Transportation Planner Required

One of our clients, well known & growing foodservice company with outlet chains in all main cities in Indonesia (placement in head quarter Jakarta) currently looking for candidate to oversee and manage their delivery team and fleets. Attractive remuneration package will be available for selected candidate.

Transportation Planner

Job description

Responsibilities

• Route delivery trucks
• Coordinate delivery operations with operations management
• Train drivers in proper handling of product, preparing paperwork and interacting with customers
• Manage fleets for safety, cleanliness and efficient operation
• Work with drivers to improve routes, efficiencies and effective operations

Required Qualifications

• Education, min S-1
• Have Driving License “A” would be advantages
• Strong interpersonal and communication skills
• Basic computer software skills
• Experience in delivery operations

Preferred Qualifications

1-3 years Supervisory experience in transportation

Submit your application before 28 February 2018 to :

Estiko Fadjar

Email : estikofh [at] gmail.com

Circumstances that Change the Battle Ground

An appropriate improvement programs and structured implementation plan for distribution center advancing to reduces timeframe and promotes the success of programs.

Implementation programs, probably can be invasive, disruptive, and even counter-productive, causing considerable expense, possibilities of wrenching business-process change, and gnawing uncertainty in the minds of employees. Yet surveys show midsize businesses are increasing investment in state of the art of technology for enterprise level system such ERP, WMS, TMS and others to stay competitive, tapped the benefits of integrated data, streamlined processes, managed inventory and other benefits promised. Unfortunately, there is no magic pill guarantees any implementation will be quickly, painless, and successful.

A big automotive parts company, which is one of our clients, has already been successful executed improvement programs and create values without risk of catastrophic failure.

Tempting to rebuild a new distribution center blueprint in terms of both capacity and capability, the new design was cost effectively accommodate future growth and advances in technology. It take into account of foresight and forward thinking to successfully converge equipment, software, people and processes in an expanded “house.” Flexibility and scalability become integral design factors to achieve the perfect balance between initial investment and future expandability.

Related to distribution center design and operation, the algorithms alone are insufficient in determining an optimal solution. Without an objective blueprint for design, it can fall into the trap of designing around the promise of a material handling equipment brand rather than blending the ideal equipment, WMS, WCS and associated technologies according to the specific demands of each company’s unique distribution model.

The four smart programs in a new distribution center blueprints:

# 1  Reduce movement to optimize task efficiency.

“Movement” is considered one of the seven (or eight, depending on who’s counting) wastes of lean manufacturing. According to Paul A. Myerson, Professor of Practice in Supply Chain Management at Lehigh University, waste of movement “occurs when temporarily locating, filing, stocking, stacking, or moving materials, people, tools, or information.”

Unnecessary or excess movement can be the result of a combination of factors, ranging from poorly lay out to placing stocks, pass over product velocity and too long inbound travelling path, to inefficient working methods.

To reduce movement, they need to increase operator efficiency, such as with scheduling system. In its simplest form, Wave Planning is considered a “scheduling system for replenishment & picking operation.”  Wave planning builds upon that principle by setting time windows of the replenishment of stocks and or picking operations on the shop floor at the moment that it’s needed. The result is a timely, even flow of goods and worker assignment that eliminates bottlenecks and interruptions.

To further eliminate excess movement, consider locating inventory stocks closer to the pickers access and strategically positioning stock at velocity based locations to maximize the efficient flow of products.

# 2  Improve supply chain scheduling to reduce bottlenecks.

Things don’t always go as planned. Replenishment & fulfillment flow can be greatly impacted by the availability of stocks or by disruptions, such as late receipts of incoming stock, equipment breakdowns, quality rejects, and other issues during inbound process.

With early detection capabilities and real-time access to storage capacity, availability, and interdependencies of resources needed, system, and data, through Advanced Notification System (ASN), however, they have access earlier to the information needed to adjust schedules to accommodate those disruptions. With the right systems in place, they can even determine if change requests are feasible, estimate the impact of those changes on every aspect of end to end warehouse processes, and minimize potential impact on operation.

For the best result, they should avoid making unplanned changes during procurement vis-a-vis inbound operation, and instead attack supply demand problems directly. The scheduling system allows them to model what-if scenarios, their warehouse man can simulate the alternatives so they can choose the best approach.

# 3  Optimize inventory levels to reduce shortages

The distribution center shop floor can’t be productive if don’t have the materials needed for their fulfillment. When they suffer from inventory shortages (whether it’s a result of late deliveries, unexpectedly high reject rates, or short counts), the proper response is not to increase safety stock levels. Not only does this reduce cash flow and increase inventory carrying costs, but their data has shown that increasing safety stock levels isn’t even a sure guarantee against inventory shortages.

Instead, having accurate and timely visibility into their inventory allows them to know exactly what items are running low in stock, detect potential issues, and rectify them before they become real problems. Also, establishing close working relationships with their suppliers can help speed up fulfillment requests. They prioritized some suppliers connect to their system via Electronic Data Interchange (EDI) as well as Web Services. When inventory will run out, then the system trigger automatically to order to supplier for replenishing them.

Sometimes inventory shortages can’t be avoided. In those cases, by the right planning system, they can earlier identify the impact of the shortages and determine how best to redeploy resources in the interim. It’s also a smart idea for them use contingencies built into the plan—such as alternate suppliers and substitute parts—that could be activated on short notice.

# 4  Automate processes with automated data collection

One way to speed up shop floor operations is by automating their shop floor processes with automated data collection tools, like barcoding. With barcoding plus android based mobile devices, key inventory and asset data (such as quantity and location) can be automatically captured and drive the flow of inventory and shop floor assets (such as totes, bins, racks, and pallets). Barcoding and Android based Mobile Devices help speed up data collection and improve data accuracy by bypassing slow and error-prone manual data entry.

Barcoding technologies, can also help reduce processing time of data reading. With barcoding technologies in place, they can automate the gathering and sending of asset information (such as location, product code readings, and storage bin status) without requiring an operator to have direct line of sight or contact with that piece of them. In our proposed plan, the types of information that RFID can gather help them increase capability for identifying patterns by implementing it in the future.

Through complete visibility into every step of shop floor operations, they have access to the information needed to make the most effective usage of constrained resources, find areas where they can increase throughput and efficiency, and promote better material, asset and even their people. Being able to see how all of the pieces fit together—in real time—ultimately helps them operate more efficiently and make better decisions. Onwards, they can identify potential problems earlier, analyze them, discover what’s driving them, and identify solutions before they create bottlenecks.

Project Name & Year : Redesigning The Distribution Center – 2016
Industry Classification : Automotive Parts
Project Location : Jakarta

TMS Gets More Warehouse Aware

​

TMS and YMS expand on integration and supply chain visibility capabilities, gaining a better handle on warehouse constraints in the process.

Whether you call it process orchestration or supply chain execution (SCE) visibility or integration, leading software executives and analysts agree that TMS and YMS are expanding beyond traditional feature sets to help users coordinate overall processes.

The biggest trend within the transportation management system (TMS) and yard management system (YMS) markets is not so much incremental features within each market, but capabilities that blend the two systems together with other supply chain solutions, enhancing visibility in the process.

Whether you call it process orchestration or supply chain execution (SCE) visibility or integration, leading software executives and analysts agree that TMS and YMS are expanding beyond traditional feature sets to help users coordinate overall processes.

“Warehousing, yard and transportation processes are pretty much connected at the hip, but today the systems for these domains are often still run as independent processes,” says Dwight Klappich, a research vice president at Gartner. “You can’t achieve all the benefits if you manage the processes independently instead of seamlessly. That’s why vendors are looking at the intersection points between warehousing, yard and transportation.”

Suppliers are focused on making solutions such as TMS more aware of constraints in warehouses and yards, rather than basing transportation plans solely on traditional factors such as freight cost. YMS, meanwhile, is helping shippers respond to pressures from carriers and also expanding to address the issue of visibility of shipments in transit.

Warehouse aware TMS

The classic problem, says Klappich, is that SCE applications are used in a sequential process without the integration needed to communicate constraints from one domain to another. A common scenario, he says, is for orders to come down to a TMS, where loads and shipments are optimized based on factors like lowest cost freight or quickest delivery.

Whether the warehouse or yard can handle those plans in terms of factors such as available dock doors, labor to pick, and labor to load, historically has been considered a downstream execution challenge, says Klappich. However, suppliers are working toward integrated platforms that can address key constraints from each area. “We have opportunities to integrate those areas better,” says Klappich.

Data-centric integration between software like TMS and warehouse management systems (WMS) is only a “stop gap” on the road to a holistic platform for execution, according to Mike Mulqueen, a senior director with Manhattan Associates. The real trick, he says, is to make TMS aware of constraints at the warehouse level, so that if, for instance, a palletizer is down, the TMS planning engine or “solver” knows that. “I want to make sure that I can balance my transportation plan so my warehouse doesn’t get overloaded,” Mulqueen says.

Integration in itself won’t deliver this warehouse aware planning, Mulqueen adds. An underlying platform architecture synchronizes TMS, YMS and WMS activities for Manhattan’s users. “The integration platform is the foundation you will need, but the end goal is the complete synchronization of supply chain execution,” he says.

Fab Brasca, vice president of global logistics for JDA Software, agrees that more than data integration is needed between TMS and WMS. JDA is working on a “suite strategy” that allows users of JDA’s TMS to address distribution center constraints. Essentially, says Brasca, the TMS can model factors such as how many docks there are at a DC, what type of docks are available, and average loading/unloading times. “We have the ability, in the TMS, to model the throughput constraints of the warehouse,” says Brasca.

Another trend with TMS, adds Brasca, is toward “dynamic and iterative” planning where the optimization adjusts to order changes. With this type of planning engine, he adds, loads aren’t finalized until they have to be executed. “This is particularly important in the omni-channel retail environment, where the variability on orders is skyrocketing,” he says.

At SAP, there also is a tighter merging of TMS and WMS, says Markus Rosemann, SAP’s vice president of global solution management for logistics and order fulfillment. Where this integration at one time had to be relayed through SAP’s enterprise resource planning (ERP) system, SAP now offers direct integration between TMS and WMS processes. For example, when a shipment is created in the TMS, everything the warehouse needs to know to prepare surfaces in SAP’s WMS software. “It’s all about creating real transparency about plans, and then coordinating the operations accordingly,” says Rosemann.

So rather than having to deal with different numbering schemes for loads, orders or shipments, with direct integration between TMS and WMS, everything related to shipments has common numbering, and it is visible within SAP’s WMS solution. The WMS now also has a “shipping cockpit” user interface to coordinate with TMS processes and also display metrics. “The cockpit brings all the relevant information into one environment,” Rosemann says.
Making TMS solutions more “warehouse aware” is a valid goal, but with the trend toward omni-channel, fulfillment not only originates from DCs, but also from stores or suppliers doing drop shipments, according to Stephan Craig, a managing partner with enVista. So, a TMS needs to be more “inventory aware” regardless of where the inventory sits, Craig says. There are technology developments from suppliers that should help improve inventory awareness, but some of the fix will involve “good old fashioned cleaning up” of bad data and processes, he adds.
“Omni-channel distribution is driving the overall systems and data model to be more inventory aware in ways that most companies systems have not been in the past,” says Craig.
Some other trends in the TMS space, says Gary Gross, a vice president with HighJump Software, include the need for a TMS that can be used on a global basis, as well as one that allows planners to use back haul capacity. TMS solutions today also need to be adept at parcel shipment planning and execution.
Gross also sees the need for better integration of TMS with multiple SCE solutions. “Many times when we integrate systems for users, it’s a two- or three-way integration, not just one system to another,” says Gross.
Better yard control

Within the YMS market, dock scheduling functionality has been drawing more interest, says Klappich. The driver for this has been pressure from U.S. carriers under “hours of service” rules to have solid appointment windows at yards, rather than having to wait to load or unload.
Carriers who have to wait extra time may charge detention fees to the shipper, which is driving the need for more YMS and dock scheduling capability. “There is real money to be saved here,” says Klappich. “Companies are seeing detention penalties.”
Greg Braun, senior vice president of sales and marketing with C3 Solutions, agrees that there is strong interest in YMS and dock scheduling due to pressure from carriers. It’s even driving relatively smaller yards with fewer yard drivers or “hustlers” to inquire about YMS.
A YMS, says Braun, gives a company tight, real-time control over yard activities and assets, such as the number, location and type of trailers in the yard. For example, a YMS enables smoother “drop and hook” activities in which a carrier’s truck leaves a load and picks up another trailer. “You need more intelligence to manage yard management processes today,” he says.
At PINC Solutions, the company is applying its experience in real-time locating systems (RTLS) and yard management to the challenges of enterprise-wide logistics visibility. In May, PINC announced Enterprise Visibility Suite Version 4, a cloud-based platform that collects real-time data from sensor and data feeds, and uses the data for the tracking of trailer journeys and other execution processes.
According to Matt Yearling, PINC’s CEO, shippers can gain a real-time grasp over logistics based on such sensor feeds, which are an example of Internet of Things (IoT) technology. “We’re focused on supply chain execution powered by the Internet of Things,” he says. “Invariably what people are looking for is real-time information on trailer shipments, not just in their yards and facilities, but over the road as well.”
In a sense, supply chains can be viewed as one big yard, says Yearling, though with truck routes of several hours or more, you don’t need the pinpoint locating like that within a YMS.  A range of IoT-style feeds might be used for tracking goods in transit, from advanced telematics and onboard communications on newer trucks, to simpler feeds based on tracking of a driver’s cell phone signal. Yearling says PINC has also placed RFID tags on trailers to enable trailer tracking between points in a supply chain.
The problem with previous generations of supply chain visibility solutions, Yearling contends, is that they tended to rely on human inputs like keyboard updates to a portal, or phone calls to communicate exceptions. “Many companies are still very dependent on pen on paper, or fingers on keyboards, to track progress, and if that’s what you are relying on, you can’t have a truly accurate understanding of what is going on now, and what has transacted in the past,” says Yearling.
Yearling says PINC’s enterprise visibility solution augments TMS, YMS and WMS by providing a real-time view of progress and exceptions, and giving managers accurate measures on factors like gate velocity, which is a measure of how quickly trucks are clearing gates.
Starting upstream

Suppliers of SCE software, especially those with broader footprints in supply and demand planning, also are looking to tie SCE solutions into upstream planning. After all, says JDA’s Brasca, distribution orders flow from customer demand, so ideally, companies should be looking to link forecasting, replenishment planning, and sales & operations planning with SCE capacity.
For example, says Brasca, replenishment plans can be “bounced” against available resources at the TMS and WMS levels to see what is feasible and optimal. “This adds a whole other level to the efficiency of replenishment planning that most companies can only try to deal with as a downstream execution issue,” he says.
SAP’s Rosemann also sees a need to treat SCE resources in much the same way that manufacturing operations have when learning to optimize production capacity—as a network-wide balancing act, rather than one plant at a time. “What we’ve learned on the manufacturing side 20 years ago is now reaching a point of use in logistics,” he says. “As logistics gets increasingly complex with smaller shipment sizes and higher customer expectations around multi-channel, it requires a more sophisticated way of planning, scheduling and assigning resources.”

Companies mentioned in this article

C3 Solutions: c3solutions.com

enVista: envista.com

Gartner: gartner.com

HighJump: highjump.com

JDA Software: jda.com

Manhattan Associates: manh.com

PINC Solutions: pincsolutions.com

SAP: sap.com

Written By Roberto Michel, Editor at Large, September 01, 2014

Article Source http://www.mmh.com/article/tms_gets_more_warehouse_aware

Ternyata Perubahan itu Penting

Keinginan untuk mendapatkan sistem operasional yang lebih akurat, lebih cepat dan transparan, mendorong salah satu group bisnis spare part otomotif terbesar di Sulawesi ini memutuskan untuk mengimplementasikan aplikasi ERP (Enterprise Resource Planning) SAM APROVA.
“Berkaitan dengan implementasi ERP SAM APROVA ini, kami sudah melakukan beberapa langkah perubahan yang signifikan”, demikian kata Ronny, Chief Excecutive Officer.
Perlu penataan ulang atas proses dan organisasi yang ada agar dapat mencapai tujuan diimplementasikannya ERP ini, tambah Ronny.

Penataan Organisasi dan Procees Automation

Konsultan (Penulis) sedang menjelaskan konsep warehouse

Penting bagi company ini untuk melakukan restrukturisasi organisasi, mengingat ERP SAM APROVA bekerja lintas fungsi. Tanpa melakukan penyesuaian dari pola lama ke pola baru, company akan mengalami kendala yang akan mempengaruhi keberhasilan implementasi itu sendiri. Sebagai pucuk pimpinan tertinggi, Ronny berupaya untuk melakukan antisipasi dengan turun langsung ke tingkat operation dengan cara melakukan gemba secara intensif. Hal ini untuk memberikan arahan ke semua team untuk menyemangati sekaligus mensosilisasikan perubahan perubahan yang terjadi, apalagi perubahan ini bukan hanya mempengaruhi pola kerja yang ada saat ini tetapi juga adanya perubahan dan rotasi team pelaksananya. Langkah yang ditempuh ini cukup efektif mampu menjaga ritme implementasi menjadi lebih dinamis.

Salah satu point utama perubahan yang dihadapi adalah pada beberapa proses mengalami perubahan seiring dengan process automation yang di drive oleh aplikasi ERP SAM APROVA. Sebagai contoh, sales order yang turun ke warehouse menjadi instruksi yang dapat dieksekusi oleh picker warehouse saat truck availabel. Proses picking pun dapat dilakukan sesuai dengan skenario dan kebutuhannya, apakah berdasarkan delivery route atau proximity sku atau shortest path si picker. Hal ini mampu meningkatkan kecepatan pelayanan hingga hampir 2 kali lipat dari yang sudah dijalani saat ini. Demikian juga kecepatan informasi menjadi lebih real time sehingga sangat membantu dalam pengambilan keputusan yang lebih cepat, demikian penuturan Ronny.

Lebih lanjut lagi, Ronny menjelaskan selain perubahan diatas perubahan juga terjadi pada beberapa fungsi lainnya :

• Finance dan Accounting

Perubahan konsep yang dianut saat ini dari cash basis dengan pencatatan post transaction ke konsep automated workflow management, sehingga memungkinkan semua transaksi dilakukan secara paperless.

• Sales

Pendekatan sistem untuk mencegah penyimpangan (fraud control) membantu perusahaan untuk menekan kerugian kerugian yang selama ini terjadi di operasional. Dengan demikian akan berdampak kepada kesehatan financial serta pelayanan kepada customer yang lebih baik.

• Human Resources

Saat ini analisa biaya baik per employee maupun pembebanan biaya atas asset menjadi lebih akurat dan detil. Ini sangat membantu memberikan kesempatan kepada HR melakukan program program improvement sebagai upaya meningkatkan produktifitas karyawan.

Warehouse Yang Setengah Warehouse.

Penataan Layout Warehouse Tahap 1

Seringkali dalam proses implementasi menemui kendala. Salah satu yang paling sering muncul adalah sikap resistensi terhadap perubahan yang ditimbulkan. Demikian juga dengan implementasi ERP SAM APROVA ini tidak luput dari kondisi tersebut. Diawali dengan perubahan yang cukup mendasar dalam hal pengelolaan warehouse dari saat terima barang hingga delivery, dan dari klasifikasi barang hingga pengelolaan lokasi /slot management.

Perubahan cara penyimpanan dan penataan barang di lokasi menjadi lebih teratur sehingga dengan algoritma tertentu didalam ERP membantu picker untuk mengidentifikasi barang dan lokasinya. Material handling juga membantu mempercepat proses loading dan unloading barang. Perubahan perubahan diatas menjadikan ketidaknyaman bagi team warehouse, bahkan mendapatkan rejection di awal saat dimulainya inisiatif perbaikan di area unloading. Namun, dengan membandingkan pola kerja (teknik dan pemggunaan material handling equipment) yang baru vs lama membantu team warehouse untuk mengidentifikasikan perbedaan sekaligus melakukan pengukuran kinerja sendiri tanpa melibatkan team lainnya termasuk konsultan (self proofing). Dengan melihat perbedaan yang nyata dan dilakukan sendiri, maka komitmen perubahan menjadi lebih terwujud seperti yang diharapkan.

Kini Kami Telah Siap

Perubahan demi perubahan sudah dilakukan. Selain system automation yang menuntut perubahan pola kerja dan penataan ulang fungsi fungsi yang ada juga melakukan modernisasi infrastruktur baik di sisi operation maupun disisi ITnya. Tanpa upaya yang konsisten serta keterlibatan pucuk pimpinan, perubahan akan membutuhkan waktu lama untuk mencapai titik kesetimbangan baru di sistem. Menurut Ronny, perubahan ini menjadi penting dan perlu, mengingat sifat kompetisi di market yang terus berkembang sejalan dengan inovasi yang ada. ERP SAM APROVA membantu menjadi katalisator perubahan menuju yang lebih baik, dan company lebih siap menghadapi kompetisi ke depan.

I Tell You What They Said About Slotting and Layout

Whether operating an existing warehouse or preparing for a new distribution center, an efficient layout and slotting plan developed from an in-depth analysis is an essential element of effective distribution center and warehouse operations. Properly slotting a facility reduces expensive labor costs and dramatically improves throughput by increasing pick and replenishment efficiencies, increasing order accuracy, and reducing ergonomic risks associated with improper picking and replenishment operations. A successful layout and slotting plan also improves the capability to meet inventory rotation requirements, such as FIFO (First In First Out) and LIFO (Last In First Out).

When discussing effective design, the focus should be on determining the level at which the product will be picked (full pallet, case pick or piece pick), the storage medium from which product will be picked (pallet rack, shelving, carton flow, etc.), the tools that will be utilized to facilitate the order picking process (paper pick sheets, voice-directed picking, pick to light, etc), and the method of picking to be executed.

The primary consideration when conducting a slotting analysis and making these determinations is a company’s SKU or product data. SKU information such as product dimension, weight and on-hand quantity are all key factors when determining the proper storage medium and handling methodology.

Though getting your hands around the collection of the full range of product data for each SKU may appear to be a daunting task (especially for organizations that distribute thousands of SKUs), recent advances in technology have greatly simplified the data acquisition and manipulation phase of the slotting analysis. One such technology used by AGI is our Velocity Management and Assignment module associated with our Warehouse Director Software.

Used as a standalone component in conjunction with our slotting services offering the VMA module provides a more effective and efficient process for determining appropriate size, location and assignment of SKU in forward pick areas.

Slotting deliverables can vary from complete warehouse layouts and schemas to focus fast pick areas or any number of intermediate requirements. Deliverables are provided in both Visio and excel spreadsheet form providing our clients with effective leave behind frameworks in order to manage evolving slotting requirements and adjustments.

Benefits of effective Layout and Slotting
○ Reducing travel distance to fast movers
○ Balancing the fast movers across aisles/bays to reduce congestion
○ Picking very slow movers from reserve storage
○ Sizing locations to satisfy required days-on-hand
○ Sizing locations to reduce stock-outs
○ Maximizing the location cube, resulting in less space required
○ Arranging products based on stackability (for pallet building)
○ Developing effective picking zones (category, customer, temperature, etc.)

Dear Reader,
We have the technology embeded inside our WMS. If you have a reason to realize it, just drop email to us. Don’t left behind the slotting or you will miss all benefits from it.

Product Slotting in Your Distribution Center

Below is a usefull article that show on how slotting management has an essential role in warehouse operation. Slotting management has widely implemented in warehouses or DC’s around the globe. By using slotting management, it can help your operation more productive and efficient through optimizing slot and space in warehouse and DC. Especially when you have a large SKU and high volume transaction.

SAMS WMS is an integrated warehouse management software which has already featured by slotting management. It can help our clients more effective in optimizing their space in warehouse. Our clients have gained the most benefit through implement this system.

If you interest or looking for WMS application for your DC or WHS, feel free to drop email to us at estikofh@ gmail.com

Product Slotting in Your Distribution Center.

Whether operating an existing warehouse or preparing for a new distribution center, an efficient slotting plan developed from an in-depth slotting analysis is an essential element of effective distribution center and warehouse operations.  Properly slotting a facility reduces expensive labor costs and dramatically improves throughput by increasing pick and replenishment efficiencies, increasing order accuracy, and reducing ergonomic risks associated with improper picking and replenishment operations. A successful slotting plan also improves the capability to meet inventory rotation requirements, such as FIFO (First In First Out) and LIFO (Last In First Out).

When discussing effective slotting, the focus should be on determining the level at which the product will be picked (full pallet, case pick, or piece pick), the storage medium from which product will be picked (pallet rack, shelving, carton flow, etc…), the tools that will be utilized to facilitate the order picking process (paper pick sheets, voice-directed picking, pick to light, etc…), and the method of picking to be executed.  The primary consideration when conducting aproduct slotting analysis and making these determinations is a company’s SKU or product data. SKU information such as product dimension, weight, and on-hand quantity are all key factors when determining the proper storage medium and handling methodology.

Though getting your hands around the collection of the full range of product data for each SKU may appear to be a daunting task (especially for organizations that distribute thousands of SKUs), recent advances in technology have greatly simplified the data acquisition and manipulation phase of the slotting analysis. One such technology used by a number of companies has the capability to not only calculate the length, height width and weight of an item, but will also feed these data records directly into a mainframe or PC host. The tasks of collecting and entering the dimension data can be completely automated resulting  in a significant reduction in the time, cost, labor, and potential human error that would normally be associated with performing the tasks manually.

Another important factor in the slotting analysis is the SKU or product velocity. Product velocity refers to the quantity and frequency of the SKU picked over a designated period of time. Some rules of thumb when considering the velocity of a SKU are:

Determine fast, medium and slow movers and place them in the appropriate storage medium (i.e. pallet flow, carton flow, shelving, etc.)Examine both average and peak-picking days.Store high-velocity SKUs in a readily accessible and ergonomically friendly area for ease of both picking and replenishment.Establish whether individual SKU velocities are affected by seasonality or special promotions.

Attempting to effectively slot your distribution center or warehouse requires careful consideration of many factors and is frequently made more complex by incomplete and/ or inaccurate order fulfillment data. Good data leads to positive results; bad or incomplete data to poor results. Some common oversights often made by supply chain professionals when developing a slotting plan on their own:

Not designing a system with sufficient flexibility to accommodate changing SKU’s or space needs.  A fatal flaw for companies dealing with continuously changing SKU velocities or experiencing significant growth within the three to five year horizon.Not taking the characteristics of their product into consideration.  When slotting, the velocity of a SKU must be considered in order to increase pick and replenishment efficiencies. Size and weight of the product must also be taken into consideration to ensure proper pallet or load building.Not providing a clear path for pickers.  A congested route not only poses a safety hazard, but also increases the time needed for an employee to fill an order.Not choosing the proper storage medium for each SKU.  The characteristics of each SKU (SKU data) should be the primary consideration when choosing the storage medium for a particular SKU. Choosing storage medium based on other factors often proves to be an expensive mistake.

Though it may sound like future expansion of a slotting system in an existing building can be a major headache at best, and futile at worst, that’s not always the case. You may have space you don’t even know about. Space limitation can often be dealt with by off-site storage. You can also make sure there aren’t a large number of empty pallets hanging around, eating up valuable (and costly) square-footage.

Ultimately, the perfect (though not always practical) scenario for effectively slotting a warehouse or distribution center is to fit it into pre-existing plans for a new structure-to design your building around the material handling system you want (if not now, then for future growth), and not design the material handling system around the building. It’s not as easy as it sounds. The per-square-foot budget allocation for construction of the building is what drives the train.  Planners often lose sight of the reason for the new building and the material handling system is frequently a last minute consideration. As the old cliché’ goes, they are unable to see the forest for the trees.

Whether designing an effective slotting system from scratch, or working within existing structural confines, the key to developing a successful slotting strategy is an in-depth understanding of product characteristics and movement. All you have to do is look at the beer industry to know how true this is. Years ago when there were only a handful of different types of beers most goods were shipped in full pallets. But this is more difficult today. With consumer demands constantly changing, and the introduction of microbreweries, there are literally hundreds of different beer products, which involve more sorting, more slotting, and more labor.

All this has created new and ever evolving challenges with the way we do business. The people who oversee the day-to-day operation of a bustling warehouse or distribution center are often too busy to implement or analyze the changes needed, no matter how rudimentary they may seem.  But supply chain professionals who know how to effectively slot their facility will possess a considerable and lasting economic advantage.

Written by
Paul Hansen. He is a Senior Project Engineer for Lakeland, FL-based TriFactor, a leading integrator of material handling systems. Paul has over 10 years experience in the industry and holds a B.S. in Mechanical Engineering from the University of South Florida. He can be contacted at phansen@trifactor.com

Choosing Racking System for Your DC

Ada 10 hal yang harus diperhatikan dan diperhitungkan bila Anda berencana untuk investasi rak baru terlepas untuk ekspansi atau setup warehouse baru. Kesepuluh point ini cukup komprehensif karena menyangkut capacity planning, material handling dan juga sampai ke building facility and environment.

Choosing Racking System for Your DC

A racking system can make or break your warehouse or distribution center. Even if you plan to make some changes and reclaim space in an existing facility, you must consider physical constraints and unique operating requirements before selecting a rack system. Here, Bill Hillebrenner, director of consulting services, CEI Logistics, demystifies the rack selection process.

1. Consider storage density.
By analyzing on-hand storage volumes by SKU, you can identify deep-lane storage opportunities. Deep-lane storage—such as double-deep, drive-in, drive-thru, pallet flow, and push-back racks—can dramatically increase cube utilization within a warehouse.

2. Know your selectivity.
One-hundred-percent selectivity limits your choices considerably. If you must have access to specific pallets at all times, deep-lane storage is not for you. In a space crunch, you may be forced to “bury” pallets. If this practice is limited to the slowest-moving SKUs, the additional labor required to access these loads may be acceptable.

3. Are you FIFO or LIFO?
Understand your requirements before selecting a deep-lane storage alternative. If you require pure FIFO (First in, First Out), consider pallet flow racks. You can use other deep-lane storage alternatives in a FIFO environment under the right circumstances. But carefully evaluate your choices, because buried loads may significantly increase your material handling labor costs.

4. Understand your picking profiles.
What do your orders look like? Are you primarily picking pallets, cases, or pieces? Are you picking from bulk to replenish a forward pick zone? The answers can have a dramatic effect on what rack you select and how you configure it.

5. Consider forklift access.
Fork truck selection is critical, particularly if using specialized storage such as drive-in, drive-thru, or double-deep racks. With select rack systems, always add a minimum of six to 12 inches to the “right-angle” stacking aisle requirement provided by the truck manufacturer. This will help reduce damage to both product and racks, as well as increase productivity and create a safer workspace.

6. Check for rack decking.
Pallet variations are a way of life. Bottom board and fork pocket location, and damage, can impact the safety of both driver and product. You might need additional rack components (pallet supports, decking) to mitigate problems associated with inconsistent pallet type.

7. Identify your seismic zone.
Understand all federal, state, and local codes relative to your location and seismic zone before designing and installing any rack structure. If you are in a high-risk zone for earthquakes, you will have more stringent engineering requirements for all man-made structures, including racks.

8. Think through your warehouse lighting scheme.
Increased accuracy, reduced rack damage, and improved work environment are all factors to consider when lighting a warehouse.

9. The environment in your warehouse has an impact on the type and cost of rack selected.
Consider warehouse climate, wash-down requirements, FDA regulations, and other special product handling needs.

10. Capacity.
Don’t guess how much your heaviest pallet loads weigh. Weigh them! Assume that the heaviest pallet might be placed into any of your storage locations, and build your system accordingly (yes, there are exceptions). This will build flexibility and safety into your storage system.

2014 in Review

The WordPress.com stats helper monkeys prepared a 2014 annual report for this blog.

Here’s an excerpt:

A San Francisco cable car holds 60 people. This blog was viewed about 640 times in 2014. If it were a cable car, it would take about 11 trips to carry that many people.

Click here to see the complete report.

Light or Voice, which one is the best choice for your warehouse ?

Light technology were gaining wider acceptance for last 15 years ago. In the early emerging period, light technology has been adopted throughout warehouse 20,000 modules which the only Fortune 100 companies could affordable for. By the time, in the last couple years, light technology improved drastically their hardware become as few as 300 modules. The differences make light technology have more accessible for smaller companies.The main reason, retailers or companies interested in, because light technology suitable with or possible to use within a less than case quantity picking operation in their distribution center.

In warehouse, order picking is the most expensive and labor intensive operation. Many retailers have the reason to pay attention more in this area. But nowadays, trend in material handling technology, we could find voice technology as an alternative. Voice technology is a very good technology even come with less speed in interaction and language barriers since user has to listen and talk back and forth as Ken Ruehrdanz, Warehouse and Distribution Market Manager at Dematic. Voice technology claimed one of the best choice for retail because this technology has competitive advantages in a reasonably low investment rather than light technology. Voice technology, recently predicted has significantly growth in sales. Voice technology claimed as supplant light technology which come first in the market.

Recently,both light and voice technology become demanding technology which have possibility for further adoption in broader retail supply chain. In the real operation environment, both of them actually have limitation, they are limited by certain circumstances.

Lights or Voice, which one is the best for you ?

Even voice technology claimed as the best choice in improves productivity and accuracy with a reasonably low investment, light technology claimed has same level degree of accuracy but more in productivity. It’s sound like balance. In fact, voice and light technology are each “best” only in certain circumstances. It is relatively easy to identify in which circumstances :

(a) voice requires less investment than lights and improves productivity to almost the same degree,

(b) lights require less investment than voice and increase productivity to a much higher degree and

(c) a hybrid of voice and lights, driven from a common software application, provide the best blend of investment and productivity improvements.

 

Referring on how Voice and Light works, above figure, we found that some parameters i.e accuracy, productivity and investment are in the same level for both. For detail analysis, we should define “certain circumstances” as a factor which influence them in operation. Let’s look at warehouse process, order fulfillment process where the voice and light technology will be used, assume, mainly we have 2 categories of SKUs, there are Fast Movers an the rest are Slow Movers. When there are a large number of rarely picked from (or put to) location, it’s mean Low Reach Density environments because of few reaches per unit of travel occurs. Inversely, when there are a small number of frequently picked from (or put to) locations, it’s mean High Reach Density environment because of many reaches per unit of travel occurs.

The question is why travel time so significant consider in this case ? The answer is because travel time between reaches affects productivity, reach density impacts the amount of labor required to fulfill orders. If we assuming volumes are constant, the reach per hour,  so rate of an order filling will determine the number of operators required to fulfill orders. In our conclusion, we stated that  Reach Density is key  in determining whether lights or voice is the more appropriate technology.

Multi – modal use on the rise.

What about using the two of them together? In fact, we have possibility to applied them simultaneously in the same facility. We have scenario to set  lights for the fast-moving, split-case items and the opposite side, voice for everything else. We expect to take benefits from light as a visual system, it will deliver more efficient, more productive picking while voice, due to less in investment, we expect in wide coverage of location can be applied or covered. As demonstrated by the scenario, a hybrid of light and voice would require much less investment than an all-voice or an all-lights solution. At the same time, combination of them would provide nearly the same productivity as all-lights and much higher productivity than all-voice. The hybrid model, therefore, provides the preferred blend of low investment cost and high productivity.

What you should do before decide whether Light or Voice Technology that fit to your warehouse operation ? Here are some tips.

1. Determine Reach Density – High, Low, Mixed ?

       Low reach density operation :

              Voice is similarly as productive as Light

              Voice requires significantly Less Investment

       High reach density operation :

              Voice is significantly less productive than lights

              Voice requires significantly more investment

2. Take advantages of the analytic tools available

3. Stay to speak with objective vendor (not just voice or light)

 

Reference :

1. Voice is the best technology for picking & putting (except when it’s not) by Paul Lightfoot, CEO of AL System.
2. Lightening the (Picking) Load by Sara pearson Specter, Editor at Large
3. Key Attributes Used to Compare Pick-to-Light and Put-to-LightTechnologies, by Randall L. Patzke, P.E

Ten Actionable Program You Should Use in Warehouse, Do it !

Managing warehouse are widely discussed and there are many articles and books written by people whose expertise in their fields. All about them brought the same messages, how to manage warehouse effectively.

We spent countless hours observing all. It is important to share one of them. It was very easy to understand and simple to implement. This article is our favorite one. I would say special thanks to Jason Bader from iCepts who has written it.

We strongly recommend these proof strategies for your operation doing as the article said.

Here are a few tips how to manage warehouse effectively.

Clean the Place
It is amazing what you will find in the warehouse when you just clean it on a weekly basis. Mystery inventory such as : returned goods, damaged goods and special buy outs won’t have any place to hide. Beyond the ability to move more quickly in the facility, your team will begin to develop a greater sense of pride in their workplace.
Remember, this is the place where all your cash is stored. we want to develop a team that protects your cash from the outside threats – salespeople, truck drivers, and manufacturer reps.

Give the Warehouse Personnel an Identity
These are the folks who work with your cash all day. Give them shirts that say “Vault Security Team” or “Vault Management Team”. This does a couple of things. First, it reminds them that inventory has value. Second, it help identify those people who belong in the warehouse. A key element in keeping a secure warehouse is to eliminate those folks who have no business in there.

Increase the Size of the Receiving Area
When most people are designing their warehouse, they tend to cram as many racks of inventory into the possible space. As an afterthought, they usually carve out enough room for a little desk by the dock door, run a terminal to it and call it the receiving. If you make a mistake here, 10 additional problems will occur in the company. Start by giving them adequate room to work. You will see your inventory adjustments decrease immediately.

Put Senior People in Receiving
Why do we always put rookies in receiving? As mentioned earlier, mistake in receiving cause multiple headaches down the line. We need to make sure that we get it right coming in the door. Pay your receiving clerks well. Encourage them to stay in this position. Remember you will always have more product coming IN than going out. Receiving is your one place to get it right the first time so you do not have to redo orders later because of receiving errors.

Create Signage in the Warehouse
Don’t assume that your newer employees can navigate your aisles. Help them out. Create colorful signs to direct them to aisles or bins. Warehouse maps are a great way to increase productivity immediately. Clearly label landmarks. Try this exercise. Ask a friend to come into your warehouse and pick an order. If your warehouse is set up correctly, they should achieve a high success rate without asking questions on every line. It needs to be that easy.

Add Lines of Description to Pick Tickets
Most item databases will allow you to add multiple lines of description to any SKU in the system. Use them. Increase the order picker’s chance of pulling the right product. Put in physical descriptions like “the blue one” or “two wheel”. This is very critical when you are talking about minimum quantities. Let them know that an “each” is always the pair in the pack, not one of the two. This simple suggestion will help youbeliminate future dead stock. Don’t worry about killing a few extra trees. They grow back.

Double Check Orders Before They Go Out the Door
A really bad motto in distribution company is ” We fix our mistakes faster than anyone else in the business”. For the typical distributor, the cost to process an order is around $45. It costs and additional $100 to send it out the second time. None of us have enough margin to absorb this cost on a regular basis. In order to get it right the first time, install a method of double checking by one of your seasoned veterans. This is especially important if you have several new people picking orders.

Create Color Coded Delivery Labels
In order to make it easier for your delivery folks, develop a custom colored label for your most valuable customers. Make sure that every package you deliver to them has that label. Your drivers will be able to quickly identify their orders. You don’t want to make mistakes on these orders.

Implement a Days Work in a Day Discipline
This concept simply states, “what is started today, must be completed order”. If you receive it, it must be put away. If an order is put in the system and a pick ticket printed, it must be picked and shipped or staged. In an order to make this happen, we need to create cut off times. Order processing must end at a defines time. We need to give the warehouse a chance to finish off the day.

Implement Cycle Counting
Most of us know what it is. Some of us recognize the benefits. Few of us have made it part of our standard operating procedures. Cycle counting will increase the accuracy in your systems. By examining the inventory daily, you will find those mystery items that have found their way to the shelves. You can correct items that have been put in the wrong place. You can rotate stock. The list can go on indefinitely. Cycle counting is penicillin for distributors because it attacks so many little problems and solves them on a timely basis.

Good customer service begins in the warehouse. Sloppy procedures and a disorganized warehouse show much further than the confines of four walls.