Tuesday, April 2, 2013

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. 

Thursday, January 24, 2013

Examine First Diagnosis Later

Seldom can you walk into a doctor’s office and get a diagnosis for what ails you.  Rather the doctor asks you a series of questions runs tests and even sends you to get blood drawn to understand what’s happening on the inside.  Yet when important automation decisions are made at distribution centers and manufacturing facilities, solutions are often provided as a result of a diagnosis based on what the customer specifically asks for or some technology that is applied based on some other company’s operation.  Important questions are not asked, and the customers end up only with what they asked for. 
So some may say “Give the customer what they asked for” and “The customer is always right”.  Both are wise statements if you wish to stay in business, but don’t we owe a deeper responsibility to people who entrust us with large financial investments and sometimes their careers? 
If the answer is yes, then it is necessary to understand our customers more and further examination is required before we diagnose.  Beyond the identification of product dimensions, cartons or pallets per minute or lines picked per hour lay important questions.
·    What are the most critical aspects of any potential transition to automation? These answers are often different depending on who you speak with.
·    Are there any future growth anticipated through acquisitions or through e-commerce business growth?
·    Is the primary goal to reduce labor, increase throughput, increase productivity, reduce operational footprint, extend stay at existing facilities, increase accuracy, improve safety or reduce theft?
·    Are there parallel software initiatives such as transitions to a new Warehouse Management System or Warehouse Control System that will require interfacing with and automation initiatives?
As we get the answer to these questions we must also be aware of a great degree of customization that has been increasing over the last 5 years.  Customization is increasingly difficult issue for distribution centers and manufacturers to plan for and adapt to.  Big box retailers expect their product in specific pallet configurations, labeled and wrapped uniquely, with various product staging times corresponding to transportation scheduling.  Particularly in low SKU high volume operations, users want mixed pallets that have layers of different products and sometimes cases of different products that allow them to only stock what they need.  Couple this increase in customization with an increasing consumer appetite to purchase items online with options available for shipping speed, specific carrier selection and special packaging and you have system requirements that must be versatile and modular to keep up with changing customer market dynamics.
If we don’t ask enough right questions the examination will not be thorough enough to properly diagnose what type of system is best for your customer.  Even if you provide exactly what your customer asked for it is not good enough.  Uncomfortable discussions based on challenging the status quo can open details that will result in good quality systems that are built for growth, flexibility and responsive customer service.  

Friday, January 18, 2013

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 101st 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.