1. OMSAN LOJİSTİK

2. - 2 - Day 2Day 1 Session 2 – Afternoon Process and Technology Alternatives Pallet Storage Case Picking - Manual - Mechanized 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 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 Session 1 – Morning Defining the Problem Context - Supply Chain, Distribution Network - Single Warehouse Operations Logistics Activity Profiling Small Item Picking— Forward Pick, Slotting, and Replenishment

3. - 3 - Forward Picking, Replenishment, and Slotting What Are They? Forward picking concept—creating zones/locations/groups of picking modes in which a portion of the material is positioned: –When the picking unit is different than the reserve unit –To enable physical grouping of SKUs –To implement high-density picking zones Replenishment concept—developing a strategy by which material flows from receiving through storage to the pick face: –At the total facility level—defines the total plan of how material is routed from receiving through picking –At the unit pick level—To ensure the forward pick zones are “topped off” with new product... with the right timing to ensure picking is not slowed with the right amount of material to ensure slots are neither over-filled nor under-filled Slotting—the art of assigning related materials to locations: –In the same picking mode that have unequal value (the “golden zone” vs. the “lead zone”) –Across multiple picking zones/modes

4. - 4 - Forward Picking High-Level Concept Forward picking zones contain items that are picked as units but stored as cases/pallets in reserve. Product gets into the forward pick slots in one of two ways: Replenishment from reserve Direct putaway from receiving

5. - 5 - Forward Picking Forward Pick Zone Design Examples... or with facings above the conveyor Carton flow pick-to-tote with facings opposite the conveyor...

6. - 6 - Forward Picking Forward Pick Zone Design Examples (cont.) Static shelving, very-high- density, pick-to-cart from bin boxes Static shelving, pick-to- cart from standard receiving cartons

7. - 7 - Forward Picking Pick Path Options Straight Fwd Pick Line Branch & Pick Fwd Pick Zone Serpentine Fwd Pick Zone Faster MoversSlower Movers

8. - 8 - Forward Picking Fixed vs. Dynamic Pick Location Concept Slotting typically assigns a SKU to a pick location until the SKU needs to be moved Some systems enable you to slot SKUs into dynamic locations to handle demand peaks Fixed Pick Locations Dynamic Pick Locations

9. - 9 - Replenishment What is It? Total Facility Inventory Positioning Plan C & D Items Picking and Reserve Direct Putaway to Mezzanine from Receiving Replenishment to Module, Full Pallet/LTL Picking Mezzanine Shippable Case Pick Module Overpack Pick Module Heavy/ Oversize Picking and Reserve Receiving Shipping Direct Putaway to Zone; In-Zone Replenishment; Pick to P2 Conveyor New Item Picking and Reserve Overpack Reserve Shippable Case Reserve Full Pallet Picking Full Pallet Reserve Replenishment to Module

10. - 10 - Replenishment What is It? Replenishment at the Pick Face Level Replenishments are picked from reserve and placed in forward pick locations Orders are picked from the forward pick locations, depleting stock levels in the pick face and creating demand for replenishment

11. - 11 - Replenishment How Does it Work? System-driven: –Replenishment Timing Wave Based Replenishment Hot Replenishment Batch Replenishment –Replenishment Slots Fixed SKU Dynamic Slot –Replenishment Triggers Batch Trigger Hot Trigger Point Manual Processes –Kanban –Visual inspection

12. - 12 - Slotting What is It? At the highest level, deciding “where to put the boxes” At a detailed SKU level, deciding where within a zone/picking mode is the optimal place to put an individual SKU, based on factors such as: –Velocity/popularity –Number of picks –Number of units –Overall cube movement At the location level, deciding how many slots are available to various SKU families and determining slotting breakpoints/ thresholds Why Do It? Because travel distance and picking time matter... Managing an ongoing slotting plan will yield huge productivity benefits!!

13. Slotting How Do I Decide? Logistics Activity Profiling Declining Consistent Inclining Seasonal Irregular

14. - 14 - Slotting ABC Classification Pallet Layer Case

15. - 15 - Slotting Application Example (Traditional ABC) Total Case Activity Cumulative SKU Count 70,000 0 40,000 50,000 60,000 0100200300400500700800600 504 201 791 54,516 64,553 68,302 “A” Items: 201 SKUs, 54,516 cases, 10,322 picks Top 80% of movement 4-deep flow-through lanes Hand picked onto pallet jack or similar device “B” Items: 303 SKUs, 10,037 cases, 2,377 picks Next 15% of movement With “A” items=95% of movement Double-deep rack rear locations or single-deep/turret truck access Pick to pick area “C” Items: 287 SKUs, 3,749 cases, 830 picks Last 5% of movement Double-deep rack rear locations or single-deep/turret truck access Pick to pick area 30,000 20,000 10,000

16. - 16 - Slotting Application Example (Expanded ABC) Total Case Activity Cumulative SKU Count 70,000 0 40,000 50,000 60,000 0100200300400500700800600 13072 791 54,516 64,553 68,302 “A1” Items: 72 SKUs, 34,044 cases, 6,250 picks Top 50% of movement 4-deep flow-through lanes Hand picked onto pallet jack or similar device “A2” Items: 58 SKUs, 13,732 cases, 2,690 picks Next 20% of movement With “A1” items=70% of movement Storage? Picking? “C” Items: 287 SKUs, 3,749 cases, 830 picks Last 5% of movement Double-deep rack rear locations or single-deep/turret truck access Pick to pick area 30,000 20,000 10,000 34,044 47,776 201 “B” Items: 303 SKUs, 10,037 cases, 2,377 picks Next 15% of movement With “A” items=95% of movement Double-deep rack rear locations or single-deep/turret truck access Pick to pick area “A3” Items: 71 SKUs, 6,740 cases, 1,382 picks Next 10% of movement All “A” items = 80% of movement Storage? Picking?

17. Slotting Grouping Opportunities One form of grouping SKUs is “pair frequency,” in which you assess how often two (or more) SKUs are ordered together. These SKUs might be candidates to slot next to one another.

18. - 18 - Slotting Physical Considerations SKU families/groupings may or may not equal the number of slots available in the facility Every location in the same zone and picking mode does not have an equal value relative to its usability Regarding usability, this location is much easier to pick from...... than this one Regarding availability, you may need 3,000 of these locations, and have 4,000 SKUs (or vice versa!)

19. - 19 - Slotting The “Golden Zone” “Golden zone” slotting means — Positioning inventory in the easiest-to-reach locations... In the best relationship to its destination to optimize travel time... While accounting for other factors such as aisle congestion and replenishment Key Factors in Golden Zone Slotting — Pick path design Pick face “reach” Travel time

20. - 20 - Golden Zone Pick Path Design Implications Straight Fwd Pick Line Branch & Pick Fwd Pick Zone Serpentine Fwd Pick Zone Faster MoversSlower Movers

21. - 21 - Golden Zone Slotting ”Reach” The center shelf, or “tier 2” is the easiest to reach... and finally by tier 1, the floor level, which is the most difficult to pick from due to bending The center shelf, or “tier 2” is the easiest to reach because it is at waist level...... followed by tier 3, which is slightly higher

22. - 22 - Aisle (plan view) A B C C A B C C Module Shelf Face (front view) Where A, B, C = item velocity ranking from slotting analysis Golden Zone In a Branch & Pick Design Conveyor

23. - 23 - Aisle (plan view) A B C C Module Shelf Face (front view) Where A, B, C = item velocity ranking from slotting analysis Golden Zone In a Serpentine Design A B C C Conveyor

24. - 24 - Golden Zone Slotting Serpentine Travel Path In this example, WMS pick paths originate at the beginning of the pick region and “serpentine” through the module... Therefore no location has a proximity advantage over another relative to the conveyor... therefore no location has a proximity advantage over another relative to the conveyor

25. - 25 - Conveyor A B C C Module Shelf Face (front view) Where A, B, C = item velocity ranking from slotting analysis Golden Zone In a Carton Flow Design A B C C Pick Face Carton Flow Lanes

26. - 26 - Slotting An Iterative Process Based on activity profiling analysis, items are slotted into their ideal module and storage mode First-pass recommendation based on item-class mismatch, i.e., where the item is versus where it should be Item remains in a slot until it no longer deserves to be there or until another item deserves the slot more Item moves in or out of a mode are based on time and other key characteristic thresholds (volume, cost) Depending on information system sophistication... –Moves are assessed a value based on calculated benefit (considering pick benefit, space utilization, etc.) –Moves presented in priority sequence

27. - 27 - Slotting Management Challenges Lack of tools Inadequate information systems support Lack (or perceived lack) of time to complete moves

28. - 28 - Bonus Exercise Why Distance is Important—Components of a Putaway Travel Path “X” Distances “Y” distances, including “backtrack” to go around long aisles One Putaway = Sum of all Y distances + Sum of all X distances * 2 (for round trip) Putaway paths to each forward region are calculated from the center spur of center receiving dock to the front center of the region. Additional “Y” offsets are used to calculate the distance to the final putaway location.

29. - 29 - Bonus Exercise Calculating Forklift Travel Cost Industry standard forklift speed is 264 feet per minute Fully-loaded cost assumes operator hourly wage plus benefits plus depreciation or rental cost for the equipment: –Operator hourly wage = $10.00 –Benefits = 28%; subtotal = $12.80 –Equipment = $6.00 –Grand total, fully-loaded cost = $18.80 per hour

30. - 30 - Bonus Exercise Travel Cost Example Point “A” throw-on to point “B” storage is 500 feet Point “A” to point “C” storage is 800 feet You need to position entities 11 and 12 –Entity 11 requires 20,000 cartons/year –Entity 12 requires 30,000 cartons/year –Other values you’ll need: Average cartons/pallet =16 Fully-loaded cost = $20/hr Questions: –Where should you store which entity? –What is the total cost of both profiles? –What is the cost in waste if you picked wrong?

31. - 31 - Bonus Exercise Travel Cost Solution Assuming all other things are equal, you’d put the higher mover closest to the delivery point; 12 goes to “B”, 11 goes to “C” Cost for 11 is $2,520 ; Cost for 12 is $2,360 ; total cost is $4,880 ; Cost to be wrong is $5,360, or 9.8% higher than necessary (see notes sheet for solution details)

32. - 32 - Bonus Exercise Conclusion Where you put inventory matters You can measure the cost/benefit of positioning by using forklift travel calculation There are trade-offs between putaway efficiency and other operations, such as shipping or replenishment efficiency