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Nailsea Warehouse Changes to Warehouse & Stock Control Procedures & Operations

Office Copy

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Contents

Changes to Warehouse Procedures & Operations Group Allocation Key Warehouse Layout – Product Zoning – GF Warehouse Layout – Product Zoning – FF Warehouse Layout – Location Structure – GF Warehouse Layout – Location Structure – FF Revised Pick List Order Warehouse 10 Week Plan (Draft) Changes to Stock Control Operations & Procedures Department Restructuring (Draft) Stock Control Daily Routines – Internal Team (Draft) Stock Control Daily Routines – External Team (Draft)

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Changes to Warehouse Procedures & Operations

The move to the new warehouse site provides a unique opportunity to review our warehousing procedures & look for ways to improve accuracy & efficiency, making the overall operation more efficient & increasing the benefits to the company as a whole.

The key areas we have identified to focus on are as follows:

Product Zoning

As shown on the layouts provided the warehouse has been separated into zones based on the main product groups. These zones have then been subdivided by category.

This will allow us a much greater level of control over the products & also allow picking lists to be run in such a way that they are easier to unload at store & more relevant to the shop floor layout, & also better stacked in the cages to minimise damages.

Location Structure

As shown on the layouts provided the warehouse location structure is very similar to that used in the Oldmixon warehouse. This will still allow a flow of movement from the start of the warehouse locations through to the loading bay, & combined with the product zoning & changes to picks, should minimise the time taken to pick a list. The extra space has also allowed products to be allocated into set areas.

Picking Efficiency & Accuracy

Improving the efficiency & accuracy of the picking is paramount, to ensure that the maximum amount of stock is picked in the shortest time possible with the minimum amount of errors.

In addition to the above measures, we will be conducting full cage checks for the initial few months, then maintaining random spot checks on a daily basis. There will also be a dedicated stock control team operating within the warehouse to assist with any picking queries, as explained later. The warehouse management will also be allocating picking lists to staff & recording the picking times & error rates, which will then be used to conduct an ongoing analysis & identify any areas of concern, either with staff or within the warehouse itself. As mentioned above, the picking lists themselves will be changing in some cases, to make them more relevant to the store layouts & easier to unpack.

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We will also use this to split some of the larger picks into subsections, making them quicker & easier to pick & process. Goods In Turnover

The extra space within the warehouse allows us to create a dedicated goods in area, so that deliveries can be checked off at the same time the picking is being done, without compromising either activity. We will also be able to have a dedicated goods in team operating each day, again increasing the level of control in place. In time we will be aiming to not only improve the turnover rate for goods in, but also increase it.

Once we have assessed the available room for picking locations we will be looking at moving some direct delivery suppliers to warehouse delivery, giving us greater control over the overall stock levels, & reducing the workload for the stores.

Availability (Key Lines) While we are limited by the performance of our suppliers we will look to identify the key lines in each product group & look to hold increased levels of stock to ensure ongoing availability. We will also be looking to store these lines in greater quantities on the picking locations, to help ensure that they are always available when required.

10 Week Plan Once the move has been completed we will be looking to implement a 10 Week Plan checklist for the warehouse. This will run to the same schedule as the office 10 Week Plan, with groups being focused on 1-2 weeks ahead of the stores. This should also help towards increasing product availability & data accuracy, & minimising errors.

Training As an ongoing project we will be implementing a full warehouse training package, similar to that used in the stores. This will ensure that all staff are trained correctly & consistently, help towards ensuring full compliance in all areas of the operation.

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Group Allocation Key

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Warehouse Layout – Product Zoning – GF

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Warehouse Layout – Product Zoning – FF

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Warehouse Layout – Location Structure – GF

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Warehouse Layout – Location Structure – FF

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Revised Pick List Order

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Warehouse 10 Week Plan (Draft)

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Changes to Stock Control Operations & Procedures

In addition to the changes to our warehousing operation we will also be reviewing the stock control operation, with a view to providing full support to the warehouse & buying department, while continuing to provide full support to the stores. The key areas we have identified to focus on are as follows: Department Restructuring The stock control department will be restructured so that two teams are in operation, as shown on the included proposal:

Internal stock control External stock control

While we are still developing the roles & routines the initial proposition is that the internal team will focus on warehouse stock control & provide direct support & monitoring to & within the warehouse, whereas the external team will focus on store paperwork/queries & booking in of deliveries. This will hopefully allow the department to achieve a lot more overall, & provide a much greater level of support all round. As shown on the proposal, the internal team will be staffed by Mark & Kirsty, with Guy & Mike on the internal team. Neil will also be moving from the warehouse to stock control, providing support to both teams & also assisting the accounts department when needed. Mark will also be resuming the managerial role within the department, & integrating existing duties with this. As most of the stock control & warehouse activity happens between Monday to Friday we will be concentrating staffing resources during this period, & running with minimal staff on Saturdays. All staff will be trained on daily duties for both teams, so that they can provide cover & support as necessary. Aims & Objectives As the changes to the warehousing operation will place a greater demand on stock control we will be reviewing the internal procedures & looking to streamline the operation in order to maximise efficiency & provide the best service possible. The key aims & objectives will be as follows:

Improve data accuracy within stores & warehouse Increase stock flow from warehouse to stores

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Increase picking rate & accuracy from warehouse to stores Assist with improving warehouse efficiency Assist with maintaining product availability

We will also be looking to develop the relationships & communication between the warehouse, stock control & buying departments to ensure that everyone is working towards the same goals. Training A long-term aim is to produce a full training package for stock control, covering all aspects of the operation. This will allow any future staff to be trained correctly & consistently, & ensure that any changes to the operation can be accounted for & implemented effectively.

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Department Restructuring (Draft)

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Stock Control Daily Routines – Internal Team (Draft)

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Stock Control Daily Routines – External Team (Draft)