The document discusses warehouse management and provides examples from Amazon and other companies. It begins with an overview of warehouse management and typical warehouse management system (WMS) features. It then provides examples of receiving, putaway, picking, packing, and shipping processes at Amazon fulfillment centers. Finally, it discusses technology enablers for warehouse management like labeling, RFID, voice picking, conveyor belts, and automated order fulfillment systems.

1. Postgraduate Certificate in Logistics
& Supply Chain Management
(PGCLSCM)
Warehouse Management
November 2012
Disclaimer: These are opinions of the presenter. They are not associated or affiliated
to any company. Some of the material in this presentation are procured from the
Internet and may contain Copyrights. These are used here for Education purposes
only. This material is not intended for distribution or reproduction. This material is
not intended for use in any commercial manner.

2. Amazon’s Swansea Fulfillment Center
• Video -
http://www.youtube.com/watch?v=_R3kr_m4
czY
• 800,000 Sqft, 4th DC/FC in UK
• Economy/Jobs – 1000 jobs in 1st year.
• Speed to setup
• Delivery opportunities to entire Europe,
Infrastructure, Talent, Government Support

3. Warehouse Management - Essence
• Define and manage complex warehousing
structures
• Optimize material flow using advanced
putaway and picking techniques
• Process goods receipts, goods issues and
stock transfers quickly and easily
Accuracy + Speed = Efficiency

5. Typical WMS features
• Warehouse Layout and Structure
• Optimized movement of goods (Inbound and
Outbound – Receiving and Shipping)
• Inventory Tracking and Control
• Printing and Documentation
• Employee Safety
• Lean Principles

6. Inside the Warehouse
• Warehouse Location
Storage Area – Receiving, Sorting,
Shipping, Open Yard, Picking, Packing,
Labeling
Storage Type – Bulk, Open, High Rack,
Shelf
Storage Section – Lean and TPM
Storage Bin – Smallest unit of space.
Contains multiple quantities of product

7. Amazon’s Warehouse processing
• http://www.youtube.com/watch?v=i6H7nfHjHtY
• Inbound Receipts – Yellow bins, Updated
inventory into Systems, Sorted and placed into
Sections
• Order Fulfillment – Red Bins, Customer Orders
picked and scanned
• Packaging – Orders consolidated, Labeled
• Auto-Dispatch – Conveyor sorts by barcode
destination

8. Inbound - Receiving and Put Away
• Video - http://www.youtube.com/watch?v=ZN6--
Xi5lKo
• Receiving
• Identification, Sorting
• Palletization, Labeling
• Inventory Update (Online)
• Shelving (Put Away), Warehouse slot barcode
• Checking, Documentation Complete, ERP Update

9. Fulfillment - Picking
• Video -
http://www.youtube.com/watch?v=G3GOXR-
pXrw
• Shipping Order Receipt
• Selection – full/Partial batches from stock
• Optimized picking list
• Assigned to operator

10. Fulfillment - Shipping
• Video -
http://www.youtube.com/watch?v=0E-
Wy1fOdOw
• Optimal picking route or automated
• Barcode crosscheck with Warehouse slot
• Consolidation, Packing
• Labeling, Sorting
• Shipping, Archival

11. Amazon’s Christmas Season
• Video -
http://www.youtube.com/watch?v=Z2Bs0nqVyqs
• Hours from Customer Order placement to Order
picking from the right FC
• Product placement and sorting into Bins
• Blue lights – Customer order Ready to Pack
• Automatic labeling,
• 15000 jobs during holidays

12. Technology Enablers in WM
• Labeling - Barcode Scanners
• RFID for Inventory – Dock doors, Sections, Bins
• Voice-Directions – Picking, Put Away
(Voxware)
• Sorting Conveyor belts
• Automated Order Picking (Kronos)

13. Beverages Industry
• Video -
http://www.youtube.com/watch?v=TsLpBpX9f
ok
• Euclid – Coors
• Advance Shipment Notification triggers
Planning to receive and stock
• Wireless Handheld or Voice
• Warehouse operator performance
measurement

14. Accord Voice WMS
• Video -
http://www.youtube.com/watch?v=yy53EMEmx_
c
• SPAR – Receiving, Putaway, picking,
replenishment, dispatch and stock management
• 5% of overall cost reduction, 15% improvement in
pick rates, accuracy of 99.97%
• 6+ months breakeven on costs.
• Speech-to-data, Voice Learning, Hands/Eyes free

15. Voice Controlled WMS - VoxWare
• Video -
http://www.youtube.com/watch?v=kZFGe-Ggnr4
• Food Distribution, 18 DCs
• 50K cases inb/out each per night, 70 trucks in
fleet
• Wireless Belt - Two-way voice (direction,
response) confirmation
• TPM – 3 per 1000 mistakes to 0.45 per 1000, Half
training time

16. Automated Order Picking - Krones
• Video -
http://www.youtube.com/watch?v=yU6Owsq
ETzI
• Food industry – From Homogeneous pallets to
Mixed pallets
• Organize 400 SKUs at 4000 units/hr
• Depalletization, sorting, stacking, box packing
• Palletizer Looks too good to be true :-o

17. Automated Order Picking – S-Pemant
• Video –
http://www.youtube.com/watch?v=lQDtp7d7
cnA
• S-Pemat by SSI Schafer
• Product Dispensers
• product rate up to 180000 pieces per hour
and 240000 order picks per day.
• environmentally friendly and minimizes
current costs

18. Warehouse of the future
• Video -
http://www.news10.net/video/126664371400
1/0/Robot-staffed-warehouse-of-the-future-
is-now

19. Conclusion - Warehouse Improvement
• Layout – Receiving, Sorting, Shipping
• Optimal Storage (racks, bins) and Easy Access
• Inventory tracking and tracing
• Voice/RFID based picking
• Automated Fulfillment Process
• Lean and TPM concepts
• Integrated to Transportation Plan