“Seeing the forest through the trees”

It is hard to see the forest through the trees sometimes.  In our world (Distributors and Manufacturers), the trees that block our view are the pressing demands on a Distribution or Plant Manager.  You all know them well as they are routine in nature:

·         Hiring enough and the right type of associates.

·         Making sure we are meeting our customer service expectations.

·         Keeping up with new products, new acquisitions and promises made by our sales force.

·         Finding the space to accommodate growing business requirements.

·         Adapting to increased e-commerce needs that accompany society’s changing purchasing behaviors.

When you are blocked by the trees, we all tend to handle these demands ourselves using the path of least resistance.  As our SKUs increase in volume and in number, it is easy to continue to find empty spaces, hire new people and do things the same way until it starts to affect our customers.  Once our customers become affected and the top and/or bottom line reduces, the praise you once received for doing more with less is replaced with questions about how you are going to fix it. 

Although the economic slowdown is continually in the news, I have met more than a few companies that are growing 10, 20 and 30 percent year over year.  Many of these companies do not employ the sophisticated metrics developed and available to larger companies so where do we begin?

An essential beginning is to understand our SKU’s (Stock Keeping Units).  It is valuable to know the dimensions of your product (length, width, height and weight).  Additionally, the same dimensions for the case we traditionally pick out of if other than case quantities.  Since most companies know their sales data, we look to understand the demand and the size requirements to store and pick. If you don’t have time to do this, hire someone to help you see the forest.   

Stepping back from tress, looking at your product speed, dimensions, replenishment requirements and future growth projections will allow you to redesign your picking operation to replenish less, travel less, use floor space better and reduce current and future labor. 

If you are blinded by the trees, hire a lumberjack to help you cut them down.

For more information from Greg, view his page at www.trifactor.com/greg

Should I stay or should I go?

Successful distributors often find themselves a victim of their own success.  Your “Once Small” business has now grown into a very large distribution center.  Your work-force that was once a few tried and true set of associates that you knew personally and could rely on for their ability to use their initiative and “tribal knowledge” of your business has grown multiple times.  Perhaps you don’t know them by name anymore as unfortunately they seem to come and go.  Your once spacious warehouse continues to grow laterally and it is getting tough to find space to pick, package and stage product.  So the subject comes up: “Are we getting too big for this facility?” and “Maybe it’s time to move to a bigger place”.   Don’t get me wrong, System Sales Engineers like me love a new distribution center and maybe it is time to move to a bigger place. But before you do, let’s point out a few areas that deserve some consideration. 

Cubic Space vs. Lateral Space

You are spread out to the max but do you have clear areas above your current distribution operation to use vertically instead of laterally.  There are many ways to use this space that often goes ignored.  Shelf supported platforms, mezzanines, pick modules and sorters can often be elevated to use the vertical space available.   Additionally, in distribution operations with small parts or many slower moving SKUs, vertical lift modules are a good means of condensing storage of items while suing the full clear height of your facility. 

Manifesting Consolidation

You ship with the typical providers UPS, FEDEX and USPS and you keep adding manifesting stations to keep up with the throughput requirements.  However, many distribution centers are automating this function in a condensed space with a picking operation that features:

·         Picked case LPN – License Plate Number bar codes that contain order data.

·         Cases that are bar coded by the case manufacturer with dimensional data contained.

·         Central shipping label print and apply lines

o   Case LPN is scanned

o   Case dimensional data code is scanned

o   Case is weighed in line on the fly

o   Shipping label (FEDEX, UPS or USPS) is applied automatically

o   Case is sorted automatically to their respective line by shipping type

Imagine one central shipping area instead of multiple manifesting lines with all the redundant equipment and space that comes with it. 

Picking Consolidation

You have an army of pickers that pick up their paper pick lists, pick orders one at a time with carts, taking them up to a central packing area.  I know it was never meant to be this way but it just came with the great success of your business.    With all this travelling and movement come the inevitable reduction of throughput and the expansion of picking areas required to hold all this traffic, never-mind the social activity that goes together with pushing picking carts around the distribution center. 

Many distribution centers centralize picking, using batch picking with a suitable technology which may include RF scanners, pick to light, or voice picking.  The picking may be done out of carousels (horizontal and vertical) depending on the velocity of the individual SKU or out of pick modules which are slotted by velocity of pallet picks (full pallet, carton flow or shelving).  The right type is a function of the speed of the pick, dimensional qualities of the SKU and the density of product pick faces.

There are also “Goods to You” applications that make great use of the vertical space often available in many warehouses.  These “Goods to You” systems bring the product to the picker and are versatile in form and function. 

Before you consider moving, spend some time looking up and consolidating where you can, using proven technologies.  It’s much cheaper than taking on a new lease. 

Welcome! Meet Greg Tuohy of TriFactor

Distribution Center Planning and Industry News has been created to deliver current distribution industry news from Greg Tuohy of TriFactor.  TriFactor is a FL-based material handling systems integrator that serves the warehousing and distribution industry worldwide.  Feel free to follow this blog, get in touch with Greg, and/or check out TriFactor's website www.trifactor.com

About Greg:

Greg Tuohy earned his Bachelor of Science degree in Mechanical Engineering from Boston University.  Greg has been a System Sales Engineer with TriFactor for nine years.  Greg’s professional career includes over six years of management experience as a Production and Service Manager in the textile industry. Over the course of his professional and military career he has served in numerous logistical positions in Europe and the United to include service as a Company Commander in the 101^st Airborne Division.

Today, Greg works with industry leading companies to find efficient material handling solutions for their warehousing and distribution facilities.  TriFactor delivers integrated material handling systems to unique businesses across the United States.