So too you see it in distribution centers where SKU growth
has made it difficult to efficiently replenish, pick and manage inventory. So what can we do about it?
A good first step is to understand the dimensions of our
products. At a minimum we should know
the length, width, height and weight of the unit size we pick from whether it
be cased or individual picks. If you
don’t know the SKU volumes then schedule an effort monthly to capture this
information using a Cubiscan which you can rent or purchase.
A close second step is to understand how fast our SKUs
move. Typically, you will want to look
at a year’s worth of data so that you may account for any seasonality or for
unnatural spikes in demand.
Understanding how fast your SKUs move allow you to store them in the
right type of picking media (rack, shelving, pick modules or storage and
retrieval systems such as carousels or more advanced systems such as mini-loads
and AS/RS).
It is wise to have assigned locations for your SKUs. Assigning multiple SKUs to one large location
often causes many issues:
·
Order
pickers have difficulty finding the appropriate item to pick for the respective
order. If you have item in cases that look alike only distinguishable by item
number and they are collocated in the same SKU location, miss-picks will surely
follow.
·
Replenishment
operators need to efficiently find and place the respective SKUs where they
belong. If it is difficult to know where
to put it, operators will just use their best judgment. A more
systematic approach is necessary.
·
Cycle
counting is never a fun thing but imagine doing it with SKUs all mixed up in a
collocated location? Having to pick up
unit picks and looking at code designations to get the correct SKU inventoried
is expensive and a waste of labor.
Curing these issues often is not an expensive proposition. Rather it requires a little distribution center elbow grease. Most Warehouse Management Systems homegrown or otherwise can handle assigning SKUs to what level you require. SKUs can be measured and recorded for future slotting use.
Finally, SKUs that are seldom used or never used can be
relocated to more remote areas of the distribution center to allow for the
prime movers to be picked efficiently.
For more information from Greg, view his page
at www.trifactor.com/greg
