Warehouse Design & Optimisation
Our warehousing solutions include:
- Warehouse Optimisation
- Warehouse Layout Design
- Warehouse Facility Upgrade
- Process Improvement
- Policy & Procedures Development
- Staff Training
L&SC Strategies assist Clients to analyse warehousing operations to identify and address risks, issues and opportunities. This may be achieved by initiating one of the following services:
5 - 8 Day Logistics Diagnostic
Introductory service over 2-3 weeks, including investigation of:
- Operations: Identify key issues and opportunities for process improvement
- Storage requirements and inventory levels: Identify opportunities to optimise inventory and for more effective storage systems
- Picking and throughput requirements: Identify improvements required in picking efficiencies (order picking process, picking technology, pick slots)
- Software and information systems: Suggest changes or improvements to information systems
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20 - 30 Day Logistics Review
Comprehensive service over 4-6 weeks, including review of:
- Process Mapping and Design: Identify through workshops current processes - identify waste and bottle necks
- Volume and Order Profile: Analyse data on 12 - 24 months order profiles - picks by SKUs- quantities by SKUs - order timing etc
- Operations Strategy - Pick and Replenishment: Develop new operations strategy for Picking, Replenishment and Receiving. Consider Slotting Design
- Physical Warehouse Location & Dimensions: Develop a plan for Static and Mobile Equipment. Simulate Warehouse volume - design layout to volume
- TO BE Process Design and SOP Development: Document the To Be Processes and the Interface with WMS - Develop Standard Operating Procedures
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Trends in Warehouse Management & Systems:
Traditionally Warehouse Management Systems (WMS) were used to locate the products, most had the ability to cube the volume of products to be stored and match the volume of goods to the capacity of the storage location. Identification of location using barcodes matched to Radio Frequency devices in very common place, and most WMS packages have provided this historically.
Pick Wave Management
The WMS is being developed to manage and guide the pick activity - guiding the picker through the pick face in the most logical and efficient fashion. The most advanced WMS can also take account of crushability and product weight issues to achieve a best outcome in split case picking environments - such as Pharmaceuticals. A key enabler for this activity is the ability of the WMS to cube the order size and ensure adequate picking receptacles (Carton, Tubs etc) are released - these are typically zoned and sent to a picker who allocated a zone to pick from.
Pick Strategies
WMS are able to assist Warehouse Management select the most appropriate picking strategies - Picking Strategies include Wave, Zone, Cluster and Discrete Picking of orders. Picking strategies are variable and the best approach may change according to the urgency of the pick and its promised delivery time frame. For instance an urgent part may be required and a discrete pick - while a replenishment run for twenty stores or satellite warehouses may provide pick density which drives Zone and Wave Picking.
The best WMS's will drive and manage picking according to predefined business rules and monitor and report the activity in real time - enabling Warehouse Managers to monitor the progress of a Pick Wave throughout the facility. A typical application here would be a wave released for a delivery run or runs. The orders that make up the runs are released as picking instructions together as a Zoned Wave pick. The manager can monitor progress using the WMS by zone and ensure the picks for the run are completed in a timely fashion. Monitoring the pick wave progress will enable the manager to identify if a zone is lagging behind and feed in more labour if required.
Enhanced Equipment Interfaces
The best modern Warehouse Management Systems have inbuilt interfaces for Vocalect Pick To Voice equipment. Vocalect has a virtual monopoly on this sector of the market. In addition advanced Warehouse Management Systems can reduce or even eliminate the need for control software for Conveyor Systems, Radio Frequency Equipment, Goods to Man Device (Pick O Mats, Carousels, Mini Loads and AHRS).
Slotting Algorithms
Advanced WMS will run a slotting plan Algorithm in the background - these are goal seeking algorithms which attempt to trade off the competing elements of the design of the pick face. These typically will include:
- Pick Frequency
- Movement Quantity
- Balancing Pick Path Length against Replenishment Tasks
- Bigger Pick Locations drive up Pick Paths and reduce picker productivity
- Smaller Pick Location require more frequent replenishment and so drive up replenishment activity
- Product Weight - heavy products are not slotted above chest height or low to the ground - Health and Safety Issues
- Propensity to miss-pick similar looking products
- Slot products which are picked together close to each other
- Have heavy goods which can crush other goods close to the start of the zone so they are in the bottom of the carton, etc.
Replenishment Triggering
The more advanced WMS manage pick face replenishment and even reroute the picker away from an empty Pick Slot - trigger a replenishment and then route the picker back to the location when the replenishment has occurred. Replenishment can occur based on preset Min and Max Stock Levels. The most advanced WMS run algorithms which predict demand or draw from the demand forecast developed elsewhere - then adjust minimum trigger quantities accordingly. Many WMS can be set up to manage replenishment on a separate shift - so that Pickers are then faced with Pick Slots "Groaning" with inventory and reducing the incidents of out of stocks on the pick face.
Workforce Productivity Reporting
The WMS will monitor the productivity of individual pickers and replenishers and provide reports to managers according to predetermined labour standards on the performance of Teams and Individuals. The use of RF equipment and Pick to Voice enables this to become more accurate.
Receiving and Putaway
The receiving and Putaway activity is managed through the interface with the ERP and monitoring expected Orders, allocation of delivery slots and receiving of Advanced Shipping Notices. Increasingly goods are cross docked through the facility - where goods are packed and are store ready - but delivered to the facility where they flow through and are sent to the dispatch point for movement to the individual store - along with the rest if that stores goods.
Putaway locations are selected by WMS according to Business Rules and adjacencies for replenishment. Reslotting and movement of pallets to achieve a better outcome is driven by advanced WMS's once again with the ability to trade off benefits (better Inventory locations) to costs (Utilisation of Replenishment and Putaway Labour). Location control for non pick face inventory is another benefit for advanced WMS.
Advanced Shipping Notes are often imported to WMS as an electronic document and populate the receiving screen. When the shipment arrive use of RFID or Barcodes linked the ASN will trigger the WMS receiving process.
Expected Direction of WMS
As labour costs increase, the level of systems and automation will increase. Organisations typically do not revisit their warehousing/distribution on a regular basis. Events such as mergers, excessive cost increases and customer service impacts, generate the need to review WMS implementations. At this point, they consider the features listed above and determine whether to change and if so, the direction and extent of the change. For instance, some corporations have been known to decide to review their distribution network after their competitors make the decision. Other corporations decide to review their distribution network when leases begin to expire. The trend we see within WMS is that as labour costs increase, there will be greater use of systems and automated picking and handling.
For more information call 07 4927 5433 or email This e-mail address is being protected from spambots. You need JavaScript enabled to view it