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Warehousing Fundamentals
Sharfuddin Lisan
BBA,MBA-SCM(Canada), MHRM(DU), SCM(Malaysia),
Cert-SCM(Switzerland) ,SCEM, CSCP(Canada)
Lisan.bihrm@gmail.com. 01731822888
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By thisisbossi from Washington, DC, USA (2009 06 09 -- 6685 -- Hanover -- SHA Sign Shop)
[CC BY--SA 2.0 (http://creativecommons.org/licenses/by--sa/2.0)], via Wikimedia
Commons
By Nelson Pavlosky
MIT[CC BY--SA
Center for 2.0
(http://creativecommons.org/licenses/by--sa/2.0)],
Transportation & Logistics via Wikimedia 4
Commons
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FG Warehouse
Regional or Local DC
Fulfillment Center (FC)
er for
adapted from Frazelle, E. (2001) World Class Warehousing and Material Handling 8
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Receiving
Pallets
Pallet Reserve
Pallets
Case Pick
Cases
Eaches Pick
Cases
Crossdock
Eaches
Sorting
Unitizing
Shipping
adapted from Bartholdi, J. and S. Hackman (2016) Warehouse & Distribution Science (Release 0.97) 13
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Sortation &
Putaway
Accumulation
Unitizing &
Receiving Crossdocking
Shipping
adapted from Frazelle, E. (2001) World Class Warehousing and Material Handling
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Receiving
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Receiving
Sets up the entire interaction at the warehouse
Some best practices
Use ASNs (advanced shipping notice)
Electronic notification of pending deliveries (EDI 856 and EDIFACT DESADV,
Dispatch Advice, message)
Can save 40% of receiving costs & used to trigger payment of the vendor
Integrate yard and dock scheduling
Queuing at facilities (dwell time) can exceed 20% of driver’s day
Coordinating deliveries with carriers reduces carbon footprint
Prepare for shipment at receiving
Pre-package in issue increments - try to match order size
Capture and communicate cube/weight info at receiving
Apply tags and labels as needed
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Receiving
The best option is to minimize receiving activity
Pursue drop shipping when ever possible
Direct shipping removes need for all touches and handling
Explore multi-stop or multi-compartment options
If drop ship is not possible, explore cross-docking
IB pallets are sorted and moved to OB staging docks
There is no staging, inspection, or storage at IB
Cross-docking operations should not interfere with
other warehouse functions
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Putaway
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Putaway
Essentially order picking in reverse!
Role of Warehouse Management System (WMS)
Determines storage location for received items (slotting)
Directs staff where to place product and records inventory level
Requires:
Data: size, weight, cube, height, segmentation status, current orders, current
status of pick face, etc.
Identification (bar coding or RFID) of products and locations
Different approaches & strategies
Directed - to specific location selected ahead of time
Primary vs Secondary Storage
Fixed Location vs Random Most Efficient
Shared vs Dedicated spaces
Batched & Sequenced - pre-sort at staging for commonly located items
Chaotic - user picks any location and records item-location
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Simple Heuristic:
1. Rank all positions from low to high di
Receiving 2. Rank all SKUs from high to low nj
3. Assign next highest SKU (nj) to next
Note that convenience is a function lowest location (di)
of warehouse layout and flow!
This is a Flow-Through design.
adapted from Bartholdi, J. and S. Hackman (2016)
Warehouse & Distribution Science (Release 0.97)
U-Shape (Divided)
Corner
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Aisle Layout
• Usually best to have aisles parallel to flow
• Cross aisles can shorten distances - but
take up space & increases aisle crossing
• Angled/fishbone aisles can increase
efficiency - especially with central
dispatch point
• Fast moving items should be put in
convenient locations
• Convenience is a function of layout and
Cross aisles can shorten trips - but may slow down total time
shipping & receiving locations
Angled or fishbone
aisles can increase
efficiency by 20% but
take up more space.
adapted from Bartholdi, J. and S. Hackman (2016) Warehouse & Distribution Science (Release 0.97)
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pick faces
Case Picking
Carton picking area from both pallets (left and front) and carton flow
racks (right side back) at ABG.
Case picking of fast-movers from pallet to conveyor (far left side) at Toys’R Us
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All photos from Bartholdi, J. warehouse-science.com
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Receiving
A stock to picker system - Kiva (now Amazon Robotics) - which brings items to pick
to the picking station. Other STP systems include carousels and automated
storage/retrieval systems (AS/RS).
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photos from Bartholdi, J. warehouse-science.com
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Order 1: B-E-J-K-O-V
Picking Strategies Order 2: D-C-B-Q-R-S
Order 3: B-I-J-T-S-U-V
A E I M Q U
B F J N R V
C G K O S W
D H L P T X
Order 1: B-E-J-K-O-V
Picking Strategies Order 2: D-C-B-Q-R-S
Order 3: B-I-J-T-S-U-V
A E I M Q U
B F J N R V
C G K O S W
D H L P T X
Picklist: D-C-B-B-B-E-I-J-J-K-O-T-S-S-R-Q-U-V-V
Single Picker - Single Order
Single Picker - Multiple Orders (Batch)
• Similar to grocery shopping for many at one time
• Expected travel time (distance) per item is reduced
• Requires sorting and “marrying” items
• Can sort “on-cart” or after tour
• Works for both picker-to-stock and stock-to-picker
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Order 1: B-E-J-K-O-V
Picking Strategies Order 2: D-C-B-Q-R-S
Order 3: B-I-J-T-S-U-V
A E I M Q U
B F J N R V
C G K O S W
D H L P T X
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Segmentation Analysis
It’s not just for demand planning!
Different segmentation views give different insights
Frequency of SKUs sold
Top selling SKUs influence retail operations - not necessarily warehouse
operations
Frequency of pallets/cases/cartons by SKU
Will not necessarily follow SKU frequency
Provides insights into receiving, putaway, and restocking
SKUs with few pieces per case will rise to the top
Frequency of picks by SKU
Order picking drives most labor costs
Determines slotting and forward pick locations
Variability of demand
Seasonality - by year, quarter, day of week, time of day . . .
Correlation to other products - affinity between items and families
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Key Points
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Receiving
Pallets
Pallet Reserve
Pallets
Case Pick
Cases
Eaches Pick
Cases
Crossdock
Eaches
Sorting
Unitizing
Shipping
adapted from Bartholdi, J. and S. Hackman (2016) Warehouse & Distribution Science (Release 0.97) 43
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Sortation &
Putaway
Accumulation
Unitizing &
Receiving Crossdocking
Shipping
adapted from Frazelle, E. (2001) World Class Warehousing and Material Handling
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Fundamental Warehousing
Design Element:
Inbound to Outbound size
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