warehousing elmer
TRANSCRIPT
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Supply Chain Distribution refers to the movement of materials through the supply
chain to the customer. Two main areas of physical distribution management
are materials handling and warehousing.
MATERIALS HANDLING
Material Handling is the field concerned with solving the pragmatic problems
involving the movement, storage, control and protection of materials, goods
and products throughout the processes of cleaning, preparation,
manufacturing, distribution, consumption and disposal of all related materials,
goods and their packaging. It refers to managing the physical movement of
materials into, through, and out of the firm. The primary objective of materials
management is to move materials to the required location in a timely and cost-
effective way without affecting the primary objective of the other two materials
management functions. Some factors that influence the materials handling
function are - the type of plant layout, the type of production process used, the
nature of the materials and the material handling equipment used. The
responsibilities of a manager who looks after the materials handling function
include the effective utilization of the firm's material handling equipment and
convenience facilities like conveyors, and the manpower that maintain these
types of equipment and facilities.
There are three types of materials handling systems available categorized as
manual, mechanized and automated.
A manual handling systemuses people to move material. This provides flexiblesystem, but is only feasible when materials are movable using people with little
assistance. An example is a supermarket where trolleys are used to assist with
movement but the presence of customers and the nature of the items make the
use of mechanization or automation.
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Mechanized warehouses use equipment such as forklift trucks, cranes and
conveyor systems to provide a more efficient handling system, which can also
handle items too heavy for people.
Automated warehouses use technology such as Automated Guided Vehicles
(AGVs) and loading/unloading machines to process high volumes of material
efficiently.
Material handling equipment is of two types - fixed path equipment and
variable path equipment. Fixed path equipment moves in a fixed path. For
example, conveyors, monorail devices, and pulley-drive equipment come
under the category of fixed path equipment. Overhead cranes also belong tothis category with a slight provision for variation. Though its movement is
restricted, it can move materials in any manner within a restricted area by virtue
of its design. Variable path equipment does not have any restriction in the
direction of movement of materials, though the size of the equipment affects its
movement. Trucks, forklifts, mobile cranes and industrial tractors are examples of
variable-path materials-handling equipment.
The selection of the type of equipment requires careful consideration of factors
like investment, labor, anticipated service hours per hour, and loading and
unloading characteristics. Other considerations include the source of power,
conditions under which the equipment operates and other technical aspects.
A materials handling manager selects the equipment required carefully, and
uses them for the physical transfer of materials from the receiving department of
the firm to its warehouses.
The departments that are included in the materials handling function are:
Purchasing department Receiving department
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Raw materials inventory department Production department Finished goods inventory department
Shipping Distribution centers, and Warehouses
The materials management function can also be referred to as a combination
of three sub-functions; traffic, physical distribution and logistics. The sub-function
'traffic' deals with arranging the most economic transportation method for both
the incoming and outgoing materials. The sub-function 'physical distribution' is
associated with the movement of the finished products and the other materials.
Finally, the sub-function 'logistics' deals with obtaining, producing and
distributing materials and products at/to the desired place, at the right time.
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WAREHOUSING AND WAREHOUSE MANAGEMENT
Warehousing is the storage of goods for profit. The physical location, the
warehouse, is a storage facility that receives goods and products for the
eventual distribution to consumers or other businesses. A warehouse is also
called a distribution center. Warehouse management is the process of
coordinating the incoming goods, the subsequent storage and tracking of the
goods, and finally, the distribution of the goods to their proper destinations.
HISTORY
Warehousing's roots go back to the creation of granaries to store food, which
was historically available for purchase during times of famine. As European
explorers began to create shipping-trade routes with other nations, warehouses
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grew in importance for the storage of products and commodities from afar.
Ports were the major location for warehouses.
As railroads began to expand travel and transportation, the creation of rail
depots for the storage of materials became necessary. In 1891 the American
Warehousemen's Association was organized to challenge the railroad
companies' control over freight depots. President Theodore Roosevelt
significantly strengthened the Interstate Commerce Commission with passage of
the Hepburn Act in 1906. Commercial warehousing began to grow after the
government placed more restrictions on railroads.
World War II impacted warehousing in several ways, including the need to
increase the size of warehouses and the need for more mechanized methods of
storing and retrieving the products and materials. As mass production grew
throughout manufacturing, the needs of efficient and effective warehousing
capabilities grew with it.
MODERN ISSUES
The warehouse industry found itself recovering from a recession at the start of
the twenty-first century, partially brought on by the hype of the dot-com bubble
and the excess production created after it burst. It also coped with new
methods of distribution, such as just-in-time (JIT) manufacturingwhere
warehousing is unnecessary because products are shipped directly to
customers.
Warehousing companies are now striving to become more than simply storage
facilities. They are transforming themselves into "third-party logistics providers" or
"3PLs" that provide a wide array of services and functions. In addition to packing
and staging pallets, contemporary warehousing facilities offer light
manufacturing, call centers, labeling, and other non-storage options.
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WAREHOUSE FUNCTIONS
Warehousing is a key component of the overall business supply chain. The
supply chain consists of the facilities and distribution options for the procurement
of materials from manufacturer to customer and all points in between. It
includes the production of materials into components and finished products and
then the distribution to customers.
Warehouse functions include:
the storage of goods to permit managing product flow or toaccommodate longer production runs;
Growth of Warehousing 19972002
Warehousing and Storage
Source: U.S. Department of Commerce: Department of the Census:
Economic Census
Establishments Revenue Annual Payroll($,000) Paid employees
1997 6,497 10,657,925 2,926,119 109,760
2002 12,637 17,924,787 18,689,122 639,174
serving as a mixing point where products from different suppliers aremixed and then distributed to fulfill customer orders;
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a sales branch and customer service location; a source of supplies for production; a staging area for final packaging or finishing.
WAREHOUSE OPERATIONS
Warehouses are operated in several ways. Public warehousing involves the
client paying a standard fee for the storage of merchandise. Private
warehousing is storage and operations controlled completely by a single
manufacturer. Leased warehousing is an option for more stable inventory.
Contract warehousing clients pay fees regardless of whether they are using the
space or not; the space is always there for them to use, however. According to
Overview of Warehousing in North America, contract warehousing accounts for
more than 60 percent of the U.S. commercial market.
A warehouse stands empty without some form of product. Delivery of goods
and materials takes place either by truck, rail, or boat on a dock or loading
area. The goods are received, processed, and then sent into the warehouse for
storage.
The storage of goods has been the primary function for warehouses. Once the
goods have been received from the manufacturer and/or shipper, they are
compactly stored to maximize space within the facility. Products are placed on
pallets, which allow for more consistent stacking and moving within the facility.
Contract and public warehouses receive goods and products from a multitude
of manufacturers and shippers. A crucial aspect of warehouse management is
inventory control. Inventory control is the ability to locate and track a given
product within the warehouse to facilitate quick selection and loading for order
fulfillment. It is also the process of maintaining sufficient amounts of product to
meet customer demands, while at the same time balancing the expense of
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keeping product in storage. Perpetual, annual, physical, and cycle counting are
all methods of keeping track of inventory.
Order picking is the process of selecting products to fulfill an order. There are
several types of picking methods:
Discrete or pick-by-order: Specific products are selected on a per orderbasis.
Batch or pick-by-article: Multiples of a product are selected to fulfillmultiple orders. The products are sorted in the staging area and
combined with other products to fulfill the orders.
Wave: Involves gathering products based on specific routing or shippingcriteria.
Reverse-order: Used when part of an order is held to be combined withanother order.
Reverse-order picking is related to cross-docking, another function of
warehouses. Cross-docking is a direct flow of goods from receiving to shipping,
with little if any storage. Cross-docking is contingent on the timely delivery ofproducts, accurate management on the loading dock, and effective ordering
by the customer.
Warehousing is also involved in the packaging and labeling of a product as it
moves through the facility. Proper packaging is necessary for effective storage
and to guard against damage. Labeling, or tagging, is an important element of
the packaging. Proper labeling improves the ability to identify, track, store, and
select the correct product for order fulfillment.
Once the product has been selected, or picked, it is brought to a staging area
for final processing and shipment. The loading dock is a hub of activity as
products are arriving for storage and being staged for distribution. Effective
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management of this area is crucial for warehouse success. It is here that cross-
docking takes place.
The final stage of warehousing is the transportation facet of delivering and
shipping goods.
WAREHOUSE MANAGEMENT
In the past warehouse management was very paper-intensive in its coordination
of a multitude of activities. This has changed with the introduction of warehouse
management system software.
Warehouse management systems (WMS) assist managers in tracking products
throughout the entire storage and distribution process. These systems span from
simple computer automation systems to high-end, feature-rich management
programs that improve order picking, facilitate better dock logistics, and
monitor inventory management.
TRENDS
According to a Warehousing Management survey, competition in warehousing
has become extremely tight because businesses seek warehouse firms with
extremely thin margins. Companies are succeeding by remaining flexible and
investing in technology. The main issues or trends in warehousing include radio
frequency identification (RFID), transportation management systems, pick-to-
light technology, and voice-activated receiving and packaging.
Voice-activated receiving and packaging allows for warehouse personnel to
speak requests into the WMS, thus speeding the entire process. Transportation
management systems provide an advanced level of detail on goods prior to
their arrival and also provide a more specific time of delivery. RFID has
dramatically improved the ability to effectively manage inventory and track the
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location of specific goods within the warehouse. Pick-to-light technology
improves order picking along warehouse conveyor belts by monitoring and
identifying products for specific shipments.
A significant trend is the continuing growth of 3PL providers as companies try to
cut costs and management issues by outsourcing their warehouse and
distribution functions. An outcome of increased 3PL activity is a wave of mergers
that are consolidating the industry. Customer demands for one-stop shopping
and new technologies are a driving force behind this consolidation.
Warehousing is a mature industry seeking methods to maximize profits and
striving to add services to compete for customers. The warehousing industry is a
key component of the supply chain and will l ikely remain so as long as there are
manufacturers and consumers.
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Warehouse-Management.html#ixzz2gvgd2Mva
Warehouse Management System
Definition
Warehouse management deals with receipt, storage and movement of
goods, normally finished goods, to intermediate storage locations or to final
customer. In the multi-echelon model for distribution, there are levels of
warehouses, starting with the Central Warehouse(s), regional warehouses
services by the central warehouses and retail warehouses at the third level
services by the regional warehouses and so on. The objective of warehousing
management is to help in optimal cost of timely order fulfillment by managing
the resources economically. Warehouse management = "Management of
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storage of products and services rendered on the products within the four wall
of a warehouse"
Warehouse Management can help you manage goods and space more
effectively, reduce costs and waste, and gain control over warehouse
operations. With access to real-time, accurate inventory data, your warehouse
professionals save time locating items or performing physical inventories, sales
representatives can keep tabs on stock availability, and buyers can maintain
optimum stock levels while minimizing carrying costs. Directed pick/put-away
processes, support for Automated Data Collection Systems (ADCS) and a variety
of item tracking optionsincluding first expired/first out handlingcan take your
warehouse management to a new level of efficiency. By tracing items by lot or
serial numbers, your people can quickly identify where items were purchased,
how they were consumed in your production processes, and where they were
sold.
Warehouse Management System or WMS
It is a key part of the supply chain and primarily aims to control the
movement and storage of materials within a warehouse and process the
associated transactions, including shipping, receiving, put away and picking.
The systems also direct and optimize stock put away based on real-time
information about the status of bin utilization.
Warehouse management systems often utilize Auto ID Data Capture
(AIDC) technology, such as barcode scanners, mobile computers, wireless LANs
and potentially Radio-frequency identification (RFID) to efficiently monitor the
flow of products. Once data has been collected, there is either batch
synchronization with, or a real-time wireless transmission to a central database.
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warehouse management. Warehouse management is part of Logistics and
SCM.
Warehouse Management monitors the progress of products through the
warehouse. It involves the physical warehouse infrastructure, tracking systems,
and communication between product stations.
Warehouse management deals with receipt, storage and movement of
goods, normally finished goods, to intermediate storage locations or to final
customer. In the multi-echelon model for distribution, there are levels of
warehouses, starting with the Central Warehouse(s), regional warehouses
services by the central warehouses and retail warehouses at the third level
services by the regional warehouses and so on. The objective of warehousing
management is to help in optimal cost of timely order fulfillment by managing
the resources economically. Warehouse management = "Management of
storage of products and services rendered on the products within the four wall
of a warehouse."
Warehouse Management continues to be the most important factor in
the supply chain execution strategy of any wholesale distributor. It can also be a
source of significant competitive advantage to any distributor as it
encompasses several processes like goods receipt, cross docking, yard
management, bar coding , physical inventory management and outbound
processes. Distributors should have greater visibility into advanced shipping
notices ( ASN ) , planned receipts and dispatches to identify cross docking
opportunities or optimize labor management to increase warehouse throughput
and reduce investment in storage space. A distributors warehouse
management system should have the ability to leverage this receiving
information to determine put away processes that optimize the product flow
from dock to stock . The high number of Stock keeping units ( SKU ) , vendor/
regulatory compliance ( like mandatory UPC coding) and an increasing number
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of claims for perishable products force a distributors warehouse management
system to capture product and transaction information that will act as inputs to
financial reporting or claims management processes.
A distributors warehouse should also be supported by an efficient yard
management system to schedule trailer movement, remove bottlenecks,
provide upstream and downstream visibility. Efficient yard management can
improve a distributors customer satisfaction metrics by facilitating on time
delivery or proactive delay notifications. The advent of new technologies like
RFID have the potential to redefine the way distributors manage their high
volume warehouses. However the unprecedented wave of consolidation in thedistribution industry, changing business models , proliferation of legacy systems
are preventing distributors from realizing proper return on their technology
investments in the Warehouse management space.
Benefits
It is found that there are overlaps in the functionality of the warehouse
management and the enterprise resource planning, distribution requirements
planning, transportation management systems, supply chain planning and
scheduling. If all these are to have separate software the company that is using
the software will get confused with the software solution provided separately.
Hence there is a need for an integrated system that will have warehouse
management and other related operations of the company.
There are many software vendors who provide warehouse management
software. Although there are many vendors the basic functionality of the
warehouse management system is not changed. The primary purpose is to
control the movement and storage of the materials. A good warehouse
management system would have a flexible location system, get user defined
parameters to direct warehouse tasks and uses live documents for execution of
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the tasks. Some form of integration with other devices is possible so that the
warehouse management system gets live data from other devices connected
to it.
Not every warehouse will need a warehouse management system. If the
operation of the warehouse is continuous and very frequent with a lot of
transactions per day then a warehouse management system would justify the
cost involved in setting it up. A lot of initial setup is to be done to keep the data
warehouse management systems to run and to keep the current operation on
the run. There must be a smooth transition from the current system to the
warehouse management system. Often a separate department is setup to
monitor the operations of the warehouse and to use the information system
related to that of the warehouse management system.
Automated data collection in the warehouse management system would
reduce the cost in the labor and increases the accuracy of the data. It
increases the effectiveness of the service provided to the customer by reducing
the cycle time. Inventory reduction and increased storage capacity are less
likely. The level of safety stock can be reduced while increasing the efficiency ofthe system. Customer services like first-in-first-out, cross docking, order tracking
and automated material handling are some of the area that finds an increase in
the efficiency.
The setting up of a warehouse management system is an extensive task.
Similar items and locations are categorized. More details of the items are
maintained such as exact dimensions, weight, rack in which it is stored, hazard
classifications, whether it is a finished goods or a raw material, whether it is a fast
mover or a slow mover etc. these data about an item have to be stored in a
database. The given parameters are only tentative and it will vary from industry
to industry. For example if you are distributor of washing machines, you may be
required to have details like top loading or front loading, the weight of the dry
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clothes that it can take, the make of the machine, the features provided for a
particular model, the weight of the machine, etc. it is not that you will be storing
only a particular type of product in the warehouse. Different types of product
mix are possible in a warehouse and accordingly the warehouse managementsystem has to be configured. Since warehouse management system is all about
directed movement, the location from which the product has to be picked up
and where to be delivered are also to be keyed in to the system. Hence
warehouse management systems are gaining importance in logistics now-a-
days.
Optimize warehouse space
Set up criteria to guide the most efficient pick patterns, bin quantities, and
put-away locations. Pick items per order or to stage, consolidate packing, and
save effort by taking advantage of cross-dock opportunities.
Streamline operations and increase productivity
Help reduce multiple handling and bottlenecks with directed pick and
put-away. Input material handling information directly from the warehouse to
help increase efficiency and reduce redundant data handling.
Improve order fulfillment
Automatically update pick and process or pack status to help ensure
timely, accurate order fulfillment and faster responses to status inquiries.
Gain flexibility for growth
Choose the level of sophistication you need now with confidence that
your solution can scale with your business growth and easily adapt to new
processes, products, volumes, or technologies.
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Warehouse Management
Warehouse Management (WM) is a powerful and comprehensive
automated Warehouse and Distribution Solution seamlessly integrated into SAP
Business One. It is designed to provide optimum flexibility, customization and
visibility across your warehouse environment. Designed to reduce overhead
costs and reduce inefficiencies, the solution can effectively manage and track
the movement of inventory from receiving to shipping.
At the heart of Warehouse Management is a robust client/server
architecture based on the Windows Operating System. The use of client/server
technology provides a gateway for growth unsurpassed by traditional legacysystems. As your warehouse needs change, Warehouse Management can easily
adapt to those changes, and provide a solid migration path.
Its robust and powerful features is also designed to help lower warehouse
costs by eliminating paper work and costly shipping errors at the same time
improving staff productivity, and providing accurate inventory levels to all inter-
company departments in real-time.
Tightly integrate order processing, manufacturing, and warehouse
functionality to help optimize layout and space utilization, manage
replenishment, and handle multiple orders at once. Incorporate a variety of pick
prioritization methods, including first in/first out (FIFO), first expired/first out (FEFO),
or last in/last out (LILO), into directed pick, movement, and put-away decisions
Internal Pick/Put-Away
Pick or put away items and debit or credit inventory records
independently of purchase receipts, sales, or source documents so you can
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maintain accurate inventory records even when accessing items for testing,
display purposes, or other internal or operational needs.
Automated Data Collection System (ADCS) Support
Improve visibility into inventory, and help increase the accuracy and
efficiency of your warehouse managementpicking and putting away of items,
physical inventory counts, and moving items from bin to binwith ADCS.
Item Tracking
Trace lot or serial numbers to quickly determine where items were
purchased, processed, or sold. Help reduce waste and limit carrying expired
inventory with support for FEFO handling.
Item Costing
Understand item costs throughout the production process, including
inventory, work-in-process (WIP), and cost of goods sold (COGS). Break down
costs according to categories such as materials, capacity, subcontracting, and
overhead. Tighten control of closing processes, improve batch job costing, and
streamline reconciliation with the general ledger.
Shipping Agent Management
Control your distribution by relating shipping agents to the services they
offer.
Returns Management
Process returned inventory and account for additional costs.
Automatically organize credit memos, replacement goods, returns to vendors,
and partial or combined return of shipments or receipts. Exact cost reversal
helps increase inventory accuracy.
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Cycle counting
Determine the counting frequency per item or stock keeping unit to help
increase inventory accuracy and meet shipping deadlines.
Evolution of Warehouse Management
Introduction
The evolution of warehouse management systems (WMS) is very similar to
that of many other software solutions. Initially a system to control movement
and storage of materials within a warehouse, the role of WMS is expanding to
including light manufacturing, transportation management, order
management, and complete accounting systems. To use the grandfather of
operations-related software, MRP, as a comparison, material requirements
planning (MRP) started as a system for planning raw material requirements in a
manufacturing environment. Soon MRP evolved into manufacturing resource
planning (MRPII), which took the basic MRP system and added scheduling and
capacity planning logic. Eventually MRPII evolved into enterprise resource
planning (ERP), incorporating all the MRPII functionality with full financials and
customer and vendor management functionality. Now, whether WMS evolving
into a warehouse-focused ERP system is a good thing or not is up to debate.
What is clear is that the expansion of the overlap in functionality between
Warehouse Management Systems, Enterprise Resource Planning, Distribution
Requirements Planning, Transportation Management Systems, Supply Chain
Planning, Advanced Planning and Scheduling, and Manufacturing Execution
Systems will only increase the level of confusion among companies looking for
software solutions for their operations.
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Even though WMS continues to gain added functionality, the initial core
functionality of a WMS has not really changed. The primary purpose of a WMS is
to control the movement and storage of materials within an operation and
process the associated transactions. Directed picking, directed replenishment,and directed put away are the key to WMS. The detailed setup and processing
within a WMS can vary significantly from one software vendor to another;
however the basic logic will use a combination of item, location, quantity, unit
of measure, and order information to determine where to stock, where to pick,
and in what sequence to perform these operations.
Do We Really Need Warehouse Management System?
Not every warehouse needs a WMS. Certainly any warehouse could
benefit from some of the functionality but is the benefit great enough to justify
the initial and ongoing costs associated with WMS? Warehouse Management
Systems are big, complex, data intensive, and applications. They tend to
require a lot of initial setup, a lot of system resources to run, and a lot of ongoing
data management to continue to run. Thats right; you need to "manage" your
warehouse "management" system. An often time, large operations will end up
creating a new IS department with the sole responsibility of managing the WMS.
The Claims
i. Warehouse Management System will reduce inventory!ii. Warehouse Management System will reduce labor costs!iii. Warehouse Management System will increase storage capacity!iv. Warehouse Management System will increase customer service!v. Warehouse Management System will increaseinventory accuracy!
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The Reality
The implementation of a WMS along with automated data collection will
likely give you increases in accuracy, reduction in labor costs (provided the
labor required to maintain the system is less than the labor saved on the
warehouse floor), and a greater ability to service the customer by reducing
cycle times. Expectations of inventory reduction and increased storage
capacity are less likely. While increased accuracy and efficiencies in the
receiving process may reduce the level of safety stock required, the impact of
this reduction will likely be negligible in comparison to overall inventory levels.
The predominant factors that control inventory levels are lot sizing, lead times,
and demand variability. It is unlikely that a WMS will have a significant impact
on any of these factors. And while a WMS certainly provides the tools for more
organized storage which may result in increased storage capacity, this
improvement will be relative to just how sloppy your pre-WMS processes were.
Beyond labor efficiencies, the determining factors in deciding to
implement a WMS tend to be more often associated with the need to do
something to service your customers that your current system does not support
(or does not support well) such as first-in-first-out, cross-docking, automated pick
replenishment, wave picking, lot tracking, yard management, automated data
collection, automated material handling equipment, etc.
Setup
The setup requirements of WMS can be extensive. The characteristics of
each item and location must be maintained either at the detail level or by
grouping similar items and locations into categories. An example of item
characteristics at the detail level would include exact dimensions and weight of
each item in each unit of measure the item is stocked (reaches, cases, pallets,
etc) as well as information such as whether it can be mixed with other items in a
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location, whether it is rack able, max stack height, max quantity per location,
hazard classifications, finished goods or raw material, fast versus slow mover, etc.
Although some operations will need to set up each item this way, most
operations will benefit by creating groups of similar products. For example, ifyou are a distributor of music CDs you would create groups for single CDs, and
double CDs, maintaining the detailed dimension and weight information at the
group level and only needing to attach the group code to each item. You
would likely need to maintain detailed information on special items such as
boxed sets or CDs in special packaging. You would also create groups for the
different types of locations within your warehouse. An example would be to
create three different groups (P1, P2, P3) for the three different sized forwardpicking locations you use for your CD picking. You then set up the quantity of
single CDs that will fit in a P1, P2, and P3 location, quantity of double CDs that fit
in a P1, P2, P3 location etc. You would likely also be setting up case quantities,
and pallet quantities of each CD group and quantities of cases and pallets per
each reserve storage location group.
If this sounds simple, it iswell sort of. In reality most operations have a
much more diverse product mix and will require much more system setup. And
setting up the physical characteristics of the product and locations is only part
of the picture. You have set up enough so that the system knows where a
product can fit and how many will fit in that location. You now need to set up
the information needed to let the system decide exactly which location to pick
from, replenish from/to, and put away to, and in what sequence these events
should occur (remember WMS is all about directed movement). You do this by
assigning specific logic to the various combinations of
item/order/quantity/location information that will occur. Below is the list of some
of the logic used in determining actual locations and sequences.
Location sequence
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This is the simplest logic; you simply define a flow through your warehouse
and assign a sequence number to each location. In order picking this is used to
sequence your picks to flow through the warehouse, in put away the logic
would look for the first location in the sequence in which the product would fit.
Zone Logic
By breaking down your storage locations into zones you can direct
picking, put away, or replenishment to or from specific areas of your warehouse.
Since zone logic only designates an area, you will need to combine this with
some other type of logic to determine exact location within the zone.
Fixed Location
Logic uses predetermined fixed locations per item in picking, put away,
and replenishment. Fixed locations are most often used as the primary picking
location in piece pick and case-pick operations; however, they can also be
used for secondary storage.
Random Location
Since computers cannot be truly random (nor would you want them to
be) the term random location is a little misleading. Random locations generally
refer to areas where products are not stored in designated fixed locations. Like
zone logic, you will need some additional logic to determine exact locations.
First-in-first-out (FIFO)
FIFO Directs picking from the oldest inventory first.
Last-in-first-out (LIFO)
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where you may specify certain quantities of an inbound shipment be moved to
specific outbound staging locations or directly to an awaiting outbound trailer.
Nearest Location
Also called proximity picking/put away, this logic looks to the closest
available location to that of the previous put away or pick. You need to look at
the setup and test this type of logic to verify that it is picking the shortest route
and not the actual nearest location. Since the shortest distance between two
points is a straight line, this logic may pick a location 30 feet away (thinking its
closest) that requires the worker to travel 200 feet up and down aisles to get to it
while there was another available location 50 feet away in the same aisle (50 islonger than 30).
Maximize Cube
Cube logic is found in most WMS systems however it is seldom used.
Cube logic basically uses unit dimensions to calculate cube (cubic inches per
unit) and then compares this to the cube capacity of the location to determine
how much will fit. Now if the units are capable of being stacked into the
location in a manner that fills every cubic inch of space in the location, cube
logic will work. Since this rarely happens in the real world, cube logic tends to
be impractical.
Consolidate
Looks to see if there is already a location with the same product stored in
it with available capacity. May also create additional moves to consolidate like
product stored in multiple locations.
Lot Sequence
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Used for picking or replenishment, this will use the lot number or lot date to
determine locations to pick from or replenish from.
Its very common to combine multiple logic methods to determine the
best location. For example you may chose to use pick-to-clear logic within first-
in-first-out logic when there are multiple locations with the same receipt date.
You also may change the logic based upon current workload. During busy
periods you may chose logic that optimizes productivity while during slower
periods you switch to logic that optimizes space utilization.
Other Functionality/Considerations of Warehouse Management
Wave Picking/Batch Picking/Zone Picking
Support for various picking methods varies from one system to another. In
high-volume fulfillment operations, picking logic can be a critical factor in WMS
selection. See my article onOrder Picking for more info on these methods.
Task Interleaving
Task interleaving describes functionality that mixes dissimilar tasks such aspicking and put away to obtain maximum productivity. Used primarily in full-
pallet-load operations, task interleaving will direct a lift truck operator to put
away a pallet on his/her way to the next pick. In large warehouses this can
greatly reduce travel time, not only increasing productivity, but also reducing
wear on the lift trucks and saving on energy costs by reducing lift truck fuel
consumption. Task interleaving is also used with cycle counting programs to
coordinate a cycle count with a picking or put away task.
Automated Data Collection (ADC)
It is generally assumed when you implement WMS that you will also be
implementing automatic data collection, usually in the form of radio-frequency
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(RF) portable terminals with bar code scanners. I recommend incorporating
your ADC hardware selection and your software selection into a single process.
This is especially true if you are planning on incorporating alternate technologies
such as voice systems, RFID, or light-directed systems. You may find that a higherpriced WMS package will actually be less expensive in the end since it has a
greater level of support for the types of ADC hardware you will be using. In
researching WMS packages you may see references like supports, easily
integrates with, works with, seamlessly interfaces with in describing the
softwares functionality related to ADC. Since these statements can mean just
about anything, youll find it important to ask specific questions related to
exactly how the WMS system has been programmed to accommodate ADCequipment. Some WMS products have created specific versions of programs
designed to interface with specific ADC devices from specific manufacturers. If
this WMS/ADC device combination works for your operation you can save
yourself some programming/setup time. If the WMS system does not have this
specific functionality, it does not mean that you should not buy the system; it just
means that you will have to do some programming either on the WMS system or
on the ADC devices. Since programming costs can easily put you over budgetyoull want to have an estimate of these costs up front. As long as you are
working closely with the WMS vendor and the ADC hardware supplier at an
early stage in the process you should be able to avoid any major surprises here.
Read my article on ADC.
Integration with Automated Material Handling Equipment
If you are planning on using automated material handling equipment
such as carousels, ASRS units, AGVs, pick-to-light systems, or sortation systems,
youll want to consider this during the software selection process. Since these
types of automation are very expensive and are usually a core component of
your warehouse, you may find that the equipment will drive the selection of the
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WMS. As with automated data collection, you should be working closely with
the equipment manufacturers during the software selection process.
Advanced Shipment Notifications (ASN)
If your vendors are capable of sending advanced shipment notifications
(preferably electronically) and attaching compliance labels to the shipments
you will want to make sure that the WMS can use this to automate your
receiving process. In addition, if you have requirements to provide ASNs for
customers, you will also want to verify this functionality.
Cross Docking
In its purest form cross-docking is the action of unloading materials from
an incoming trailer or rail car and immediately loading these materials in
outbound trailers or rail cars thus eliminating the need for warehousing
(storage). In reality pure cross-docking is less common; most "cross-docking"
operations require large staging areas where inbound materials are sorted,
consolidated, and stored until the outbound shipment is complete and ready to
ship. If cross docking is part of your operation you will need to verify the logic
the WMS uses to facilitate this.
Pick-to-Carton
For parcel shippers pick-to-carton logic uses item dimensions/weights to
select the shipping carton prior to the order picking process. Items are then
picked directly into the shipping carton. When picking is complete, Dunn age is
added and the carton sealed eliminating a formal packing operation. This logic
works best when picking/packing products with similar size/weight
characteristics. In operations with a very diverse product mix it's much more
difficult to get this type of logic to work effectively.
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Slotting
Slotting describes the activities associated with optimizing product
placement in pick locations in a warehouse. There is software packages
designed just for slotting, and many WMS packages will also have slotting
functionality. Slotting software will generally use item velocity (times picked),
cube usage, and minimum pick face dimensions to determine best location.
Yard Management
Yard management describes the function of managing the contents
(inventory) of trailers parked outside the warehouse, or the empty trailers
themselves. Yard management is generally associated with cross docking
operations and may include the management of both inbound and outbound
trailers.
Labor Tracking/Capacity Planning
Some WMS systems provide functionality related to labor reporting and
capacity planning. Anyone that has worked in manufacturing should be
familiar with this type of logic. Basically, you set up standard labor hours and
machine (usually lift trucks) hours per task and set the available labor and
machine hours per shift. The WMS system will use this info to determine capacity
and load. Manufacturing has been using capacity planning for decades with
mixed results. The need to factor in efficiency and utilization to determine rated
capacity is an example of the shortcomings of this process. Not that Im
necessarily against capacity planning in warehousing, I just think most
operations dont really need it and can avoid the disappointment of trying to
make it work. I am, however, a big advocate of labor tracking for individual
productivity measurement. Most WMS maintain enough data to create
productivity reporting. Since productivity is measured differently from one
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operation to another you can assume you will have to do some minor
modifications here (usually in the form ofcustom reporting).
Activity-based costing/billing
This functionality is primarily designed for third-party logistics operators.
Activity-based billing allows them to calculate billable fees based upon specific
activities. For example, a 3PL can assign transaction fees for each receipt, and
shipment transaction, as well as fees for storage and other value-added
activities.
Integration with Existing Accounting/Erp Systems
Unless the WMS vendor has already created a specific interface with your
accounting/ERP system (such as those provided by an approved business
partner) you can expect to spend some significant programming dollars here.
While we are all hoping that integration issues will be magically resolved
someday by a standardized interface, we aint there yet. Ideally youll want an
integrator that has already integrated the WMS you chose with the business
software you are using. Since this is not always possible you at least want an
integrator that is very familiar with one of the systems.
Implementation Tips
Outside of the standard dont underestimate, thoroughly test, train, train,
train implementation tips that apply to any business software installation, itsimportant to emphasize that WMSs are very data dependent and restrictive by
design. That is, you need to have all of the various data elements in place for
the system to function properly. And, when they are in place, you must operate
within the set parameters.
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These are some very real examples of what you can expect when working
with systems like WMSs. As you run into instances such as these, you must
remember that these are not flaws with the WMS. In fact, you want your WMS to
be restrictive, thats what gives you control over your operations. You should tobe aware, however, that the cultural change required to work within the
operational constraints provided by the WMS is often the most difficult part of a
WMS implementation.
When implementing a WMS, you are adding an additional layer of technology
onto your system. And with each layer of technology there are additional
overhead and additional sources of potential problems. Now dont take this as
a condemnation of Warehouse Management Systems. Coming from a
warehousing background I definitely appreciate the functionality WMSs have to
offer, and, in many warehouses, this functionality is essential to their ability to
serve their customers and remain competitive. Its just important to note that
every solution has its downsides and having a good understanding of the
potential implications will allow managers to make better decisions related to
the levels of technology that best suits their unique environment.
Receiving and Shipping Operations
Problems occurring in planning
Problems can occur in planning receiving and shipping facilities if the
operations that interface with receiving and shipping activities are not properly
considered.
The facility requirements to receive and ship goods
i. Sufficient area to stage and spot carriers
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ii. Dock-boards to facility carrier unloadingiii. Sufficient area to palletize or containerize goods
iv.
An office to house information on purchase orders and allow for reportgeneration.
The facility requirements to ship goods:
i. Sufficient area to stage ordersii. An office to house information on shipping releases and customer
orders
iii. Sufficient area to stage and spot carriersiv. Dock board to facilitate carrier loading
Perceiving
i.
A reason to be concerned with perceiving, peak loads at receivingcan be reduced.
ii. Another reason for being concerned with perceiving activities is theopportunity to influence the unit load configurations of inbound
material.
iii. A third reason, for trying to influence between the vendor andreceivers information systems.
Post-shipping
i. Just as the receiver wishes to influence the vendor, the customerwishes to influence the shipper.
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ii. Hence, post-shipping activities must be considered. Post-shippingactivities include: returnable containers, returned goods, returning
carriers, and shipping schedules
iii. Space required for the receiving and shipping activities can bepositively affected by pre- receiving and post-shipping considerations
Some desirable attributes of receiving and shipping facilities plans include
i. Directed flow paths among carriers, buffer, or staging areas andstorage areas
ii. A continuous flow without excessive congestion or idlenessiii. A concentrated area of operation that minimizes material handling
and increases the effectiveness of supervision
iv. Efficient material handlingv. Safe operationvi. Minimizing damagevii. Good housekeeping
Receiving Principles
i. Dont receiveii. Perceiveiii. Cross-dock cross-dock able materialiv. Put away directly to primary or reserve locations
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Determine the space requirements for the receiving and shipping area within
the facility
a. Personnel convenienceb. Officesc. Material handling equipment maintenanced. Trash disposale. Pallet and packaging material storagef. Trucker's lounge (150 ft2up to 6 docks; 25 ft2each additional dock)g. Buffer or staging area (typically sufficient space for one full carrier
for each dock)
h. Material handling equipment maneuveringCross-docking
It is found that there are overlaps in the functionality of the warehouse
management and the enterprise resource planning, distribution requirements
planning, transportation management systems, supply chain planning and
scheduling. If all these are to have separate software the company that is using
the software will get confused with the software solution provided separately.
Hence there is a need for an integrated system that will have warehouse
management and other related operations of the company.
There are many software vendors who provide warehouse management
software. Although there are many vendors the basic functionality of the
warehouse management system is not changed. The primary purpose is to
control the movement and storage of the materials. A good warehouse
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management system would have a flexible location system, get user defined
parameters to direct warehouse tasks and uses live documents for execution of
the tasks. Some form of integration with other devices is possible so that the
warehouse management system gets live data from other devices connectedto it.
Not every warehouse will need a warehouse management system. If the
operation of the warehouse is continuous and very frequent with a lot of
transactions per day then a warehouse management system would justify the
cost involved in setting it up. A lot of initial setup is to be done to keep the data
warehouse management systems to run and to keep the current operation on
the run. There must be a smooth transition from the current system to the
warehouse management system. Often a separate department is setup to
monitor the operations of the warehouse and to use the information system
related to that of the warehouse management system.
Automated data collection in the warehouse management system would
reduce the cost in the labor and increases the accuracy of the data. It
increases the effectiveness of the service provided to the customer by reducing
the cycle time. Inventory reduction and increased storage capacity are less
likely. The level of safety stock can be reduced while increasing the efficiency of
the system. Customer services like first-in-first-out, cross docking, order tracking
and automated material handling are some of the area that finds an increase in
the efficiency.
The setting up of a warehouse management system is an extensive task.
Similar items and locations are categorized. More details of the items are
maintained such as exact dimensions, weight, rack in which it is stored, hazard
classifications, whether it is a finished goods or a raw material, whether it is a fast
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mover or a slow mover etc. these data about an item have to be stored in a
database. The given parameters are only tentative and it will vary from industry
to industry. For example if you are distributor of washing machines, you may be
required to have details like top loading or front loading, the weight of the dryclothes that it can take, the make of the machine, the features provided for a
particular model, the weight of the machine, etc. it is not that you will be storing
only a particular type of product in the warehouse. Different types of product
mix are possible in a warehouse and accordingly the warehouse management
system has to be configured. Since warehouse management system is all about
directed movement, the location from which the product has to be picked up
and where to be delivered are also to be keyed in to the system. Hencewarehouse management systems are gaining importance in logistics now-a-
days.
Factors influencing the use of cross-docks
Customer and supplier geography -- particularly when a single corporatecustomer has many multiple branches or using point
Freight costs for the commodities being transported Cost of inventory in transit Complexity of loads Handling methods
Logistics software integration between supplier(s), vendor, and shipper
Tracking of inventory in transit
World-Class Warehousing
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Timeless Insights for Planning and Managing 21st-Century Warehouse
Operations. Despite today's just-in-time production mentality, with its efforts to
eliminate warehouses and their inventory carrying costs, effective warehousing
continues to play a critical bottom-line role for companies worldwide. World-Class Warehousing and Material Handling covers today's state-of-the-art tools,
metrics, and methodologies for dramatically increasing the effectiveness,
accuracy, and overall productivity of warehousing operations.
Written by one of today's recognized logistics thought leaders, this
comprehensive resource provides authoritative answers on such topics as
i. The seven principles of world-class warehousingii. Warehouse activity profilingiii. Warehouse performance measuresiv. Warehouse automation and computerizationv. Receiving and put awayvi. Storage and retrieval operationsvii. Picking and packingviii. Humanizing warehouse operations
World-Class Warehousing and Material Handlingdescribes the processes
and systems required for meeting the changing demands of warehousing. Filled
with practices from proven to innovative, it will help all logistics professionals
improve the productivity, quality, and cycle time of their existing warehouse
operations.
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Not too long ago, effective warehousing was a relatively straightforward
progression of receiving, storing, and shipping. But in today's age of e-
commerce, supply chain integration, globalization, and just-in-time
methodology, warehousing has become more complex than at any time in thepastnot to mention more costly.
World-Class Warehousing and Material Handling breaks through the
confusing array of warehouse technology, buzzwords, and third-party providers
to describe the principles of warehousing required for the implementation of
world-class warehousing operations. Holding up efficiency and accuracy as the
keys to success in warehousing, it is the first widely published methodology for
warehouse problem solving across allareas of the supply chain, providing an
organized set of principles that can be used to streamline all types of
warehousing operations.
Case studies from Avon, Ford, Xerox, True Value Hardware, and others
detail how today's most innovative logistics and supply chain managers are
arriving at proven solutions to a wide variety of warehousing challenges. Topics
discussed include:
Warehouse activity profiling
For identifying causes of information and material flow problems and
pinpointing opportunities for improvement
Warehouse performance measures
For monitoring, reporting, and benchmarking warehouse performance
Storage and retrieval system selection
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The methods for order picking vary greatly and the level of difficulty in
choosing the best method for your operation will depend on the type of
operation you have. The characteristics of the product being handled, total
number of transactions, total number of orders, picks per order, quantity perpick, picks per SKU, total number of SKUs, value-added processing such as
private labeling, and whether you are handling piece pick, case pick, or full-
pallet loads are all factors that will affect your decision on a method for order
picking. Many times a combination of picking methods is needed to handle
diverse product and order characteristics.
Key objectives in designing an order picking operation include increases
in productivity, reduction of cycle time, and increases in accuracy. Often times
these objectives may conflict with one another in that a method that focuses on
productivity may not provide a short enough cycle time, or a method that
focuses on accuracy may sacrifice productivity.
Productivity
Productivity in order picking is measured by the pick rate. Piece pick
operations usually measure the pick rate in line items picked per hour while case
pick operations may measure cases per hour and line items per hour. In pallet
pick operations the best measure is actual pallets picked per hour. Since the
actual amount of time it takes to physically remove the product from the
location tends to be fixed regardless of the picking method used, productivity
gains are usually in the form of reducing the travel time.
Cycle Time
Cycle time is the amount of time it takes to get an order from order entry
to the shipping dock. In recent years, customers expectations of companies to
provide same day shipment has put greater emphasis on reducing cycle times
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from days to hours or minutes. Immediate release of orders to the warehouse for
picking and methods that provide concurrent picking of items within large
orders are ways to reduce cycle times.
Accuracy
Regardless of the type of operation you are running, accuracy will be a
key objective. Virtually every decision you make in setting up a warehouse will
have some impact on accuracy, from the product numbering scheme, to the
design of product labels, product packaging, the design of picking documents,
location numbering scheme, storage equipment, lighting conditions, and
picking method used. Technologies that aide in picking accuracy include pick-to-light systems, counting scales, and bar code scanners. Beyond the design
aspects of an order picking operation, employee training, accuracy tracking,
and accountability are essential to achieving high levels of accuracy.
Piece-picking methods
Piece picking, also known as broken case picking or pick/pack
operations, describes systems where individual items are picked. Piece pick
operations usually have a large sku base in the thousands or tens of thousands
of items, small quantities per pick, and short cycle times. Mail order catalog
companies and repair parts distributors are good examples of piece pick
operations.
Basic Order Picking
In the most basic order-picking method, product is stored in fixed
locations on static shelving or pallet rack. An order picker picks one order at a
time following a route up and down each aisle until the entire order is picked.
The order picker will usually use some type of picking cart. The design of the
picking flow should be such that the order picker ends up fairly close to the
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original starting point. The picking document should have the picks sorted in the
same sequence as the picking flow. Fast moving product should be stored
close to the main cross aisle and additional cross aisles put in to allow short cuts.
Larger bulkier items would be stored towards the end of the pick flow. This basicorder picking method can work well in operations with a small total number of
orders and a high number of picks per order. Operations with low picks per
order will find the travel time excessive in this type of picking and operations with
large numbers of orders will find that the congestion from many pickers working
in the same areas slows down the processing.
Batch Picking / Multi-Order Picking
In batch picking, multiple orders are grouped into small batches. An
order picker will pick all orders within the batch in one pass using a consolidated
pick list. Usually the picker will use a multi-tiered picking cart maintaining a
separate tote or carton on the cart for each order. Batch sizes usually run from 4
to 12 orders per batch depending on the average picks per order in that
specific operation. Batch picking systems may use extensive logic programmed
to consolidate orders with the same items. In operations with low picks per
order, batch picking can greatly reduce travel time by allowing the picker to
make additional picks while in the same area. Since you are picking multiple
orders at the same time, systems and procedures will be required to prevent
mixing of orders. In very busy operations, batch picking is often used in
conjunction with zone picking and automated material handling equipment. In
order to get maximum productivity in batch pick operations, orders must be
accumulated in the system until there are enough similar picks to create the
batches. This delay in processing may not be acceptable in same day shipping
operations.
Zone Picking
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Zone picking is the order picking version of the assembly line. In zone
picking, the picking area is broken up into individual pick zones. Order pickers
are assigned a specific zone, and only pick items within that zone. Orders are
moved from one zone to the next as the picking from the previous zone iscompleted (also known as "pick-and-pass"). Usually, conveyor systems are used
to move orders from zone to zone. In zone picking its important to balance the
number of picks from zone to zone to maintain a consistent flow. Zones are
usually sized to accommodate enough picks for one or two order pickers.
Creating fast pick areas close to the conveyor is essential in achieving high
productivity in zone picking. Zone picking is most effective in large operations
with high total numbers of stocks, high total numbers of orders, and low tomoderate picks per order. Separate zones also provide for specialization of
picking techniques such as having automated material handling systems in one
zone and manual handling in the next.
Wave picking
A variation on zone picking and batch picking where rather than orders
moving from one zone to the next for picking, all zones are picked at the same
time and the items are later sorted and consolidated into individual
orders/shipments. Wave picking is the quickest method (shortest cycle time) for
picking multi item orders however the sorting and consolidation process can be
tricky. Operations with high total number of SKUs and moderate to high picks
per order may benefit from wave picking. Wave picking may be used to isolate
orders by specific carriers, routes, or zones.
Piece-picking
As with the picking methods, the picking equipment used will also
depend on a variety of factors.
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Static shelving
The most common equipment for storage in piece pick operations, static
shelving is designed with depths from 12 to 24. Product is either placed
directly on the shelving or in corrugated, plastic, or steel parts bins. Static
shelving is economical and is the best method where there are few picks per
SKU or where parts are very small.
Carton flow rack
Carton flow rack is similar to static shelving with the exception that rather
than shelves, there are small sections of gravity conveyor mounted at a slight
angle. Product is stocked from the rear of the flow rack and picking is done
from the face. Product can be stocked in cartons or small totes or bins. As a
carton or tote is emptied, it is removed from the rack and another one will roll
into place. Carton flow rack is most useful where there is a very high number of
picks per SKU.
Carousels, Horizontal Carousels
Are versions of the same equipment used by dry cleaners to store and
retrieve clothing, They have racks hanging from them that can be configured to
accommodate various size storage bins. Generally an operator will run 2 to 4
carousels at a time avoiding the need for the operator to wait while one unit is
turning. Picking is usually performed in batches with orders downloaded from
the host system to the carousel software. Horizontal carousels are most common
in picking operations with very high number of orders, low to moderate picks per
order, and low to moderate picks per sku. Horizontal carousels provide very high
pick rates as well as high storage density. Pick-to-light systems are often
integrated into carousels. Vertical Carousels are frequently used in laboratories
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and specialty manufacturing operations and are rarely used in regular order
picking operations.
Automatic storage and retrieval systems (ASRS)
An ASRS is a system of rows of rack, each row having a dedicated
retrieval unit that moves vertically and horizontally along the rack, picking and
putting away loads. ASRS systems are available in mini-load types that store
and transfer product on some type of tray or in bins, and unit-load types that
transfer and store pallet loads or other large unitized loads. In addition to the
automation features, ASRS units can provide extremely high storage density with
capabilities to work in racking up to 100 feet high. Unfortunately the high costsof ASRS equipment and the length of the retrieval times make it difficult to
incorporate into a piece picking operation.
Automatic picking machines
Fully automated picking machines (such as A-frames) are still pretty rare
and are used only where very high volumes of similar products are picked such
as music CDs, or, where high volume in combination with high accuracy
requirements exist such as pharmaceutical fulfillment.
Pick-to-light
Pick-to light systems consist of lights and LED displays for each pick
location. The system uses software to light the next pick and display the quantity
to pick. Pick-to-light systems have the advantage of not only increasing
accuracy, but also increasing productivity. Since hardware is required for each
pick location, pick-to-light systems are easier to cost justify where very high picks
per SKU occur. Carton flow rack and horizontal carousels are good applications
for pick to light. In batch picking, put-to-light is also incorporated into the cart or
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rack that holds the cartons or totes that you are picking in to. The light will
designate which order you should be placing the picked items in.
Bar-Code Scanners
Though very useful in increasing accuracy levels, bar-code scanners in a
fast-paced piece-pick operation tend to become cumbersome and can
significantly reduce your pick rates. With proper training, tracking, and
accountability, you can get very high accuracy rates in order picking without
scanners. I find they are better suited to case pick, pallet load, put away, and
order checking operations.
Voice-directed picking
Voice technology has come of age in recent years and is now a very
viable solution for piece pick, case pick, or pallet pick operations.
Automated Conveyor and Sortation Systems
Automated conveyor systems and sortation systems will be integral to
any large-scale piece pick operation. The variety of equipment and system
designs is enormous.
Case Picking Methods
Case picking operations tend to have less diversity in product
characteristics than piece picking operations, with fewer SKUs and higher picks
per SKU.
Basic Case-Picking Method
This is the most common method for case-picking operations. Rather
than product stored on static shelving, case-pick operations will have the
product stored in pallet rack or in bulk in floor locations. The simplest picking
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method is to use a hand pallet jack (or motorized pallet truck) and pick cases
out of bulk floor locations however many operations will find that going to very
narrow aisle (VNA) pallet racking and using man-up order selectors or turret
trucks will provide high storage density and high pick rates.
Batch picking
Batch picking is rarely used in case pick operations primarily because of
the physical size of the picks. You are unlikely to have enough room on a pallet
to pick multiple orders.
Zone Picking
Zone picking can be used in case-picking operations, however, like
batch picking, the size of the picks and the size of the orders in most case-pick
operations do not lend themselves well to zone picking. If you do have a case
pick operation where you have a large number of SKUs, and orders with small
quantities per SKU, or where you have enough cases per order per zone to fill a
pallet, you may find zone picking applicable.
Wave picking
Wave picking can be applied to case picking operations where you
have very large orders with many picks per order and are looking for ways to
reduce cycle time.
Case-Picking Equipment
Pallet rack: Pallet rack is the most common storage system for case pick
operations.
Flow rack: Although carton flow rack rarely applies to case pick operations,
pallet flow rack or push back rack can be useful.
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Carousels: Although you can incorporate unit-load carousels into a case pick
operation, it tends to be an unlikely match-up. If doing batch picking where
you have many picks per SKU and few pieces per pick you can pick from an
ASRS unit onto a unit-load carousel.
Automated Storage and Retrieval Systems (ASRS): Unit-load ASRS systems can be
useful in case-pick operations, especially if you can provide storage heights of
40 to 100 feet.
Pick-to-light: Pick-to-light can be used in case-pick operations, however, its
application is significantly less than in piece pick operations.
Bar-code scanners: Bar-code scanners are frequently used in case-pick
operations. Since the time to physically pick the product is higher in case-pick
operations, the time spent scanning tends to have little impact on productivity
and therefore the accuracy benefits will usually outweigh any reduction in
productivity.
Voice-directed picking: Voice technology has come of age in recent years and
is now a very viable solution for piece pick, case pick, or pallet pick operations.
Automated Conveyor and Sortation Systems: If using zone or wave picking,
automated conveyor and sortation systems will likely be a part of your system. In
case picking, you may use standard conveyors to transport individual cases or
unit-load conveyors to transport pallets.
Lift Trucks: As previously mentioned, motorized pallet trucks, man-up order
selectors, and man-up turret trucks are the vehicles of choice for case-pick
operations.
Pallet Picking Methods
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Full-pallet picking is also known as unit-load picking. The systematic
methods for full-pallet picking are much simpler that either piece pick or case
pick, however, the choices in storage equipment, storage configurations, and
types of lift trucks used are many.
Basic pallet picking: This is the most common method for full-pallet picking.
Orders are picked one at a time. The order picker will use some type of lift truck,
retrieve the pallet load and stage it in a shipping area in a staging lane
designated for that order, or just pick and load directly into an outbound trailer
or container.
Batch picking: Since the nature of pallet picking is a single pick per trip, batchpicking has no application in pallet-picking operations.
Zone and wave picking: Although the normal definition of zone picking where
an order is moved from zone to zone as picks are accumulated doesnt apply to
pallet picking, pick zones are used in wave picking in pallet-picking operations.
The storage area is broken into zones to eliminate multiple lift-truck operators
from picking in the same aisle. The lift truck operator may pick the pallet and
deliver it directly to the designated staging lane or place it on a unit-load
conveyor that will deliver it to the sorting/staging area.
Task Interleaving: Task interleaving is a method of combining picking and put
away. Warehouse Management Systems (WMS) use logic to direct a lift truck
operator to put away a pallet en route to the next pick.
Pallet-picking equipment
Pallet rack: There are numerous pallet rack configurations used in full pallet
operations, from standard back-to-back single pallet depth configurations to
double-deep rack, push-back rack, drive-in/drive-thru rack, and flow rack. The
best racking configuration for your operation will be based on the total number
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of pallets per sku, pallets per pick, and the length of time the product is in the
rack prior to shipment. There are a lot of tradeoffs in choosing a racking
configuration including storage density, picking productivity, equipment costs,
and the ability to maintain first-in first-out.
ASRS: Unit-load ASRS units when combined with unit-load conveyors and
sortation systems can provide fully automatic pallet picking operations. And
again, the ability to store product in racking up to 100 feet high gives excellent
storage density.
Automated conveyor and sortation systems: Automated conveyor and
sortation systems can be combined with ASRS units or used in conjunction withmanual picking with lift trucks in zone/wave picking systems. Either the ASRS or
the lift truck operator delivers the pallet load to the conveyor. The conveyor
system then delivers the pallet to the shipping area where it is either manually
sorted by lift trucks into the designated staging lane, or a sortation system
automatically sorts into a staging lane. Staging lanes can be equipped with
automated or gravity fed unit-load conveyor.
Bar-code scanners: Bar-code scanners are very commonly used in pallet-pick
operations.
Voice-directed picking: Voice technology has come of age in recent years
and is now a very viable solution for piece pick, case pick, or pallet pick
operations.
Lift trucks: The lift trucks used for pallet picking will depend upon the storage
configuration. Standard lift trucks are used in bulk floor storage and wide-aisle
pallet rack storage in singe-depth, push-back, drive-in/drive-thru, and flow rack.
Reach trucks are used in narrow-aisle storage in single-depth, double-deep,
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push-back, drive-in/drive-thru, and flow rack. Swing mast and turret trucks are
used in very narrow aisle storage in single depth pallet rack.
Regardless of the product handled, or the picking method and
equipment used, locating product by the frequency of picks should be
incorporated into the system design. The fastest moving product should be
stocked as close to the pick point as possible and at the levels that are easiest
to pick from. Even if you are using an ASRS unit, the retrieval time will be less the
closer the location is to the pick point, and in a horizontal carousel, the picking
time will be less if the order picker does not need to bend down or reach up to
pick.
In fixed location picking, you designate a specific picking location for
each SKU. Fixed picking locations are most commonly used in piece-pick
operations; however, they may also be used in case picking and pallet picking
where rack flow is incorporated. Slotting in fixed picking locations needs to be
reviewed on a regular base to ensure high levels of productivity. The frequency
of review will depend upon product life cycles and seasonality. In random
storage operations, a WMS system can direct fast movers to the closest open
location to the pick point.
Operations using fixed picking locations will generally also have a reserve
or overflow storage area. The overflow storage area will usually use a system of
random storage. A replenishment system will need to be put in place to move
product to the fixed picking locations as inventory levels drop to predetermined
levels.
Outbound shipments should always have some type of a check in place.
The type of check will vary from operation to operation. In a high-volume low-
value shipping operation, a simple "looking over" the shipment may be all that's
feasible, while in a lower-volume high-value shipping operation, I've had as
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many as three people performing redundant checks of each shipment prior to
loading.
Extensive data analysis is necessary in determining the best methods for
order picking. Historical data on picks per SKU, quantity per pick, picks per
order, total picks, total orders, orders received by time of day, etc. will be
important in not only the initial plan, but also in the ongoing operation of the
system.
It will also be very important to project growth, especially in automated
systems. While you can throw more people into a manual system when
transactions increase, automated systems such as carousels and ASRS units willhave capacity limits.
Order-picking systems can be very simple systems in small operations or
become very complex systems using a little bit of everything. In a large
operation you may have totes start as batch pick in a carousel picking area for
your medium moving piece-pick items, and then move individually to a manual
picking area for slow moving small-parts piece picking out of static shelving
(possibly in a mezzanine). Then move to a carton-flow rack area for your fastest
moving items, and finally to a shipping staging/consolidation area where it is
matched up with cases and bulkier items from a case-pick ASRS unit and full
pallets from a racked warehouse.
Order Picking Operations in Warehouse Systems
Order picking operations in warehouse systems
Designing a warehouse and defining the type of appropriate warehouse
equipment is a complex decision process, being a long-term strategic decision.
Between the other functions like receiving and checking, storage, packing and
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shipping the orders, an important function in designing a warehouse is
represented by the picking process. Developing an effective order picking
operation and enhancing this in pick accuracy and speed, need to integrate
new technologies combined with the adequate methods for picking theproducts.
The classical warehouse becomes more and more a sophisticated place,
determined by, the large number of problems, types and demands of customer
services. An important function in designing a warehouse is represented by the
picking process, between the other functions like receiving and checking,
storage, packing and shipping the orders.
Key Factors In Warehouse Design
Designing a warehouse and defining the type of appropriate warehouse
equipment is a Complex decision process, being a long-term strategic decision.
In this process, collecting Operation data is often the first step, database
development being the most important part of any warehouse sizing and design
process. Warehouse activity profiling is the analysis of historical sales transaction
data for the purposes of projecting warehouse activity and determining storage
mode, physical layout, work flow processes, and labor and equipment
requirements. Using this data, the company can examine the volume of receipts
and shipments, the characteristics of those shipments, projecting inventory
levels, plan the number of SKU along with the associated cube, velocity,
seasonality, and inventory handling characteristics that are all critical to the
design, inbound shipment characteristics, number of orders per day, lines per
order, and pieces per line. When designing a warehouse, the key factors need
to be considered in determining the best solution between a manual or
automated solution, are:
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i. The characteristics, size and weight of products;ii. The product activity, the cubic velocity of a product;
iii.
For storage systems, the choice is determined by the type of loadunits, range of products, quantity of loads for each SKU, movement
rates of load units;
iv. In the case of picking methods it is necessary to take inconsideration the total number of orders, total number of
transactions, the characteristics of product being handled, picks
per order, quantity per pick, picks per SKU, the number of SKUs, the
value added processes and the type of pick;
v. For selecting the material equipment, directly related to the layoutand selected Storage system, it has to consider factors such as
product weight and volume, product fragility, productivity rates of
different type of equipments and health and safety legislation;
vi. Outlines the key principles including optimization of space, flow ofmaterials and equipment, types of storage i.e. bulk vs. small parts
etc. and appropriate combinations of Storage and handling
equipment, different types of warehouses etc.
vii. Establishing the best combination of handling and storageequipment
viii.
Outline of the key principles of warehou