Deciding to create a warehouse, identifying the site and erecting the building are some of the obvious and most visible elements in a project of this nature. However, there are a myriad other factors that need to be taken into account to make the facility as productive and cost-effective as possible.
Today’s business world is confronted by an enormous array of cutting-edge technology, some of which can provide major competitive advantage. If carefully selected and implemented, this technology can reduce costs, improve response times, increase accuracy, rationalise manpower, combat theft, reduce working hours, improve space utilisation, and support new business ventures.
By embracing appropriate technology, significant improvements in operations can be achieved. However, if the technology is not suited to the operations it can destroy the business, and costly investment in new facilities can be wasted – or worse, lead to operation failure. Always use technology that has been tried and tested and is running at other facilities, and that it is supplied by an honest and reputable source. Beware any prototype, no matter what promises are made regarding performance. Warehousing costs, and to some extent warehouse efficiency, is directly related to the warehouse footprint. By utilising height, and the full building potential, substantially reduced costs and improved operations will result. Using conventional storage technology (reach truck) stacks can reach heights of 12 m (7-8 pallets high). As land and building prices increase, stacking to 15 m high by means of turret trucks becomes more viable and taller facilities result.
Over the past 20 years, as legislation has changed and volumes have grown, it has become necessary to allow an increasingly larger space for truck staging and manoeuvring. Typically, paving run-outs of more than 40 m should be allowed to handle inter-links, and at least 35 m if catering for semi-trailer rigs.
Dock heights should be designed to match rig and floor-height (there is no standard height as there are many different truck heights). Typically dock heights will vary from 1,2 m to 1,4 m for rear-loaded trucks. Many of today’s docking systems are adjustable to accommodate this problem. Docks should be spaced at intervals of at least 4,5 m and integrated into the receiving and dispatch operations.
Facilities should be designed to reduce the number of times a product is touched. Every time goods are handled, it costs money, time, and labour resources, and there is potential for theft, damage and loss.
Where possible, if a product must be picked, don’t stage it but rather load it straight into the truck. When a product is received, put it away immediately. If a product must be stored, put it into its final destination immediately. Many other situations can be streamlined, depending on the circumstances.
Where possible use standard products and standard packaging. For example, use standard pallets (1 000 mm x 1 200 m; 880 mm x 1,2 m or 1 200 mm x 1 200 mm); standard lift trucks (standard reach truck, FLT or turret truck); and standard-sized distribution vehicles.
Picking is best done at ground level. However, if the volume of stock keeping units (SKU) to pick at ground level is too great, mechanical systems should be used to raise the picker.
Checking is best done by utilising the system. Where possible, avoid manual tasks such as multiple manual interventions toprovide checking. Rather pick at source. Avoid employing checkers to check the pickers and security personnel to monitor the checkers – this system will invariably lead to a bottleneck of the processes, and increase labour costs. Rather streamline the operations and use the system to check itself, for example by scanning.
It is essential to provide an environment that is conducive to pleasant and efficient operations. For example, lighting is a major factor in productivity: provide good quality lighting with good colour rendition above 200 lux. Use modern T-bay fittings as they give good colour rendition, do not fade, are long lasting and are energy efficient.
Where possible, allow for natural light in the workplace, and create a cheerful environment. Workers probably spend more time in their working environments that they do in their own homes. Provide proper resources, such as clothing, to cope with temperature and environment, and to provide safety. Allow for appropriate green areas, catering areas, ablutions and support infrastructures.
A safe working environment is important; operational safety must be ensured at all times. Set up intelligent safety procedures that install disciplined procedures that are effective, easy to implement and will protect all staff. This requires skilled management to monitor on-going implementation and especially training of all staff members. As part of today’s environmental and worker health concerns do not use diesel or LP gas trucks in any indoor environment.
The emission of dangerous gases (even if odourless) is not conducive to healthy working conditions. Diesel and LP gas units are acceptable for outdoors or extremely well-ventilated areas.
If heavy loads are required to be moved, provide appropriate handling equipment. For example: if heavy pallets need to be moved, use powered pallet trucks, not hand pallet trucks; if heavier loads need to be lifted, where possible, provide mechanical lifting assistance.
Install backup and appropriate systems where strategically necessary. For example, install a backup generator if power failure is a major risk; good quality sprinklers are essential if a fire should occur; and importantly today, backup computers should be on standby to ensure hardware failure cannot cripple the company. Many other factors could become important depending on circumstances.
All systems should be designed around customers’ needs, so an ongoing focus on improving customer service is essential. Every time a change or upgrade in operations occurs, consider the question: how will customers benefit?
Measure the facility’s performance regularly. Without measurements, a facility’s operation cannot be benchmarked. Typically, the main parameters to be monitored will include: cost of operations (for example, cost of logistics as a percentage of sales); service levels (as a percentage of delivery on-time in-full); output per man-hour (for example, cases picked per man-hour, pallets handled per man-hour); total labour efficiency (for example, output / input per person employed); lost sales; returns, and reason for returns; and theft/losses.
Constraints that limit operational efficiencies must be identified, and a focus on eliminating them must be implemented as soon as possible. For example, if storage capacity is an operational constraint, various actions could be taken, including: reducing stock levels; reducing aisle widths, which could require introducing new equipment; increasing stack height; eliminating ‘gaps’ in the warehouse by storing more methodically; extending the warehouse; or procuring new facilities.
Ensure staff members at all levels are properly trained to perform their tasks. Continually update training and ensure all staff fully understand the role of their jobs and its purpose. Regular training will ensure each and every person in the facility performs their job optimally and mistakes are minimised, with resultant cost saving.
Ensure all operational procedures are properly documented and all personnel understand and are regularly exposed to these procedures. Also make sure the instituted processes control the running of the operations. It is important that staff do not over-ride the processes and take shortcuts that can cause downstream problems.
It is essential to operate in a disciplined, clean and tidy environment. If staff ‘step out of line’ ensure they are properly disciplined according to laid-down procedures and that discipline is regular and consistent.
Set up logical and free-flowing interfaces with all suppliers and customers. For example: it is essential to schedule and co-ordinate all incoming and outgoing deliveries; ensure customers’ needs are fully understood by continually communicating with buyers and sales; ensure trucks are logically loaded in reverse drop sequence; ensure labeling by suppliers is compatible with internal operations and needs, and ensure the company’s labeling is compatible with customers’ needs.
Warehousing can be simple if implemented correctly. ‘All’ that has to be done is receive, store, pick and dispatch. Some basic rules to bear in mind are to ensure the operations are kept simple, and as much bureaucracy and non-value adding activities as possible are eliminated.