Postgraduate Certificate in Logistics & Supply Chain Management (PGCLSCM)

Warehouse ManagementNovember 2012

Disclaimer: These are opinions of the presenter. They are not associated or affiliated to any company. Some of the material in this presentation are procured from the Internet and may contain Copyrights. These are used here for Education purposes only. This material is not intended for distribution or reproduction. This material is not intended for use in any commercial manner.

Amazon’s Swansea Fulfillment Center

• Video - http://www.youtube.com/watch?v=_R3kr_m4czY

• 800,000 Sqft, 4th DC/FC in UK• Economy/Jobs – 1000 jobs in 1st year.• Speed to setup• Delivery opportunities to entire Europe,

Infrastructure, Talent, Government Support

Warehouse Management - Essence• Define and manage complex warehousing

structures• Optimize material flow using advanced

putaway and picking techniques• Process goods receipts, goods issues and

stock transfers quickly and easily

Accuracy + Speed = Efficiency

Typical WMS features

• Warehouse Layout and Structure• Optimized movement of goods (Inbound and

Outbound – Receiving and Shipping)• Inventory Tracking and Control• Printing and Documentation• Employee Safety• Lean Principles

Inside the Warehouse

• Warehouse LocationStorage Area – Receiving, Sorting, Shipping,

Open Yard, Picking, Packing, LabelingStorage Type – Bulk, Open, High Rack, ShelfStorage Section – Lean and TPMStorage Bin – Smallest unit of space.

Contains multiple quantities of product

Amazon’s Warehouse processing

• http://www.youtube.com/watch?v=i6H7nfHjHtY• Inbound Receipts – Yellow bins, Updated

inventory into Systems, Sorted and placed into Sections

• Order Fulfillment – Red Bins, Customer Orders picked and scanned

• Packaging – Orders consolidated, Labeled• Auto-Dispatch – Conveyor sorts by barcode

destination

Inbound - Receiving and Put Away

• Video - http://www.youtube.com/watch?v=ZN6--Xi5lKo

• Receiving• Identification, Sorting• Palletization, Labeling• Inventory Update (Online)• Shelving (Put Away), Warehouse slot barcode• Checking, Documentation Complete, ERP

Update

Fulfillment - Picking

• Video - http://www.youtube.com/watch?v=G3GOXR-pXrw

• Shipping Order Receipt• Selection – full/Partial batches from stock• Optimized picking list• Assigned to operator

Fulfillment - Shipping

• Video - http://www.youtube.com/watch?v=0E-Wy1fOdOw

• Optimal picking route or automated• Barcode crosscheck with Warehouse slot• Consolidation, Packing• Labeling, Sorting• Shipping, Archival

Amazon’s Christmas Season

• Video - http://www.youtube.com/watch?v=Z2Bs0nqVyqs

• Hours from Customer Order placement to Order picking from the right FC

• Product placement and sorting into Bins• Blue lights – Customer order Ready to Pack• Automatic labeling, • 15000 jobs during holidays

Technology Enablers in WM

• Labeling - Barcode Scanners• RFID for Inventory – Dock doors, Sections, Bins• Voice-Directions – Picking, Put Away

(Voxware)• Sorting Conveyor belts• Automated Order Picking (Kronos)

Beverages Industry

• Video - http://www.youtube.com/watch?v=TsLpBpX9fok

• Euclid – Coors• Advance Shipment Notification triggers

Planning to receive and stock• Wireless Handheld or Voice• Warehouse operator performance

measurement

Accord Voice WMS

• Video - http://www.youtube.com/watch?v=yy53EMEmx_c

• SPAR – Receiving, Putaway, picking, replenishment, dispatch and stock management

• 5% of overall cost reduction, 15% improvement in pick rates, accuracy of 99.97%

• 6+ months breakeven on costs.• Speech-to-data, Voice Learning, Hands/Eyes free

Voice Controlled WMS - VoxWare

• Video - http://www.youtube.com/watch?v=kZFGe-Ggnr4

• Food Distribution, 18 DCs• 50K cases inb/out each per night, 70 trucks in

fleet• Wireless Belt - Two-way voice (direction,

response) confirmation• TPM – 3 per 1000 mistakes to 0.45 per 1000,

Half training time

Automated Order Picking - Krones

• Video - http://www.youtube.com/watch?v=yU6OwsqETzI

• Food industry – From Homogeneous pallets to Mixed pallets

• Organize 400 SKUs at 4000 units/hr• Depalletization, sorting, stacking, box packing• Palletizer Looks too good to be true :-o

Automated Order Picking – S-Pemant

• Video – http://www.youtube.com/watch?v=lQDtp7d7cnA

• S-Pemat by SSI Schafer• Product Dispensers• product rate up to 180000 pieces per hour

and 240000 order picks per day. • environmentally friendly and minimizes

current costs

Warehouse of the future

• Video - http://www.news10.net/video/1266643714001/0/Robot-staffed-warehouse-of-the-future-is-now

Conclusion - Warehouse Improvement

• Layout – Receiving, Sorting, Shipping• Optimal Storage (racks, bins) and Easy Access• Inventory tracking and tracing• Voice/RFID based picking• Automated Fulfillment Process• Lean and TPM concepts• Integrated to Transportation Plan