Warehouse Relocation Presented by Terry Abra of JLC Solutions
<ul><li>TOTECTORS CASE STUDY </li></ul><ul><li>  </li></ul><ul><li>The Company </li></ul><ul><li>  </li></ul><ul><li>Totec...
<ul><li>The Opportunity </li></ul><ul><li>  </li></ul><ul><li>A greenfield site </li></ul><ul><li>  </li></ul><ul><li>A bl...
<ul><li>Data </li></ul><ul><li>  </li></ul><ul><li>12,000 SKU (footwear) </li></ul><ul><li>  </li></ul><ul><li>Similar num...
<ul><li>Implementation </li></ul><ul><li>  </li></ul><ul><li>  </li></ul><ul><ul><li>Fast moving lines were identified and...
<ul><li>Health & Safety </li></ul><ul><li>  </li></ul><ul><li>The aisles were designed so that pedestrian order pickers an...
<ul><li>The Operation </li></ul><ul><li>  </li></ul><ul><li>Storage </li></ul><ul><li>It was not practical to design a con...
<ul><li>Put  Away </li></ul><ul><li>As stock was received from the factory, the batch ticket was scanned so that the produ...
<ul><li>Check List   </li></ul><ul><li>  </li></ul><ul><li>RESPONSIBILITY </li></ul><ul><li>Ascertain reasons behind why t...
<ul><li>Lessons  </li></ul><ul><li>  </li></ul><ul><li>Essential to establish what the company’s objectives and KPIs are <...
Questions 0845 474 1732  info@jlc-solutions.co.uk  www.jlc-solutions.co.uk
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Totectors New Warehouse


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Totectors New Warehouse

  1. 1. Warehouse Relocation Presented by Terry Abra of JLC Solutions
  2. 2. <ul><li>TOTECTORS CASE STUDY </li></ul><ul><li>  </li></ul><ul><li>The Company </li></ul><ul><li>  </li></ul><ul><li>Totectors manufactured and imported a wide range of safety footwear and distributed corporate clothing to a wide customer base. </li></ul><ul><li>  </li></ul><ul><li>The Brief </li></ul><ul><li>To move a warehouse operation from a converted low level ex ballroom to a custom built greenfield warehouse, which would </li></ul><ul><li>be attached to the manufacturing facility </li></ul><ul><li>  </li></ul><ul><li>Implementation to be completed by a specific date, 8 months forward, with no interruption to despatches and to be </li></ul><ul><li>completed over 1 weekend.  </li></ul><ul><li>  </li></ul><ul><li>To store 90,000 shoeboxes, an increase of 50% (in the event, finally stored 150,000 with much slow moving or obsolete stock) </li></ul><ul><li>  </li></ul><ul><li>To take in stock directly from manufacturing </li></ul>
  3. 3. <ul><li>The Opportunity </li></ul><ul><li>  </li></ul><ul><li>A greenfield site </li></ul><ul><li>  </li></ul><ul><li>A blank sheet of paper  </li></ul><ul><li>  </li></ul><ul><li>Examine new methods of workings </li></ul><ul><li>  </li></ul><ul><li>Examine new MHE  </li></ul><ul><li>  </li></ul><ul><li>Dispense with some outdated custom & practice   </li></ul><ul><li>  </li></ul><ul><li>  </li></ul><ul><li>The Challenge </li></ul><ul><li>  </li></ul><ul><li>To receive stock directly from manufacturing on a conveyor </li></ul><ul><li>The warehouse would have no prior indication of what stock was being made </li></ul><ul><li>  </li></ul><ul><li>Shoeboxes were randomly received in batches of 10, accompanied by a bar coded batch ticket </li></ul><ul><li>  </li></ul><ul><li>To continue using the company’s software which was primarily production software and did not have the capability of </li></ul><ul><li>determining optimum space utilisation </li></ul>
  4. 4. <ul><li>Data </li></ul><ul><li>  </li></ul><ul><li>12,000 SKU (footwear) </li></ul><ul><li>  </li></ul><ul><li>Similar number for clothing and safety products which had a growth rate of 250% pa  </li></ul><ul><li>  </li></ul><ul><li>1,000 orders a day </li></ul><ul><li>  </li></ul><ul><li>25,000 delivery addresses, ranging from factories to NDCs & Export </li></ul><ul><li>  </li></ul><ul><li>SKU consisted mainly shoeboxes of 3 sizes - height, width and length varied </li></ul><ul><li>  </li></ul><ul><li>New warehouse 80,000 square feet, 8 metres high </li></ul><ul><li>  </li></ul><ul><li>Pick profile </li></ul><ul><li>  </li></ul><ul><li>Profile had changed from picking individual orders for each customer to one of mainly supplying distributors </li></ul><ul><li>  </li></ul><ul><li>60% of orders were single item picks </li></ul><ul><li>  </li></ul><ul><li>One major distributor had a weekly delivery which filled an Artic but products were picked into different sizes of </li></ul><ul><li>plastic tote according to their requirement for their automated DC </li></ul><ul><li>  </li></ul><ul><li>Considerable rework on clothing orders – sending bulk to embroiderers and repacking a complete set of clothing for </li></ul><ul><li>individuals eg supplying an individual set of clothing for each of 500 warehouse staff in a new DC </li></ul><ul><li>  </li></ul><ul><li>Some reverse logistics </li></ul>
  5. 5. <ul><li>Implementation </li></ul><ul><li>  </li></ul><ul><li>  </li></ul><ul><ul><li>Fast moving lines were identified and allocated fixed picking slots, at the head of each aisle near the packing stations </li></ul></ul><ul><li>  </li></ul><ul><ul><li>Picking was carried out up and down each aisle. Pick notes were printed with ascending pick locations and then descending </li></ul></ul><ul><ul><li>to return down the same aisle </li></ul></ul><ul><li>  </li></ul><ul><ul><li>Transfer of stock (after stocktake) – one off pick notes printed with old warehouse pick locations as well as new warehouse </li></ul></ul><ul><ul><li>pick locations, so stock was immediately transferred and scanned to new pick locations on receipt into new warehouse </li></ul></ul><ul><li>  </li></ul><ul><ul><li>All other stock was placed randomly in reserve and scanned in </li></ul></ul><ul><ul><li>All new locations were numbered and input onto system </li></ul></ul><ul><li>  </li></ul><ul><li>WMS </li></ul><ul><li>  </li></ul><ul><ul><li>Needed to work with existing software, which was unsophisticated but was able to support scanning </li></ul></ul><ul><li>  </li></ul><ul><ul><li>Paper picking, for each individual order </li></ul></ul><ul><li>  </li></ul><ul><ul><li>Software was modified for single item picks (bulk pick the total number of items required rather than an individual item pick per order) </li></ul></ul><ul><li>  </li></ul><ul><ul><li>Bespoke modification for major customer on pick note to enable packers to pack into tote bins </li></ul></ul><ul><li>eg Ladies shoe ABC - 5 units into red tote </li></ul><ul><li>Mans shoe DEF - 4 units into blue tote </li></ul><ul><li>Rigger boots XYZ - 2 units into green tote </li></ul><ul><li>*The system assumed that if the stock was not in reserve, by default it was in picking </li></ul><ul><li>*All SKU had an EAN barcode and an Alpha Numeric barcode (Code 39) </li></ul>
  6. 6. <ul><li>Health & Safety </li></ul><ul><li>  </li></ul><ul><li>The aisles were designed so that pedestrian order pickers and VNA trucks were never in the same aisle </li></ul><ul><li>  </li></ul><ul><li>The VNA trucks had height limiters and end of aisle limiters to prevent collisions </li></ul><ul><li>  </li></ul><ul><li>Picking aisles wide enough for picker to pass each other </li></ul><ul><li>Fire </li></ul><ul><li>  </li></ul><ul><li>In the absence of pallet racking, which would allow water from sprinklers to filter through to ground level, the racking </li></ul><ul><li>was decked out in chipboard shelving, preventing water percolation </li></ul><ul><li>The insurers insisted the sprinklers were hung horizontally on the beams. This was done in the pedestrian aisles to </li></ul><ul><li>allow unimpeded access by the VNA trucks. It also had a significant bearing on the pumps required to ensure sufficient </li></ul><ul><li>water pressure would be available. </li></ul><ul><li>  </li></ul><ul><li>The sprinkler system eventually cost £250k, far in excess of any budgeted figure </li></ul><ul><li>  </li></ul><ul><li>MHE </li></ul><ul><li>  </li></ul><ul><li>4 Atlet rail guided VNA Man Up order pickers with modified cages were used for Put Away and Replenishment </li></ul><ul><li>  </li></ul><ul><li>Orders were picked on to customised trolleys </li></ul>
  7. 7. <ul><li>The Operation </li></ul><ul><li>  </li></ul><ul><li>Storage </li></ul><ul><li>It was not practical to design a conventional pallet warehouse and the warehouse was racked out with shelving, deep enough to accommodate shoeboxes 2 deep </li></ul><ul><li>  </li></ul><ul><li>The shelving height accommodated a stack of 5 shoeboxes </li></ul><ul><li>  </li></ul><ul><li>Shoe boxes were stored by batch, 5 high, 2 deep and all stock movements were by batches of 10 (apart from </li></ul><ul><li>picking) </li></ul><ul><li>  </li></ul><ul><li>Clothing was stored in stackable totes, to the same depth as 2 shoeboxes </li></ul><ul><li>  </li></ul><ul><li>Shelving was accessible from both sides, either by the picker or the VNA driver </li></ul><ul><li>  </li></ul><ul><li>Fixed pick locations, all same size </li></ul><ul><li>Some Locations would be allocated to 1 line; some locations to several lines; several locations could be allocated </li></ul><ul><li>to 1 fast moving line </li></ul><ul><li>  </li></ul><ul><li>Random reserve locations </li></ul><ul><li>  </li></ul><ul><li>Simple numbering eg Aisle A, Location 5, Shelf A etc A05A </li></ul><ul><li>  </li></ul><ul><li>The beams were bar-coded and numbered on both sides of the shelving so that the VNA driver was presented </li></ul><ul><li>with the same location number as the picker on the other side of the shelf </li></ul><ul><li>  </li></ul>
  8. 8. <ul><li>Put Away </li></ul><ul><li>As stock was received from the factory, the batch ticket was scanned so that the product was now on the stock file and available for picking. The system would default the stock to the pick location. </li></ul><ul><li>(WMS would automatically assume stock was in picking unless told otherwise) </li></ul><ul><li>The shoeboxes were loaded on to custom built cages which were collected by the VNA trucks. </li></ul><ul><li>  </li></ul><ul><li>The drivers went to the VNA aisles and put the stock into the reserve locations, scanning the location, scanning the product and keying the quantity </li></ul><ul><li>The drivers had total autonomy in deciding where to locate the stock as the space availability depended on which size shoe box was previously stored eg rigger boot shoeboxes would not fit into a space vacated by a womens shoebox </li></ul><ul><li>  </li></ul><ul><li>Replenishment </li></ul><ul><li>The Put Away process was reversed and the stock would be scanned out. </li></ul><ul><li>The VNA drivers would place the stock in the pick location from the VNA aisle. </li></ul><ul><li>The system would automatically allocate this stock to the pick location </li></ul><ul><li>(even if the stock was not physically located there) </li></ul><ul><li>  </li></ul><ul><li>Clothing </li></ul><ul><li>Stored in stacking plastic tote bins </li></ul><ul><li>Fixed pick locations </li></ul>
  9. 10. <ul><li>Check List   </li></ul><ul><li>  </li></ul><ul><li>RESPONSIBILITY </li></ul><ul><li>Ascertain reasons behind why the company wants a new warehouse - What is Co hoping to achieve </li></ul><ul><li>Determine at outset who is responsible for what on the project </li></ul><ul><li>What are long term requirements </li></ul><ul><li>EQUPT; SUPPLIERS </li></ul><ul><li>Hire MHE equipment at new site? </li></ul><ul><li>How will you get the MHE from the old site to the new site - Specialist transport may be required </li></ul><ul><li>Ensure suppliers and hauliers are advised of new address </li></ul><ul><li>Moving stock at night. Will local planning regs allow this </li></ul><ul><li>Obvious but often forgotten things like are the utilities are up and running, phones, IT connections </li></ul><ul><li>Contractors complete on time eg delivery of MHE, racking etc </li></ul><ul><li>WMS </li></ul><ul><li>WMS implications UAT User application Testing before the move </li></ul><ul><li>Ensure WMS is updated with locations at new site </li></ul><ul><li>Do not attempt to introduce new WMS at same time as move </li></ul><ul><li>STAFF </li></ul><ul><li>Where is the new site May be an incorrect assumption that the workforce will transfer Full consultation essential </li></ul><ul><li>Staff training if new equipment eg VNA - dates and times </li></ul><ul><li>Staff training in new procedures before the transfer </li></ul><ul><li>Confirm transfer date well in advance. If in the holiday season, do not want staff to be away on holiday </li></ul><ul><li>Payment premium or bonus to ensure staff are willing to work over the weekend </li></ul><ul><li>SOP </li></ul><ul><li>Different picking profiles - Decide the new pick procedures Ensure pick notes are printed in new pick routes etc </li></ul><ul><li>Ensure there are SOP for all procedures Who and how many staff on each task Know what you are going to do when you get there </li></ul><ul><li>STOCK </li></ul><ul><li>Carry out stocktake before the move (consider one after the move too) </li></ul><ul><li>Ensure stock is booked out of the old site and booked into the new site and there is an audit trail </li></ul><ul><li>Try to minimise stock holding at old warehouse to reduce amount which has to be transferred </li></ul><ul><li>If possible, prior to the move, get incoming stock to be delivered to new warehouse. Requires WMS at new site up and running in parallel before the actual move </li></ul><ul><li>CAPACITY </li></ul><ul><li>How many palllet spaces Size and height of locations - Are they all CHEP or will there be Euros How many Pick or Reserve </li></ul><ul><li>Adequate floor space for GI, Despatch, Rework, shrinkwrap etc Always a killer and usually space required is underestimated </li></ul><ul><li>Same goes for the yard - How many vehicle movements. Ensure adequate turning circles </li></ul><ul><li>Loading bays, Goods in & Despatch How many are needed or are available </li></ul><ul><li>What capacity do you have to provide for ie number of pallets </li></ul><ul><li>WHAT IF </li></ul><ul><li>Contingency plan if it goes pear shaped or contractors do not meet dates </li></ul><ul><li>Plan well in advance and leave sufficient leeway for deadline dates Guarantee that there will be slippage on dates etc, etc </li></ul>
  10. 11. <ul><li>Lessons </li></ul><ul><li>  </li></ul><ul><li>Essential to establish what the company’s objectives and KPIs are </li></ul><ul><li>  </li></ul><ul><li>Liaise consistently with all stakeholders and ensure good communications are maintained throughout. </li></ul><ul><li>For example, the factory unilaterally decided to increase the height of the shoeboxes without any </li></ul><ul><li>consultation with the warehouse, who found this out by chance. </li></ul><ul><li>This had a dramatic effect on the design of the height of the warehouse racking and space utilisation </li></ul><ul><li>Proposed warehouse operation would have been untenable </li></ul><ul><li>  </li></ul><ul><li>Ensure staff are kept informed throughout and their opinions invited and where appropriate, incorporated </li></ul><ul><li>into the new design and SOP </li></ul><ul><li>  </li></ul><ul><li>Ensure adequate data is available to identify picking profiles, fast moving stock, obsolete stock etc </li></ul><ul><li>  </li></ul><ul><li>Arrange meetings with all contractors present, such as the architects, the suppliers of the racking, MHE and </li></ul><ul><li>sprinklers, the insurers, the fire brigade and the company’s own maintenance department. </li></ul><ul><li>They know their business and can liaise and commit directly with each other. </li></ul><ul><li>It also makes them accountable and more difficult for them to attempt to pass blame on to each other or the </li></ul><ul><li>Project Manager </li></ul><ul><li>  </li></ul><ul><li>Walk the site </li></ul><ul><li>A contract plumber was prevented from installing a water supply from one end of the warehouse to the </li></ul><ul><li>other by attaching a water pipe to some racking uprights </li></ul>
  11. 12. Questions 0845 474 1732 info@jlc-solutions.co.uk www.jlc-solutions.co.uk