Shop Talk
Warehouse Process and Layout
How is the process and layout in your warehouse?
It’s important to evaluate your process and layout individually and in respect to their interaction. Looking first at process evaluation, start by tracing both product flow and order fulfillment flow through the warehouse to identify all areas where bottlenecks or backlogs occurred.
Here are some key process functions to review:
Receiving and put-away
Did you meet your time standards for getting received product into shipable-status condition? Were you able, at minimum, to clear the receiving dock of receipts every night, or did congestion hinder receiving efficiency?
Picking
During picking, how frequently did your order selectors arrive at an empty pick slot or encounter “can’t finds”? Determine how often this occurred as a result of inadequate inventory or quantity-count inaccuracies, versus product aisle mapping problems or products being in the wrong bins/slot locations. Were picking delays caused by other problems, such as congestion in the aisles, equipment issues, unexpected order spikes, or below-par picking-employee productivity?
Packing
Were you able to keep packers busy consistently, avoiding idle periods? Did you schedule packers to start their shifts later than pickers, to ensure ample available packing work?
Returns
Use your analysis of reasons cited on returns reports to pinpoint non-vendor, internal issues, such as packing methods, that may be contributing to excessive returns. Also analyze where the process can be streamlined to eliminate unnecessary or duplicate efforts.
Were you able to keep up with the returns volume, avoiding excessive backlogs? Did returns processing times meet your performance standards? Were customers refunded or credited for returns in a timely fashion?
Separately, analyze the layout-specific issues identified while tracing the product and order flows, such as aisle congestion, back-tracking flow, and inefficient or obstructive floor-space usage.
Get input from employees on both process and layout issues, and make sure you’ve thought through how specific solutions in one area may affect the other. Summarize the changes in each that should result in improved efficiency and reduced costs.
As always, if you have questions or comments, contact Adeptiv Solutions.
www.adeptivsolutions.com
(Source: multichannelmerchant.com)
Best Practices in Third Party Logistics
Developing and maintaining a well-run warehouse that offers reliability and incremental growth as a Third Party Logistics provider in the ever crowded field of 3PL’s is no small task. Knowing what areas that can boost clients expectations is exceedingly helpful in strengthening your overall performance. Strategies are varied yet some core concerns surface when evaluating functions that may require improvements.
Here are some points of best practices for third party logistics providers. If you have anything to add, I’d like to hear your thoughts.
■Training: As a third party logistics provider it’s not enough to only do what you’ve always done. Both initial and ongoing training that promotes and maintains well-qualified staff’s ability to perform optimized daily functions, identify new trends, seek innovative solutions to unresolved problems, and resolves recurring logistic pressures is paramount to remaining competitive. Training can be done annually, quarterly, or with frequency that best suits your workloads.
■Analysis: It is critical to either have in-house staff or hire outside consultants who can re-calibrate market fluctuations due to elements as diverse as changing fuel prices, labor costs, changed distributions patterns and periodic customer shifts. Without identifying cost increases or loss potentials you can compromise your own profitability – and your clients – as a third party logistic provider.
■“Mode & Load Optimization”: a vital subset of general analysis is a detailed determination of your network of transport providers. Identifying the most efficient way to transport shipments with arrival dates, shipping details that provide weights, dimensional information etc., speaks volumes to your client base as to your ability to provide the best service at the best price.
■Systems Support: The technology that connects all functions of your warehouse together is an accurate, easy-to-use Warehouse Management System (WMS). Selling your company’s IT expertise that demonstrates accurate inventories, shipping and receiving proficiencies that provide real time figures, as well as capturing all accounting components that eliminates billing loss, both preserves your current customer base and offers prospective customers compelling reasons to do business with your firm. The most reliable and economical WMS is a Software-as-a-Service (SaaS). It offers accessibility to all users without hardware expense, ongoing maintenance and support costs.
Knowing key areas of concern that can help you improve your warehouse efficiencies as a third party logistics provider while improving profitability, preserves your client/customer base and will strengthen your position in the marketplace.
(Source: 3plcentral.com )
Low Cost Ways to Boost Labor Performance in the Warehouse
This week I’d like to share a great article from supplychainbrain.com about increasing labor performance in the warehouse. There are some great points brought up here. You’ll have to comment and let me know what you think. What’s working for you? What’s not?
There is a fundamental but often misunderstood difference between labor productivity and labor performance, says Steve Hopper of The Progress Group. He explains that productivity is a raw statistic often measured in units per hour, while performance is measured as a percentage of what an average worker would accomplish.
Performance is a fairer way to measure workers, he says. “For example, think about measuring the productivity of two people working on an order-picking line who were supposed to pick 220 lines per hour. If one is picking anvils and the other is picking feather pillows, it is not a fair comparison. But when we set up a standard based on the content of the work, the worker can be measured more fairly.” Having a fairer form of worker measurement makes for a better work environment and happier employees, he says. “Workers thrive in an environment where they feel they are being measured fairly and accurately and where they are rewarded and empowered to do their jobs.”
Hopper says there are three factors that determine the performance of a worker: the method, technique and tools that a worker uses to perform a function; the pace at which he works; and time utilization, or the amount of time actually working vs. engaged in other activities. Companies wishing to improve labor performance need to address all three, but remedies do not have to be expensive or complex, he says.
“Often companies don’t take the time to evaluate how a worker is going about a task,” he says. “Sometimes simple, little changes can improve a worker’s method at little or no cost.” Using industrial engineering or crowd engineering techniques can improve elements of the job without investing in software or systems, he says. “It’s about finding the smartest way to perform a job.”
Better training, proper incentives and labor management systems can all help, he says. “But the very best thing a business can do is talk to and spend time with their associates. Don’t sit in an ivory tower. Ask the associate what is the right way to do the job and what tools and techniques will make them more effective.”
So what do you think?
www.adeptivsolutions.com
Considering a 3PL Fulfillment Service?
Is your business looking for a 3PL company for warehousing and product fulfillment? In a recent article, Freight Dynamics came up with a list of tips of common mistakes to AVOID when choosing a 3PL. I thought it was worth sharing.
Feel free to comment on the blog site and let us know which ones you like and possibly what was omitted.
1.) Share targeted volume to get better negotiated rates. Negotiate up front before you start any business relationship by providing all the estimated facts you know of such as your freight shipping patterns, how much warehouse storage you will need, which warehousing services you may utilize, and so on.
2.) Create difficult SKU’s which can be confused. Create easy to use SKU’s (stock keeping units) and descriptions. Example of what not to use: “SF-01-KY-LG-NY-GY”. Instead use LrgGrey107. Abbreviations become redundant and can cause picking errors. Keep it simple.
3.) Not asking them for ideas or feedback
Many times, customers not familiar with kitting, assembly and fulfillment don’t provide the whole picture up front and get charged more for being unorganized. This is what we specialize in and do day in and day out. We are the experts. Tap that free advice. Also – don’t ever be afraid to ask questions! This is your inventory!
4.) Not viewing them as a partner
Your Fulfillment 3PL is a direct extension of your company. Select a company who mirrors your same values and attitudes.
5.) Not sharing requirements up front
Many companies, such as Target, Best Buy, Wal-Mart, and ShopNBC, have very specific casepack and labeling requirements which need to be followed or serious chargebacks can occur. Provide your fulfillment services with this information in full before beginning any projects with large company end users.
6.) Nickel and Diming them on every issue
Don’t throw out the baby with the bathwater here. Negotiate on the bigger items such as monthly storage or order fulfillment. Labeling for example requires actual labels, ink, and labor — it’s a service that needs to be covered.
7.) Use cheap packaging
Your carton packaging says a lot about the quality of your brand. Using 2 ply cartons over 1 ply costs about the same, but provides much better protection in the shipping environment. Also take advantage of having your logo SKU and description printed right on your cartons. Many claims arise when customers use insufficient packaging. Always invest in the best possible custom packaging depending upon the fragility of your product. If it is damaged, there is no doubt you will be reimbursed, and the odds of it getting damaged drop considerably.
8.) Use cheap shipping carriers
This may save a buck or two up front, but it always bites you in the long haul. LTL ‘Break Bulk’ freight shipping carriers handle your shipment many times before its delivered, sometimes resulting in damage to your product. If they don’t honor claims and destroy your product, then what have you saved? Insist on reputable carriers that go direct, not carriers with numerous hubs they consolidate with.
9.) Don’t renegotiate when your business model changes
Many businesses change over the years as a client needs change in an ever changing world. Don’t be reluctant to send your provider an RFP with a few other reputable companies to keep your pricing in check.
10.) Leave out descriptions and reference numbers with new inbound receipts
Remember garbage in equals garbage out. Provide the SKU, description, qty, casepack, number of pallets, and job number for each pallet you send over in an easy to read packing list.
For more tips, contact www.adeptivsolutions.com
(Source: Kevin Scarpati)
Six Warehouse Management Tips
If you Improve your warehouse management you’ll enjoy an overall improvement in your supply chain. Improving your supply chain means getting goods to your customers more efficiently, and at higher profit margins to you. Smart warehouse management is the single best way to achieve this.
Here are some tips to increase your productivity and cut down on your labor costs:
1.) Train your employees properly and you’ll enjoy a far more productive warehouse system. If you do this, the warehouse manager can focus more on working on improving the system, instead of having to supervise employees, and making sure they’re doing their job.
2.) Use the proper tools for the warehouse. This will increase productivity. Make sure you have the right tools on hand for your employees, and that there are enough of them available.
3.) Maintain what you have. Perform preventive maintenance on your tools and machinery to ensure they are running safely. Not only will this help increase productivity, it will also make your warehouse a safer place to work.
4.) Take advantage of smart planning with warehouse slotting. Most of the time spent in a warehouse by day full-time employees is spent traveling around the warehouse itself. With the proper slotting to the warehouse, you can cut down traveling time by up to 10%. This means that you cut down labor costs by 10% as well.
5.) Consider different software options to help you better track data in your warehouse, enabling you to make smarter decisions on your inventory. You’ll get more accurate feedback if you allow computers to track and perform calculations on the supplies in your warehouse.Software lets you automate the process of stocking as well, to assure you don’t run out, but that the same time overstock materials.
6.) Consider specialized technology that is appropriate for the size of your warehouse. If you have a large warehouse, then you should utilize RFID technology, to completely automate data entry. There are also other options available for larger companies such as Warehouse ERP software, used to integrate all aspects of the business and supply chain into one manageable software.
These are some general tips on how to improve the management of your warehouse, and enhance the overall experience enjoyed by the customer.
For more tips, contact Adeptiv Solutions! www.adeptivsolutions.com
Is Your Warehouse Safe?
Managing a warehouse means you have quite a lot of liability. There needs to be various checks and balances to ensure you prevent situations that could potentially injure your employees or have you be susceptible to a lawsuit– or both!
One of the first things to do is make sure you’re using the safety equipment you already have. Another common sense tip, right? Maybe, and maybe not. Do you always use forklifts or hydraulic dollies to lift items that are too heavy? Are there always the appropriate number of people carrying heavy items? Do you wear hardhats, eyewear and other safety equipment at all times when they are required? If so, consider yourself in the minority. If not, start using them. They’re there for a reason, and spending a few additional seconds putting on the proper equipment will save a lot of time, money and hardship down the line. In addition to those safety issues, we’ve also heard of warehouse operators who block their sprinkler heads with inventory, render their emergency exits inaccessible with poorly-placed items and equipment, and even disable the backup sirens on their forklifts because they’re “annoying.” That may sound funny to you, but it can mean the difference between a normal business day and serious damage or injury. Make sure you’re using your safety equipment correctly, and that it’s usable, accessible and properly maintained. Your staff deserves it, and so do you.
For more tips or questions, contact Adeptiv Solutions!
Warehousing and Logistics Make the List of Growing Businesses for 2012
With shifts and changes in the job market, many unemployed workers are turning to entrepreneurism– specifically owning a franchise or starting a business as a way to become self-sufficient. In a recent article by The Street, they mention FIVE industries that show promise to be in high demand in the the coming year. The industries mentioned are good news for a business like Adeptiv Solutions, which has many facets of expertise and continues to grow.
Here are the five industries with significant growth potential in 2012:
1. Elder care – The need for senior care services and products will become even more pressing in years to come. Not only are baby boomers’ parents living longer; as they age into their own sunset years, they too will need these services. And this group has money to spend.
2. Health and wellness – The trend toward a healthy lifestyle is producing ample opportunity for businesses from frozen yogurt franchises to create-your-own-salad eateries to fitness centers to benefits consultants.
3. Warehousing – Companies are looking to save money wherever possible, and cutting the costs of owning or leasing space to hold merchandise and products can add significantly to a company’s bottom line.
Providing warehousing services and space, particularly for small businesses, shows plenty of opportunity for industry expansion.
Balsam Hill, for instance, might ship thousands of artificial trees, the bulk of its business, during the peak season — and one a day in the offseason. The company contracts with a third party for its warehousing so “I’m not paying overhead to have warehouse space that I don’t need in February,” founder and CEO Thomas Harman says.
4. Shipping/logistics – Logistics is the management of moving packages or shipments. It includes all aspects, including insurance claims, packaging, the best way to ship and pricing. Unishippers franchisees specifically target small to midsize businesses that do not have the resources to hire a logistics professional.
The industry is growing as consumers continue to move to e-commerce for their shopping needs. Shipping companies will also benefit from planned cuts to the U.S. Postal Service that will leave a lot of smaller merchants looking for economical ways to send their products to customers.
5. Outsourcing/staffing
Businesses learned during the recession — some quicker than others — how to cut without hurting business output by “recognizing the true value of technology in their day-to-day [operations],” Generation Equity’s Mackin says. “They don’t need the bookkeeper anymore, there’s QuickBooks to do the inventory. Not only do they get leaner and meaner, but they don’t have to rehire.”
Source: The Street/Laurie Kulikowski
Third Party Logistics Providers Are In Demand (Part 1)
Third party logistics (3PL) companies are a becoming an important part of today’s supply chain. These companies offer services that can allow businesses to outsource part of all of their supply chain management function. Many 3PL companies offer a wide range of services including inbound freight, freight consolidation, warehousing, distribution, order fulfillment, and outbound freight. The growth of 3PL companies has been driven by the need for businesses to become leaner, reducing assets, and allowing focus on core business processes.
The growth of 3PL companies began back in the 1980’s when businesses began to look for new ways in which they could outsource logistics functions and concentrate on their core business. One company that has been associated with the 3PL revolution is FedEx. The company’s overnight delivery service changed the way in which business to business and business to customer transactions operated. This offered businesses the opportunity of using just-in-time techniques, which saved warehousing space and reduced overall costs. The introduction of efficient-consumer-response (ECR) techniques led to smaller and more efficient shipment sizes, which in turn further reduced costs.