2. •Occupancy cost is HIGH! Approx. 25-35% of the cost of each order
•Look up, and utilize your air space
•Optimize cubic feet as wells as square feet
#1 Go Vertical
Fitness Center
WAREHOUSE STORAGE
Auto
distribution
3. Racking, Shelving, and Mezzanines are the best means to turn your air-space into working space.
•SAFE - engineered capacities
•ECONOMICAL - long lasting steel
•FLEXIBLE - layout can change as needed
PALLET RACKS
OVER BAY DOOR STORAGE
4. #2 Measure and Share
The “Hawthorne Effect” showed that worker productivity increased because the workers realized they were being studied… Not because the lights were turned up
Create Operating Metrics and Share the Results with your Employees
5. You will be amazed at how they take ownership in measuring themselves and take pride in their own improvement.
6. • A picker may spend 70% of his or her time walking!
• Reduce the travel time by making your fast-moving items easily accessible and closest to the shipping door.
• Set up a “hot-pick” zone to concentrate activity in a small area.
#3 LAYOUT & DESIGN AFFECT PRODUCTIVITY
7. The product must be present when a picker prepares to pull it. Otherwise, the havoc wreaked is endless: a wasted pick up trip, last minute vendor purchase & pick up, and additional paperwork. INVENTORY MANAGEMENT SYSTEMS Develop a replenishment schedule based on Min-Max and Demand-Replenishment concepts.
#4 Knock Out Stock Outs
8. An enormous range of products brings with it a massive load of problems.
Products could languish in the warehouse for years.
Only carry your best-selling products, and special order slow moving items.
A Hidden Benefit:
Special orders often carry a premium price, further increasing your margins!
#5 Prune Your Product Line