Warehouse & Distribution Management
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1 Warehouse & Distribution Management WAREHOUSE (RE)DESIGN Breda, Groenewout Ref nr. 9015X012/WD/ld - version 1.0 Wendel Dijker The recommendations, advice and conclusions, mentioned in this report, are based on the information and data provided by client. Savings, operational costs and investment estimates are depending on the assumptions and preconditions stated in this report.
2 Profile Groenewout Founded in 1966, Groenewout provides professional consulting in Logistics and Supply Chains Management. Our core competence has been sharpened in supply chains optimization and detailed designs of manufacturing-, distribution- and fulfillment centers. We place a great deal of emphasis on both the identification and realization of feasible opportunities. Page 2
3 Our consulting service portfolio Page 3
4 Our consulting methodology MULTI-DISCIPLINARY Groenewout s team consists of highly qualified business consultants with unique, complementary disciplines. HANDS-ON More than 40 years of experience in operational environments & implementation processes. INDEPENDENT Groenewout has no formal obligations towards suppliers or contractors whatsoever and always gives an independent advice, keeping the interest of the client as a first priority. INTEGRITY Groenewout highest value is integrity, externally towards client organizations and their employees and internally towards Groenewout employees. PROFESSIONAL Quantifiable: Quantification is the basis for our advice. Quality: Highly qualified professionals with more than 150 years of logistics experience. Leading edge expertise: Groenewout strives to maintain a leading position as a Logistics and Supply Chains Management specialist, creating a continuous learning environment to develop the organization and the individual. Page 4
5 Quality measured by our clients (Fine) Chemicals Healthcare Electronics 3rd-Party Logistics Service Providers Fast Moving Consumer Goods And many other industries Page 5
6 Content 1 Introduction 2 Muther s Method & Basic Data Document 3 Warehouse concept 4 Evaluation Page 6
7 1 Introduction (1) Supply Chain Structure Supply Chain Management Assets & facilities Sourcing Manufacturing Warehousing & distribution Customer Transportation Page 7
8 1 Introduction (2) Company strategy Logistics strategy Operational concept Logistics process Logistics design requirements Information system requirements Organization & communication requirements Building requirements Page 8
9 1 Introduction (3) Realize Facilities Controls Logistics Organization Processess Organization matrix Processess Workinstructions Design Racking MHE Conveyors WMS Interfaces Building Building related installations Page 9
10 1 Introduction (4) Quantitative Qualitative a/o Flexibility Building and facilities costs Minimize warehouse costs Labor costs Risk Quality Logistic equipment costs Efficiency Page 10
11 2 Muther s Method & Basic Data Document Approach Product: Which Products? Quantity: What are the quantities? Route: Which route? Systems: What supporting System? Time: What is the time period? Muther s method Classification of materials Quantification of goods flows STOP Selection of storage and handling method Alt. A Alt. B Alt. C Collect and bring all the relevant information (PQRST) in Basic Design Document (BDD) Evaluation of alternatives Choice and engineering of alternative Page 11
12 3 Warehouse Concept Main Topics A Storage Systems B C D E F Handling Systems Overview Order Picking Method Order Picking Techniques IT Page 12
13 3A Storage Systems Storage systems Handling systems Optimal Warehouse Concept Picking method Picking technique Page 13
14 3A Storage Systems General Storage systems can be divided into systems for: Pallet items Small items Long goods Others Page 14
15 3A Storage Systems Pallet Items (1) Block stacking Page 15
16 3A Storage Systems Pallet Items (3) Pallet racking - Wide aisles Page 16
17 3A Storage Systems Pallet Items (2) Pallet racking - Narrow aisles Page 17
18 3A Storage Systems Pallet Items (4) ASRS or Pallet retrieval Page 18
19 3A Storage Systems Pallet Items (5) Pallet flow racking / push back racking Page 19
20 3A Storage Systems Pallet Items (6) Drive-In racking Page 20
21 3A Storage Systems Pallet Items (7) Pallet racking with satellite Page 21
22 3A Storage Systems Pallet Items (8) Movable racking Page 22
23 3A Storage Systems Small Items (1) Static Shelving Page 23
24 3A Storage Systems Small Items (2) Dynamic shelving Page 24
25 3A Storage Systems Small Items (3) Case flow racking Page 25
26 3A Storage Systems Small Items (4) Picking Tray System Mini load Page 26
27 3A Storage Systems Small Items (5) Paternoster/lift Page 27
28 3A Storage Systems Long Items (1) Block stacking Page 28
29 3A Storage Systems Long Items (2) Block stacking Page 29
30 3A Storage Systems Long Items (3) Cantilever racking Page 30
31 3A Storage Systems Long Items (4) Automated system with cassettes Page 31
32 3A Storage Systems Long Items (5) Vertical stacking on pins Page 32
33 3A Storage Systems Summary (1) Storage systems can be divided into systems for: Pallets Small items Long goods Other: Hanging garments (see pictures) Odd sizes, like Bikes Seats, couches Page 33
34 3A Storage Systems Summary (2) Stock per article Number of articles Space utilization orderline / stock rate Investment Storage unit Flexibility storage system L A H L A H L A H L A H L A H L A H L A H Block stack Wide aisles Narrow aisles AS/RS pallets Pallet flow racks Shelves Case flow racks Mini-load Paternoster Carrousel L Low A Average H High Categorization and criteria storage systems Page 34
35 3A Storage Systems Summary (3) High level comparison pallet systems Storage Systems Picking Systems Block Stacking Pallet Drive-In High Bay Pallet Flow Block Stacking Pallet Drive-In Pallet Flow Pallets Racking (Wide Aisle) High Bay Pallet Racking (Wide Aisle) Pallets Racking (Narrow Aisle) Pallet Racking (Narrow Aisle) # SKU Fine picking Cases or eaches Bulk picking Pallets Page 35
36 3A Storage Systems Summary (4) High level comparison small article systems Storage Systems Picking Systems Case Flow Pallet Racking A-Frame Case Flow Pallet Racking A-Frame Shelving AS/RS (Mini load) Shelving AS/RS Mini load Carrousel Paternoster/lift Paternoster/lift Carrousel # SKU Fine picking (Eaches) Case picking Page 36
37 3B Handling Systems (1) Storage systems Handling systems Optimal Warehouse Concept Picking method Picking technique Page 37
38 3B Handling Systems (2) Electrical Pallet Truck Hand Pallet Truck Page 38
39 3B Handling Systems (3) Customized pick cart Pick cart with P-t-L system Page 39
40 3B Handling Systems (4) Roll container/ Dolly Page 40
41 3B Handling Systems (5) Forklift truck Page 41
42 3B Handling Systems (6) Horizontal order pick truck Page 42
43 3B Handling Systems (7) Vertical order pick truck Page 43
44 3B Handling Systems (8) Reach truck Page 44
45 3B Handling Systems (9) Combi truck or high bay truck Page 45
46 3B Handling Systems (10) Conveyor systems Page 46
47 3B Handling Systems (12) Mini load cranes (ASRS) Page 47
48 3B Handling Systems (13) Pallet cranes (ASRS) Page 48
49 3B Handling Systems (14) Side loaders Page 49
50 3B Handling Systems (15) AGV (Automated Guided Vehicle) Page 50
51 3C Overview Characteristics for main concepts Cost for Space Labour cost Equipment cost Concept Storage method MHE L A H L A H L A H Blockstack Floor Forklift truck Wide aisles Pallet racking Reachtruck Narrow aisles Pallet racking Combitruck AS/RS Pallet racking SBA Pallet flow racks Pallet flow racks Orderpick truck Pallet flow racks ptb Pallet flow racks Pick-to-belt Shelves Shelves Trolley Shelves ptt Shelves Pick-to-tote Case flow racks Case flow racks Trolly Case flow racks ptt Case flow racks Pick-to-tote Miniload Case racking Miniload crane L Low A Average H High Page 51
52 3D Picking Method (1) Storage system Handling system Optimal Warehouse Concept Picking method Picking technique Page 52
53 3D Picking Method (2) Picking methods Pick cart, roll container Electrical pallet trucks, 1 or more pallets (horizontal/vertical) order pick trucks, combi trucks Pick-to-belt Pick-to-tote Pick-to-shipping box Page 53
54 3D Picking Method (3) Pick cart Page 54
55 3D Picking Method (4) Roll container/ Dolly Page 55
56 3D Picking Method (5) Horizontal order pick truck Vertical order pick truck Page 56
57 3D Picking Method (6) Combi truck Page 57
58 3D Picking Method (7) Conveyor belt: pick-to-belt Page 58
59 3D Picking Method (8) Roller conveyor: pick-to-tote (zone picking) Page 59
60 3D Picking Method (9) Roller conveyor: pick-into-shipping box (zone picking) Page 60
61 3E Picking Techniques (1) Storage system Handling system Optimal Warehouse Concept Picking method Picking technique Page 61
62 3E Picking Techniques (2) Paper pick list Collo-labels Goods-to-Man RF and scanning Pick-to-Light Voice Recognition Full automated picking (A-frame) Page 62
63 3E Picking Techniques (3) Handling concepts Man-to-goods (e.g. wide aisles, narrow aisles) Goods-to-man / automatic storage (e.g. AS/RS, paternoster) Goods-to-man / hybride (e.g. pick-to-tote/carton, pick-to-belt) Advantages goods-to-man vs. man-to-goods Higher productivities Less picking errors Better space utilization Ergonomic working stations Disadvantages goods-to-man vs. man-to-goods Higher investments Less flexibility Limited capacity Page 63
64 3E Picking Techniques (4) Multi-order picking (sort-while-picking) by P-t-L on pick cart Page 64
65 3E Picking Techniques (5) RF picking & scanning Page 65
66 3E Picking Techniques (6) Pick-to-Light Page 66
67 3E Picking Techniques (7) Voice Recognition Page 67
68 3E Picking Techniques (8) A-frame Page 68
69 3E Picking Techniques (9) Page 69
70 3E Picking Techniques (10) Cost for Space Labour cost Equipment cost Concept Storage method MHE L A H L A H L A H Blockstack Floor Forklift truck Wide aisles Pallet racking Reachtruck Narrow aisles Pallet racking Combitruck AS/RS Pallet racking SBA Pallet flow racks Pallet flow racks Orderpick truck Pallet flow racks ptb Pallet flow racks Pick-to-belt Shelves Shelves Trolley Shelves ptt Shelves Pick-to-tote Case flow racks Case flow racks Trolly Case flow racks ptt Case flow racks Pick-to-tote Miniload Case racking Miniload crane L Low A Average H High Focus off integrated systems like Direct Picking System, Order Distribution System, Order Storage and Retrieval en Horizontale Carrousels with sufficient volume Page 70
71 3E Picking Techniques (11) p 900 i c k r 800 e g e l 700 s p e 600 r u u 500 r p e 400 r p e 300 r s o o 200 n 100 Manueel DPS Horizontale OSR M2G Carrousels ODS Page 71
72 3F IT General concept (1) Purchase Orders Confirmation Sales Orders Confirmation S Y S T E M S Supplier System WMS Repair ERP system WMS LSP WMS Retailer CRM system F L O W S Production At supplier Stock At supplier Repair Center LSP Own Warehouse Retailer Or Shop Customer Page 72
73 3F IT General concept (2) ERP ERP ERP ERP WMS Production site Warehouse Warehouse Page 73
74 3F IT Warehouse Management & Control System (3) Warehouse Management System Warehouse Control System PLC Miniload PLC Sorter PLC Sorter RF RF RF VAS RF Receiving Page 74
75 4 Evaluation (1) Operational Handling Concept Decrease lead time Decrease errors zero defects Ordering day X Delivering next day Minimize of operational costs Maximize of consolidation Possibility of same day deliveries Modular systems Page 75
76 4 Evaluation (2) Operational costs Layout drawings & concept drafts Investments Concept description Migration plan Operational Handling Concept FTE calculation Capacity calculation Project plan realization Sensitivity analysis Performance guarantee Page 76
77 4 Evaluation (3) Financials Investments (CAPEX) Operational costs (OPEX) ROI Requirements Fullness Conformities basic data Logistics performance Conceptual concept Headcount Reliability Flexibility.. Risk Sensitivity Techniques dependency Fall back scenario's Risk of execution Timeline of realization Criteria Financials Logistics performance Risk Requirements Weighted factor Score per concept Total Score 100% Page 77
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