SlideShare ist ein Scribd-Unternehmen logo
1 von 4
Downloaden Sie, um offline zu lesen
Refocus, Renew Safety
Culture Initiatives
Create environment where individuals
accept personal responsibility for their
safety and their co-workers, too.

A

ccording to the OSHA Pocket Guide, “Warehousing,” more than
145,000 people work in over 7,000 warehouses, and are exposed
to a wide variety of potential hazards. Among the potential hazards that
confront warehouse workers: unsafe use of forklifts; improper stacking of
products; failure to use proper personal protective equipment; failure to
follow proper lockout/tagout procedures; inadequate fire safety provisions; and repetitive motion injuries.
However, most disturbing is the
statement that the fatal injury rate for
…the fatal injury
the warehousing industry is higher than
rate for the
the national average for all industries.
Further, addressing those individuwarehousing
als who focus on safety program costs
industry is higher
vs. the potential savings these programs
than the national
can achieve, an APL Logistics white
paper, “Warehouse Upgrades That Pay,”
average for all
reveals, “your payment for workers’
industries.
comp claims might represent as little as
20 percent of what those claims-related
injuries actually cost your company.” It cites a Liberty Mutual survey where
nearly 40 percent of the respondents report that for each dollar in direct
costs they spent on injuries, they spent anywhere from $3 to $5 on indirect costs such as lost productivity and time spent training a replacement.
Bottom line: If you have a profit of just one percent, you’ll need to
earn an extra $100,000 in revenue, according to the white paper, to offset
every $1,000 workers comp injury your employees incur.

continued on page 2

Information for Members of the
Warehousing Education and Research Council

maY –June 2013
In this issue...
It’s Who and What You Know	
5
Today’s logistics professionals have more challenges
than ever—here’s how to face them.
Publications from WERC	
Consider adding these pubs to your continuous
improvement arsenal.

8

WERCouncil Circle of Acclaim	
2012–2013 Recipients

9

2013 WERC Conference a Success	
The first highlights from Dallas.

10

Spaced Out
Are you making the most of
your (shrinking) space?

S

candinavian Internet PC and electronics retailer
Komplett recently faced a dilemma that many
companies face these days with its DC: Big growth had
led to a facility that was bursting at the seams. And like
many others in the same situation, expanding the current
facility wasn’t an option, so Komplett had to find another
solution.
For more than a decade, the company had filled
orders manually. This worked until SKU proliferation led
to offerings of more than 10,000. Rather than focus on
more storage, Komplett looked to increase its operational
efficiencies. The company weighed a variety of options
and ended up selecting an automated storage and fulfillment system by Swisslog, called AutoStore, which the
company also provides in North America.
Since implementation, Komplett has added storage
density and now can handle double the throughput it
managed prior and did it with its existing labor force.
Komplett is not alone in the increasingly common

continued on page 6

Conference Highlights, pg. 10
faciliti e s

Spaced Out continued from page 1
problem of rapid growth with no option for additional
space. How companies come to this place is varied
and so are the solutions to their problems, but there
are some common guidelines that can be applied in
most cases.

Why the storage shortage?

response times,” says CATTAN Services Group’s Thomas
Tanel, president.
One segment that is particularly hard hit in this area
is processed and frozen foods. “This is an area that has
experienced huge growth over the past 10 years,”
says Leber. “Space is a real premium for this segment
right now.”
What happens to many companies is the need to
manage tradeoffs, says Tanel. “You have to balance transportation, inventory control, warehousing and customer
service,” he explains.
Castaldi adds that many companies are left feeling
torn between traditional warehouse space and distribution space. “If your goal is to pack the most into a space,
you’re looking to maximize your warehousing,” he says.
“If you are looking to get the most out quickly, you’re
talking about distribution. It’s a battle of realities for
most companies.”

Komplett’s issue was the one that causes the majority of space issues today: growth. Chris Castaldi, manager
of business development at Carlstadt, NJ, based W  H
Systems, says that SKU proliferation is behind much of
what companies grapple with these days. “Companies
just face more offerings and diversification than ever
before,” he says. “For instance, you’ve got a retailer who
goes direct to consumer with very seasonal items. As it
grows on the Internet, the company can no longer control what people buy and when. So the product is being
ordered year round rather than seasonally, which means
the company must now keep the product in stock at all
times.”
The addition of e-commerce to traditional retail
It would seem that when faced with space conoften puts company’s space availability over the top as
straints the knee-jerk reaction would be to add more
well. “This leaves companies with more SKUs to make up
space via an expansion or a new facility. But for most
their sales, but their sales revenue remains the same,”
companies, that’s not the number-one choice.
says Swisslog’s Bill Leber, director of business developWhy not? It all comes down to capital. According to
ment. “The result is needed space but that can be cost
Leber, “capital investment casts a long shadow. You have
prohibitive.”
to buy land, a building, and new equipment.
British fashion
You need to be very sure about your business
“You have to balance
retailer River Island
needs for a long time to come if you are going
transportation,
found itself in just this
to make that choice.”
inventory control,
situation. When it
added in e-commerce
warehousing and
to its traditional storecustomer service.”
fronts, the added
Tom Tanel
volume put a strain on
its DC. Rather than
investing valuable capital into additional space, the company sought out
high-density storage solutions, which
opened up some 5,000 SKU locations.
There’s also the challenge of
higher volumes of orders. “With an
ambiguous and volatile business
environment where sales are
expected to or will grow, preparing
the product offering for sale becomes
more complicated as the corresponding need for distribution to operate
with higher throughput volume
demands and shorter order cycle

When more isn’t more

6

/ May–June 2013
Space Management Guidelines
at a Glance
Tanel says that most companies do consider adding
space. “However,” he says, “it is sometimes necessary to
review the presently occupied facilities to determine if
one can increase productivity by changing the physical
and spatial relationships between operations,” he explains.
Which usually brings a company back to that
big capital investment. “It’s not only looking at the structure investment, but also the internal operating systems
managing material flows,” says Tanel. “Each of these
systems comes with an added cost, and depending on
how advanced the facility is, the costs can be very high.”
In addition to the costs, says Castaldi, there are other
factors that can make adding space unattractive. “There
are often limitations on labor, tax laws and land, all of
which play into how attractive or unattractive a location
may be for building,” he explains. “So you need to ask: do
you need more space or do you need more efficiency?”
More often than not, the answer is efficiency.

How to gain space efficiency
Leber says that even if a company is not crunched for
space, most DCs have areas where they can improve in
space efficiency. “Most companies don’t use what they
have efficiently—they don’t look in the right places,”
he says.
To figure out the proper space utilization, Castaldi
recommends looking at processes first. “Why do you
need the extra space?” he asks. “What brought you here?”
Tanel recommends conducting a thorough space
survey. He’s designed a system for doing that, which
includes the following columns across the top:
	 Available at present (sq. ft. and attainable height)

According to Thomas Tanel, president of CATTAN
Services, before you can consider making any changes in
your current mode of operation, you have to thoroughly
understand how your warehouse runs. To do this, you have
to do the following:
	 Understand your company’s business by quantifying
present requirements and forecasting future growth
potential.
	 Know your square feet requirements by:
		

1. 	Function

		

2. 	Material flow

		

3. 	SKU volume and velocity

		 4.	Inbound/outbound throughput characteristics
	 Establish true priorities by employing Pareto’s Principle
and ABC Concept to basic warehouse flow patterns.
	 Employ aisle layout and allowance that maximizes movement efficiency and maximizes available floor space and
cube loss.
	 Design your space plan for the rule, not the exceptions,
for smooth, efficient, quick, and direct in-out material and
work flow.
	 Ensure accurate location, proper identification and good
illumination of all SKUs in storage.
	 Plan storage space for easy inventory rotation to permit
FIFO or LIFO inventory valuation control.
	 Review material handling and storage equipment compatibility, adequacy and reliability in space plan analysis.
	 Develop standard pack and unit load hierarchy for all
SKUs material handling efficiency and material location
storage philosophy.

	 Needed at present (sq. ft. and required height)
	 Future needs (sq. ft. and required height) for
1-2 years and 4-5 years
The operational activities that are measured against
this include:
	 Receiving and inbound
	 Staging and processing
	 Put-away and storage
	 Value-added services
	 Picking and replenishment
	 Shipping and outbound
	 Offices and miscellaneous
After going through the facility space survey, Tanel
recommends companies ascertain whether they have
properly slotted the DC. “If so, it should optimize
your space utilization and minimize the time and
effort required to efficiently receive and store incoming
products,” he says. “This determines the most efficient

placement of products and improves the speed and accuracy of picking and replenishment. Each DC is unique, so
proper slotting depends on factors such as your distinct
product, movement and storage characteristics, product
seasonality, turnover, promotions, and sales or usage
projections.”
Castaldi recommends that you have a leader to
spearhead the assessment process. “You need someone
who can bring everyone together and figure it all out,” he
says. “This might be a consultant or it might be someone
from within.”
The assessment team should include people who
buy, people involved in processing, and people who set
future plans for the company, according to Castaldi. “You
have to pull all the information together and understand
why and when you ran out of space,” he says.

continued on page 8
/ May–June 2013

7
Spaced Out continued from page 7
Upon assessment, many companies will learn that
they’ve grown up piecemeal and have added small bits
and pieces over the years, says
Leber. “This happens because it’s
Upon assessment,
impossible to just shut down and
reorganize a DC,” he explains.
many companies
“So companies end up adding in
will learn that
new equipment and processes here
they’ve grown up
and there and you become fairly
piecemeal and have inefficient compared to a new comprehensive integrated facility.”
added small bits
Once all the operations have
and pieces over the
been assessed, a company needs to
put a plan of action into place.
years.”
Options for improved space utilizaBill Leber
tion include right-sizing locations
through improved slotting; using
un- and under-utilized space like floor-to-truss and
closer pallet beams. Get rid of obsolete inventory that
might be clogging up shelves.
There are also higher tech storage density solutions

available, like those from Swisslog. “All of our products
use space better than manual operations,” says Leber.
“You can go higher and use full vertical space as well as
bring goods to people rather than the other way around,
freeing up the travel path.”
Castaldi’s W  H Systems works as a systems integrator, helping companies source products and bring it all
together via software. “We take measure of where a
company is and has been and help them figure out
where they can make improvements in their operations’
efficiency,” he explains. “Most people have reached a
point of diminishing returns when they come to us.”
Even when not feeling space constrained, most
companies probably can do better with the space they
have, says Tanel. “I guarantee that a thorough assessment of your facility will turn up a few surprises,” he says.
“And the biggest surprise is going to be this: “You are not
effectively using space.”
Chris Castaldi, W  H Systems, www.whsystems.com
Bill Leber, Swisslog, www.swisslog.com
Thomas Tanel, CATTAN Services Group, www.cattan.com

Publications from
2013 DC Measures
WERC members can download the newest report on warehouse metrics for NO CHARGE.
Go to the WERC home page and click on the link you’ll find there.

You might also consider adding these pubs to your benchmarking
and continuous improvement arsenal:

Warehouse and Fulfillment
Benchmark Best Practices
Learn about qualitative warehousing best practices.
Helps identify process strengths and weaknesses in
an organization so a roadmap for improvement efforts
can be crafted.

Warehouse Manager’s Guide
to Benchmarking
Read about the different kinds of benchmarking,
why it’s important to benchmark, how to choose
the right metrics, how to analyze your company’s
performance and techniques for communicating to
get the results you need. 2nd Edition, 2010

www.werc.org
8

/ May–June 2013

Weitere ähnliche Inhalte

Ähnlich wie Spaced out are you making the most of your shrinking space--werc sheet (may-june2013)v41

1 THE VALUE OF SUPPLY CHAIN NETWORK DESIGNWhat Is Supply Chain.docx
1 THE VALUE OF SUPPLY CHAIN NETWORK DESIGNWhat Is Supply Chain.docx1 THE VALUE OF SUPPLY CHAIN NETWORK DESIGNWhat Is Supply Chain.docx
1 THE VALUE OF SUPPLY CHAIN NETWORK DESIGNWhat Is Supply Chain.docxlorainedeserre
 
Automated Truck Loading White Paper- Actiw LoadMatic
Automated Truck Loading White Paper- Actiw LoadMatic Automated Truck Loading White Paper- Actiw LoadMatic
Automated Truck Loading White Paper- Actiw LoadMatic Actiw Intralogistics
 
Essay About Outsourcing At Office Supply Inc. Case
Essay About Outsourcing At Office Supply Inc. CaseEssay About Outsourcing At Office Supply Inc. Case
Essay About Outsourcing At Office Supply Inc. CaseBrenda Zerr
 
Why Digitalization is Raising the Bar for Transportation Procurement
Why Digitalization is Raising the Bar for Transportation ProcurementWhy Digitalization is Raising the Bar for Transportation Procurement
Why Digitalization is Raising the Bar for Transportation ProcurementXeneta
 
The Importance Of Inventory Management
The Importance Of Inventory ManagementThe Importance Of Inventory Management
The Importance Of Inventory ManagementDivya Watson
 
Logistics - Slash Freight Shipping Costs Massively
Logistics - Slash Freight Shipping Costs MassivelyLogistics - Slash Freight Shipping Costs Massively
Logistics - Slash Freight Shipping Costs MassivelyVivek Sood
 
Product Compliance Software Vendor Sourcing Guide
Product Compliance Software Vendor Sourcing Guide Product Compliance Software Vendor Sourcing Guide
Product Compliance Software Vendor Sourcing Guide Matt Whitteker
 
Business Strategy And Workforce Planning
Business Strategy And Workforce PlanningBusiness Strategy And Workforce Planning
Business Strategy And Workforce PlanningKim Stephens
 
Staples And Office Depot Inc.
Staples And Office Depot Inc.Staples And Office Depot Inc.
Staples And Office Depot Inc.Ashley Lott
 
AOGR_Jan2010-Enterprise Level Approach To Information
AOGR_Jan2010-Enterprise Level Approach To InformationAOGR_Jan2010-Enterprise Level Approach To Information
AOGR_Jan2010-Enterprise Level Approach To Informationsmrobb
 
Strategic Cost Management
Strategic Cost ManagementStrategic Cost Management
Strategic Cost ManagementEmily Jones
 
Thought Supply - July 2015
Thought Supply - July 2015Thought Supply - July 2015
Thought Supply - July 2015Mark Oldfield
 
Top 5 Supply Chain Leaders: What Your Competition is Doing Better
Top 5 Supply Chain Leaders: What Your Competition is Doing BetterTop 5 Supply Chain Leaders: What Your Competition is Doing Better
Top 5 Supply Chain Leaders: What Your Competition is Doing BetterDavid Kiger
 
Running head OPERATIONS MANAGEMENT .docx
Running head OPERATIONS MANAGEMENT                               .docxRunning head OPERATIONS MANAGEMENT                               .docx
Running head OPERATIONS MANAGEMENT .docxtodd581
 
Running head OPERATIONS MANAGEMENT .docx
Running head OPERATIONS MANAGEMENT                               .docxRunning head OPERATIONS MANAGEMENT                               .docx
Running head OPERATIONS MANAGEMENT .docxglendar3
 

Ähnlich wie Spaced out are you making the most of your shrinking space--werc sheet (may-june2013)v41 (20)

2015-MMD-Vision1
2015-MMD-Vision12015-MMD-Vision1
2015-MMD-Vision1
 
1 THE VALUE OF SUPPLY CHAIN NETWORK DESIGNWhat Is Supply Chain.docx
1 THE VALUE OF SUPPLY CHAIN NETWORK DESIGNWhat Is Supply Chain.docx1 THE VALUE OF SUPPLY CHAIN NETWORK DESIGNWhat Is Supply Chain.docx
1 THE VALUE OF SUPPLY CHAIN NETWORK DESIGNWhat Is Supply Chain.docx
 
Automated Truck Loading White Paper- Actiw LoadMatic
Automated Truck Loading White Paper- Actiw LoadMatic Automated Truck Loading White Paper- Actiw LoadMatic
Automated Truck Loading White Paper- Actiw LoadMatic
 
Essay About Outsourcing At Office Supply Inc. Case
Essay About Outsourcing At Office Supply Inc. CaseEssay About Outsourcing At Office Supply Inc. Case
Essay About Outsourcing At Office Supply Inc. Case
 
Why Digitalization is Raising the Bar for Transportation Procurement
Why Digitalization is Raising the Bar for Transportation ProcurementWhy Digitalization is Raising the Bar for Transportation Procurement
Why Digitalization is Raising the Bar for Transportation Procurement
 
Walmart In Canada
Walmart In CanadaWalmart In Canada
Walmart In Canada
 
The Importance Of Inventory Management
The Importance Of Inventory ManagementThe Importance Of Inventory Management
The Importance Of Inventory Management
 
Difficulties With Changing To A Lean Culture Part 06 By Mike Thelen
Difficulties With Changing To A Lean Culture Part 06 By Mike ThelenDifficulties With Changing To A Lean Culture Part 06 By Mike Thelen
Difficulties With Changing To A Lean Culture Part 06 By Mike Thelen
 
South Africa BPM Workshop
South Africa BPM WorkshopSouth Africa BPM Workshop
South Africa BPM Workshop
 
Logistics - Slash Freight Shipping Costs Massively
Logistics - Slash Freight Shipping Costs MassivelyLogistics - Slash Freight Shipping Costs Massively
Logistics - Slash Freight Shipping Costs Massively
 
Unit iii
Unit iiiUnit iii
Unit iii
 
Product Compliance Software Vendor Sourcing Guide
Product Compliance Software Vendor Sourcing Guide Product Compliance Software Vendor Sourcing Guide
Product Compliance Software Vendor Sourcing Guide
 
Business Strategy And Workforce Planning
Business Strategy And Workforce PlanningBusiness Strategy And Workforce Planning
Business Strategy And Workforce Planning
 
Staples And Office Depot Inc.
Staples And Office Depot Inc.Staples And Office Depot Inc.
Staples And Office Depot Inc.
 
AOGR_Jan2010-Enterprise Level Approach To Information
AOGR_Jan2010-Enterprise Level Approach To InformationAOGR_Jan2010-Enterprise Level Approach To Information
AOGR_Jan2010-Enterprise Level Approach To Information
 
Strategic Cost Management
Strategic Cost ManagementStrategic Cost Management
Strategic Cost Management
 
Thought Supply - July 2015
Thought Supply - July 2015Thought Supply - July 2015
Thought Supply - July 2015
 
Top 5 Supply Chain Leaders: What Your Competition is Doing Better
Top 5 Supply Chain Leaders: What Your Competition is Doing BetterTop 5 Supply Chain Leaders: What Your Competition is Doing Better
Top 5 Supply Chain Leaders: What Your Competition is Doing Better
 
Running head OPERATIONS MANAGEMENT .docx
Running head OPERATIONS MANAGEMENT                               .docxRunning head OPERATIONS MANAGEMENT                               .docx
Running head OPERATIONS MANAGEMENT .docx
 
Running head OPERATIONS MANAGEMENT .docx
Running head OPERATIONS MANAGEMENT                               .docxRunning head OPERATIONS MANAGEMENT                               .docx
Running head OPERATIONS MANAGEMENT .docx
 

Mehr von Thomas Tanel

Adapt, overcome, and improvise words to live by for the supply chain--e parce...
Adapt, overcome, and improvise words to live by for the supply chain--e parce...Adapt, overcome, and improvise words to live by for the supply chain--e parce...
Adapt, overcome, and improvise words to live by for the supply chain--e parce...Thomas Tanel
 
Management by walking around is a good start here’s what to do while walking-...
Management by walking around is a good start here’s what to do while walking-...Management by walking around is a good start here’s what to do while walking-...
Management by walking around is a good start here’s what to do while walking-...Thomas Tanel
 
Identifying vulnerability is step one to mitigating supply chain risk -my pur...
Identifying vulnerability is step one to mitigating supply chain risk -my pur...Identifying vulnerability is step one to mitigating supply chain risk -my pur...
Identifying vulnerability is step one to mitigating supply chain risk -my pur...Thomas Tanel
 
How to make eoq relevant again -logistics & supply chain world july 2012
How to make eoq relevant again -logistics & supply chain world july 2012How to make eoq relevant again -logistics & supply chain world july 2012
How to make eoq relevant again -logistics & supply chain world july 2012Thomas Tanel
 
Count the ways distribution centers add value 2nd--supply chain digital septe...
Count the ways distribution centers add value 2nd--supply chain digital septe...Count the ways distribution centers add value 2nd--supply chain digital septe...
Count the ways distribution centers add value 2nd--supply chain digital septe...Thomas Tanel
 
Count the ways distribution centers add value 1st--supply chain digital augus...
Count the ways distribution centers add value 1st--supply chain digital augus...Count the ways distribution centers add value 1st--supply chain digital augus...
Count the ways distribution centers add value 1st--supply chain digital augus...Thomas Tanel
 
Assurance in uncertainty -logistics insight asia september 2012
Assurance in uncertainty -logistics insight asia september 2012Assurance in uncertainty -logistics insight asia september 2012
Assurance in uncertainty -logistics insight asia september 2012Thomas Tanel
 
Applying the powers of observation to supplier visits -mmg news letter octobe...
Applying the powers of observation to supplier visits -mmg news letter octobe...Applying the powers of observation to supplier visits -mmg news letter octobe...
Applying the powers of observation to supplier visits -mmg news letter octobe...Thomas Tanel
 
A shift in sourcing strategies by mary seigfried -inside supply management ma...
A shift in sourcing strategies by mary seigfried -inside supply management ma...A shift in sourcing strategies by mary seigfried -inside supply management ma...
A shift in sourcing strategies by mary seigfried -inside supply management ma...Thomas Tanel
 
Where's my stuff -logistic insight asia october 2012
Where's my stuff -logistic insight asia october 2012Where's my stuff -logistic insight asia october 2012
Where's my stuff -logistic insight asia october 2012Thomas Tanel
 
Help employees meet great expectations -mh&l august 2012
Help employees meet great expectations -mh&l august 2012Help employees meet great expectations -mh&l august 2012
Help employees meet great expectations -mh&l august 2012Thomas Tanel
 
The 4 s how do you bring purchasing skills to the process of 3pl selection--m...
The 4 s how do you bring purchasing skills to the process of 3pl selection--m...The 4 s how do you bring purchasing skills to the process of 3pl selection--m...
The 4 s how do you bring purchasing skills to the process of 3pl selection--m...Thomas Tanel
 
Buying Transportation and 3rd Party Logistics Services-Part II
Buying Transportation and 3rd Party Logistics Services-Part IIBuying Transportation and 3rd Party Logistics Services-Part II
Buying Transportation and 3rd Party Logistics Services-Part IIThomas Tanel
 
Cost Reduction Strategies:Focus and Techniques
Cost Reduction Strategies:Focus and TechniquesCost Reduction Strategies:Focus and Techniques
Cost Reduction Strategies:Focus and TechniquesThomas Tanel
 
International Logistics & Warehouse Management
International Logistics & Warehouse Management International Logistics & Warehouse Management
International Logistics & Warehouse Management Thomas Tanel
 
Purchasing & Value Analysis
Purchasing & Value AnalysisPurchasing & Value Analysis
Purchasing & Value AnalysisThomas Tanel
 
Logistics and Supply Chain Management-Overview
Logistics and Supply Chain Management-OverviewLogistics and Supply Chain Management-Overview
Logistics and Supply Chain Management-OverviewThomas Tanel
 
The 4 S's: For-hire Logistics and Transportation Services
The 4 S's: For-hire Logistics and Transportation ServicesThe 4 S's: For-hire Logistics and Transportation Services
The 4 S's: For-hire Logistics and Transportation ServicesThomas Tanel
 
Warehouse Operations and Inventory Management
Warehouse Operations and Inventory Management Warehouse Operations and Inventory Management
Warehouse Operations and Inventory Management Thomas Tanel
 
Strategic Sourcing: Walking the Tightrope in Developing Sourcing Strategy
Strategic Sourcing: Walking the Tightrope in Developing Sourcing StrategyStrategic Sourcing: Walking the Tightrope in Developing Sourcing Strategy
Strategic Sourcing: Walking the Tightrope in Developing Sourcing StrategyThomas Tanel
 

Mehr von Thomas Tanel (20)

Adapt, overcome, and improvise words to live by for the supply chain--e parce...
Adapt, overcome, and improvise words to live by for the supply chain--e parce...Adapt, overcome, and improvise words to live by for the supply chain--e parce...
Adapt, overcome, and improvise words to live by for the supply chain--e parce...
 
Management by walking around is a good start here’s what to do while walking-...
Management by walking around is a good start here’s what to do while walking-...Management by walking around is a good start here’s what to do while walking-...
Management by walking around is a good start here’s what to do while walking-...
 
Identifying vulnerability is step one to mitigating supply chain risk -my pur...
Identifying vulnerability is step one to mitigating supply chain risk -my pur...Identifying vulnerability is step one to mitigating supply chain risk -my pur...
Identifying vulnerability is step one to mitigating supply chain risk -my pur...
 
How to make eoq relevant again -logistics & supply chain world july 2012
How to make eoq relevant again -logistics & supply chain world july 2012How to make eoq relevant again -logistics & supply chain world july 2012
How to make eoq relevant again -logistics & supply chain world july 2012
 
Count the ways distribution centers add value 2nd--supply chain digital septe...
Count the ways distribution centers add value 2nd--supply chain digital septe...Count the ways distribution centers add value 2nd--supply chain digital septe...
Count the ways distribution centers add value 2nd--supply chain digital septe...
 
Count the ways distribution centers add value 1st--supply chain digital augus...
Count the ways distribution centers add value 1st--supply chain digital augus...Count the ways distribution centers add value 1st--supply chain digital augus...
Count the ways distribution centers add value 1st--supply chain digital augus...
 
Assurance in uncertainty -logistics insight asia september 2012
Assurance in uncertainty -logistics insight asia september 2012Assurance in uncertainty -logistics insight asia september 2012
Assurance in uncertainty -logistics insight asia september 2012
 
Applying the powers of observation to supplier visits -mmg news letter octobe...
Applying the powers of observation to supplier visits -mmg news letter octobe...Applying the powers of observation to supplier visits -mmg news letter octobe...
Applying the powers of observation to supplier visits -mmg news letter octobe...
 
A shift in sourcing strategies by mary seigfried -inside supply management ma...
A shift in sourcing strategies by mary seigfried -inside supply management ma...A shift in sourcing strategies by mary seigfried -inside supply management ma...
A shift in sourcing strategies by mary seigfried -inside supply management ma...
 
Where's my stuff -logistic insight asia october 2012
Where's my stuff -logistic insight asia october 2012Where's my stuff -logistic insight asia october 2012
Where's my stuff -logistic insight asia october 2012
 
Help employees meet great expectations -mh&l august 2012
Help employees meet great expectations -mh&l august 2012Help employees meet great expectations -mh&l august 2012
Help employees meet great expectations -mh&l august 2012
 
The 4 s how do you bring purchasing skills to the process of 3pl selection--m...
The 4 s how do you bring purchasing skills to the process of 3pl selection--m...The 4 s how do you bring purchasing skills to the process of 3pl selection--m...
The 4 s how do you bring purchasing skills to the process of 3pl selection--m...
 
Buying Transportation and 3rd Party Logistics Services-Part II
Buying Transportation and 3rd Party Logistics Services-Part IIBuying Transportation and 3rd Party Logistics Services-Part II
Buying Transportation and 3rd Party Logistics Services-Part II
 
Cost Reduction Strategies:Focus and Techniques
Cost Reduction Strategies:Focus and TechniquesCost Reduction Strategies:Focus and Techniques
Cost Reduction Strategies:Focus and Techniques
 
International Logistics & Warehouse Management
International Logistics & Warehouse Management International Logistics & Warehouse Management
International Logistics & Warehouse Management
 
Purchasing & Value Analysis
Purchasing & Value AnalysisPurchasing & Value Analysis
Purchasing & Value Analysis
 
Logistics and Supply Chain Management-Overview
Logistics and Supply Chain Management-OverviewLogistics and Supply Chain Management-Overview
Logistics and Supply Chain Management-Overview
 
The 4 S's: For-hire Logistics and Transportation Services
The 4 S's: For-hire Logistics and Transportation ServicesThe 4 S's: For-hire Logistics and Transportation Services
The 4 S's: For-hire Logistics and Transportation Services
 
Warehouse Operations and Inventory Management
Warehouse Operations and Inventory Management Warehouse Operations and Inventory Management
Warehouse Operations and Inventory Management
 
Strategic Sourcing: Walking the Tightrope in Developing Sourcing Strategy
Strategic Sourcing: Walking the Tightrope in Developing Sourcing StrategyStrategic Sourcing: Walking the Tightrope in Developing Sourcing Strategy
Strategic Sourcing: Walking the Tightrope in Developing Sourcing Strategy
 

Kürzlich hochgeladen

reStartEvents March 28th TS/SCI & Above Employer Directory.pdf
reStartEvents March 28th TS/SCI & Above Employer Directory.pdfreStartEvents March 28th TS/SCI & Above Employer Directory.pdf
reStartEvents March 28th TS/SCI & Above Employer Directory.pdfKen Fuller
 
Audhina Nur Afifah Resume & Portofolio_2024.pdf
Audhina Nur Afifah Resume & Portofolio_2024.pdfAudhina Nur Afifah Resume & Portofolio_2024.pdf
Audhina Nur Afifah Resume & Portofolio_2024.pdfaudhinafh1
 
Nashon Holloway - Media/Press Kit - Priv
Nashon Holloway - Media/Press Kit - PrivNashon Holloway - Media/Press Kit - Priv
Nashon Holloway - Media/Press Kit - PrivNashonHolloway
 
asdfasdiofujasloidfoia nslkflsdkaf jljffs
asdfasdiofujasloidfoia nslkflsdkaf jljffsasdfasdiofujasloidfoia nslkflsdkaf jljffs
asdfasdiofujasloidfoia nslkflsdkaf jljffsJulia Kaye
 
10 Things That Will Shape the Future of Education.pdf
10 Things That Will Shape the Future of Education.pdf10 Things That Will Shape the Future of Education.pdf
10 Things That Will Shape the Future of Education.pdfEducationView
 
Fireman Resume Strikuingly Text............................
Fireman Resume Strikuingly Text............................Fireman Resume Strikuingly Text............................
Fireman Resume Strikuingly Text............................calvinjamesmappala
 
How to Host a Successful Webinar for Success?
How to Host a Successful Webinar for Success?How to Host a Successful Webinar for Success?
How to Host a Successful Webinar for Success?StrengthsTheatre
 
127. Reviewer Certificate in BP International
127. Reviewer Certificate in BP International127. Reviewer Certificate in BP International
127. Reviewer Certificate in BP InternationalManu Mitra
 
Chapter-4 Introduction to Global Distributions System and Computerized Reserv...
Chapter-4 Introduction to Global Distributions System and Computerized Reserv...Chapter-4 Introduction to Global Distributions System and Computerized Reserv...
Chapter-4 Introduction to Global Distributions System and Computerized Reserv...Md Shaifullar Rabbi
 
wealth_spend_bharatpeVerse_Analysis .pptx
wealth_spend_bharatpeVerse_Analysis .pptxwealth_spend_bharatpeVerse_Analysis .pptx
wealth_spend_bharatpeVerse_Analysis .pptxAnuragBhakuni4
 
Blockchain_TezosDeveloperCommunitySNSCE.pdf
Blockchain_TezosDeveloperCommunitySNSCE.pdfBlockchain_TezosDeveloperCommunitySNSCE.pdf
Blockchain_TezosDeveloperCommunitySNSCE.pdfVISHNURAJSSNSCEAD
 
STORY OF SUSAN & JUDY - CEREBRAL PALSY.pptx
STORY OF SUSAN & JUDY - CEREBRAL PALSY.pptxSTORY OF SUSAN & JUDY - CEREBRAL PALSY.pptx
STORY OF SUSAN & JUDY - CEREBRAL PALSY.pptxsheenam bansal
 
Moaaz Hassan El-Shayeb - Projects Portfolio
Moaaz Hassan El-Shayeb - Projects PortfolioMoaaz Hassan El-Shayeb - Projects Portfolio
Moaaz Hassan El-Shayeb - Projects Portfoliomoaaz el-shayeb
 
FAHAD HASSAN NOOR || UCP Business School Data Analytics Head Recommended | MB...
FAHAD HASSAN NOOR || UCP Business School Data Analytics Head Recommended | MB...FAHAD HASSAN NOOR || UCP Business School Data Analytics Head Recommended | MB...
FAHAD HASSAN NOOR || UCP Business School Data Analytics Head Recommended | MB...FaHaD .H. NooR
 
ASDFSDFASDFASDFASDFOUIASHDFOIASUD FOIJSADO;IFJOISADJF
ASDFSDFASDFASDFASDFOUIASHDFOIASUD FOIJSADO;IFJOISADJFASDFSDFASDFASDFASDFOUIASHDFOIASUD FOIJSADO;IFJOISADJF
ASDFSDFASDFASDFASDFOUIASHDFOIASUD FOIJSADO;IFJOISADJFJulia Kaye
 
Chapter-1 IATA, UFTAA, ICAO, FAA, CAA, ATAB, Conventions
Chapter-1 IATA, UFTAA, ICAO, FAA, CAA, ATAB, ConventionsChapter-1 IATA, UFTAA, ICAO, FAA, CAA, ATAB, Conventions
Chapter-1 IATA, UFTAA, ICAO, FAA, CAA, ATAB, ConventionsMd Shaifullar Rabbi
 
kids gpaddfghtggvgghhhuuuuuhhhgggggy.pptx
kids gpaddfghtggvgghhhuuuuuhhhgggggy.pptxkids gpaddfghtggvgghhhuuuuuhhhgggggy.pptx
kids gpaddfghtggvgghhhuuuuuhhhgggggy.pptxJagrutiSononee
 

Kürzlich hochgeladen (17)

reStartEvents March 28th TS/SCI & Above Employer Directory.pdf
reStartEvents March 28th TS/SCI & Above Employer Directory.pdfreStartEvents March 28th TS/SCI & Above Employer Directory.pdf
reStartEvents March 28th TS/SCI & Above Employer Directory.pdf
 
Audhina Nur Afifah Resume & Portofolio_2024.pdf
Audhina Nur Afifah Resume & Portofolio_2024.pdfAudhina Nur Afifah Resume & Portofolio_2024.pdf
Audhina Nur Afifah Resume & Portofolio_2024.pdf
 
Nashon Holloway - Media/Press Kit - Priv
Nashon Holloway - Media/Press Kit - PrivNashon Holloway - Media/Press Kit - Priv
Nashon Holloway - Media/Press Kit - Priv
 
asdfasdiofujasloidfoia nslkflsdkaf jljffs
asdfasdiofujasloidfoia nslkflsdkaf jljffsasdfasdiofujasloidfoia nslkflsdkaf jljffs
asdfasdiofujasloidfoia nslkflsdkaf jljffs
 
10 Things That Will Shape the Future of Education.pdf
10 Things That Will Shape the Future of Education.pdf10 Things That Will Shape the Future of Education.pdf
10 Things That Will Shape the Future of Education.pdf
 
Fireman Resume Strikuingly Text............................
Fireman Resume Strikuingly Text............................Fireman Resume Strikuingly Text............................
Fireman Resume Strikuingly Text............................
 
How to Host a Successful Webinar for Success?
How to Host a Successful Webinar for Success?How to Host a Successful Webinar for Success?
How to Host a Successful Webinar for Success?
 
127. Reviewer Certificate in BP International
127. Reviewer Certificate in BP International127. Reviewer Certificate in BP International
127. Reviewer Certificate in BP International
 
Chapter-4 Introduction to Global Distributions System and Computerized Reserv...
Chapter-4 Introduction to Global Distributions System and Computerized Reserv...Chapter-4 Introduction to Global Distributions System and Computerized Reserv...
Chapter-4 Introduction to Global Distributions System and Computerized Reserv...
 
wealth_spend_bharatpeVerse_Analysis .pptx
wealth_spend_bharatpeVerse_Analysis .pptxwealth_spend_bharatpeVerse_Analysis .pptx
wealth_spend_bharatpeVerse_Analysis .pptx
 
Blockchain_TezosDeveloperCommunitySNSCE.pdf
Blockchain_TezosDeveloperCommunitySNSCE.pdfBlockchain_TezosDeveloperCommunitySNSCE.pdf
Blockchain_TezosDeveloperCommunitySNSCE.pdf
 
STORY OF SUSAN & JUDY - CEREBRAL PALSY.pptx
STORY OF SUSAN & JUDY - CEREBRAL PALSY.pptxSTORY OF SUSAN & JUDY - CEREBRAL PALSY.pptx
STORY OF SUSAN & JUDY - CEREBRAL PALSY.pptx
 
Moaaz Hassan El-Shayeb - Projects Portfolio
Moaaz Hassan El-Shayeb - Projects PortfolioMoaaz Hassan El-Shayeb - Projects Portfolio
Moaaz Hassan El-Shayeb - Projects Portfolio
 
FAHAD HASSAN NOOR || UCP Business School Data Analytics Head Recommended | MB...
FAHAD HASSAN NOOR || UCP Business School Data Analytics Head Recommended | MB...FAHAD HASSAN NOOR || UCP Business School Data Analytics Head Recommended | MB...
FAHAD HASSAN NOOR || UCP Business School Data Analytics Head Recommended | MB...
 
ASDFSDFASDFASDFASDFOUIASHDFOIASUD FOIJSADO;IFJOISADJF
ASDFSDFASDFASDFASDFOUIASHDFOIASUD FOIJSADO;IFJOISADJFASDFSDFASDFASDFASDFOUIASHDFOIASUD FOIJSADO;IFJOISADJF
ASDFSDFASDFASDFASDFOUIASHDFOIASUD FOIJSADO;IFJOISADJF
 
Chapter-1 IATA, UFTAA, ICAO, FAA, CAA, ATAB, Conventions
Chapter-1 IATA, UFTAA, ICAO, FAA, CAA, ATAB, ConventionsChapter-1 IATA, UFTAA, ICAO, FAA, CAA, ATAB, Conventions
Chapter-1 IATA, UFTAA, ICAO, FAA, CAA, ATAB, Conventions
 
kids gpaddfghtggvgghhhuuuuuhhhgggggy.pptx
kids gpaddfghtggvgghhhuuuuuhhhgggggy.pptxkids gpaddfghtggvgghhhuuuuuhhhgggggy.pptx
kids gpaddfghtggvgghhhuuuuuhhhgggggy.pptx
 

Spaced out are you making the most of your shrinking space--werc sheet (may-june2013)v41

  • 1. Refocus, Renew Safety Culture Initiatives Create environment where individuals accept personal responsibility for their safety and their co-workers, too. A ccording to the OSHA Pocket Guide, “Warehousing,” more than 145,000 people work in over 7,000 warehouses, and are exposed to a wide variety of potential hazards. Among the potential hazards that confront warehouse workers: unsafe use of forklifts; improper stacking of products; failure to use proper personal protective equipment; failure to follow proper lockout/tagout procedures; inadequate fire safety provisions; and repetitive motion injuries. However, most disturbing is the statement that the fatal injury rate for …the fatal injury the warehousing industry is higher than rate for the the national average for all industries. Further, addressing those individuwarehousing als who focus on safety program costs industry is higher vs. the potential savings these programs than the national can achieve, an APL Logistics white paper, “Warehouse Upgrades That Pay,” average for all reveals, “your payment for workers’ industries. comp claims might represent as little as 20 percent of what those claims-related injuries actually cost your company.” It cites a Liberty Mutual survey where nearly 40 percent of the respondents report that for each dollar in direct costs they spent on injuries, they spent anywhere from $3 to $5 on indirect costs such as lost productivity and time spent training a replacement. Bottom line: If you have a profit of just one percent, you’ll need to earn an extra $100,000 in revenue, according to the white paper, to offset every $1,000 workers comp injury your employees incur. continued on page 2 Information for Members of the Warehousing Education and Research Council maY –June 2013 In this issue... It’s Who and What You Know 5 Today’s logistics professionals have more challenges than ever—here’s how to face them. Publications from WERC Consider adding these pubs to your continuous improvement arsenal. 8 WERCouncil Circle of Acclaim 2012–2013 Recipients 9 2013 WERC Conference a Success The first highlights from Dallas. 10 Spaced Out Are you making the most of your (shrinking) space? S candinavian Internet PC and electronics retailer Komplett recently faced a dilemma that many companies face these days with its DC: Big growth had led to a facility that was bursting at the seams. And like many others in the same situation, expanding the current facility wasn’t an option, so Komplett had to find another solution. For more than a decade, the company had filled orders manually. This worked until SKU proliferation led to offerings of more than 10,000. Rather than focus on more storage, Komplett looked to increase its operational efficiencies. The company weighed a variety of options and ended up selecting an automated storage and fulfillment system by Swisslog, called AutoStore, which the company also provides in North America. Since implementation, Komplett has added storage density and now can handle double the throughput it managed prior and did it with its existing labor force. Komplett is not alone in the increasingly common continued on page 6 Conference Highlights, pg. 10
  • 2. faciliti e s Spaced Out continued from page 1 problem of rapid growth with no option for additional space. How companies come to this place is varied and so are the solutions to their problems, but there are some common guidelines that can be applied in most cases. Why the storage shortage? response times,” says CATTAN Services Group’s Thomas Tanel, president. One segment that is particularly hard hit in this area is processed and frozen foods. “This is an area that has experienced huge growth over the past 10 years,” says Leber. “Space is a real premium for this segment right now.” What happens to many companies is the need to manage tradeoffs, says Tanel. “You have to balance transportation, inventory control, warehousing and customer service,” he explains. Castaldi adds that many companies are left feeling torn between traditional warehouse space and distribution space. “If your goal is to pack the most into a space, you’re looking to maximize your warehousing,” he says. “If you are looking to get the most out quickly, you’re talking about distribution. It’s a battle of realities for most companies.” Komplett’s issue was the one that causes the majority of space issues today: growth. Chris Castaldi, manager of business development at Carlstadt, NJ, based W H Systems, says that SKU proliferation is behind much of what companies grapple with these days. “Companies just face more offerings and diversification than ever before,” he says. “For instance, you’ve got a retailer who goes direct to consumer with very seasonal items. As it grows on the Internet, the company can no longer control what people buy and when. So the product is being ordered year round rather than seasonally, which means the company must now keep the product in stock at all times.” The addition of e-commerce to traditional retail It would seem that when faced with space conoften puts company’s space availability over the top as straints the knee-jerk reaction would be to add more well. “This leaves companies with more SKUs to make up space via an expansion or a new facility. But for most their sales, but their sales revenue remains the same,” companies, that’s not the number-one choice. says Swisslog’s Bill Leber, director of business developWhy not? It all comes down to capital. According to ment. “The result is needed space but that can be cost Leber, “capital investment casts a long shadow. You have prohibitive.” to buy land, a building, and new equipment. British fashion You need to be very sure about your business “You have to balance retailer River Island needs for a long time to come if you are going transportation, found itself in just this to make that choice.” inventory control, situation. When it added in e-commerce warehousing and to its traditional storecustomer service.” fronts, the added Tom Tanel volume put a strain on its DC. Rather than investing valuable capital into additional space, the company sought out high-density storage solutions, which opened up some 5,000 SKU locations. There’s also the challenge of higher volumes of orders. “With an ambiguous and volatile business environment where sales are expected to or will grow, preparing the product offering for sale becomes more complicated as the corresponding need for distribution to operate with higher throughput volume demands and shorter order cycle When more isn’t more 6 / May–June 2013
  • 3. Space Management Guidelines at a Glance Tanel says that most companies do consider adding space. “However,” he says, “it is sometimes necessary to review the presently occupied facilities to determine if one can increase productivity by changing the physical and spatial relationships between operations,” he explains. Which usually brings a company back to that big capital investment. “It’s not only looking at the structure investment, but also the internal operating systems managing material flows,” says Tanel. “Each of these systems comes with an added cost, and depending on how advanced the facility is, the costs can be very high.” In addition to the costs, says Castaldi, there are other factors that can make adding space unattractive. “There are often limitations on labor, tax laws and land, all of which play into how attractive or unattractive a location may be for building,” he explains. “So you need to ask: do you need more space or do you need more efficiency?” More often than not, the answer is efficiency. How to gain space efficiency Leber says that even if a company is not crunched for space, most DCs have areas where they can improve in space efficiency. “Most companies don’t use what they have efficiently—they don’t look in the right places,” he says. To figure out the proper space utilization, Castaldi recommends looking at processes first. “Why do you need the extra space?” he asks. “What brought you here?” Tanel recommends conducting a thorough space survey. He’s designed a system for doing that, which includes the following columns across the top: Available at present (sq. ft. and attainable height) According to Thomas Tanel, president of CATTAN Services, before you can consider making any changes in your current mode of operation, you have to thoroughly understand how your warehouse runs. To do this, you have to do the following: Understand your company’s business by quantifying present requirements and forecasting future growth potential. Know your square feet requirements by: 1. Function 2. Material flow 3. SKU volume and velocity 4. Inbound/outbound throughput characteristics Establish true priorities by employing Pareto’s Principle and ABC Concept to basic warehouse flow patterns. Employ aisle layout and allowance that maximizes movement efficiency and maximizes available floor space and cube loss. Design your space plan for the rule, not the exceptions, for smooth, efficient, quick, and direct in-out material and work flow. Ensure accurate location, proper identification and good illumination of all SKUs in storage. Plan storage space for easy inventory rotation to permit FIFO or LIFO inventory valuation control. Review material handling and storage equipment compatibility, adequacy and reliability in space plan analysis. Develop standard pack and unit load hierarchy for all SKUs material handling efficiency and material location storage philosophy. Needed at present (sq. ft. and required height) Future needs (sq. ft. and required height) for 1-2 years and 4-5 years The operational activities that are measured against this include: Receiving and inbound Staging and processing Put-away and storage Value-added services Picking and replenishment Shipping and outbound Offices and miscellaneous After going through the facility space survey, Tanel recommends companies ascertain whether they have properly slotted the DC. “If so, it should optimize your space utilization and minimize the time and effort required to efficiently receive and store incoming products,” he says. “This determines the most efficient placement of products and improves the speed and accuracy of picking and replenishment. Each DC is unique, so proper slotting depends on factors such as your distinct product, movement and storage characteristics, product seasonality, turnover, promotions, and sales or usage projections.” Castaldi recommends that you have a leader to spearhead the assessment process. “You need someone who can bring everyone together and figure it all out,” he says. “This might be a consultant or it might be someone from within.” The assessment team should include people who buy, people involved in processing, and people who set future plans for the company, according to Castaldi. “You have to pull all the information together and understand why and when you ran out of space,” he says. continued on page 8 / May–June 2013 7
  • 4. Spaced Out continued from page 7 Upon assessment, many companies will learn that they’ve grown up piecemeal and have added small bits and pieces over the years, says Leber. “This happens because it’s Upon assessment, impossible to just shut down and reorganize a DC,” he explains. many companies “So companies end up adding in will learn that new equipment and processes here they’ve grown up and there and you become fairly piecemeal and have inefficient compared to a new comprehensive integrated facility.” added small bits Once all the operations have and pieces over the been assessed, a company needs to put a plan of action into place. years.” Options for improved space utilizaBill Leber tion include right-sizing locations through improved slotting; using un- and under-utilized space like floor-to-truss and closer pallet beams. Get rid of obsolete inventory that might be clogging up shelves. There are also higher tech storage density solutions available, like those from Swisslog. “All of our products use space better than manual operations,” says Leber. “You can go higher and use full vertical space as well as bring goods to people rather than the other way around, freeing up the travel path.” Castaldi’s W H Systems works as a systems integrator, helping companies source products and bring it all together via software. “We take measure of where a company is and has been and help them figure out where they can make improvements in their operations’ efficiency,” he explains. “Most people have reached a point of diminishing returns when they come to us.” Even when not feeling space constrained, most companies probably can do better with the space they have, says Tanel. “I guarantee that a thorough assessment of your facility will turn up a few surprises,” he says. “And the biggest surprise is going to be this: “You are not effectively using space.” Chris Castaldi, W H Systems, www.whsystems.com Bill Leber, Swisslog, www.swisslog.com Thomas Tanel, CATTAN Services Group, www.cattan.com Publications from 2013 DC Measures WERC members can download the newest report on warehouse metrics for NO CHARGE. Go to the WERC home page and click on the link you’ll find there. You might also consider adding these pubs to your benchmarking and continuous improvement arsenal: Warehouse and Fulfillment Benchmark Best Practices Learn about qualitative warehousing best practices. Helps identify process strengths and weaknesses in an organization so a roadmap for improvement efforts can be crafted. Warehouse Manager’s Guide to Benchmarking Read about the different kinds of benchmarking, why it’s important to benchmark, how to choose the right metrics, how to analyze your company’s performance and techniques for communicating to get the results you need. 2nd Edition, 2010 www.werc.org 8 / May–June 2013