WAREHOUSE

PROCESSES
INTRODUCTION
WAREHOUSE PROCESSES
They should be Simplified
Updated as per requirements
Communicated to staff for adherence
Able to use technological advancements
They should lead to improvement in operational and
financial efficiency of the warehouse
WAREHOUSE ACTIVITIES AS A
PERCENTAGE OF TOTAL COST
WAREHOUSE ACTIVITIES
1. RECEIVING
Key activities, here, include receipt of correct product
in right quantity and in right condition at right time.
These aspects are termed as supplier compliance.
It is to be noted that once goods arrive at warehouse, it
is too late to rectify mistakes done at the processes
involved prior to receiving.
Therefore, an understanding of processes prior to
receiving and maintaining standards while they are
performed is important.
2. PRE-RECEIPT
Initially, the supplier presents the products to the warehouse
in an appropriate manner.
Basing on this the warehouse would decide on how it is to be
customized and released to the ultimate customers.
Warehouse manager has to get involved in issues such as
specifying and agreeing the packaging, items per carton,
cartons per pallet, TiHi (cases per layer, layers per pallet)
and any specific labelling required, together with the mode
of transport to ensure that the products ordered are
compatible with the storage facility.
To avoid issues like unsuitable packaging, erroneous
labelling, unacceptable quantity per pack, the warehouse
should opt for a sample order dispatched and ensure full
compliance.
KEY ISSUES OF
CONCERN
Size and type of cartons;
Type of transit packaging cardboard, plastic, totes, metal
stillages, roll cages, pallets;
Palletized or non-palletized delivery of product;
Size (length, width and height) and type of pallets, eg. euro
pallet, four-way entry;
Specific labelling such as product description, barcode and
quantities;
Position of label on carton and pallet;
Carton quantities (inner and outer carton quantities, for
example); and
Mode of transport, delivery quantity and frequency of delivery.
OTHER ISSUES
INVOLVED
Standard selling quantity (eg. Number of pieces in
each carton, 10 or 12)
Method of delivery (eg. Mode of loading & unloading
equipment)
Containerization issues (eg. Should the cargo be
palletized or loose load or slip sheet)
BENEFITS OF
PALLETIZING
It reduces damage of goods during handling and
transportation
Reduced manual involvement during loading and
unloading
Reduced usage of space
Help in optimal usage of containers
ADVANTAGES OF SLIP-
SHEETS
Slip-sheets are an alternative to palletizing
They help in better usage of space
Slip sheets are approximately 2 cms in thickness and are
constructed from fiberboard, thick cardboard or thin
plastic in the shape and size of the unit load
The load is placed on the slip-sheet within the container
and on arrival at its destination lifted onto pallets with the
help of specialized forklifts
They increase the loading cube in container and reduce
time taken to load and offload the goods
However, the warehouse has to spend on acquiring the
specialized forklifts for handling goods on slip-sheets.
 CHANGING SCENARIOS
Advent of high cube containers provides additional internal
high allows double stacking of pallets
For containers handling large number of product lines
sorting of products at the receiving bay, irrespective of
palletized or loosely held goods, is still a big issue
To reduce high handling time, suppliers need to be
instructed to keep same product lines together in a
container
For loosely held goods in containers, palletization prior to
being put away in racking is mandatory.
These cartoons need to be placed in such a way that there
is no overhauling or there is no threat of them getting
crushed
PALLET DIMENSIONS
International Organization for Standardization (ISO)
sanctions six pallet dimensions, detailed in ISO
standard 6780
PALLET DIMENSIONS
Pallets with different other sizes are utilized in chemicals and
printing industries
However, lack of uniformity in pallet size pose numerous
challenges during raking, rack configuration, and even in
identifying space of storing
Cost intensive timber and mesh decking can be utilized for
stacking different sizes pallets.
Inability of equipment and machinery (including forklifts) to
handle different sizes of pallets reduce warehouse flexibility.
Of late, plastic pallets and metal stillages (used in automobile
industries) are becoming popular
Pallets with iGPSs plastic pallets that are 100% recyclable and
30% lighter in weight than wooded pallets are gaining market
acceptance.
3. IN-HANDLING
Warehouse manager is responsible to match labor
hours with work content
Handling time for each product (labor touch points)
need to be reduced to bring down the costs
Often times, labor costs account for a large portion of
overall costs
Generally, in-handling accounts for around 20 per cent
of total direct costs within a retail warehouse.
4. PREPARATION
Preparation refers to the processes involved prior to the actual receipt of
goods.
It is imperative to ensure that suppliers deliver goods as per your
requirements and not at their preferences.
Warehouse manager need to schedule the time for receipt of supplies
and plan shifts accordingly.
Manager has to match the length of time slots to the time estimated for
receipt of the goods. It is important to note that time taken to handle
depends on the specifications of the goods being handled.
The manager then need to keep records of the time taken for each type
of delivery and share this information with the booking-in team.
This helps in determining and planning for labor and equipment required.
Introduction of dock scheduling system helps to allocate accurate time
slots, measure productivity, organize labor and also check demurrage
and penalty charges.
PREPARATIONS .
CONTD..
Warehouse staff should be intimated regarding products being
delivered, type of vehicle, equipment required to offload.
Upon ascertaining the above, a suitable booking slot is assigned
and booking reference is shared with the supplier.
It the cargo includes pallet movement, then those details are to
be ascertained.
Pre-advice, Advance Shipping Notice (ASN), of the products
being delivered helps in entering the details in Warehouse
Management System (WMS).
Details in ANS have to be updated in the system using RFID or
barcode scanning
WMS can use this information to pre-allocate pallet locations
This information is also used to check the delivery.
5. OFFLOADING
On arrival, the vehicle details are checked and matched with
booking reference.
Next, vehicle is allocated a loading bay or location in the yard.
Any vehicle seals are to be checked against the delivery paperwork.
For temperature controlled vehicle, temperature history during its
transit is to be checked along the current temperature of the goods.
Once the vehicle is parked at the designated location and is ready
for offloading, the in-handling team with required equipment should
be ready for initiating their task.
If unloading happens at a yard, two lift trucks are, one to unload
from trailer and another to carry the product to the warehouse are
used .
Articulated forklifts trucks capable of working both inside and
outside of warehouse can be used to avoid usage of two lift trucks.
OFFLOADING
CONTD
For unloading palletized vehicles on to the bay,
powered pallet trucks, hand pallet truck or pallet jack
are popularly used.
Usage of rollers, tracks, slip chains, loading plates,
giant slip sheets can bring-down the time taken for
unloading high volumes of cargo.
Usage of conveyor belts or Automated Guided Vehicles
(AGV) reduce manual procedures in offloading.
OFFLOADING
CONTD
Offloading loose-loaded containers is time consuming and demands at
least two people to unload within the container and placing them onto a
pallet. A third person working on forklift is required to transfer the loaded
pallet to the checking area before put away. There will be a lot waiting
time involved in this process.
Since the multiple products come in a container, time is also to be spent
on sorting the right boxes for transferring to the pallet.
This process involves huge risk to the people working as they would have
to bend and stretch a lot within the container are in close proximity to the
MHE.
Non-existence of loading bays and dependence on container ramp can
create more risks at the warehouse.
Like same, a forklift truck with an operator standing on a pallet can
slowdown the process and impact the safety.
Warehouses, today, are depending on equipment like boom conveyor and
robotic palletiser for offloading.
6. CHECKING
Once goods are offloaded the process of checking is initiated.
However, if the suppliers are reliable, goods are forwarded to the store
area or for dispatch (if they are cross docked) area.
Basing on the reliability of the suppliers, material can be randomly
checked or totally checked or pallets alone are counted.
Retailers are opting to Good Faith Receiving (GFR) under which goods
are accepted into distribution center or store without checking on their
arrival.
Usage of barcode scanners can improve accuracy and speedup the
processes.
Once scanned, the products can be forwarded to the next stage quality
control, forward pick face, storage or dispatch bay for cross docking.
Usage of RFID can still reduce the time. Products fitted with tags can be
recognized and counted immediately on entry to warehouse and details
passed in real-time to WMS.
7. CROSSDOCKING
Cross-docking help enhance throughput and reduce stock
holding period.
It helps transfer of goods from goods-in point to dispatch bays.
Storage and subsequent picking operations can be avoided
due to cross-docking.
Support from suppliers in the form of clear labelling, advance
notice of arrival, accurate and timely delivery help in cross-
docking process.
Cross-docking demands systems to identify products meant for
cross-docking and a process need to be in place to recognize
and alert staff.
Products that check in are directly taken to dispatch area and
their floor or temporary rack location recorded on system, and
staff is alerted.
CROSS-DOCKING
IMPORTANT ISSUES
Availability of adequate space at inbound and
outbound areas.
Availability of space ensures quick and safe movement
of goods.
Well-marked staging area to place products that are
ready for dispatch.
An area of drive-in racking can assist in marshalling
loads for particular collections.
Cross-docking is used to handle perishable goods.
It is also used from goods are received from multiple
suppliers and are to reach multiple retailers.
8. RECORDING
Depending on the product, there could be a
requirement to record more than just the standard data
such as product code, description and quantity on
arrival.
Other information could include batch or lot numbers
and serial numbers.
Barcode scanning, which we will look at in the following
chapters, is ideal for this type of data capture.
9. QUALITY CONTROL
Certain products like high-value items, food, hazardous goods,
temperature-sensitive product and pharmaceuticals need
stringent checking on their receipt.
An area near the receiving bay is to be used for quality check.
This check is to be done promptly and efficiently to avoid any
space congestion and ensure that the products enter the
system quickly.
If there is problem with regards to the goods coming in, they
should be taken to a quarantine area till their lab reports
arrive.
Most WMSs block access to products on the system, making
them unavailable for picking until cleared for sale.
A physical sign at the location is an additional failsafe.
 10. PUT-AWAY
WMSs, today, allocate product locations in advance and instruct
the operator as to where to place the goods.
This can be directly to the dispatch area if the product is to be
cross docked to the pick face as a form of replenishment or to a
reserve or bulk-storage location.
To be effective, information regarding the following are to be
programed on to the system
size, weight and height of palletized goods;
results of an ABC analysis or slotting, where fast-moving goods are placed
closest to the dispatch area (an area we will cover later);
current order data;
family product groups;
actual sales combinations;
current status of pick face for each product;
size of pallet locations; and
weight capacity of racking.
 DISTANCE OF THE
LOCATIONS FROM
RECEIVING AND
DISPATCH AREA
Warehouse manager has to calculate optimum location for goods and instruct
operators accordingly.
Warehouse manager has to decide on whether the goods are to be stored
randomly or at a fixed location. In case of fixed location, the manager will
decide on which product is to be kept at which place and in case of random
placement, manager will decide on most efficient slot.
Fixed location has an advantage that the picker can easily locate it but the
disadvantage comes when there is no such stock, storage utilization rate
comes down.
Characteristics of the goods will also influence its storage slot.
While locating cartons, the fastest moving goods must be kept in the middle
shelves as the picker need not spend his time on stretching and bending.
Items should be stored in group by similarity.
Some warehouse systems combine put-away with pallet retrieval. This is
termed task interleaving.
The system will instruct the operator to put away a pallet en route to collecting
a picked full pallet or one that is required for replenishment.
END OF THE TOPIC
WAREHOUSE PROCESSES