKUs to be conveyed </li></ul><ul><li>Motorized roller conveyor makes system reconfiguration easier </li></ul>Image courtesy of FKI Logistex Image courtesy of Dematic Agile Material Handling Equipment 2 Image courtesy of conveyor-parts.com |
  15. 15. <ul><li>Pick to light vendors are making their products easier to re-profile </li></ul>Image courtesy of Reddwerks Image courtesy of Lightning Pick Image courtesy of Bastian Material Handling Agile Material Handling Equipment 2 |
  16. 16. <ul><li>Pick modules with bays that can be easily reconfigured to accommodate carton flow, pallet flow, and static shelving </li></ul>Agile Material Handling Equipment 2 |
  17. 17. <ul><li>Even highly engineered equipment like carousels have become more agile and flexible </li></ul><ul><li>Vertical carousels are more forgiving of out-of-balance situations, allowing a greater mix of SKUs to be stored </li></ul><ul><li>Improved controls software allows pods of horizontal carousels to be re-configured electronically </li></ul>Image courtesy of Diamond Phoenix Image courtesy of Remstar Agile Material Handling Equipment 2 |
  18. 18. <ul><li>Solutions like Kiva’s are becoming more attractive to companies that need ultra high pick rates but don’t want to bolt anything down. </li></ul>Image courtesy of Kiva Agile Material Handling Equipment 2 |
  19. 19. <ul><li>Sizing structural components to accommodate vertical expansion </li></ul><ul><li>Using simulation tools to project future capacity needs and design accordingly </li></ul><ul><li>Working closely with architects on ceiling height and column spacing to allow for maximum storage </li></ul>Agile Material Handling Equipment 2 |
  20. 20. <ul><li>Real-time visibility of order fulfillment operations through WCS, dashboards </li></ul><ul><li>Ability to rapidly re-deploy labor to high-volume areas </li></ul><ul><li>Task and labor management to assess impact of events and execute </li></ul>Image courtesy of Blue Sky Logistics Agile Material Handling Equipment 2 |
  21. 21. <ul><li>Speech-based warehousing – not just for picking anymore </li></ul><ul><li>Multi-modal devices allow for broader process application </li></ul>Image courtesy of Voxware Agile Material Handling Equipment 2 “ The voice system is almost as fast [as our carousel system], but, dollar-for-dollar, it's the best value for the type of picking that we do.” — a Logistics Manager for a large retail distributor |
  22. 22. <ul><li>Six Processes That Are Enabled By Cubing: </li></ul><ul><li>Slotting </li></ul><ul><li>Pick-to-shipper </li></ul><ul><li>Expedited manifesting </li></ul><ul><li>Check weighing </li></ul><ul><li>Directed Put-Away </li></ul><ul><li>Replenishment </li></ul>Image courtesy of Quantronix Capture cube and weight of every SKU! 3 |
  23. 23. | Source: AberdeenGroup, August, 2007 <ul><li>Keys to Effective Slotting: </li></ul>Implement Slotting 4 |
  24. 24. <ul><li>Blended Demand Forecasting: </li></ul>| Source: AberdeenGroup, August, 2007 Implement Slotting 4 | Source: AberdeenGroup, August, 2007
  25. 25. Multi-Variable Placement Rules | Implement Slotting 4 | Source: AberdeenGroup, August, 2007
  26. 26. Frequency Matters! | Implement Slotting 4 | Source: AberdeenGroup, August, 2007
  27. 27. Yard Management 5 The real savings? Cycle times and fill rate. Source: AberdeenGroup, August, 2007 | |
  28. 28. Integration – the key to value. | Yard Management 5 Source: AberdeenGroup, August, 2007 |
  29. 29. In Summary… Don’t pour concrete – adopt processes and technologies that will allow your distribution center to remain agile and meet the challenges of today’s business environment. | Source: AberdeenGroup, December, 2006 |
  30. 30. Thank You! Drew Forte Director Supply Chain Improvement, FORTE [email_address]

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