1. Driving Supply Chain Effectiveness by Leaning Your Warehouse
Lean Warehousing
Driving Supply Chain Effectiveness by Leaning Your Warehouse
Chris Barnes – Consultant, Product Support Services, QAD

2. Lean Warehousing
Safe Harbor Statement
The following is intended to outline QAD’s general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, functional capabilities, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functional capabilities described for QAD’s products remains at the sole discretion of QAD.

3. Objectives Best practices you can implement today
Lean Warehousing
Objectives
Best practices you can implement today
Understand advance strategies with QAD Warehousing
Cover 50 lean warehousing practices

4. Tell Me About You… Do you have a warehouse
Lean Warehousing
Tell Me About You…
Do you have a warehouse
Any lean initiatives in the warehouse
Do you use WMS
What would you like to get from this session

5. Lean Warehousing
Warehousing Defined
A building, or a part of one, for the storage of goods or merchandise
To some in the JIT world, warehousing is considered a waste

6. “Top Pressures” Driving Lean Warehousing
45% do more with less
35% increased demand / supply fluctuations
31% better utilization of resources
39% rising operating costs
28% customer turn time requests
Source: Aberdeen Group - Warehouse Management Excellence, Maximizing Resources & Efficiency, Nov 2010

7. “Top Actions” to Improve Warehouse Management
Lean Warehousing
“Top Actions” to Improve Warehouse Management
54% Better systems integration
39% Improve labor efficiency by reassessing software and warehouse resources
39% Increase visibility into inventory and order status
36% Improve throughput through systems or automation
32% Realign / consolidate products across our facilities
21% Improve perfect order rate by improving pick accuracy and on-time shipment
Source: Aberdeen Group - Warehouse Management Excellence, Maximizing Resources & Efficiency, Nov 2010

8. Lean Warehousing Principles
Flexibility
Lead time reduction
Risk reduction
Reduce variation
Business plans as guidelines
Source: Aberdeen Group - Warehouse Management Excellence, Maximizing Resources & Efficiency, Nov 2010

9. 50 Ways to Lean Your Warehouse
Lean Warehousing
50 Ways to Lean Your Warehouse
Get organized
Marked aisles & areas
Look at lighting
Straight flows
Slotting strategy
Minimize travel
Flexible picking strategies
Source: Aberdeen Group - Warehouse Management Excellence, Maximizing Resources & Efficiency, Nov 2010

10. QAD Warehousing Flexible Picking
Lean Warehousing
QAD Warehousing Flexible Picking
Discrete
Batch
Cluster
Zone
Pick & pass

11. 50 Ways to Lean Your Warehouse
Lean Warehousing
50 Ways to Lean Your Warehouse
Establish appropriate pick locations
Use voice pick where appropriate
Measure warehouse performance
Share performance information
Business intelligence
Use RF data collection
Leverage alerts & messaging

12. Lean Warehousing
RF Task Management and inquiries save time and provide real-time information updates. 12

13. Alerts and Instant Messaging
Lean Warehousing
Alerts and Instant Messaging 13

14. Lean Warehousing
RF Messaging 14

15. 50 Ways to Lean Your Warehouse
Lean Warehousing
50 Ways to Lean Your Warehouse
Wave management
Ensure inventory positions
Focus on inventory accuracy
Use cycle counting
Get rid of excess inventory
Get rid of space wasters
Store obsolete materials off-site
Improve cube utilization
Vary storage location sizes

16. Vertical Honeycombing
Lean Warehousing
Cube Utilization
Vertical Honeycombing
wasted space
improved
beam spacing

17. 50 Ways to Lean Your Warehouse
Lean Warehousing
50 Ways to Lean Your Warehouse
Know your order profile
Store loads according to size
Space allocation by planned inventory levels
Use reserve storage and forward pick
Implement random storage

18. Reserve Storage / Forward Pick
Lean Warehousing
Reserve Storage / Forward Pick
Reserve = Random
Unit 4
Unit 1
Unit 2
Unit 3
Reserve Loc
Reserve Loc
Forward Pick = Dedicated
040-BX-001
040-EA-001

19. 50 Ways to Lean Your Warehouse
Lean Warehousing
50 Ways to Lean Your Warehouse
Consider fluid loading
Use the correct equipment
Consider planned & opportunistic cross docking
Leverage advanced shipment notice (ASN)
Minimize packaging
Store receipts without checking or repacking
Run a scheduled dock
Replace checking with auditing

20. 50 Ways to Lean Your Warehouse
Lean Warehousing
50 Ways to Lean Your Warehouse
Quality sampling and auditing available on receipt
Measure to improve labor performance
Cross train
Identify your superstars
Use standard operating procedures
Perform layout assessment
Minimize aisle widths
Optimize staging areas

21. 50 Ways to Lean Your Warehouse
Lean Warehousing
50 Ways to Lean Your Warehouse
Store in aisles
Standardize pallet sizes
Standardize unit loads
Storage racks over dock doors
Case flow racks in pallet racks
Interleave work tasks bonus
50 ½. Leverage a solid WMS

22. QAD WMS is Fully Integrated into QAD Apps
Lean Warehousing
QAD WMS is Fully Integrated into QAD Apps
Receiving
Cross
Docking
VAS
Productivity
Tracking
Inventory
Lot, S/N, Exp
QAD Apps
Yard & Dock
Management
Put-Away
Slotting
Replenishment
Optimized
Picking
Shipping /
Manifesting
Wave
Planning
Task

23. Value Chain Certification
Lean Warehousing
Value Chain Certification
Belt
Value Chain Certification
White
Green
Field Readiness
EAM
EAM
EAM DM DM DM BI BI
WMS
WMS
SCP
SSM
Configurator
MSW / PSW
Transportation
EAM DM BI
WMS
SCP
SSM
Configurator
MSW / PSW
Purchasing
Financials
Transportation
Black

24. Core Principles of Lean Warehousing
Visible customer consumption
Reduce lead time
Pull system
Reduce variation
Create velocity
Focus on process discipline
Total cost of fulfillment

25. Metrics Affected Lean Warehousing Process Benefit Value
Bin Level Location Mgt
Reduced labor cost
Improved fill rate
Reduced Inventory level
Improved Inventory accuracy
Less warehouse space
-20 to 30%
+10 to 40 pts
-10 to 30%
To 99.9%
-20 to 50%
Receiving
Labor reduction
Real Time Put Away, Product Slotting
Inventory accuracy improved
Mobile Device Based Order Fulfillment

26. Next Steps Ask your account manager for a Lean Warehousing Q−Scan

27. Lean Warehousing
Questions & Answers
Chris Barnes:

28.
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