We offer a 4-point program to improve your DC facility's productivity - in space usage and product slotting. Based on our proven techniques, we have developed easy-to-install methods.
We know that most DC's were once upon a time were quite efficient and optimal. Over the years, through both internal strategic merchandising and distribution programs, that same DC is no longer efficient. To complicate matters, external changes like new competition, changes in demographics and methods of ordering, the situation has gotten worse.
In the slide below, we show the 8 most common symptoms that affect a warehouse (DC).
Spend a minute looking at the above 8 symptoms. Hope you don't conclude that we are describing your operations.
Our 4-point tune up program.
Step 1 How is the current layout?
There are hundreds of warehouse storage types. But we will speak of just 2 to make it simple.
Bulk storage : Where pallets of products are stored directly on the floor. The verical storage is limited by the stackability of the product.
Rack storage : where each pallet of every SKU is stored on steel pallet racks. Here also, we have many, many types of racking designs and patterns.
Our discussion relates only to the layout, storage and space or cube usage.
Step 1.a What is the problem with bulk storage?
In one word, it is called 'Honeycombing".
Products may be stored as 3-deep storage, or 4 deep etc. Unless the entire depth of 1 sku is shipped, we cannot use that space for another SKU. Based on the relative velocity, one such storage depth may take many weeks to empty out. We are forced to keep the partially empty space as empty. This is called "HoneyCombing".
The graph on the right is an estimate of space lost at various pallet depths of storage. At the higher end, if we use 12 deep storage, we can expect to lose 26% of the sq.feet of the DC size to honeycombing.
Step 1.b What is the main problem with Rack storage?
We are describing an existing warehouse rack layout. Though we know how to examine the current layout and design a brand new layout, we don't change our layouts every week. It is not possible and does not make any practical sense. We are assuming that we are keeping the existing layout, keeping the same aisle widths, subject existing column spacing etc.
Hence, we are limited (in this discussion) to matching slot heights (cube) and product pallet heights (cube).
We look at each slot, the sku placed there, the relative velocity and determine the current cube usage. In the above bar-chart, we assess the value of each slot opening - how many slots are available versus how many slots are needed. We use this analysis to adjust slot sizes by modifying the cross beams.
Step 2. How to find the BEST FIT for both Bulk and Rack storage.
Karma Logistics has developed field tested heuristics to analyse the customer's SKU and ORDER profiles and develop the best fit.
In the case of the Bulk storage, we find the BEST combination of pallet storage depths (to minimize the sq.feet space on the floor).
In the case of rack slots, we use heuristics to fine the best combination of slot sizes that will maximize Cube usage.
Step 3. How to get there? From your present layout to the BEST FIT layout?
We create a drawing showing how the current slots are used. In the drawing above, the colors are as follows: RED - fast movers, BLUE - medium, YELLOW - slow movers. This is the starting point. We then create our placement groups. Each group indicates what collection of items need to be placed in which section of the layout.
The Excel report above shows 'slot moves' to change from current layout to the desired slotting. Often in the beginning for many weeks, we are moving 'slow' moving items for a prime slot to a non-prime slot. Such moves create room to place fast move items in the correct slots.
Step 4: How to keep the BEST-FIT forever?
Once we have constructed the placement groups and the 'slot move procedure' then we follow the above cycle. (1) we download the current data from the customer's site. (2) Examine current product slotting against the slotting criteria.(3) Prioritized by HITS, we identify the most valuable slot moves, using our penalty costs. (4) customer physically implements the slot moves.
The slot moves are provided as both Excel and ASCII files. These can be uploaded to the customer's data sets.
We also provide a 3 dimensional model of your facility. This model allows you to visually monitor the moves (plus few other functions). You can use the new generation of Tablets like the IPad to view the model and product information.
Key benefits
Our application of these techniques will result in :
Testimonials
How to get started?
Send us this information:
Contact:
Ram.krishnan@yahoo.com
Senior warehouse consultant
We know that most DC's were once upon a time were quite efficient and optimal. Over the years, through both internal strategic merchandising and distribution programs, that same DC is no longer efficient. To complicate matters, external changes like new competition, changes in demographics and methods of ordering, the situation has gotten worse.
In the slide below, we show the 8 most common symptoms that affect a warehouse (DC).
Spend a minute looking at the above 8 symptoms. Hope you don't conclude that we are describing your operations.
Our 4-point tune up program.
Step 1 How is the current layout?
There are hundreds of warehouse storage types. But we will speak of just 2 to make it simple.
Bulk storage : Where pallets of products are stored directly on the floor. The verical storage is limited by the stackability of the product.
Rack storage : where each pallet of every SKU is stored on steel pallet racks. Here also, we have many, many types of racking designs and patterns.
Our discussion relates only to the layout, storage and space or cube usage.
Step 1.a What is the problem with bulk storage?
In one word, it is called 'Honeycombing".
The graph on the right is an estimate of space lost at various pallet depths of storage. At the higher end, if we use 12 deep storage, we can expect to lose 26% of the sq.feet of the DC size to honeycombing.
Step 1.b What is the main problem with Rack storage?
We are describing an existing warehouse rack layout. Though we know how to examine the current layout and design a brand new layout, we don't change our layouts every week. It is not possible and does not make any practical sense. We are assuming that we are keeping the existing layout, keeping the same aisle widths, subject existing column spacing etc.
Hence, we are limited (in this discussion) to matching slot heights (cube) and product pallet heights (cube).
We look at each slot, the sku placed there, the relative velocity and determine the current cube usage. In the above bar-chart, we assess the value of each slot opening - how many slots are available versus how many slots are needed. We use this analysis to adjust slot sizes by modifying the cross beams.
Step 2. How to find the BEST FIT for both Bulk and Rack storage.
Karma Logistics has developed field tested heuristics to analyse the customer's SKU and ORDER profiles and develop the best fit.
In the case of the Bulk storage, we find the BEST combination of pallet storage depths (to minimize the sq.feet space on the floor).
In the case of rack slots, we use heuristics to fine the best combination of slot sizes that will maximize Cube usage.
Step 3. How to get there? From your present layout to the BEST FIT layout?
We create a drawing showing how the current slots are used. In the drawing above, the colors are as follows: RED - fast movers, BLUE - medium, YELLOW - slow movers. This is the starting point. We then create our placement groups. Each group indicates what collection of items need to be placed in which section of the layout.
The Excel report above shows 'slot moves' to change from current layout to the desired slotting. Often in the beginning for many weeks, we are moving 'slow' moving items for a prime slot to a non-prime slot. Such moves create room to place fast move items in the correct slots.
Step 4: How to keep the BEST-FIT forever?
Once we have constructed the placement groups and the 'slot move procedure' then we follow the above cycle. (1) we download the current data from the customer's site. (2) Examine current product slotting against the slotting criteria.(3) Prioritized by HITS, we identify the most valuable slot moves, using our penalty costs. (4) customer physically implements the slot moves.
The slot moves are provided as both Excel and ASCII files. These can be uploaded to the customer's data sets.
We also provide a 3 dimensional model of your facility. This model allows you to visually monitor the moves (plus few other functions). You can use the new generation of Tablets like the IPad to view the model and product information.
Key benefits
Our application of these techniques will result in :
- Better use of the existing slots, without asking you to do a major layout change
- We will create the correct number of pick slots to support the required weekly demand.
- We will find the BEST-FIT slotting goals and help you migrate to that.
- Use your existing facility better. Delay or avoid costly capital investment.
- Improve your picking labor productivity
Testimonials
Send us this information:
- the sq.feet size of your warehouse
- total number of active SKU's slotted in this warehouse
- Number of warehouse staff (exclude clerical and admin)
- a plan view drawing of the warehouse
- your contact - email and telephone number
We can respond to you better once we know what your DC looks like.
When we wish to proceed with the full project, we will ask you for 3 databases. These are described in this link. Data required
Contact:
Ram.krishnan@yahoo.com
Senior warehouse consultant
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