Most attention in warehouses usually goes to the order picking process. Logical, given that order picking is the most labour-intensive and therefore expensive process. However, money can also be saved at the other end of the warehouse, for example in goods receiving. Key message: look for improvements to this process not only on the warehouse floor, but also within other departments of the company or even with suppliers.
1 Use the pallet label
For suppliers, it’s a relatively minor effort: sticking a unique barcode label on every pallet that leaves the premises. In the receiving party’s warehouse, this offers a major advantage. Simply scanning the barcode label may be enough to book in the entire pallet or even the whole consignment in one go. This does, however, require the supplier to send an electronic dispatch note containing the barcode number and the exact contents of the pallet.
In the food sector, GS1 standards for pallet labels and shipping messages are already widely used. Nevertheless, far from every retailer manages to take full advantage of the possibilities. This is according to a survey by Caroz among 13 DCs of six retailers that participated in the NK Speedocking 2014. Often these are fairly silly errors such as pallet labels that are not stuck in the agreed place, master data that turns out not to be correct or shipping notices that state the wrong pallet size. In short: if you agree with your suppliers to use the shipping label and shipping notice, do it properly and in a disciplined manner.
2 Place larger purchase orders
A few years ago, the distribution centre of a technical wholesaler was unable to process and store all incoming goods quickly and efficiently. The floor was constantly cluttered with goods that were sometimes not available for order picking until several days later. The problem: the large number of small orders. In an attempt to reduce stock levels, the wholesaler had decided to place smaller and smaller orders more frequently. Stock levels had indeed fallen, but the workload in the goods-in department had increased enormously.
Stock reduction is often high on the finance director's priority list, but it is counterproductive if the financial benefit is outweighed by higher warehouse costs. After all, receiving ten orders with one pallet takes more time than one order with ten pallets. So discuss with purchasing or stock management whether the order frequencies and order sizes used are optimal. Indicate what the consequences are for the warehouse floor and ultimately for the bottom line. After all, if incoming goods are not available for sale on time, this can lead to lost sales.
3 Unload lorries automatically
Unloading a full semi-trailer using a forklift or electric pallet truck can easily take half an hour. This can be reduced to a few minutes if the lorry is unloaded entirely automatically, for example using a chain conveyor. The downside is that this is only possible if the floor of the semi-trailer is adapted for this purpose. That is why the automatic unloading of pallets is currently still limited in scope, often taking place in controlled environments such as when shuttling between a factory and a factory warehouse.
This is bound to change in the future. Ancra Systems has developed a system that allows trucks to be loaded fully automatically without the need for a modified trailer. It seems a matter of time before a similar solution for unloading trucks is also developed.
In addition, solutions now exist for unloading sea containers, which are often loaded without pallets or other load carriers. The market offers semi-automatic solutions such as the Copal or Cartonmover and a fully automatic robot called TEUN, but all three have limited practical application for the time being.
4 Implement cross-docking
Whilst a forklift driver is busy placing all incoming pallets onto the racks, his colleague a short distance away may be busy retrieving pallets containing the same items. This process can be made more efficient by driving those incoming pallets straight to the correct dock door: cross-docking. On an annual basis, this can prevent a great deal of unnecessary put-away and retrieval work.
Crossdocking adds complexity, but with a good warehouse management system (WMS), this need not be a problem. The WMS calculates when crossdocking is opportune and instructs the store employee to do so via his forklift terminal.
Those with reliable and fast suppliers may not need to stock certain items at all thanks to crossdocking. When a customer places an order for that item, it is forwarded directly to the supplier. When the item arrives at the warehouse, it may be merged with the rest of the order and sent directly back. More and more online shops are adopting this concept, especially for low-selling items that are only sold a few times a month or year.
Marcel te Lindert - journalist logistics & supply chain
