Application of Karma Logistics techniques in different product sectors

During the last few months, we have discussed many aspects of warehousing productivity improvement techniques.  In the month of Jan 2012, we introduced our 3D technique to improve your warehouse slotting. You can scroll to the bottom of this BLOG, click on Older Posts and visit the earlier Blogs.

During this month Feb 2012, around 600 people from around the world have visited our Blog sites and many have downloaded our Demo Software showing the 3D technique. If you missed any of this and wish to see them, please email us at  Ram.krishnan@Karma-Logistics-Inc.com

Our technique

YouTube link that describes our techniques and the process;

http://www.youtube.com/watch?v=JHPV7_E8608

Note: A section of this video starting at 4:30 minutes has been intentionally blurred to protect our techniques.

In the next 5 Blogs, we propose to write project case histories. These will describe how we applied our techniques, describe the type of warehouse, size, type of layout and storage, the pilot effort, how we rolled out the software and its application to all the DC's in the company's network.

We will mention the product and DC type, but not the actual company names.

Here are the 5 case studies.

1.0  Hospital and Nursing homes product distribution.

       DC networks in this sector may be located in major metro cities, to offer local presence and speedy delivery. Based on the customer groups, same SKU's may be slotted in a full pallet rack, a case pick section from a hand-stack rack section, picking eaches from both carton flow racks and bin shelves.  After full installation at all DC's over a few years period in a Company in this sector, they increased picking productivity by 35%.

2.0  Paper, tissue, napkins etc sector

        Paper manufactures require lot of water. Hence, most of the companies in this sector are located next to large lakes, rivers or the oceans. Each production unit is in charge of producing a certain group of items only. Typically, DC's will be located attached to the manufacturing facilities. We may have 400 to 600 sku's. But lots of on-hand pallets stored directly on the floor. The DC's size may be in the range of 450,000 to 600,000 sq.feet. The stackability of the products becomes a key factor.

       Karma Logistics has created a special iterative algorithm to find the BEST combination of product storage. DC's in this sector end up wasting space due to 'honey combing'. Since the main DC is losing space due to honeycombing, often there may be 1 or 2 smaller outside rental storage areas. This only makes matter worse. Every day, there will be a transfer truck, bringing 'picked' products from the outside rental DC's to the Main DC, merge the orders and send the shipment. We have routinely saved 10 to 15% of the space, many times closed down the outside DC's.

3.0  Electric, Lighting, Utilities etc

This sector covers a wide range of DC types. There may be just 1 or 2 large DC's in USA. Or have around 12 DC's to cover US.  Often the DC's layouts will have everything - pallet racks, carton flow racks on 2 or 3 level mezzanines, an old Carousel to house thousands of small items, some bulk storage on the floor.

We have surprised few companies in the sector with 25 to 35% savings by reslotting the products.

4.0 Office Products

We developed unique Variable width slotting techniques for carton flow shelves. Plus, to avoid 'look-alike' picking errors, we introduced randomization of products to be slotted in nearby slots. Companies in this sector usually keep a DC in every large city.

5.0 Food manufacture

Companies in this group are somewhat like the Group 2 described above, except, they don't need lots of water. Hence, they can be located anywhere in the country. Decrease Honeycombing, slot products based on stackability' and maintain FIFO rotation.

We need your feedback at this time.

Of the 5 types of sectors listed above, which one do you want us to write first.

Karma Logistics