warehousing elmer

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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.

http://www.referenceforbusiness.com/management/Tr-Z/Warehousing-and-

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!
http://www.inventoryops.com/guide_inv_acc.htmhttp://www.inventoryops.com/guide_inv_acc.htm


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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
http://www.inventoryops.com/safety_stock.htmhttp://www.inventoryops.com/economic_order_quantity.htmhttp://www.inventoryops.com/economic_order_quantity.htmhttp://www.inventoryops.com/safety_stock.htm


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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

warehousing elmer

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