This document provides an overview of warehouse management. It discusses how warehouses are used to store inventory for periods of time and aid in distribution. It also outlines the major costs associated with warehouse operations. The document then explains key warehouse functions like receiving, storage, order picking, and shipping. It discusses important considerations for warehouse management including stock location, order picking methods, and optimizing space utilization.

1. Inventory &
Warehouse
Management

2. Warehouses
 Store inventory for a period of time
 storage
 Protection
 Inventory may be turned over rapidly
 distribution center
 customer service

3. % of Total
Warehouse Cost
% of Sales
Labor 45.7% .96%
Space 21.5% .45%
Energy 4.4% .09%
Equipment 6.9% .14%
Materials 8.3% .17%
Other 13.2% .28%
TOTAL 100% 2.09%
Total Warehouse Costs
Warehousing Costs
HIGHEST

4. “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
Inbound
Internal
Processing
Outbound
• Purchases
• Mfg / Assembly
• Transfers
• Outside Processing
• Customer Shipments
• Vendor Returns
• Transfers
• Outside Processing
• Pick
• Pack
• Inspection
• Count
• Assembly
• Storage
• Move
• Replenish
Warehouse Management At-a-Glance

5. Stores
Perform the same function as a warehouse for a
factory.
✓ raw materials
✓ finished goods
✓ supplies
✓ repair parts

6. Goods Identification

7. Identify the goods
 With appropriate Stock Keeping Unit (SKU)
number
 With part number
 Indicate the quantity
In the field of inventory management, a stock-keeping unit or SKU is a term
used (generally) by businesses as part of the process of keeping track of what
they have available to sell.
SKU can also refer to a unique identifier or code that refers to the items or
products they have available for sale. Each SKU is attached to an item,
variant, product line, bundle, service, fee, or attachment. SKUs are often used
to refer to different versions of the same product.

8. SKU Example
V C D C
Vendor 1 Collection 1 Design 1 Color 1
Vendor 2 Collection 2 Design 2 Color 2
Vendor 3 Collection 3 Design 3 Color 3
Vendor 4 Collection 4 Design 4 Color 4
Vendor 5 Collection 5 Design 5 Color 5
Vendor 6 Collection 6 Design 6 Color 6
→ SKU = V4 + C3 + D5 + C2 (V4C3D5C2)

9. Warehouse Activities

10. Warehouse Activities
1. Receive goods
2. Identify goods
3. Dispatch goods to storage
4. Hold goods
5. Pick goods
6. Marshal the shipment
7. Dispatch the shipment
8. Operate an information system

11. WAREHOUSE by FUNCTION
INBOUND
 Receiving
 Identification & Sorting
 Dispatching to
“Storage”
 Placing in storage
 Storage
 Retrieval from Storage
OUTBOUND
 Order Accumulation
 Packing
 Shipping
 Record Keeping
FIFO System

12. Receive Goods
 Acceptance of goods from outside
transportation or an attached factory
a. Check the goods against an “order” or “bill
of lading”
b. Check the quantities
c. Check for any transit damage
d. Inspect goods if required

13. Dispatch Goods to Storage
(Placing in Storage)
 Goods are sorted
 Put away goods
✓ record the location

14. Hold / Storing Goods
 Storage is meant to protect the goods
 cold
 heated
 explosive (dangerous, flammable etc)

15. Pick Goods
 Goods are picked from storage
 must be accessible
 location records
 Brought to marshalling (Inspection) area

16. Marshal the Shipment
 All goods for an order are brought
together
✓ check for missing items
✓ check for correct items
✓ change order information if required

17. Dispatch the Shipment
 The order is prepared for shipment and
loaded on the right vehicle
✓ protective packaging for shipment
✓ documents prepared
✓ loaded and secured

18. Warehouse “Information System”
 Need to know what is in the warehouse
✓ quantity on hand
✓ quantity received
✓ quantity issued
✓ location of goods
 Computer based or manual system

19. Optimizing Picking Process

20. Future Warehouse (1)

21. Future Warehouse (2)

22. Warehouse Management

23. SPOT the DIFFERENCE
WAREHOUSE
 Huge building in which
goods, raw materials, or
commodities are stored.
People do not usually
shop at a warehouse
STORE
 Stores can contain
almost all the items
related to one
 No. of items stored &
their quantities also can
vary
 Smaller in size compare
to Warehouse
 Raw Materials, Finished
Goods, Supplies, Repair
Parts

24. Warehouse Management
 Make maximum use of space
✓ capital cost of space is very high
 Make effective use of labor and
equipment
✓ material handling equipment is the second
largest capital cost
✓ need best mix of equipment and labor
✓ all SKU’s should be easy to find
✓ move goods efficiently

25. Palletized Storage Systems
 Block Stacking
 Drive-in and Drive-through racking
 Push back Racking
 Adjustable Pallet Racking (APR)
 Double Deep Racking
 Powered Mobile Racking
 Pallet Live Storage
 Small item storage system

26. Warehouse Effectiveness
1. Cube utilization and accessibility
2. Stock location
3. Order picking & “Assembly” : option requirement
4. Accessibility
 The ability to get goods with a minimum of effort
✓ without moving other goods
✓ can be a problem with multiple SKU’s in one
area
5. Packaging

27. Cube Utilization and
Accessibility
 Goods are stored on the floor and in the
space above
 Space also required for:
aisles offices
receiving order picking
shipping docks order assembly
 Need to know the maximum space
required

28. Pallet Positions
1. Floor storage
2. Pallets are stacked on each other
3. Maximum stacking height
➢ due to ceiling height
➢ due to weight restrictions
4. Need to allow for side clearance

29. Pallet Dimension

30. Pallet Dimension
There is no universally accepted standard size for pallets. The above table are the frequently used today

31. DISCUSSION
 Why Pallet spacing is important ?

32. 2 inches
clearance
40 inches 40 inches
Total width required = 42 inches per pallet space
Pallet Spacing

33. Pallet Spacing
(6 x 42”) / 12 in = 21 feet required to store 16 pallets
stacked 3 high

34. Pallet Positions - Example Problem
A company wants to store an SKU consisting of 13,000
cartons on pallets each containing 30 cartons. How
many pallet positions are needed if the pallets are
stored three high?
Number of pallets required = 13,000 / 30 = 434 pallets
Number of pallet positions = 434 / 3 = 144.67 or 145
‘Note one pallet position will contain only 2 pallets’

35. Accessibility
 The ability to get goods with a minimum of
effort
✓ without moving other goods
✓ can be a problem with multiple SKU’s in one
area

36. Cube Utilization
 A measure of how well space is utilized
 Should also consider accessibility
✓ see product D in next slide
 Racking allows accessibility to all goods
while improving utilization

37. Cube Utilization - Example
Product
A
Product
A
Product
A
Product
A
Product
A
Product
B
Product
B
Product
C
Product
C
Product
C
Product
D
Product
E
Utilization = 12 pallets / (5 x 3) spaces = 80%

38. Pallet Positions – LET’s TRY
Pallets
SKU A 4 pallets
SKU B 6 pallets
SKU C 14 pallets
SKU D 8 pallets
SKU E 5 pallets
37 pallets
pallets are stored 3 high
Pallet Positions
2
2
5
3
2
14
* Please calculate
Utilization of space for
this example

39. Pallet Positions - ANSWER
Pallets
SKU A 4 pallets
SKU B 6 pallets
SKU C 14 pallets
SKU D 8 pallets
SKU E 5 pallets
37 pallets
pallets are stored 3 high
Pallet Positions
2
2
5
3
2
14
Utilization
= 37 / (14 x 3) x 100%
= 88%

40. Stock Location
 Location will depend on:
1. type of goods stored
2. storage facilities needed (i.e. refrigeration)
3. throughput (volume of items picked)
4. size of the orders
 Management considerations
1. customer service
2. keeping track of the items
3. total effort required

41. Locating Stock - Basic Systems
Group these items together :
 Functionally related items
 Fast moving items
 Physically similar items
 Locate “working stock” and “reserve stock”
separately

42. Locating Stock -
Functionally Related Items
Items that are similar in their use or
characteristics
1. warehouse staff become familiar with the
items
2. similar order processing needs
3. often ordered together
✓ hardware items
✓ bulk items
✓ security?

43. Locating Stock -
Fast Moving Items
 Close to receiving (IN) or shipping (OUT)
 Reduces travel time
 Slower moving items can be further away

44. Locating Stock -
Physically Similar Items
 May have similar storage requirements
 refrigeration
 shelving
 Use similar handling equipment
 drums vs small items
 steel tubing vs cartons

45. Locating Stock -
Working Stock & Reserve Stock
 Pick orders from a single location
✓ ‘HOME’ location
 Allows more compact picking area
✓ closer to marshalling area
✓ reduces order picking travel time
 Reserve stock is handled in bulk

46. Let’s Draw
 A new warehouse will be created. Draw
the ideal Space Layout.
 Assumption of product mixed is required
 Explain

47. Fixed Location
 “A place for everything and everything in
its place”
 Reduces amount of record keeping
 Usually results in poor cube utilization
✓ space must be available for the
replenishment order quantity
✓ average of 50% utilization

48. Floating Location
 Goods are stored wherever appropriate
space is available
 Requires good record keeping
 Improves cube utilization
 Often used for reserve stock

49. Point-of-Use Storage
 JIT and repetitive manufacturing
✓ materials are readily accessible to users
✓ material handling is reduced
✓ central storage costs are reduced
✓ materials are accessible at all times
 Floor stock
✓ small ‘C’ items
✓ inventory is adjusted when stock is
replenished

50. Central Storage
 All items are kept in one location
 The opposite of point-of-use storage
✓ ease of control
✓ accurate inventory control is easier
✓ makes use of specialized storage
✓ reduces safety stock

51. Order Picking and Assembly
 Once an order is received it must be:
✓ retrieved
✓ assembled
✓ prepared for shipment
 Involves:
✓ labor
✓ movement of goods
 To provide the desired level of customer
service

52. Area System
 Used in small warehouses
 The order picker moves through the
warehouse and takes all the goods to
shipping
✓ self marshalling
✓ order is complete when the picker is
finished

53. Zone System
 Warehouse is divided into zones
 Order pickers work in their own area
✓ deliver goods to the marshalling area
 Zones are established by related items
✓ type of storage
✓ type of material handling required
 Marshalling area then organizes orders for
shipment

54. Multi-order System
 Similar to zone system
 Multiple orders are picked together
 Marshalling area then sorts orders by
shipment
 Used where there are many items or
many small orders

55. Working Stock and Reserve Stock
 Used in all systems
 area, zone, multi-order
 Working stock located close to shipping
 Replenishment is done by separate workforce
 Improves order picking efficiency and
customer service

56. QUALITY Culture
Your Quality Support for Production

57. Linkage (Warehouse, FIFO, Traceability)
 Greatest Impact
 Quality Monitoring
 Productivity Monitoring
 ISO System
 Countermeasure
 Preventive Measure
 Handling Customer
Warranty

58. FIFO for WAREHOUSE
How to Arrange Product on Pallets

59. PRINCIPLES
FIFO
 First In First Out
 Material which is
received earlier will
be dispatched
earlier
OFFO
 Oldest Pack First Out
 Material which is
having earlier date
of manufacturing will
be dispatched first
(Old Pack)

60. First-In, First-Out (FIFO)
 Materials received first are
the first ones to be utilized for
production
 Movement of materials in a
continuous, orderly, single file
manner represents a
condition necessary to and
consistent with efficient
materials control, particularly
for materials subject to
deterioration, decay and
quality are style changes

61. Warehouse FIFO System

62. Traceability (Documentation & Product)
 ability to verify the history,
location, or application of an
item by means of documented
recorded identification
 capability (and
implementation) of keeping
track of a given set or type of
information to a given degree,
or the ability to chronologically
interrelate uniquely identifiable
entities in a way that is
verifiable

63. LAYOUT CONFIGURATION
 Generally, our goal is to rotate stoke & get
oldest out
 Keep similar items grouped near each
other
 Layout Optimization is like Route
Optimization
(Streamline; Save Time, Save Money)

64. THINKING METHOD

65. SAMPLE ARRANGEMENT

66. COMMON WAREHOUSE LAYOUT

67. RACKING ARRAGEMENT

69. WAREHOUSING ONLY

70. Inventory Control

71. Inventory List
IMPORTANT
FIFO
TRACEABILITY
WIP Monitoring
Quantity Status
(include NG, Scrap etc)
Quality Status
DATA
ACCURACY
(stock checking)
Movement
WIP Location Direct to 5S

72. DEFINITION
Inventory Control
 coordination and
supervision of the
supply, storage,
distribution, and
recording of
materials to maintain
quantities adequate
for current needs
without excessive
oversupply or loss
Material Planning
 Ensuring that all of
the materials the
manufacturer needs
to make its product
are on hand and
available
 BOM (Bills of
Material), Production
Planning

73. Physical Control and Security
 Need a system to make it difficult for
people to make mistakes or forget to
update inventory records
 What you NEED is :
✓ a good part numbering system
✓ a simple well documented transaction
system

74. Part Numbering
 Each part has a unique number used only
for that part
1. Descriptive part numbers
• assist in order picking and service
• difficult to keep current
2. Non-descriptive part numbers
• easier to keep up-to-date

75. Transaction System
1. Identify the item
 quantity, location, part number
2. Verify quantity
 standard size containers if possible
3. Record the transaction
 manual or computerized
4. Physically execute the transaction
 move the goods

76. Physical Control and Security
 Limited access
✓ locked
✓ to ensure transactions are completed
 A well trained workforce
✓ to ensure transactions are completed
✓ familiar with handling the goods

77. Physical Control and Security
Need a system to make it difficult
for people to make mistakes or
forget to update inventory records
What you NEED is :
✓ a good part numbering system
✓ a simple well documented transaction
system

78. Inventory Record Accuracy
 Accurate on-hand balances are needed
to:
1. avoid shortages
2. maintain schedules
3. avoid excess inventory
 (of the wrong goods)
4. provide good customer service

79. Inventory Record Accuracy
 Operate an effective materials management
system
 Maintain customer service
 Operate effectively and efficiently
 Analyse inventory
 The system is only as good as the data used

80. Inaccurate Inventories
 Result in:
✓ Lost sales
✓ Disrupted schedules
✓ Excess inventory of the wrong things
✓ Low productivity
✓ Poor delivery performance
✓ Excess expediting

81. Causes of Inventory Errors
1. Unauthorized withdrawal of material
2. Unsecure stockroom
3. Poorly trained personnel
4. Inaccurate transaction recording
5. Poor transaction recording system
✓ system should reduce the likelihood of
human error
6. Lack of audit capability

82. Measuring Inventory Record
Accuracy
 Ideal is 100%
✓ banks
✓ ‘A’ items
 A tolerance may be allowed for some
items

83. Tolerance
 “Allowable departure from nominal value ….”
 APICS 11th Edition Dictionary
 Between the inventory record and a
physical count
 Set on individual items
✓ Value, critical nature of the item,
availability, lead time, safety, ability to
measure

84. Tolerance
Figure 12.3 Inventory record accuracy

85. Tolerance
Figure 12.4 Inventory accuracy with tolerances

86. Tolerance Example Problem
Part
Number
Shelf
Count
Inventory
Record
Tolerance
A 1500 1550 +/- 5%
B 120 125 +/- 2%
C 225 230 +/- 3%
D 155 155 +/- 0%
Outside
Tolerance

87. Auditing Inventory Records
Checking the accuracy of inventory
records
1. Periodic Inventory
✓ usually an annual count
2. Cycle Counting
✓ daily counts of items

88. Auditing Inventory Records
WHY do we need to do this ?
 To correct the on-hand balance
✓ periodic inventory
 To find the reasons for errors and eliminate
them
✓ cycle counting

89. Periodic (Annual) Inventory
 To satisfy financial auditors
 Determine the value of the inventory
 Financial auditors are concerned with the
total value
 Planners are concerned with the item
detail

90. Taking the Physical Inventory
Taking a physical inventory is like painting;
the results depend on good preparation
 George Plossl
Housekeeping
 sort items, pre-count and seal
Identification
 identify and tag items
 use personnel familiar with the items
Training in procedures

91. Physical Inventory - Process
1. Count the items and record the count on tickets
left with the item
2. Verify the count, sampling may be used
3. Collect the tickets and list all items
4. Reconcile the inventory
update financial records
correct inventory balances
Investigate reasons for discrepancies

92. Physical Inventory - Problems
 Production may be shut down
 Labor and paperwork effort
 Pressure to get the inventory completed
 People doing the inventory may not be familiar
with the items
 Errors may be introduced

93. Cycle Counting
 Count inventory continually throughout
the year
 Predetermined schedule
 some items counted frequently
 depending on value
 past history of problems
 Count some items every day

94. Cycle Counting- Advantages
 Timely correction of errors
 Reduction of lost production
 Use of trained personnel
 familiar with the items
 fewer errors
 able to identify problems

95. Count Frequency
The number of times each item is counted
per year
 Increases by:
1. the value or critical nature of the item
2. the number of transactions per year
✓ chances of error
3. a past history of problems with the item

96. Count Frequency - Methods
 ABC method
 management establishes a rule for how
many times an item should be counted per
year
 e.g. ‘A’ items once per month, ‘B’ items
quartery, ‘C’ items twice per year
 a mix of all items is counted every day
 computerized systems can identify daily lists of
items to count

97. Scheduling Cycle Counts
Classification
Number
of Items
Count
Frequency
per Year
Number
of Counts
Number of
Counts
per Day
A
B
C
1000
1500
2500
12
4
1
12,000
6,000
2,500
48*
24
10
Total Count 20,500
Workdays per Year 250
Counts per Day 82
* Counts per day = 82 * 12,000 / 20,500
Figure 12.5

98. Scheduling Cycle Counts -
Example Problem
Classification
Number
of Items
Count
Frequency
per Year
Number
of Counts
Number of
Counts
per Day
A
B
C
2000
3000
5000
12
4
2
Total Count
Workdays per Year
Counts per Day
24,000
12,000
10,000
46,000
250
184
96
48
40

99. Count Frequency Methods -
Continued
 Zone Method
 used with:
✓ fixed location system
✓ work-in-process counts
✓ in-transit inventory counts
 Location Audit
 verifies location of goods

100. Cycle Counting - When to
Count
Counts items when errors are likely
to have occurred
 when an order is placed
 detects errors when stock is low
 when an order is received
 stock is at its lowest
 when inventory reaches zero
 when an error occurs
 inventory shows negative or there is no stock
when there should be

101. Technology Applications
 Bar Codes
 paper labels which show a product code
 RF Tags
 Radio Frequency
 do not need to ‘see’ the item
Advantage of using such technology :
 Reduce recording errors
 Improve transaction speed

102. RFID for Accuracy

103. DISCUSSION
Session 2
How to Control Inventory
- Accurately
- Fast Time
- FIFO Simple
- NO High Investment eg. RFID

104. Public Bicycle Storage

105. Best Practices

106. Warehouse Management
Best Practices:
• Housekeeping
• Receiving
• Storage
• Shipping
• Safety

107. Warehouse Management
 Housekeeping
 Sanitation
 Pest Control
 Interior and exterior traps with weekly monitoring by outside service
 High speed exterior doors to keep pests out and reduce loss of heat
and/or cold
 Receiving
 All incoming products are recorded on Incoming Inventory form
 Products are inspected, counted, weighed and tagged before put
away
 Temperatures taken on incoming trucks and product
Incoming Inventory
Date Order # Reciever: All Frozen and Refrigerated
Truck Time In: Out: Start: End: Temperature Reading =
Item # Description Pack Size Expriration Date
Quantit
y

108. Warehouse Management
 Storage
 Cooler
 Freezer
 Dry
Each with Temperature Log Form
Temperature Log
Date
Freezer 1
2
Storage Cooler 1
2
Distribution Cooler 1
2
Warehouse 1
2

109. Warehouse Management
 Shipping
 All orders are verified prior to loading onto trucks
 All trucks are cleaned and safety checked (HALAL)

110. Warehouse Management
 Safety
 Warehouse
 Racks are bolted to cement ground with protectors, wire mesh shelving and netting
 In ground scales: Calibrated Quarterly
 Enclosed lighting fixtures
 Cooler/Freezer have Plastic strip doors for efficiency
 Material safety data sheet (MSDS)
 Training – Forklift certification and Material handling
 In house mechanic
 Food Handling
 Products are stored based on requirement, ie. cooler, freezer or dry
 Salvage is segregated away from inventory
 All plastic bins are washed with high pressure hot water
 Training – ServSafe certification

111. Best Practices:
• Inventory Flow
• Inventory Accuracy
• Inventory Turns
Inventory Management

112. Inventory Management
 Inventory Accuracy
 Inventory Management System
 Bar coding: Both Pallet tags and rack locations
 Management
 Not just sitting behind computers, knowing the daily warehouse activity
 Audited yearly by regulated bodies
 Receiving/Inventory are separate departments for Financial Controls
 Cycle Count: Warehouse scans, inventory reconciles

113. Inventory Management
 Inventory Accuracy
 Pallet Tag with storage requirement and expiration date

114. Inventory Management
• Inventory Turns
– FIFO/FEFO
– Measure Produce turns and Non Produce
– Forecasting program needs to ensure product on hand and not excess

115.  The organization shall ensure that there is a
PHYSICAL Segregation of Halal cargo from non-
Halal cargo throughout the warehouse processes
 The Halal products have a dedicated storage
zone (floor storage) or racks, which are clearly
separated by color and / or marking
 A dedicated cold room is available, or
segregation from non-Halal through physical
barrier or container (insulated box) is required for
the storage of Halal products in case of
refrigerated storage
HALAL Warehouse

116. SAFETY CULTURE
Volunteer Safety is our #1 PRIORITY

117. Forklift Accident

118. How to open a box?
 DO
DO…hold knife with one hand
and move away from your body.
DON’T…hold the box with one
hand and move the knife
towards your hand or towards
your body.

119. Always Use Caution!Look for exposed nails, broken pallets, leaning boxes and open box cutters → 5S

120. The correct way to use a pallet jack
Always keep your back straight. Keep the handle straight up and down while moving forward.

121. The wrong way to use a pallet jack!

122. More wrong ways to use a pallet jack
Never bend your back and pull pallet jack with your upper body.
Never stand on the opposite side of the pallet jack and put your feet under the pallet.

123. Always watch where you are going
 Make sure there is no one in front of you while
you are moving forward or backwards.
 When the items on the pallet are taller than you,
always use extreme caution and try to look
around the pallet you are moving.

124. Pulling a pallet off of a truck
 Sometimes, the ramp
from the building to
the truck isn’t level.
 When walking
backwards, use
caution and make
sure to lift your feet
up over the space
between the truck
and the ramp.

125. Getting boxes off of the shelves
Never stand on a chair. Always find a
stepping stool to stand on.
Never arch your back. Hold
the box above your head or
behind your back.

126. Reaching in open boxes…
 Always use caution
when reaching into
an opened box.
 You may find broken
glass from a candle
or picture frame.
 You may also find a
container of a
cleaning supply that
has busted open and
is leaking.

127. When reaching in the bottom of a larger
box…please DO NOT climb in!

128. The correct way to reach the
bottom of a large box
 Take a box cutter
and cut out an
opening in the tall
box low enough for
you to reach the
bottom.
 Check the floor and
pallet for loose nails
or jagged edges.
Kneel down to reach
into the box.

129. Use the buddy system when
lifting a heavy box

130. Never lift a box like ALONE!
 Please do not try and lift
a large, heavy box all by
yourself.
 Always ask someone to
help you lift up the other
side and carry.
 Never try and pick up
more than 1 box at a
time.
 If the box is too heavy,
don’t lift it, ask someone
else to lift it for you.

131. In case of rainy weather, watery …
always use caution when going in
and out of the warehouse

132. Taking your Health
 Always stay hydrated!
 Take breaks when needed.
 Always wear comfortable clothing
 ALWAYS wear closed toed shoes!

133. Although it looks tempting, please don’t
wrap YOURSELF up in the outbound pallets!
Please make sure there is no one standing between you and the pallet.

134. Stay off the forklift…
 If you need to move a super heavy pallet, please
stay off the forklift and ask certified worker to move
it for you. You MUST be certified to operate the
equipment.
Scott

135. Warehouse SAFETY
5W 2H
 Understanding 5W
2H
 What, Who,
 When, Where
 Why 5x
 How
 How Much
Discussion
 Discuss with your
colleague on the
DO’s & Dont’s
when in the
Warehouse.

136. Business
Challenges

137. Transaction Velocity / VolumeSmall Large
Product/OrderComplexity
Low
Manual Inventory
Record transactions and
track balances
RF / Barcode Only
Improve accuracy and reduce latency
of existing transactions
High
Warehouse Management
Implement a true “execution system” using
system directed tasks and task management
Highly Automated Facilities
Automate physical inventory handling
Warehousing Functionality Spectrum

138. Just-in-Time Delivery
• How can I improve the speed
of warehouse operations?
• How do I integrate
operations to reduce order
processing time?
Guaranteed Availability
• How can I improve order
promise accuracy?
• How do I create a global
view of inventory?
One Size Fits One
• How can I manage
SKU proliferation?
• How do I ensure
labeling compliance?
Lowest Total Cost
• Where can I reduce
inventory while maintaining
high fill rates?
• How do I improve labor
efficiency?
Internal
Processing
Inbound Outbound
Business Pressures

139. Warehouse
System 1
ManufacturingProcurement Order Management
Warehouse
System 2
Warehouse
System N
RF Middleware RF Middleware RF Middleware
Integration and Operation Complexity, Localized Solutions
Operational Challenges

140. • Fulfillment Processes Integrated with Partners
• Support All Company Processes (e.g. Service, Mfg)
• Automated Material Handling for Improved Productivity
• Mobile and Automatic Data Capture (e.g. RF, RFID)
• Streamlined Material Flow (e.g. Cross-Docking)
A Need for Change
Leading Business Trends

141. Solution

142. Apps /
Database
RF Base
Station
SQL NetTelnet Over TCP/IPRF Device
Built-in RF Middleware
Built-in Mobile User Interface
Mobile
Transaction Server
Mobile Supply Chain Apps (MSCA)
Support Basic Warehousing Needs…
Moves, Issues, Returns,
Scrap, Completions, …
Quality Collections,
Specifications, …
Misc. Transactions,
Transfers, Counts, …
Pick, Confirm, Ship,
Confirm, Print, …
Direct, Std, Inspect,
Cross-Dock, Print, …
Mobile Manufacturing Mobile Quality
Mobile Receiving Mobile Inventory Mobile Shipping
LAN or WAN

143. Worker Productivity
• Automate Warehouse
Processes
• Optimize Task
Assignments
• Reduce Worker
Travel Time
Resource Utilization
• Optimize Total
Warehouse Space
• Maximize Use of
Equipment
• Optimally Locate
Inventory to Reduce
Travel Time
Warehouse Efficiency
Inventory Utilization
• Reduce Inventory
Carrying Costs
• Streamline
Material Flow
• Reduce Inventory
Obsolescence
• Automate
Replenishment
Improve Warehouse Management
Functions
Increase Efficiency of All Resources

144. Automated Task Management
Create, Organize, Dispatch Tasks to Optimal Resource
Dispatch Tasks To
RF Devices
Support Multiple
Picking Methodologies
Match Skills and
Equipment to Tasks
Perform Task
Sequencing and
Interleaving
Pick Wave Task Queue
• Create Paperless,
Streamlined Processes
• Align Pick Plan with
Business Mix
• Reduce Safety Issues
and Training Costs
• Significantly Reduce
Travel Time
Split
Merge
Sort
Create &
Allocate
Task
Worker Productivity

145. • Support Numerous Types and Variations of Labels
- LPN, LPN content, LPN summary, material, serial, location,
shipping, shipping contents, WIP contents
• Flexible to Meet Your Business Needs
- Design and rendering choices
- Highly flexible configuration
- Adapts to changing
requirements
• Data Transmitted via XML
directly to printer or via
middleware of choice
Print at the Right Time in the Correct Format
Automated Compliance Labeling
Meet Customer Specific Requirements

146. Container and LPN* Support
• Supports Infinite Nesting Levels
• Perform Complex Moves via a
Single Scan
• Fully Integrated with ASNs
Improves Efficiency,
Accuracy, and Tracking
Barcode Support
• Automatically Track All
Related Product Information
• Capture All Information
with a Single Scan
Reduces Cycle Time &
Improves Accuracy
Single Unique Number
for All Information
Multiple Packages
and Products
=
*License Plate Number
Barcode & License Plate # Support
Perform Complex Inventory Transactions

147. ShipDropPut-AwayDeliverInspect
Cross-Dock
Inventory
Direct Ship
Pick
Pick
Release
Receive
Direct Receipt
• Configurable flows
• Express ASN receipt
• Cross-docking
• Express picks & load
• Direct ship
• Adjust implementation to business
• Accelerate receiving process
• Reduce handling and inventory
• Increase operator efficiency
• Support lean mfg processes
Cross-Dock and Direct Ship
Selectively Accelerate Warehouse Material Flow

148. (1) Load of pallets and /
or cartons with RFID
tags on each
(2) Drive load
through RFID
Reader in
Receiving Dock
(3) Interface to readers,
clean and filter data,
then pass IDs to
application
(4) Access objects
associated with the
ID's (e.g. LPN's on ASN)
then raise correct
Business Event
(6) Process the
Business Event,
(e.g. Receipt of
pallet or carton)
(5) Access associated
source document
(e.g. the PO’s ASN)
(7) Confirm success or
failure (e.g. trigger
green light or sound
buzzer)
(8) Putaway, rescan
or divert
material
RFID-Initiated Shipping & Receiving
Process Transactions with No Manual Intervention
RFID
Middleware
(Oracle AS)
RFID Event
Processor
Application
APIs
Response
& Exception
Handling

149. Directed Picking and Put Away
Automatically Suggest Optimal Locators
Slot dynamically based
on velocity, size, etc.
Control hazardous
materials / co-mingling
Handle task exceptions
with reason codes
• Optimize the use of
storage locations
• Minimize inventory
fragmentation
• Reduce chance
of obsolescence
Receipt
Business
Logic
Locator
Locator
Locator
Pick
Resource Utilization

150. Advanced Inventory Capabilities
Provide Single Source of Truth for All Inventory
Maintain Accurate, Real-Time
Information
- Physical inventory measurement
- Holding and other associated costs
- Cycle counting
Manage Inventory Levels
- Automated replenishment
- Kanban management
- Transfers between facilities
Support Advanced Tracking
Capabilities
- Material status control
- Inventory ownership tracking
- Advanced lot and serial control
Inventory Utilization

151. Performance Management Tools
Proactively Manage Warehouse Performance
View current status, perform transactions and calculate
availability via Materials Workbench
Monitor and refine facility activity via Control Board
Provide real-time status
with active alerts and
notification messaging
Handle last minute
changes with
workflow exceptions
Keep key personnel
informed with multiple
reporting options

152. LEAN in
Warehousing

153. Lean Distribution
 Objectives:
 get an agile, synchronized and responsive to customer
needs system
 Serve customers faster, with less space, less inventory and
with more accuracy
 Eliminate waste in warehousing operations, e.g Pick Tasks
Traveling
55%
Searching
15%
Extracting
10%
Other
20%Pick Task Simplification

154. Lean Warehousing
 Eliminate Waste:
 Time:
 Reduce Travel distances by using a Forward Picking Area
 Reduce Travel distances by organizing the travel path sequences
 Reduce truck Waiting time at the dock (consistent with US HOS regulations)
 Organization:
 Spread order lines to fulfill accross workday based on Truck appointments
 Avoid aisle congestion by spreading workers in the warehouse
 Space:
 Reduce Shipping Zone space requirements
 Reduce Inventory requirement by Streamlining Picking Operations
 Streamline operations
 Synchronized Replenishement of Forward Picking zone to avoid picking
interruptions
 Spread the workload accross the entire working day based on truck
schedules

155. VSM in Warehouse Activity

157. Spaghetti Chart in Warehouse

158. 5S in Warehouse