Amazon takes aim at the B2B market

Amazon may be looking to grab a piece of the B2B pie from retailers such as Staples by launching an Amazon Business marketplace stocked with hundreds of millions of business products.

The e-commerce giant says Amazon Business customers will also benefit from free two-day shipping on tens of millions of eligible items, multi-user business accounts, approval workflow, payment solutions, tax exemptions, dedicated customer support and much more.

“We’ve heard from business customers thatthey love the convenience of shopping online, and want an experience at work that is similar to how they shop at home,” said Prentis Wilson, Vice President of Amazon Business. “Amazon Business delivers a new and expanded marketplace that brings the selection, convenience and value of Amazon to business customers, manufacturers and sellers with the additional selection, features and back-end integration businesses need to save time and money.

”Some of the features Amazon Business offers include:
– Tailored Business Experience: Unique search, browse and shopping experience that is tailored specifically to business purchasing.
– Business Accounts: Create a single or multi-user business account, invite additional users to join the account, and define groups of users to easily share payment methods and shipping addresses.
– Free Two-Day Shipping: Fast, free shipping on orders of $49 or more on tens of millions of eligible items, plus access to even faster shipping options.
– Multi-Seller Marketplace: View multiple offers on a single product page for easy price comparisons, as well as shop sellers that consistently meet the performance and service requirements that businesses expect.
– Business-Only Pricing: Business-only prices on select items and quantity discounts from select manufacturers and sellers.
– Business-Only Selection: Business-only items combined with Amazon’s vast selection provides access to hundreds ofmillions of products, including hard-to-find items like traffic signs, industrial deep fryers, antibodies, 55-gallon steel drums, dent pullers and much more.
– Purchasing Approval: Create approval workflows to enable better spending controls.
– Purchasing System Integration: Integrate leading third-party procurement solutionsfor easy access to Amazon Business.
– Amazon Tax Exemption Program: Make tax-exempt purchases and manage tax exemption permissions across an organization.
– Order Tracking: Add purchase order or reference numbers to purchases to assist with reporting and account reconciliation.
– Amazon Corporate Credit Line: Place orders and finance purchases using a Pay-in-Full Credit Line or a Revolving Credit Line.
– Comprehensive Product Information: Rich product pages and studio-quality photography, as well as dimensions, CADdrawings and manufacturer how-to videos.
– Amazon Business Customer Support: World-class Amazon customer service dedicated to registered business shoppers.

“We’re consistently listening to feedback from customers so we can innovate, deliver more value and set a new standard for B2B e-commerce with Amazon Business. We think this is an experience that businesses will love and a great opportunity for manufacturers and sellers to reach registered business customers. It’s only the beginning for this new marketplace – we will continue to build out features in areas like product support, payments, shipping and pricing,” Wilson added.

Article By Gina Acosta
April 28, 2015

Staples Launches Omnichannel Service Aimed at Small Business

Staples is expanding its omnichannel capabilities with a new service that hopes to take advantage of small business growth in 2015.

According to a new Staples survey conducted by Research Now, the majority of small business leaders (87%) are optimistic about the year ahead. To help small business customers drive growth in 2015, Staples has launched Print-to-Store.

Staples’ new Print-to-Store service will allow customers to order print jobs through staplesadvantage.com and pick them up at their closest Staples store. Print-to-Store leverages Staples retail network to extend the convenience and flexibility of an omnichannel shopping experience to all Staples Advantage customers.

“We are committed to making it easy for our Staples Advantage customers to shop, however and whenever they want,” said Steve Bussberg, senior vice president, Staples Advantage. “Print-to-Store is a unique offering that leverages our vast network of retail locations while streamlining billing for both end-users and procurement departments. A true omnichannel offering, Print-to-Store provides convenient access to professional printing services, regardless of location.”

Available at all Staples stores that offer copy and print services, Print-to-Store aims to make it easy for employees to order printjobs from any location while providing procurement departments greater visibility into what is being printed and helping to control spending. Print-to-Store offers telecommuters the flexibility to use their Staples Advantage accounts to submit printjobs, which can be picked up at the nearest retail location. Staples Advantage’s streamlined billing means workers don’t have to worry about paying in-store or submitting expenses for reimbursement. Staples 1,832 has retail stores throughout the United States and Canada.

Original source:
http://www.retailingtoday.com/article/staples-launches-omnichannel-service-aimed-small-business

Five things you need to know to tackle maverick spend

Ada 5 hal yang bisa dilakukan untuk mengatasi maverick buying model. Dengan ulasan yang mudah dipahami ini kita akan mengetahui bahwa ada langkah sederhana yang bisa dipakai. Penggunaan teknologi seperti e-procurement tidak serta merta menghilangkan pola ini. Pada banyak kasus, memanfaatkan ERP akan membantu memperkecil peluang tersebut.  Apa yang diulas dalam artikel dibawah ini sangat mungkin diimplementasikan. Silakan membaca ulasan dibawah ini.

Five things you need to know to tackle maverick spend

As we enter the final quarter of the year, CPOs will be budgeting new cost savings to be realised during 2015. But rather than focusing on strategic sourcing, they must turn their attention to taking control of their organisation’s maverick buying as a powerful source of new savings.

Although the contemporary procurement agenda targets a wide range of procurement-driven benefits, cost savings are still at the top of the agenda, with strategic sourcing, category management, volume leveraging, standardisation and renegotiation tactics being the main instruments for generating them.

However, most sourcing initiatives have an inherent weakness because they assume somebody else in the organisation will ensure new or re-sourced contracts are implemented and used. Just look at the classic sourcing process and its final stage entitled ‘implement contract’ or something similar. This stage is most often poorly executed; in reality this often means putting the new contract in a drawer.

1. Eighty per cent maverick buying is not uncommon.

In other words, very few companies have a purchase-to-pay (P2P) regime that captures the benefits of a sourcing initiative, for example contract usage and compliance. The result is maverick buying – uncontrolled spending, poor contract compliance and, as a result, low benefit realisation. In our experience, it is not uncommon to find that up to 80 per cent of all invoices are generated from uncontrolled buying, even in large organisations with professional procurement functions. Ineffective P2P also comes with a range of other problems with payments, supplier management, master data management, enforcing terms of business and fraud.

Many would recommend installing an e-procurement system, but while this is good for catalogue buying of consumable items, it does not change behaviours and can still be bypassed. Many organisations also find it challenging and costly to keep an e-procurement system’s product and pricing data up to date across a huge range of articles. E-procurement is great when it is rolled out in controlled stages, P2P processes and procedures work already, and the organisation is mature.

From our recent experience advising on procurement initiatives, we have found a few practical business changes, which don’t require investment in a new IT system, have proven effective in controlling maverick buying. Normally, these can be implemented using the business’ enterprise resource planning system as it is (simply for purchase order management and invoice payment), without having to employ additional personnel.

2. Roles must be clearly separated.

Most employees love to contact suppliers, negotiate prices and buy – and it’s this behaviour which is the root cause of uncontrolled spending. This needs to change. Employees (requisitioners) should only raise a requisition when they have a need to purchase, while ‘operational purchasers’ – those with a ’license to buy’ and the authority to raise a purchase order – should then carry out the purchase on behalf of the requisitioner using the correct P2P processes, purchase order management and available contracts that ‘strategic purchasers’ have arranged.
Operational purchasers can easily serve many requisitioners within or across business units, locally or centrally, depending on how this is set up. Normally, this can be implemented without having to employ additional personnel.

3. P2P processes should be tailored.

One size does not fit all when it comes to P2P. Processes must be designed to cover all possible purchase types and take into account different roles. For example, buying direct material for inventory will not follow the same process as buying an indirect service based on time and material. Normally, 20-25 variants of a generic P2P process will cover all the bases.

4. Purchase orders have to be used for every purchase.

This may sound overambitious, but without a purchase order, the commitment of spend will not be in the ERP system and therefore unknown to management. Terms of business and payment terms will also not be communicated to the supplier, and, as a result, cannot be enforced. Moreover, there is nothing to match goods receipts and invoices to when goods and services are delivered. In our experience, around 90 per cent of all purchases should be raised on a purchase order, with the remaining 10 per cent covering purchases that will normally not require one, for example subscriptions, utilities and personal travelling expenses.

5. A P2P policy needs to be clear and communicated.

I refer to P2P as a ‘regime’ because it needs to be strict in order for it to work. The truth is the easiest way to buy something is simply to grab the phone and call a supplier – bypassing the purchasing policy and process (if there is any). At the same time, no one really dares to take responsibility for changing this behaviour. Therefore, eliminating maverick buying, gaining control of an organisation’s buying behaviour and realising cost savings will depend on how much the executives really want it. Their direction must be clear and well communicated in one common P2P policy, with compliance being monitored monthly and individual cases of uncontrolled buying addressed directly.

Organisations that fail to address these points can expect continued loss of compliance and benefits. Since a strong P2P strategy realises savings, reduces risk and streamlines invoice payment, the CPO should find it easy to team up with the CFO when establishing a P2P regime.

☛ Jes Batting is a sourcing and procurement specialist at PA Consulting.

6 Strategies to Response Maverick Buying Model

What should be done by all  procurement people in term of facing the maverick buying situation? As a procurement people, you need a comprehensive strategy to response this situation. In this short article, Charles Dominick from The Nextlevel Purchasing shares the six strategy how to stop Maverick Buying.

How Can You Stop Maverick Buying?

As defined in my book, The Procurement Game Plan: Winning Strategies and Techniques for Supply Management Professionals, “maverick buying” happens when a purchasing department “establishes an enterprise-wide contract, yet many users within the organization still buy from other suppliers.” Eliminating maverick buying requires a plan with multiple components, including these six steps:

Step #1: Prohibit maverick buying as a company policy. The most important component of preventing unauthorized purchasing is to ensure that top management adopts it as a company policy, not just a purchasing policy. With company policies, there is an implication that, if you break the rules, you will be disciplined. This serves as a strong deterrent.

Step #2: Establish clear processes. There should be clearly defined ways of properly buying goods and services. The purchasing department should document how goods and services are to be bought and this documentation should be a source of reference for any employee who needs to make a purchase.

Step #3: Educate potential offenders. It is important to have an education program, led by the purchasing department, that helps people understand what the approved and prohibited ways of purchasing are. Many times, the primary reason employees engage in maverick buying is that they are unaware of what they should be doing. Additionally, educational programs enable purchasing departments to also explain why it is important to purchase goods and services in accordance with company policy – many employees do not know such rationale and think that policies are just put in place for the sake of bureaucracy.

Step #4: Use technology. Technology, such as eProcurement systems, can be implemented to ensure compliance. By funneling potential offenders to the correct goods, services, and suppliers and making it the easiest way for them to purchase in that manner, compliance can be easy. Plus, eProcurement systems offer controls that can prevent unauthorized purchasing.

Step #5:  Monitor spend and take corrective action.  It would be nice if all you had to do was to put in rules and they would be followed.  Unfortunately, that’s not how the world works.  That’s why there are security guards, police, referees, prefects of discipline, and others in enforcement roles.  You have to watch for unauthorized purchasing and then approach the offenders.  Doing so may reveal weaknesses in policies, procedures, or communication or, on the other extreme, it may reveal individuals who have less-than-noble intentions.

Step #6: “Outbuy” internal customers.  As explained in PurchTips Edition #264, some internal customers will think that they can perform purchasing activities better than you.  When you’ve demonstrated that you’ve made the best purchasing decisions on behalf of the company, compliance will be at least a little easier.

So, as you can see, there is no single “magic bullet” for stopping maverick buying.  It requires a multi-dimensional plan.  But the good news is that it can be stopped.  And I hope that this post and the article helps to give you the structure you need to eradicate maverick buying from your organization.If you linked to this post from the article, you can click here to return to it.

Written by : Charles Dominick, SPSM, SPSM2, SPSM3
http://tinyurl.com/b2ftqtr

What is Maverick Buying ?
Maverick buying, for example, is when employees buy office articles at the localstore around the corner instead of from the supplier with whom the company has negotiated a framework agreement and, therefore, specific discounts. Maverick buying makes the agreement with the supplier more expensive because the volume of the framework agreement is decreased or the goods are purchased at too high a price.

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.

Oleh oleh dari Bekasi Cyber Park

Selepas urusan saya dari galery indosat, saya menemui rekan saya yg kebetulan sdh appointment sebelumnya. Dengan setting nongkrong di warung kopi sebelah kantornya, jadilah ngomong ngalor ngidul mengenai water treatment.
Ada beberapa hal yang menarik yang menjadi catatan saya.

Business Model
Model bisnis di water treatment dapat dilihat dari aspek produk dan design nya. Untuk Turnkey product (Paketan, istilah mereka), dimana produk tersebut sudah ready dan perlu di sesuaikan dengan kapasitas inletnya. Sedangkan yg lain Custom Design dimana perlu keterlibatan fungsi engineeringnya untuk merancang sesuai dengan kebutuhan client tsb. Sebenarnya, custom design ini pun dapat dibagi lagi berdasarkan BOQ yang membuat, BOQ pelaku WWT sendiri ataukah pihak Client menggunakan jasa konsultan.

Secara umum, kendala jika BOQ dari konsultan adalah dari sisi proof of concept nantinya. Pelaku WWT sebenarnya berada pada posisi menyiapkan sistem keseluruhan sesuai dengan BOQ konsultan. Client perlu memperjelas scope dan responsibility masing masing, jika tidak saat terjadi ketidak sesuaian antara design dan realisasi (hasilnya) akan terjadi potensi saling menyalahkan antara keduanya.

Pemasaran
Ada yang menarik dari pendekatan yang ada, berdasarkan cerita teman saya ini.
Beberapa cara akuisisi order :
– Networking : kenalan, teman, sub dari vendor yg lebih besar dll
– Referensi : melihat referensi dr proyek proyek sebelumnya
– Cold Calling : aktif mengirimkan company profile dll
– lain lain : online dll.

Jika dilihat dari probabilitynya maka urutan pertamanya adalah Networking, kemudian disusul referensi, cold calling dan yg terakhir lain lain. Dengan demikian nampaknya mengandalkan networking menjadi pilihan pertama bagi pelaku WWT.

Ditambahkan lagi bahwa informasi adanya proyek sangat minim sekali atau terbatas, rata rata hanya ada 2-3 peserta yang terlibat. Minimnya peserta ini bisa jadi membenarkan anggapan diawal bahwa networking memberikan peranan yang besar disisi pemasarannya.

Output
Secara teknis besarnya atau kualitas output sangat dipengaruhi oleh beberapa faktor :
a. Jenis output, apakah air utk konsumsi, air utk keperluan biasa ataukah air demineralized
b. Jenis inputan/bahan baku, apakah air limbah berat, air limbah domeatik atau air baku biasa.
c. Teknologi yang dipakai, misal ukuran membran, atau teknologi lainnya.
d. Design rancang bangunnya.

Secara garis besar outputnya antara 60% – 80% dari inputnya. Semakin ringan maka konversinya akan semakin tinggi bisa sampai 80%. Tetapi jika kondisi yg ada sebaliknya, output 60 % sudah termasuk kategori normal.

Dari penjelasan atau sharing teman saya ini, saya bisa memahami beberapa hal terkait dengan pengolahan air limbah ini.
Saya coba kaitkan dengan tulisan awal saya beberapa waktu lalu mengenai teknologi Advanced Oxydation Process, tentu dengan teknologi semacam ini akan memberikan output yang lebih baik. Apalagi dilihat dari sisi investasi awal dan lahan yang hampir bisa mencapai 50% lebih rendah dibandingkan teknologi konvensional, saya melihat peluang besar untuk dapat diterima oleh pasar.

Serunya ngobrol lebih dari 2 jam membuat perut mulai terasa perlu diisi. Perlahan beringsut ke warung seberang mengganjal perut dengan tongseng kambing.

Untuk mengetahui lebih lanjut teknologi Advanced Oxydation Process ini, cukup drop email saja.

Ngobrol Pagi soal Water/Waste Water Treatment yang Super Irit (Lahan + Biaya)

Pagi pagi saya sudah ngajak ngobrol teman setelah lama tdk bertemu. Dari obrolan ini ada hal yang membuat saya sangat tertarik untuk saya bawa sharing di Linkedin maupun di Blog saya. Mengenai Teknologi Water/Waste Water Treatment yang super irit lahan dan biaya. Menurut dia, teknologi yang ditemukan ini telah dipatenkan dan saat ini mulai banyak dipakai di perusahaan perusahaan.

Rasanya, tidak ada salahnya informasi ini saya sharing. Berikut petikan obrolan saya.

S(Saya) : Kalau omongin water treatment/waste water treatment, mulainya mesti darimana Bro.., semisal kalau ada yg ingin tahu…

T (Teman) : Ok siap Cak…. Kita mulai dari pertanyaan kita dulu.
(he he he karena saya orang Surabaya, dia panggil saya Cak artinya Mas/Bang)

Ada 3 point yg mesti kita tahu dulu….
Yang pertama, identifikasi awal apakah obyeknya ini air bersih, air minum, air proses, air murni (khusus) atau air limbah (basicnya kita siap dgn segala jenis air itu)

S : Pertanyaan saya….kenapa mesti nanyain obyeknya kayak gitu  ?

T : Kita bukan nanya, tp awal kita hrs tahu binatang apa itu :mrgreen:… Water treatment kan luas bgt, yg dia maksud itu yg mana.

S : Ok, lanjut..

T : Biasanya orang air beda dgn orang limbah, kebetulan kita bisa keduanya.

Yang kedua, nah biasanya kita butuh data utk bisa analisa plus estimasi boq + harga. Data yg kita butuhkan diantaranya data: flow rate, analisa lab air & target air olahan.

S: Ok, lanjut….

T : Yang ketiga, kita juga perlu sample makanya biasanya ambil sampel & diuji coba dulu di skala lab. Baru setelah semuanya ini, dari hasil tsb kita bisa lanjutkan ke proposal.

T : Pada umumnya, pertanyaan yang sering muncul dari user biasanya: kisaran biaya/harga, teknologi umum atau khusus? (kalo ada permasalahan spesifik), masalah teknis: Power consumption & kebutuhan area, utk perusahaan yg punya divisi air/limbah: pertanyaan sangat2 teknis (kalo kita gak paham bisa ill feel mereka).

S : Ok…jadi pertanyaan yg paling banyak dilontarkan calon customer itu kira kira: scope, teknologi yg dipakai, harga dan requirement spesifik atau khusus…kira kira begitu ?

S : Rasanya kalau 3 point diatas itu lebih cenderung metodologynya khan…?

T : Iya itu metode umum untuk bisa menjawab pertanyaan mereka, jadi kita perlu informasi awal yg benar

S : Nah kalau kita sekarang ngomongin soal teknologi yang dipakai plus kelebihannya .

Kalau produkmu ini, diluar harga, keunggulan komparatif terhadap produk sejenisnya ada dimananya ya Bro ?

T : Kalau utk limbah, kita punya teknologi AOP ( Advanced Oxydation Process) . Proses cuma 1 jam, bandingkan dengan teknologi konvensional yang sekarang banyak dipakai yang pada umumnya memakan waktu 24 jam. Nah dengan AOP ini,  tentu dampaknya ke kebutuhan lahan yang lebih irit & biaya/investasi bisa lebih rendah.

Selain itu, AOP mampu mengolah limbah khusus yg berat ( kalau teknologi konvensional yg ada sekarang gak sanggup)

Kita lanjutkan lagi ya…sedangkan kalau utk air memang relatif umum, keunggulan kita di membran (lebih luas), dimana kompetitor biasanya hanya RO. Jadi delivery time lbh cepat dr yg lain.

S : Jadi competitive advantagemu itu adalah teknology yg lebih advance dg deliverable kayak yg kamu sebutin diatas , leadtime cepet, mampu utk limbah berat, investasi lebih bisa ditekan…gitu ya..

T : ya begitulah…

S :  Mantab he he he….

Dari hasil ngobrol ini, point pentingnya adalah penggunaan Teknologi Advance Oxidation Process (AOP) dalam water/waste water treatment menjadikan proses lebih cepat, hanya 1 jam dan lebih hemat lahan yang dipakai dan ujungnya adalah biaya/investasi dalam instalasi water treatment/waste water treatment menjadi lebih kecil dibandingkan pakai teknologi konvensional saat ini. Dan perlu diingat bahwa teknologi AOP ini mampu menangani limbah berat yang tidak mampu dilakukan oleh teknologi konvensional yg ada saat ini.

Bagi anda yang berminat mengetahui lebih jauh atau ada rencana membangun instalasi water treatment/waste water treatment  bisa drop email ke saya, estikofh@gmail.com atau WA : 0877 8282 1141

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.

2-D or RFID: Which is better for item-level marking?

Saat ini barcode sudah tidak asing lagi karena banyak company telah mengimplementasikan dengan berbagai tujuan dan kebutuhan terutama disisi kebutuhan tracebility. Sedemikian jamaknya teknologi ini mendorong vendor barcode menyediakan beragam tipe dan tingkatan teknologi termasuk RFID bahkan saat ini telah berkembang teknology visual barcode. Dilain waktu saya akan posting subject visual barcode.

Pada artikel dibawah ini, Pak James membantu kita memberikan guideline dalam pemilihan teknologi barcode yang tepat. Ulasannya cukup membantu memberikan gambaran secara jelas pros dan cons atas teknologi 2D dan RFID. Semoga artikel ini bisa memberikan manfaat nyata.

 

Each technology has its pros and cons, so the choice will depend on your needs and your price point.

2-D or RFID? That’s the question many companies face when they go to upgrade their item-level product identification systems from one-dimensional (1-D) bar codes. Compared with linear 1-D codes, both 2-D bar codes and radio-frequency identification (RFID) tags represent an enormous technological advance. But each system has its pros and cons, and choosing which road to take isn’t always easy. In the end, the choice usually comes down to the user’s intended application and the kind of information it needs to convey.

What RFID has going for it is that the technology does not require a line of sight for item visibility. With a bar-code symbol, whether 1- or 2-D, the machine or person wielding a scanner must be able to get a bead on the symbol in order to read it. There is no such requirement with RFID tags; they convey information wirelessly to an interrogator via an antenna.

Right now, RFID tags are primarily used to provide unique identification for items of fashion apparel or medications. In the case of pharmaceuticals, the tags are deployed to provide traceability, to guard against counterfeiting, and for brand protection, says Michael Liard, vice president at VDC Research. In the case of apparel, the tags are mostly used for inventory control and store visibility.

Historically, the big impediment to wider adoption of RFID technology has been price—and that’s still the case today. According to the Automatic Identification and Data Capture team at the research firm Frost & Sullivan, so-called passive tags (which rely on an outside source for power) cost between $0.40 and $20 apiece, while active RFID tags (which contain a battery as a power source) go for between $10 and $50.

By contrast, it costs just a fraction of a cent to print a two-dimensional bar code on a packaged product. Furthermore, a 2-D matrix code allows users to pack a great deal of information into a small space. Because a 2-D symbol encodes data on both the X and Y axes, it can store more product data than a conventional linear bar code and, for that matter, most RFID tags can. Among other information, a 2-D symbol can encode a product lot number, date of manufacture, expiration date, manufacturer location, and distribution channel.

Another big advantage is that a 2-D bar code can carry a link to a website. A shopper with a smartphone can simply scan an item’s code and be directed to a site for more information about the product. “2-D bar codes are used in marketing where you want to convey more information about the product to the consumer,” says Richa Gupta, a senior analyst at VDC Research.

Although RFID was originally touted as a high-tech way to monitor supply chain movements, most companies using the technology for item-level tagging do so for reasons other than channel visibility. The primary reason companies opt for RFID-based item-level tagging remains asset management and surveillance.

For instance, in a retail store, an RFID tag can trigger an alarm if a shoplifter attempts to walk out the door with the merchandise.

While theft deterrence may justify RFID costs for high-end merchandise, more companies are expected to opt for 2-D codes. “If you can get a line of sight, then the default goes to a 2-D bar code because ink on paper is pretty inexpensive,” says Rick Bushnell, president of the consulting firm Quad II.

Other experts don’t see the two technologies as an either/or proposition; they believe there’s room for both, depending on the intended use. “While 2-D bar codes may be a barrier for RFID in some applications, we expect both 2-D bar codes and RFID to coexist for the most part,” said Frost and Sullivan.

Written By James A. Cooke