Best Practices for Warehousing

Improving a warehousing operation is a complex endeavor that can be
approached from any number of angles.  Here are 13 common actions you
can consider in any warehouse improvement effort…

1.Organize with care. Divide your facility by zones based on the pick
type. This simplifies order picking and reslotting because similar
items with similar storage and picking methods are grouped together.

2.Have real, actionable data. You can’t make good decisions without
it. Whether that means that you utilize real-time data capture systems
such as RF, voice, RFID, or manual data gathering, you must understand
what’s happening from a high level to make effective changes. Do you
utilize a WMS system? Does it provide good operational information you
can parse?

3.Execute cycle counting operations to enhance inventory accuracy. You
should work to create a culture of inventory control through a cycle
counting process. Do it every day before orders start shipping. This
sounds difficult, but accuracy, efficiency, and morale increases will
be tangible. And it’s easier than it sounds.

4.Re-slot your pick positions as often as necessary. Up to 60% of a
picker’s daily activity can be involved in travel time (afoot or on a
forklift or walkie), so reducing that time-spend is an excellent idea.
A good product slotting strategy can reduce travel time thereby
reducing picking labor. Always weigh the time and cost of a complete
re-slot against the costs of it.  Busy operations re-slot their fast
moving, high-profit SKU’s every day. Slotting the facility once and
leaving it that way for years is typically a recipe for wasted time
and money.

5.Automate where it makes sense – but understand the ROI. Automation
has become much more affordable the last decade or so in the face of
just about everything else (labor, space, time) escalating. The idea
of a robotic palletizer, automated stretchwrapper, or AS/RS system can
be intimidating, but these methods are proven across every industry.
For instance, robotic applications were once exclusive to
manufacturing (in particular for welding in automotive manufacturing).
Now, the same technologies are frequently applied – affordably – to
distribution, picking, packing, etc. But you must understand the
payback, not just the benefits. The basic formula of replacing
multiple shifts of workers with a $200,000 palletizer can be
intimidating until you do the math. Does the robot cost more over its
expected life than the labor does? One focus on automation can be for
fast movers in standard sizes with high volumes.

6.Consider labor management tools to optimize performance. Labor
management software can help you gain control of these costs and
enable you to visualize, understand, and take command of the labor
situation as it really is, not as you think it is. Handling labor
resources correctly can be the difference between an adequate
operation and a good one…or a good one vs. a great one. These tools
are best applied in high-volume picks, not for bulk items where heavy
machinery is required to deal with stock.

7.Define how to plan & pick orders – in advance. What picking process
are you going to use, where, and for when? See split case picking
methods for more information.

8.Focus on Replenishment. This ties to slotting frequency and
methodology, and is just as important as picking methods. Is inventory
as easy to replenish as it is to pick? Putaway logic can help you
define both the receiving process and stock locations.

9.Secure your operation. Studies have indicated that a secure supply
chain is often a more efficient one. Check out our industrial security
area for tips and information on warehouse and factory security.

10.Measure, measure, measure. Then do it again…and ignore some of it.
Dr. William Deming is often misquoted with the maxim that what can’t
be measured can’t be improved. What he actually said was that managers
must know the unknown and the unknowable. he acknowledges that you
can’t measure everything of importance, but you must still manage
those important things. For the things that are quantifiable, the
quote still stands. Don’t try to measure everything – just the
important things.

11.Don’t work in the dark. Literally. Proper light distribution
improves any operation. When a warehouse has rectangular rack rows and
circular fixtures, visibility and light distribution suffers.
Utilizing the correct lighting geometry can reduce picking errors on
its own. That’s not to mention the energy saving benefits, tax breaks,
and utility rebates that accompany (and often finance)
energy-efficient lighting systems.

12.Hire an inventory manager. If your operation is of adequate size,
taking that responsibility away from supervisors, customer service, or
warehouse management may be one of the best ways to optimize the
operation. A decision maker should be involved.

13.Train relentlessly, over and over to break bad habits and instill
good ones. Employees need more training than the basics of how to run
any machinery in their area, where things are, and their direct
reports. How do you expect things to get done? What way does your
company conduct business? What processes do you expect them to use?
Whatever you teach new employees needs to be taught – again and again
– to your veterans. This allows you to update skills for everyone and
make sure your processes are always top-of-mind. Better yet, document
that training and keep a file on it. Employees who are trained in
safety operations are less likely to have accidents, and documentation
proves that you did the training in case there is an incident


http://www.cisco-eagle.com/blog/2011/03/17/best-practices-for-warehousing-13-tips-for-productivity/