OMSAN LOJİSTİK

Context—Single Warehouse Operations Session 1 – Morning Defining the Problem Context - Supply Chain, Distribution Network - Single Warehouse Operations Logistics Activity Profiling Session 3 – Morning Process and Technology Alternatives Small Item Picking - Order Picking Methods - Forward Pick, Slotting, and Replenishment Mechanized Picking Systems Zone Picking Batch Picking Context—Single Warehouse Operations Session 2 – Afternoon Process and Technology Alternatives Pallet Storage Case Picking Manual Mechanized Session 4 – Afternoon Putting it all Together Developing the integrated design - Sizing the Functions - Defining Overall Facility Flow - Orienting Shipping and Receiving - Planning Aisle Patterns Integrating Human Activity Day 1 Day 2

Defining the Problem Context for A Single Warehouse Operation—What is It? Defining the context is a two-fold process: First, placing a boundary around the functions and activities that are part of your design responsibility Second, identifying those functions, activities or other factors outside of your responsibility or control that will: Impact warehouse design requirements Be affected by the limits/capabilities that you design into your operation

Defining the Problem Context Diagram Marketing Parts Distribution Warehouse Receiving Cross-Dock Putaway Storage Order Picking Checking/QC/QA Packing Shipping Special Orders Returns Cable Cutting Mod Shop Other Value-Added Services Information Systems Purchasing Customer Service Transportation Branch Operations Inventory Strategy & Control Management Issues Manufacturing Labor

Defining the Problem Context—Marketing Product selection New products Duplicate/overlapping lines Obsolescence Promotional programs Special services Image Internal incentives/measures Parts Distribution Warehouse Receiving Cross-Dock Putaway Storage Order Picking Checking/QC/QA Packing Shipping Special Orders Returns Cable Cutting Mod Shop Other Value-Added Services Information Systems Purchasing Customer Service Transportation Branch Operations Inventory Strategy & Control Management Issues Manufacturing Labor

Defining the Problem Context—Purchasing Marketing Order quantities Frequency Number of vendors Lead time Packaging requirements Unit of measure Labeling Supercession/substitution Advanced shipping notice Other compliance requirements Parts Distribution Warehouse Receiving Cross-Dock Putaway Storage Order Picking Checking/QC/QA Packing Shipping Special Orders Returns Cable Cutting Mod Shop Other Value-Added Services Information Systems Purchasing Customer Service Transportation Branch Operations Inventory Strategy & Control Management Issues Manufacturing Labor

Defining the Problem Context—Transportation Marketing Inbound Backhaul Time of receipt Scheduled receipt Outbound Delivery Commercial LTL Contract Full load Break-bulk Drops Parcel Cut-off times Parts Distribution Warehouse Receiving Cross-Dock Putaway Storage Order Picking Checking/QC/QA Packing Shipping Special Orders Returns Cable Cutting Mod Shop Other Value-Added Services Information Systems Purchasing Customer Service Transportation Branch Operations Inventory Strategy & Control Management Issues Manufacturing Labor

Defining the Problem Context—Inventory Strategy and Control Marketing Inventory levels Buying cycles Accuracy requirements Inquiry requirements Parts Distribution Warehouse Receiving Cross-Dock Putaway Storage Order Picking Checking/QC/QA Packing Shipping Special Orders Returns Cable Cutting Mod Shop Other Value-Added Services Information Systems Purchasing Customer Service Transportation Branch Operations Inventory Strategy & Control Management Issues Manufacturing Labor

Defining the Problem Context—Manufacturing Marketing Production cycles Minimum orders Packaging and unitizing Direct ship Priorities Internal vs. external customers Production parts vs. service parts Parts Distribution Warehouse Receiving Cross-Dock Putaway Storage Order Picking Checking/QC/QA Packing Shipping Special Orders Returns Cable Cutting Mod Shop Other Value-Added Services Information Systems Purchasing Customer Service Transportation Branch Operations Inventory Strategy & Control Management Issues Manufacturing Labor

Defining the Problem Context—Information Systems Architecture strategy Hardware Software Capabilities Development Maintenance Interface requirements Frequency Format Integrated/distributed Ownership Marketing Parts Distribution Warehouse Receiving Cross-Dock Putaway Storage Order Picking Checking/QC/QA Packing Shipping Special Orders Returns Cable Cutting Mod Shop Other Value-Added Services Information Systems Purchasing Customer Service Transportation Branch Operations Inventory Strategy & Control Management Issues Manufacturing Labor

Defining the Problem Context—Customer Service Response time Fill rate Accuracy Backorder handling SKU/product line consolidation Special labeling Order status tracking Substitutions Direct shipping Marketing Parts Distribution Warehouse Receiving Cross-Dock Putaway Storage Order Picking Checking/QC/QA Packing Shipping Special Orders Returns Cable Cutting Mod Shop Other Value-Added Services Information Systems Purchasing Customer Service Transportation Branch Operations Inventory Strategy & Control Management Issues Manufacturing Labor

Defining the Problem Context—Branch or Store Operations Inventory levels Replenishment frequency/lead time Priority Transfers Branch to customer Branch to branch Branch to DC to branch Marketing Parts Distribution Warehouse Receiving Cross-Dock Putaway Storage Order Picking Checking/QC/QA Packing Shipping Special Orders Returns Cable Cutting Mod Shop Other Value-Added Services Information Systems Purchasing Customer Service Transportation Branch or Store Operations Inventory Strategy & Control Management Issues Manufacturing Labor

Defining the Problem Context—Management Issues Performance reporting Organization Image Capital Availability Cost Technology readiness Marketing Parts Distribution Warehouse Receiving Cross-Dock Putaway Storage Order Picking Checking/QC/QA Packing Shipping Special Orders Returns Cable Cutting Mod Shop Other Value-Added Services Information Systems Purchasing Customer Service Transportation Branch Operations Inventory Strategy & Control Management Issues Manufacturing Labor

Defining the Problem Context—Labor Cost Availability Full-time Part-time Overtime Capability Training requirements Technology limits Role in . . . Managing Improvement Labor/management relations Marketing Parts Distribution Warehouse Receiving Cross-Dock Putaway Storage Order Picking Checking/QC/QA Packing Shipping Special Orders Returns Cable Cutting Mod Shop Other Value-Added Services Information Systems Purchasing Customer Service Transportation Branch Operations Inventory Strategy & Control Management Issues Manufacturing Labor

Supply Chain Integration The Role of the Warehouse in the Supply Chain 4

Hybrid Material Flow Strategy Supply Customer DISTRIBUTOR CONVENTIONAL Storage Distribution DIRECT SHIP CROSS-DOCK consolidate

Supply Chain Integration Hybrid Facility Example Pallet Flow-Through Truck To Truck Conventional Order Select By Store Cross Dock Continuous Replenishment Flow-Through Regular Turn Product Low Volume Slow Turn Product Item Sequencing Module Batch Pick Put To Store Order Batch Pick Order Select By Store

Integrating Processes Shifting Operations in the Traditional Flow Distribution Manufacturing Retail Consumer Examples: Customizing products Private labeling System configuration

Integrating Processes Shifting Operations in the Traditional Flow Distribution Manufacturing Retail Consumer Examples: Price ticketing Assortments Bagging, hanging, etc. Aisle family grouping

Integrating Processes Direct Distribution Flow Manufacturing Retail Consumer Examples: Direct mail merchandising Internet marketing Grocery home delivery

Integrating Processes Factory Direct Distribution Manufacturing Retail Consumer Examples: Superstores Large scale promotions Dairy / bakery products

Integrating Processes Cross-Docking Distribution Manufacturing Retail Consumer Examples: Chilled grocery Very fast movers Special orders

Integrating Processes Bring the Factory to the Customer Distribution Retail Manufacturing Consumer Examples: Photo processing Krispy Kreme Doughnuts Original Mattress Factory

Supply Chain Integration Typical Effects on Warehousing Decrease in inventory levels Need for faster dock to stock turnaround Increased cross-docking More frequent, smaller receipts No reserve inventory, receive direct to pick face 4

Supply Chain Integration Typical Effects on Warehousing Reduction in supplier base Increase in certified suppliers Reduced inspection needs Direct put-away to storage Direct replenishment to pick face Direct shipment to customer Vendor managed inventories 4

Supply Chain Integration Typical Effects on Warehousing More frequent, smaller receipts Change in pallet storage mode Mixed SKUs per pallet More carton storage 4

Supply Chain Integration Typical Effects on Warehousing Improve inventory flexibility Generic inventory Assemble to order Modify to order 4

Supply Chain Integration Typical Effects on Warehousing LL Bean Dog beds and covers Lands End Monogramming Cuff pants to length Levi Strauss Custom fit to order Westinghouse Modify standard products to create specials 4

Supply Chain Integration Typical Effects on Warehousing Constantly increasing number of SKU’s Batch pick orders or parts of orders Wave pick and high-speed sortation Centralize slow movers Cross-dock orders pre-picked at supplier/distributor 4

Supply Chain Integration Typical Effects on Warehousing Need for 100% accuracy Radio frequency communication Light and voice directed picking Weigh counting “Grocery type” scanning at pack High speed sortation, with scanning 4

Supply Chain Integration Typical Effects on Warehousing Increased requirement for value-added services Family grouping Customer price ticketing Bagging & tagging Customer specific cartons Tracking country of origin 4

Supply Chain Integration Typical Effects on Warehousing Smaller, more frequent customer orders More case handling - but sometimes in large quantities More parcel shipments 4

Supply Chain Integration Typical Effects on Warehousing More parcel shipments Pre-determined carton contents Verified during picking Loaded independently Merge en-route 4

Merge In Transit One Order, Three Sources 2 days 4 days 1 day Synchronize shipment release Track to ensure progress Confirm complete prior to delivery

Supply Chain Integration Typical Effects on Warehousing Faster turnaround of customer orders Late order cut-off times Overnight carrier departures Smaller order processing windows Higher peak rates Shorter internal order cycle times 4

Use Order Data to Simplify Process Line/Order % Orders % Lines % Cube 1 77 Shippable 30% 50% 2 - 3 17 Overpack 4 - 7 3 Big 40% 45% 8+ 3 Small 40% 5% Think “handling units”, not orders

Thinking Handling Units Independent flow of lines which can go directly to carrier All shippable cases All single line orders which can be packed at the pick face Strong incentive for WMS support of one-step pick and pack

Supply Chain Integration Typical Effects on Warehousing Level facility loading and/or flex staffing $(0.50) $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 9-May 12-May Week 18-May 25-May 1-Jun 6-Jun 9-Jun 14-Jun 17-Jun 22-Jun 27-Jun 30-Jun 6-Jul 11-Jul 14-Jul 19-Jul 22-Jul 27-Jul 1-Aug 4-Aug 9-Aug 12-Aug 17-Aug 22-Aug 25-Aug 30-Aug Labor Cost per Order Linear (Labor Cost per Order) 4

Supply Chain Integration Typical Effects on Warehousing Use flexible staffing to match demand fluctuations Full-time/part-time mix All part-time workforce Short normal day Normal day for peak Internal/external overtime 40 hour week spread unevenly by day 4

Supply Chain Integration Typical Effects on Warehousing Interfaces with Transportation Inbound Looking for One-step Handling Dealing with Loose Loaded Product Micro-manage space abusers Outbound Drop Trailer Staged vs Live Load Unitized vs Floor Stacked Multi-stop Load Cross-docking 4

Thank You!!

Designing the warehouse to meet changing needs Functions in the warehouse Measures affected by materials handling Engineering the process to change the measures

Functions in the warehouse Ship the stuff Store the stuff Receive the stuff

Basic Warehousing Functions

How do we measure performance? Dock-to-stock time Storage density Productivity Pallet movement and storage Case handling Small item picking Order cycle time Accuracy On-time shipping/delivery

Reducing move cost Fewer moves Shorter moves Faster moves Safer moves

Dock-to-stock time Know what’s coming Decide where to put it before you unload it OHIO – “only handle it once”

Receiving

Receiving - Concept Put-away to reserve pallet storage Combos go to single carton storage With Flex conveyor, one system serves two doors Inbound Container S I First-time styles and splits S Scan UCC128 inkjet I Inkjet pallet symbol

Improving storage density Pallet storage Case storage

Most Common Pallet Storage Vehicles

Deep-reach and Clamp Trucks

Storage Options - Aisle Widths Single Deep Double Deep

Fast Movers and Mini-warehouses Top 240 Zone A Zone B Next 300

Case Storage/Picking Systems Picking with a Rider Pallet Truck

Pick from floor level storage positions Ready-reserve of restock pallets for high mover items Double deep reach truck Hand-stacked products on shelving above pallet positions for slower movers Each floor level pallet position on the aisle is a forward picking position for the fast and medium movers Depiction of a pallet jack that carries two pallets for order picking.

Pick to pallet from pallet flow lanes Ready-reserve of restock pallets for high mover items Replenishment Aisle Depiction of a pallet jack that carries two pallets for order picking.

Using an orderpicking truck to access more SKUs Case Storage/Picking Systems Using an orderpicking truck to access more SKUs

Storing less-than-pallet quantities

Hand-stack on shelving 48” pallet rack with wire decking 24” shelf spacing for most products (9 levels) 12” shelf spacing for the very slowest movers (4 levels) 54” aisle for order picking truck

Case Storage/Picking Systems Factors Affecting Pick Rate What makes us fast? Easy to locate always in the same place locations logically arranged location ID easy to read Easy to follow instructions large print pick with one label per case radio frequency display voice

Case Storage/Picking Systems Factors Affecting Pick Rate Voice commands

Case Storage/Picking Systems Factors Affecting Pick Rate What makes us fast? Easy to palletize cases the same size or height heaviest cases on the bottom

Case Storage/Picking Systems Factors Affecting Pick Rate Good ergonomic access to cases

How do item picking systems evolve? Serial Zone Picking Parallel Zone Picking Wave Picking Multi-Wave Picking Serial Zone Picking Parallel Zone Picking Wave Picking Multi-Wave Picking Stage 2 Stage 1 Stage 3 Complexity of Picking Method Multi-order Picking Multi-order Picking Manual Zone Picking Manual Zone Picking Fwd /Reserve Picking WMS required Mechanization required Single Order Picking Order Volume

What is multi-order picking? One of the most cost effective methods for picking small orders in zones with low pick density Operators pick multiple orders on a pick tour. Each order has its own tote, carton or slot. Walking distance is reduced significantly Algorithms can be used to create order batches within zone limits Order #3 Order #2 Multi-Order Picking Cart Order #1

Multi-order picking cart with ladder

Multi-order picking with post-sortation A consolidated pick-list is built for all the items needed for several orders An operator tours through the facility and picks all the requirements at once Items are sorted by order at the END of the pick tour Waiting to sort permits higher density of items in the pick cart; hence, more orders per tour Order #1 Order #2 Picking Sorting Picks to Orders

Serial Zone Systems Orders must stop at all zones Zone picking systems may take on a wide variety of configurations, but utilize 3 basic approaches. Orders must stop at all zones Orders may skip zones Orders may re-circulate to re-visit a skipped zone Each works well for specific problems, but none will satisfy all needs.

Serial Zone Systems Orders stop in every zone Zone 1 Zone 2 Zone 3

Serial Zone Systems Orders may skip zones Zone 1 Zone 2 Zone 3 Zone 4

Serial Zone Systems Orders may re-circulate Zone 1 Zone 2 Zone 3

Conveyors Routing Orders to Zones in Series Pack & Ship 4 2 5 6 8 7 3 Induction Point 1

Conveyor Routing via a Central Loop

RF Directed Picking in Zone

Picking from Flow Rack in Zone

Light Directed Picking in a Zone

Horizontal Carousel Pod as a Zone

An A-Frame Dispenser May be a Zone

Using a separate outbound conveyor for finished orders Induction Point 1 2 3 4 8 7 6 5 Pack & Ship Independent Take-away Conveyor

Multi-mode picking A project example: The work will be divided into three categories: Single line orders The first pick of a multi-line orders Succeeding picks of a multi-line orders

Station A Pack single line orders and discharge to lower level shipping conveyor Place first line of a multi-line order in a carton and discharge to upper level loop conveyor for travel to other zones Station B Pack completed multi-line orders May have been picked in parallel in other zones, or picked in series and finishes here Discharge packed carton to lower level shipping conveyor Station C Scan inbound carton Add pre-picked product Discharge to loop for additional zone visits or Stage in flow rack for packing

Pre-picking a batch to a slotted cart

Adding pre-picked products to an arriving order tote

Picking from Zones in Parallel Sorter/Pack Stations Shipping Sorter

RF Directed Picking in Parallel Zones

Totes Arriving at the Packing Sorter

Packing Stations

Multi-order Picking from Zones in Parallel Assign a group of orders to a pack station The number of orders will depend on the physical size of the orders Walking by the pack station operator must be limited In each zone, pick all products for the group assigned to a pack station into one tote. When the tote arrives at the pack station, the operator sorts individual items to order totes or pigeonholes. When the system indicates that all items for an order have arrived, the operator may pack the order or pass it on to a packer.

Batch picking multiple orders for a packing station Zone 1 Zone 2 Zone 3 Zone 6 Zone 5 Zone 4 Shipping

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