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Joliet Warehousing – Top Efficiency in the Warehouse

Warehousing facilities play a crucial role in the overall supply chain process. Here I will address key points that are fundamental for warehouses to achieve both efficiency and effectiveness in supply chains, and provide some clarity on current challenges and the future. It is certain that continuing globalization and changes/challenges occurring in such areas as reverse logistics, environmental sustainability, information technology, and overall supply chain integration are further evolving the strategies, roles, and responsibilities for warehouses. In fact the term distribution center (DC) may be much more appropriate in representing the broad range of activities that now occur in modern warehouses that go beyond filling customer orders to provide an ever expanding array of value added services.

Back to the Basics
There are a number of situations where warehousing simply would add cost (and little or no value) to the supply chain. Warehouses add little or no value for products bought in bulk (e.g. raw materials, manufactured items) with little or no time sensitivity associated with their use. Products insensitive to transportation costs (i.e. transportation cost is a small percentage of product value) also typically move directly to customers.

For other products, however, warehouses provide a dual value-added role making supply chains more efficient and more effective. warehouses add efficiency by consolidating products for shipment to customers, reducing transportation costs, and performing a broad range of value added services (e.g. branding, labeling, assembly, packaging, kitting, reverse logistics). Warehouses also make the supply chain more effective. The strategic placement of DC s allows the positioning of products and services close to major markets and customers (the economic principle of place utility).

Joliet Warehousing - Top Efficiency In The WarehouseOptimization strategies are utilized to position product availability and delivery as a competitive advantage while also optimizing the cost trade-offs associated with transportation, facilities, equipment, workforce, and other critical cost variables. Warehouses also facilitate time utility by storing product until it is demanded. Product type often determines the need for and specific role of warehouses in the supply chain.

Characteristics to be considered include:

  • SEASONALITY in either PRODUCTION or CONSUMPTION
  • DEMAND VARIABILITY
  • MANUFACTURING ECONOMICS
  • MARKETING and PROMOTIONAL INITIATIVES
  • TRANSPORTATION ECONOMICS
  • SERVICE REQUIREMENTS
  • CUSTOMIZABILITY and VARIANTS of PRODUCT

Joliet Warehousing and Storage[1]

Products that have extremely high service requirements from a time perspective present unique challenges since they often effect the efficiency, performance, and cost of customers operations. As an example companies that distribute parts for technology products (e.g. computers) and capital goods (e.g. airplanes, construction machinery) must be capable of distributing those parts within hours. Similarly many automotive manufacturers have inbound warehouses located in close proximity to manufacturing plants so that subassemblies and other components can be assembled and profiled to line for the production process. Postponement is also becoming a critical issue and value added service for warehouses. When demand is unpredictable it often makes sense to assemble and ship to order . Inventories remain generic providing more flexibility and reducing costs (e.g. inventory, transportation, surplus, obsolescence). Postponement is particularly effective in supporting customer product configuration and branding requirements.

Company capabilities to determine warehousing requirements are essential for achieving successful networks and operations. warehouse requirements include location, design and operations, determining the information and technology requirements, and measuring performance.

Joliet Warehousing - Top Efficiency In The WarehouseWarehouse Location

In addition to transportation costs warehouse location is determined based on the the location of major markets and customers, the location of supply points, the volume of product moving to or from supply points and customers, transportation rates, the level of service required, and the product characteristics. Local conditions including access to and cost of labor, land and buildings, IT/communications infrastructure, transportation infrastructure, and government policies (e.g. environment, incentives, taxes) also play a significant role in determining location.

Design & Operations
The product, how it is received, the nature of customer orders, service levels, and transportation mode are the primary determinants of distribution center design and operations. Product characteristics include weight and dimensions, packaging, shelf life, temperature and lot control requirements, and hazardous material requirements. How the product is received is critical to both inbound operations efficiency (dock to stock cycle time) and space utilization/storage efficiency. To optimize efficiency in inbound operations it is ideal to receive material in an immediately storable conveyance (e.g. pallet, case, box). The types and volumes of orders that are processed and the number of stock-keeping units (SKU s) in the warehouse are important considerations in determining layout, equipment selection, and business process requirements. Storage equipment selection should be matched to product characteristics, volume, and any additional unique requirements (e.g. security, temperature control, lot control). A word of caution if you are considering automation automation to reduce transit time in the distribution center almost always represents an opportunity for improved efficiency. Automation of other processes (e.g. receiving, locating/storage, order filling) may become a critical constraint particularly if there is a significant variation in demand (e.g. seasonality), change in product characteristics, or change in product mix.

Joliet Warehousing - Top Efficiency In The WarehouseStorage Information and Technology Requirements

Information is the critical driver for successful warehouse operations. Short term forecasts provide information to determine labor and space requirements over a short term planning horizon. Longer term forecasts are used for capacity planning (e.g. warehouse size, workforce and equipment requirements.). Information technology is critical in achieving peak warehouse performance. Warehouse Management Systems (WMS) direct where products should be stored and provide the necessary functionality for the completion and optimization of receiving, storing, and shipping operations. Additional functionality may permit the use of hand held devices and bar coding to optimize efficiency and reduce errors. Most WMS systems also include inventory management functionality that permits the warehouse to have real time information on the inventory status of all items in the warehouse.

Joliet Warehousing - Top Efficiency In The WarehouseMeasuring Warehouse Performance

The primary objectives of warehouses include providing the right product, at the right place, right time, and damage free at a competitive cost. Fundamental to achieving and sustaining these objectives is measuring performance. The most common warehouse performance measures include handling productivity, space utilization, accuracy, damage, service, cost, and inventory. Handling productivity is often measured in units or lines picked per hour or total handling cost per unit . Space utilization is evaluated based on the percentage of total space available for storage, percentage of useable storage space actually used for storage, and storage cost per unit of product. Accuracy includes measures of location and record accuracy, the percentage of items picked correctly, and the percentage of orders picked correctly. Damage measurements include the percentage of items picked that are undamaged when received by the customer and the percentage of orders picked without damaged merchandise. Service measures include fill rate which is based on the number of orders that were filled completely. Cycle time is also a critical measure to determine service and efficiency. Dock to stock cycle time is a critical measure of how long it takes to make material available following receipt. Order cycle time measures the elapsed time from order receipt until order shipment. Order cycle time may also include transportation to measure the total elapsed time until the customer receives the product. Cost and inventory performance measurements include total distribution center cost per unit handled, distribution center cost as a percentage of sales, and inventory turnover.

Where Are We Now?
Understanding DC performance measurements is critical to achieving successful outcomes. A recent study (January 2010) conducted among DC Velocity[2] s readers and members of the Warehousing Education and Research Council[3] (WERC) by Georgia Southern University (Dr. Karl Manrodt[4]) and consultancy Supply Chain Visions (Kate Vitasek[5] and Joseph Tillman) is their seventh annual survey of key distribution center and warehousing metrics. Although the survey indicates slow but steady improvement in operational performance it highlights significant opportunities for improvement.

Joliet Warehousing - Top Efficiency In The WarehouseWarehousing Today

Benchmarking assessments also consistently indicate that business process competence and workforce buy-in are important contributors to success. Business process competence is underpinned by statistical discipline (e.g. Lean, Six Sigma). Workforce buy-in is not only critical but the workforce can become an outstanding source for continual process improvement. If you don t benchmark please let me encourage you to do so both within and outside your principal industries and markets.

As we view the future, the role and responsibilities of warehouses
will continue to be shaped by the globalization of business and the integration of supply chains. As supply chains extend and become more complex and costly to operate, information technology will be critical to achieve efficiency and performance. Supply chain differentiation will continue to be achieved through value added services that reduce cost, improve service, and enhance overall product value and the customer experience.

Joliet Warehousing and Storage[6]

References

  1. ^ Joliet Warehousing and Storage (readyfleet.com)
  2. ^ DC Velocity (www.dcvelocity.com)
  3. ^ Warehousing Education and Research Council (www.werc.org)
  4. ^ Dr. Karl Manrodt (blogs.dcvelocity.com)
  5. ^ Kate Vitasek (blogs.dcvelocity.com)
  6. ^ Joliet Warehousing and Storage (readyfleet.com)

Nelson Nutmeg: Script to Screen

You may have seen me mention Who Killed Nelson Nutmeg?

1 the kids film I m making this year with my good friend & colleague Tim Clague 2 . We re joining forces to co-write & co-direct (Coen Bros style!) as we feel it s the best use of our resources and network to actually get a feature film in the can. The project s been up and running for a few months in pre-pre-production but is now kicking into gear as logistics start to take shape.

Naturally I ll be blogging, updating, tweeting, Facebooking, wafting smoke signals and sending carrier pigeons everywhere I go so that you don t miss a thing but here s what we ve been doing so far: – we brainstormed about 6 ideas, and then chose one to develop for the film.- we worked out a basic structure, a tight five-act breakdown.- we rallied a local team of fantastic people 3 to help us on our nutty adventure. – we wrote a treatment.- we wrote a detailed beat sheet/scene-by-scene.- we wrote a 1st draft script.- we networked with people in the kids TV & film biz, via people we knew or could reach out to, and attended a couple of BAFTA Children s events, picking up some top tips.- we went to the BVE 4 , particularly on the lookout for a Blackmagic 4k camera 5 , a decent rig and the relevant post-production hardware.- we bought a Blackmagic 4k camera 6 . Tim is beside himself with excitement.- we started rewriting the script, getting it in tip top shape so we can start sending it to people to read.- we scouted locations along the stunning Dorset coast, where the bulk of the film is set.- we visited local theatre schools to initiate the casting process and check out the local talent. And that s where we re at.

Much more to come. Please do LIKE the Facebook page and follow the dedicated Twitter feed . We re going to fund the film ourselves but we re going to need some finances to fill in the gaps so our Kickstarter campaign is coming soon.

I hope you can help us share the Nelson Nutmeg adventure, and join in the fun.

It s been a blast so far, and we re only just starting!

7 8 9 References ^ Who Killed Nelson Nutmeg? (nelsonnutmeg.com) ^ Tim Clague (projectorfilms.blogspot.co.uk) ^ local team of fantastic people (www.nelsonnutmeg.com) ^ BVE (www.google.co.uk) ^ Blackmagic 4k camera (www.blackmagicdesign.com) ^ Blackmagic 4k camera (www.nelsonnutmeg.com) ^ LIKE the Facebook page (www.facebook.com) ^ dedicated Twitter feed (twitter.com) ^ Nelson Nutmeg (nelsonnutmeg.com)

Read More:
Nelson Nutmeg: Script to Screen

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