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Why We Have A Warehouse ?

1. To better match the supply and demand2. To consolidate the product3. To reduce the transportation cost

4. To improve customer service5. To provide value added processing / deferred product differentiation

Supply Chain is the sequence of processes through which product moves fromit origin to customer

Stock Keeping Unit (SKU) is the smallest physical unit of a product tracked by theorganization and unique identifier for each product / service

Honeycombing can be defined as waste of space resulting from partial depletion andinability to use remaining space in the pallet.

Tie is the term used to describe the pattern of boxes / cartons in a layer.

Load Stabilizers Stretch Wrap, Shrink Wrap, Adhesive tapes etc.,

DC Operating Cost %Receiving 15%Put away 10%Order Picking 55% (Travel 50%,Search 15%,Extract 15%,Paper/Misc 20%)Check, Pack & Ship 15%Returns 5%

SKU / Pick DensityIf a warehouse area has high SKU density then it is likely to achieve high no. of picks

Assigning Pick Face Locations for various SKUs1. Calculate average cases / pcs picked per order2. Calculate no of visits to the location (Pallet Qty/Average cases per order)3. Arrange data in descending order - no. of visit to location4. Higher the number, pick face should be closure to the shipping area

Warehouse Layouts

1. U Shaped or Cross-dockinga. Receiving and shipping located in the same side of the warehouse b. Appropriate when product movements has strong ABC skewc. Provides flexibility between Receiving and shippingd. More efficient usage of Fork Lifte. Limited set back areaf. Expansion possible in other three sides of the warehouse

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2. Flow Througha. Receiving and shipping is done in opposite sides of the warehouseb. Appropriate for high volume warehousec. Preferable when building is narrow at receiving & shipping side of the

warehouse

Assigning Fast Pick / Forward Pick Locations

1. Arrange sku wise data of (a) no. of LTP (Less than pallet) picks per pallet (b) QtyPicked (c) Pallet Ti x Hi or UPP

2. Calculate b / c x a and arrange data in descending order.3. Lower the number, it is a candidate for direct pick from rack location.4. Higher the number, most convenient locations to be allocated5. If no of fast pick locations available are less, locations to be allocated from top of

the list and sku in the bottom should be picked through direct pick from rack

location.

Slotting

Slotting means assigning items or SKUs to the correct storage location. The goal is tomake fast moving products easily accessible without large amounts of walking requiredto pick them.

Determine where to store each SKU, what storage method to use and how much tostore by capturing the following slotting measures:

1. Popularity: The no. of requests for a SKU during a certain period.2. Cube-per-order: Average volume of the SKU per order3. Volume: Total volume of a SKU shipped during the period.4. Pick density: The number of requests per CBM of a SKU

Points to be considers while slotting:- Increase picking accuracy by separating similar products to avoid proximity

picking errors.- Reduce possibility of injuries by placing SKU in ergonomically best location- Reduce product damage by organizing heavier product first in the pick path,

ahead of crushable product- Group products with similar case height for easy palletization & reduction of

damages- Reserve/bulk stocks to be stored in the same aisle as fast pick location

Re-slotting to done on regular frequency once in 3 months or whenever new productrange is introduced since SKUs profile keep changing.

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