In warehousing, there is a lot of talk about automation, but it requires large investments. Not everyone has the financial space for that. However, it is also possible to improve existing warehouses without making large investments. Five tips from the Material Handling Forum that you can apply immediately.
Improving existing processes was the theme at the Material Handling Forum on 28 June. In a forum discussion, professor René de Koster (Erasmus University), consultant Arjan Lagerweij (EVO), supplier Maurice La Croix (Toyota Material Handling) and practitioner Sander Berndsen (Philips Lighting) gave their views on improving existing processes without spending a lot of money. Their main tips:
1 Make a plan
Before you start adapting processes haphazardly: first make a plan. Consider what the warehouse's function is within the company or even better: within the supply chain. Then consider how the processes should be adapted to fulfil that function even better. Does this require further cost cutting? Or are other issues such as shortening lead times or reducing errors more important?
It helps if the logistics manager or supply chain manager is part of the company's management. Then he has direct influence on the business strategy and the contribution the warehouse can make to it.
2 Use data
Make better use of warehouse operation data. Modern warehouse management systems capture a wealth of data about every task being performed. Think of all the scans used to feed operations on the warehouse floor back to the system. In addition, forklift manufacturers also offer systems that collect data on the deployment and use of all rolling stock. There is a lot more smart information locked up in all that data, which is hardly being capitalised on at the moment.
The best-known example is slotting, or in other words: where do I put my items in the warehouse? Every week or every month, calculate which items are the fast runners and which are the slow runners. Put the fast runners in easily accessible locations, the slow runners preferably in the back of the warehouse. Many warehouses make this exercise, but not often enough. Those who only look at slotting once every six months quickly run more kilometres than strictly necessary.
3 Leverage people's knowledge
Data can provide insight into bottlenecks on the warehouse floor, but sometimes extensive data analysis is not necessary. Or as Sander Berndsen of Philips Lighting said, "You can also just ask your people where the bottlenecks are." Indeed, on the floor there is often good insight into workplace problems and possible solutions. Those who never ask their people about this may never find out.
So create an open culture where employees can spout their ideas. This will only succeed if those ideas are taken seriously and actually turned into improvement projects. Being heard will also lead to higher employee satisfaction. And employees who are satisfied work harder.
4 Invest in team leaders
Team leaders play a crucial role in harnessing the potential of employees. Far too often, these are people with perhaps a lot of warehouse experience, but with little specific training, education and supervision. Teach them how to manage their team and give feedback. Teach them to look critically at processes and spot bottlenecks.
What also helps: take team leaders to another warehouse. Show them how work is done elsewhere and how problems are solved within other companies. After all, most good ideas have already been thought of. All you have to do is look them over and translate them to your own operation.
5 Look at the chain
Many warehouse inefficiencies originate in other links of the chain. Think of dock occupancy, which is often anything but optimal. Carriers all arrive at the same time, leaving insufficient capacity in the warehouse to load or unload trucks. And if there is sufficient capacity to do so, the manpower to put incoming goods into storage immediately is often lacking. As a result, the shipping area becomes congested, leading to further inefficiencies. Good dock planning and its coordination with carriers can help spread the inbound and outbound flow of goods better.
In addition to dock planning, look at the goods flows themselves. Are they on the right pallets or do they need to be re-stacked? Is each pallet labelled and do you receive an electronic dispatch notification? And is the size of the shipments optimal? Many companies cut their purchase orders to reduce inventory levels, but as a result see their cost of receiving goods - in addition to transport costs - increase. It is important to look at integral costs.
Marcel te Lindert - journalist logistics and supply chain
