5 Fundamental Practices to Make the Implementation of Warehouse Technology
Pay off Big Time
Warehouse operations and their efficiency is a key to any
company that deals with freight, shipping and inventories. When efficiency lags
behind however, orders are lost and things get out of control. This chaotic
environment (usually due to those companies who are still using manual process
in the warehouse) will directly affect the profits and reputation to customers
of your company. The following aims to give you a better understanding on how
you can optimize your warehouse operations to avoid delays and screw ups, making
things seamless and fluid through the use of warehouse technology. However,
read to the end, as technology is not the end all be all....we must still
follow some warehouse efficiency basics alongside warehouse technology to
ultimately gain efficiency.(Referral from www.cerasis.com)
Make Warehouse Process as Simple, Efficient, and Technologically Driven as
Possible
Minimizing the steps in the process is a good way to ensure
you have a more rapid movement through the warehouse and the freight process.
You can benefit from automated packing and shipping processes, such as the use
of a transportation management system, for a more efficient outcome and flow
around the warehouse on the outbound side of getting out product to your
customer. It will take some operational changes and a look at implementation of
technology such as ERP, WMS, and TMS, but it will be well worth the effort in
the long run. This is especially important when it comes to storage facilities
and storage solutions in general.
If you are looking for a checklist to ascertain your needs
in total in the warehouse, you can look to our handy guide here titled
"Third Party Logistics Companies: A Checklist When Evaluating Which 3PLs
are Best for YOUR Needs". The next step that will help is reading our
other post on 3PLs, "3PL Companies: 4 Factors To Consider in Your
Evaluation of Hiring One". Finally, if you do think you need to go down
the path of hiring a 3PL, you may want to also see our series on how to
implement a 3PL once you know your needs:
3PL Implementation Steps Part 1: Where to Begin
3PL Pricing Structure: Part 2 In Third Party Logistics
Implementation
Bonus: Logistics Service Level Agreement and Logistics Key
Performance Indicators: A White Paper
The Importance of Real Time Data and Visibility in
Technology Mirrors GEMBA and KANBAN Philosophies
Warehouse technology operations You would also do well to
let some of the incoming warehouse management processes be handled by a
transportation management system that has automation features for inbound
transportation functions. This type of system will help manage the handling of
inbound freight in real time, which will overall boost the performance and
speed of the warehouse as well as requiring less involvement on your part.
Stock materials should be used with technology that connects
your workers and the process they need to go through to complete their job. You
should make sure you prevent the chance of misplacement with good supply chain
technology where the warehouse workers can look for the freight quickly and
efficiently. Sit back and think of the automatic data flow that is possible,
giving all employees visibility with on floor displays, mobile apps, and
strategic meetings once all of your warehouse systems for the supply chain are
interconnected. The ERP speaks to the TMS, which then speaks to the WMS.
Technology is truly the beginning of efficiency, but the end and ultimately the best results comes
from getting management and leadership aware of these new changes. Then, managers
can use GEMBA, and like KANBAN, all is visible, and thus all are more
efficient.
Using Real Time Data and Warehouse Technology Creates Great Companies with
Happy Customers
The implementation of warehouse technology which provides
more visibility through data allows each employee, at a moments notice, to
collect real time information on the various warehouse and logistics process
holistically, getting everyone on the same page. We know that when a company's
culture is one of trust, backed by understood terms and data, it leads to
collaboration, and then finally results in, one of the most important aspects
of staying competitive as a company, innovation. As Toyota proved with it's
stellar supply chain and use of these ideas of GEMBA and KANBAN, in what is now
called the "Toyota Way", a company who implements operational changes
with the use of warehouse technology, can also stand out and stay ahead of
competition.
Customer demands are what change and dictates the
requirements for flexibility, as well as the flow of the freight that comes in
as you need to produce more and the freight that goes out as you get products
to customer. If you want to support improvements to your warehouse technology
& processes, then you will need to analyze the incoming real time data so
you can devise a better strategy for overcoming any difficulties you may be
facing. This will help in the long run, especially once you analyze the
collected data and you figure out ways you can respond to the changing customer
demands and business goals ahead.
Technology is Amazing, But Let's NOT Forget the Common Sense Fundamentals
to Maximize the Use of Warehouse Technology
Make sure the Warehouse is Aligned to What the Business
Wants: Align the operations of your warehouse with the business goals you set
in mind when you decided to implement new processes and warehouse technology.
Even if you have pressure coming in from your customer base to speed things up,
you should still keep your business objectives in mind as well. Find a good
balance of action and strategy to ensure you meet both ends of the spectrum for
optimum results.
Training: Employees must be trained on procedures, including
interaction with the warehouse technology you are implementing such WMS, ERP,
or TMS . The excellent manager spends quality time with each team member to
coach and encourage him or her. The WMS provides individual performance data to
inform the manager as to who needs what specific training. The manager needs to
then continually improve using this data.
Employee Motivation: Employee motivation can begin as simply
as posting charts of comparative performance to encourage competition. After
some data have been collected from the WMS, standards should be established for
each warehouse task. Employees who exceed standards can be rewarded informally
with perks or specific prizes. Ultimately, a formal gain sharing program can
entice an appreciable increase in productivity. Productivity increases of 30%
have been reported.
Physical Plant: An excellent warehouse includes adequate
dock capacity, ample staging areas, appropriate storage (pallet rack, shelving,
flow rack etc.), and suitable equipment (carts, pallet jacks, fork lifts, order
picking trucks, etc.). In general, a single level warehouse is preferable, but
conveyors and other mechanization can make a multi-level facility nearly as
efficient. The excellent warehouse manager plays a proactive role in planning
physical improvements.
Automation technology: Of course, fundamentals are exactly
what automation is all about. It takes manual tasks, that when executed exactly
the same with best practices in mind, can do well, and uses technology to
always have the process repeat and scale as expected. This includes vertical
and horizontal carousels, conveyors, automatic stacker cranes, automatic pallet
wrappers and many other mechanization. The forward thinking warehouse manager
will periodically evaluate potential automation projects. The guiding principle
here is whether any proposed automation investment in the various warehouse
technology available, provides an acceptable financial return. Picking rates
using a well engineered bank of horizontal carousels can be three to four times
those possible from fixed shelving, transportation costs and resources are now
lowered due to less errors, more control, and increased customer
happiness....and finally, the accounting department, with great visibility into
these processes, will love the new look of a more profitable bottom line.
