Warehousing

Demystified
What is a warehouse?
A facility that
Receives items from a source
Stores items until required
Picks items when required
Performs value-added services if
necessary
Ships items to the appropriate
destination
Why is a warehouse needed?
To co-ordinate supply and demand
ability to satisfy demand with adequate
supply
To assist in the production process
storage of manufacturing components
To provide value-added services
Kitting, packaging, labeling, aging,
ripening etc.
Components of a warehouse
Building
Storage Medium(s)
Dock Area
Processing Areas
Inventory
Systems - software/hardware/paper
Material Handling Equipment
People
Warehouse Design & Layout Principle
Use one story facilities where possible
Move goods in a straight-line
Use the most efficient material handling
equipment
Minimize aisle space
Use full building height
Storage
Storage Devices
Pallet/Skid Storage
Dependent on load characteristics: dimensions,
weight, stackability, cold/warm, flammable etc.
Floor storage
Rack storage: single-deep, double-deep, flow-
through etc.
Non-pallet storage
Case flow rack, Shelves, Bins, Drawers, slick-
rails, stand-alone heavy items
Storage Mediums
Storage Mediums - Configuration
Conventional
12 ft. aisle, 4 to 5 levels high, least expensive
equipment used
Narrow Aisle
8 ft. aisle, 4 to 5 levels high, tight turning radius
Very Narrow Aisle (VNA)
6 ft. aisle, upto 9 levels high, needs expensive
turret trucks, wire guided
Storage Mediums - Comparison
Layout Comparison of space needed to hold
1000 pallets
Conventional 10,000
sq. ft.
Narrow Aisle 6,470 sq. ft.
Narrow Aisle (Double Deep) 5,500
sq. ft.
Very Narrow Aisle 3,070 sq. ft.
Storage Mediums
Conventional Pallet Rack - Single Deep
Storage Mediums
Conventional Pallet Rack - Low Ceiling
Storage Mediums
Very Narrow Aisle - VNA
Storage Mediums
Case Flow Rack
Storage Mediums
Shelves/Bin locators
Vehicles/Equipment
Vehicles/Equipment
Hand Truck/Pallet Jack
Walkie Rider
Fork Trucks - Man Down
Fork Trucks - Man Up/Cherry Picker
Turret Truck
Vehicles/Equipment
Hand Truck/Pallet Jack

Manual Power Driven

Vehicles/Equipment
Walkie Rider
Vehicles/Equipment
Fork Truck

Man Down Man Up

Vehicles/Equipment
VNA Picker/Turret Truck
Storage vs. Equipment Correlation

Source: Tompkins Associates

Automation
Automation
Automation is used in five areas
External Receiving
Production Receiving
Product Movement
Picking/Putaway
Outbound
Automated Facility
Inbound Receiving/Outbound Loading
Expandable Conveyors
Inbound Receiving/Outbound Loading
Production Receiving
Palletizers
Product Movement
Conveyors
Product Movement
Automated Guided Vehicle (AGV)
Product Movement
Automated Guided Vehicle (AGV)
Storage and Picking
ASRS - Automated Storage & Retrieval (Part to
Man)
Storage and Picking
ASRS - Automated Storage & Retrieval
Storage and Picking
Carousel (Part to Man)
Storage and Picking
Slick Rail
Barcoding
Automatic Data Collection (ADC)
The process of automating the entry and
dissemination of information
An assortment of technologies that provide a
machine-based alternative to keyboard entry
Bar codes, Touch memory, Magnetic stripe cards,
Radio Frequency Communication and Voice
recognition.
Barcode Basics
Barcode - The optically machine readable bars
and spaces of a symbol that contain encrypted
data
Symbology - Code 39, UPC-A, UPC-E, Code
128, PDF 417, Interleaved 2 of 5
Orientation
Ladder - Horizontal Bars
Picket Fence - Vertical Bars
Primary Standard Organizations
ANSI - American National Standards Institute
UCC - Uniform Code Council
AIM - Automated Identification Manufacturers
Association
Product Identification Standards
Universal Product Code (UPC-A or UPC-E)
Individual Consumer Unit
Mfg. Id, product number, check digit
Shipping Container Code (SCC-14)
Case Level
Pack Size, Mfg Id, product number, check digit
Serial Shipping Container Code (SSCC-18)
Shipping Container Level
Mfg Id, serial number, check digit
Warehousing
Terminology
Warehousing Terminology
LPN - License Plate Number
Unique identifier of a Product/UOM/Quantity status
Applied in three possible manners:
Pre-applied by vendor
Pre-printed, sequentially numbered LPN applied
during receiving
Printed with (possibly) additional information and
applied during receiving
Warehousing Terminology
Lot Number
Attribute of an Item
Used to track batch or production runs
Coffee
Roll of film
Detergent
Critical to age sensitive product - Food & Drug
Track contaminated product
Recall/quarantine specific items
Warehousing Terminology
Skid
Another word for pallet
Plastic or wooden platform where product is stored
Tote
Any physical container or device (basket, cart,
pallet) used for movement of loose product
Typically for picking items into, prior to packing
Warehousing Terminology
Shrinkage
Calculated or acceptable reduction in inventory
quantities
Polite word for theft
SKU
Stock Keeping Unit
Control number for an item in a specific UOM
Weights
Gross - Total of all packaging material and contents
Net - Weight of contents only
Tare - Weight of only packaging materials
Warehousing
Concepts
Inbound Operations
Inbound operations include trailer check-in, yard
management, product unloading, receiving,
staging, QA, cross-docking and putaway
Yard Management - Inbound
Yard provides storage for inbound and outbound
containers
Vessel/Trailer Check-In
Verify authorization
Note trailer contents and seal
Record arrival date and time
Record condition of vessel
Direct driver either to yard location or dock door
Inbound Operations
Receiving
Open a receipt
One header with vendor identified
One or more detail records with items to be received
Unload trailer
Identify product
Stage product for putaway
Close the receipt
Inbound Operations
Receiving - Open a Receipt
Get shipping paperwork from driver
Get PO Number from shipping paperwork
Verify delivery on time
Blind receipt or ASN or Key entry
Receiving - Unload the trailer
Count the number of packages
Compare packages with paperwork
Check/record damage
Sign paperwork
Release driver (live load)
Inbound Operations
Receiving - Identify product
Sort product if necessary
Build pallet if necessary
Apply LPN, record all product, quantity,UOM,
Lot/Serial number etc.
Compare the actual count with the PO
Perform required inspection
Divert samples to QA area
Divert damaged product to Damaged Area
Divert Re-Work product to Re-Work area
Inbound Operations
Receiving - Stage product for putaway
Done after product has been identified and ready for
putaway
Receiving - Close Receipt
Record any discrepancies
Send receipt to Accounts Payable
Freight Claims processing for damaged product
Inbound Operations
Putaway
Decide whether to use product immediately or store
Cross-Dock?
Backorders, manufacturing, customer orders (other
than backorders)
Can product be used to top-off a primary pick
location (Pickface)?
Can product be putaway to secondary storage?
Based on the above factors move product to
destination location
Record destination location
Outbound Operations
Picking
Picking Approaches
Discrete Order Picking
Zone Picking
- Sequential (Pick and Pass)
- Simultaneous
Batch Picking
- Cluster
Wave Picking
Outbound Operations
Discrete Order Picking
One person picks one order, one line item at a time
Simplest form of picking
High levels of accuracy
Excessive travel time
Zone Picking
Each person is assigned to a zone/sub
Picker assigned to a zone picks all line items for an
order within that zone.
Two types of zone picking: Sequential and
simultaneous
Outbound Operations
Zone Picking (Contd.)
Sequential zone picking (Pick and Pass)
Zone picking one zone at a time
Initiation of pick in second zone, for the same order,
is dependent on completion of pick in the first zone
Line items for an order are picked into carton/tote and
passed to the next zone
Simultaneous zone picking
Picking from applicable zones independently
Consolidating the order after pick completion
Outbound Operations
Batch Picking
One picker picks a group of orders at the same time,
one line item at a time
When a product appears on more than one order, the
total quantity required for all the orders combined is
picked at one time and then segregated by order
Segregation can be accomplished either at the source
during picking by picking into separate totes
(Cluster picking), or at the destination after picking
by sortation
Outbound Operations
Wave Picking
A wave is a collection of picks organized to improve
picking efficiency
Group picks by item, not order (batch)
Requires sortation
Likely used when a customer places a large order
and case or each picks dominate order
Common wave grouping is by trailer
Wave picking bottlenecks - soration capacity,
palletization capacity, number of dock doors
Outbound Operations
Packing
Moving product from picking totes to packing
cartons
Select carton
Match and/or Record Lot/Serial/COO attributes
Commingling restrictions
Check for overages/shortages
Check/record weight
Print labels
Cheaper to ship multiple products in one carton
Outbound Operations
Shipment Staging
Designated area for each shipment load or carrier
Final preparation for shipment
Count verification using order or pick list
Stretch wrapping
Print paper work
Bill of Lading (BOL)
Packing List
Shipping Labels
Manifest
Export Documents
Outbound Operations
Loading
Reverse stop sequence
Balance trailer: front-back, left-right
Close trailer and seal
Ship confirm
Typical Product Movement
Inventory Control/Management
Cycle Counting
ABC - Classification codes established by
accounting
Typically regulated by value or velocity
Physical count of all products to ensure inventory
accuracy
ABC also depicts interval of time between counts
As counted more often that Bs
Bs counted more often that Cs
Inventory Control/Management
Inventory Adjustments
Lost Inventory
Found Inventory
Scrap/Damage/Sample
Obsolete/Aged/Expired
Gifts for Visitors
Employee Benefit programs
Inventory Control/Management
Material Movement (Non-order related)
Inbound staging and putaway
Consolidate product
Replenishment of pickfaces Min/Max
Min/Max - Defines the minimum quantity to initiate
replenishment and the maximum quantity desired in a
location when full
Relocate for seasonality - Dynamic slotting
Placing high velocity products closer to high activity
pick areas
Route to QA or manufacturing
Remove damaged product
WMS
What is a WMS?
System in a warehouse that manages:
Information
Inventory (Tracking, Accessibility, Protection)
Space
Labor
Equipment
Uses real-time transactions via RF
A WMS must track and report activities
A WMS must measure and report operations
performance aiding in continuous improvement
Why Implement a WMS?
To Improve
Customer service
Space utilization
Labor utilization
Equipment utilization
Inventory accuracy and control
Information availability
Shipment accuracy
To minimize
Product handling
Cost, Errors