International Journal of Physical Distribution & Logistics Management

Streamlining Your Shipping and Despatch

Paul Morris
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To cite this document:
Paul Morris, (1991),"Streamlining Your Shipping and Despatch", International Journal of Physical Distribution & Logistics
Management, Vol. 21 Iss 4 pp. 42 - 44
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http://dx.doi.org/10.1108/EUM0000000000382
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 42 STREAMLINING YOUR SHIPPING AND DESPATCH
I
f you can define your despatching problems
in terms of specific needs then the available
up-to-date techniques and equipment can be
co-ordinated to provide better service and
decreased costs.
Streamlining
Your
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Shipping
and
Despatch
Paul Morris
The despatching function is critical to the day-to-day
operations of transport-dependent organisations since
despatching-related costs and operational inefficiencies
directly affect a firm's profitability and ability to provide
service. Improved despatching decision making and
process allows companies to utilise existing transportation
resources both more efficiently and effectively. These
improvements may be manifested in numerous ways
including increased on-time deliveries, decreased
dependence on common carriers to supplement a poorly
despatched fleet, decreased overtime of drivers and
handlers, and reduced equipment operating costs. By
controlling the despatch of delivery vehicles, firms have
the potential either to provide better service for existing
transportation dollars, or decrease company transportation
costs.
Site Handling Systems
The handling system will operate to best effect if it is
planned and implemented as a system extending from the
building served right into the vehicles. Any forklift truck
carrying palletised goods into a vehicle provides just such
a connection — irrespective of whether loading or
unloading operations are carried out — but the
arrangement proposed is rather more than that.
Where unit loads are loose-packed within the vehicle being
loaded, conveyors able to reachrightinto the heart of the
vehicle provide an extremely cost-effective facility. Their
effectiveness is increased even further when they are
directly connected with on-site conveyor systems, serving
the building as a whole.
Varied Loads Are Varied Pressures
Efficiency must, however, be judged primarily in terms
of specific needs. The problems requiring solutions need
to be defined before the effectiveness of installed
equipment can be properly judged.
A number of companies have developed a range of loaders/
unloaders able to meet the needs of every location,
whether or not it includes a purpose-built raised loading
dock. Telescopically extending conveyors can handle high
volumes of goods between the vehicle and the building,
while the different needs of other locations may be more
effectively met by powered mobile machines or simple
gravity operated units. Fixed and mobile scissor lifts
provide a further alternative, while dock levellers and a
unique vehicle restraint device have a special accident
prevention role.
Key requirements recognised at different locations have
included the maximum use of vehicle storage space,
reduced vehicle turnaround time, safety throughout
loading/unloading, an increased rate of throughput, and
the ability to cope with different vehicles, peak volumes,
varied unit loads, heavy duty, and difficult environments.
Different organisations may have different priorities. For
example, there could be a need to minimise load damage,
to have direct links with site conveyors, to obtain better
use of operating space, to be able to adjust to changing
circumstances, or to improve the working environment.
The handling operation is thus far more complicated than
simply taking in high volumes of goods and shipping them
out. Products will come in from the different sources
packed in particular quantities but may need to go out to
different destinations in quantities which are altogether
different again. Packages may need to be split up to provide
smaller quantities, or brought together to provide larger
ones.
Automation
The field of automation is no longer an emerging field but
qualifies as a mature field. Applications of bar codes,
 STREAMLINING YOUR SHIPPING AND DESPATCH
computer-controlled conveyors in high speed sortation
systems, automated order picking systems, computer-
controlled storge carousels, and automated guided vehicles
(AGVs), among others, have been fairly widespread over
the past decade.
Yet, in spite of a very lengthy record of "proved"
successes, "horror stories" related to the implementation
of automation continue to rise. Reports are not uncommon
of schedule slippages of months and years, coupled with
costs doubling and tripling estimates. At the same time,
many "success stories" exist involving the use of fairly
conventional systems.
The most significant lesson is
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that the primary benefit of
automation is the systems
discipline
In adopting a "back to basics" philosophy, some strongly
oppose making investments in automation. Why is that?
What is happening? Ten observations regarding the current
environment can be made:
(1) If "the finger of blame" is to be pointed, it should
not be pointed at automation technology. Rather,
the design, implementation and use of the overall
system should be examined before making a
judgement of culpability. With exceptions, it is
seldom the case that the technology will not work.
Usually, it is the case that either the scope of the
application was too broad, the wrong technology
was applied incorrectly, or the technology was not
being used properly.
(2) Many automated systems are designed "for show
not for dough". It has been shown that well-
designed, automated systems can be justified
economically. However, rather than invest in front-
end design to ensure that the resulting investment
will pay dividends, many prefer to buy more
hardware or software. Automation is over-promised
and under-delivered.
(3) Systems are often designed on the basis of the
state-of-the-art solutions existing at the time, or,
in some rare cases, in anticipation of advances in
the state-of-the-art. They are "solution driven"
solutions, instead of "requirement driven"
solutions.
(4) The real system requirements are not well defined.
The supplier is often asked to do "free design"
and quote a price for satisfying a user's needs,
43
without those needs being specified quantitatively
in terms of performance requirements. In a cost
competitive environment, less attention to detail
results and critical flaws creep into the design.
(5) The most significant lesson learned is that the
primary benefit of automation is the systems
discipline it imposes. For example, despatch
scanning is a highly disciplined technology in
comparison with the usual conventional system.
To the extent that the same level of performance
is obtained using more conventional approaches,
it is difficult to justify automation. It is very difficult
for automation to compete against a well-managed,
highly motivated workforce; but it is also the case
that very few well-managed, highly motivated
workforces exist.
(6) Normally any "bottlenecks" are due to software,
not hardware. The control system is often designed
with an excess of control built in. Rather than err
by under-controlling the system, the designer tends
to over-control. In this case, the KISS principle
means Keep Insisting Simple Software!
(7) The material handling system frequently becomes
the vehicle for addressing requirements that are
tangential to the material handling requirements.
The result is a major software job undertaken by
a firm whose area of expertise represents less than
half the effort. In general, suppliers without the
requisite software experience and qualifications are
trying to satisfy users' gluttonous appetites for
software sophistication. "Software smart
suppliers" generally are not "material handling
hardware smart", and vice versa.
(8) The user lacks the discipline to "freeze the design"
following the procurement decision. As a result,
requirements continue to be defined during the
system design effort. However, change-orders are
expensive and highly disruptive to the delivery
schedule. Also, it is often the case that changes
made during the design and implementation process
are "spur of the moment" and represent emotional
responses to an exception condition.
(9) The computer hardware and materials handling
equipment to be used are generally specified before
the requirements are defined. As a result, the error
is not discovered until the system is installed. We
end up with a "makeshift" solution.
(10) Unreasonable, unnecessary and very expensive
requirements are placed on the system to "never
fail". "Non stop" and "hot backup" requirements
must be analysed to ensure their necessity; the
cost of providing "full system recovery" within x
minutes or seconds, should be assessed before
arbitrarily specifying a value for x.
 44 STREAMLINING YOUR SHIPPING AND DESPATCH
Supplier Selection
A customer new to the handling sector willfindthe choice
of systems/equipment available nothing less than
bewildering. Select a supplier who can match up to a
number of key criteria:
• Does the supplier design, manufacture, install,
commission and service complete systems?
• Does the supplier offer a very wide product range
from which machines can be selected, closely
matching individual needs?
• Is the method of manufacture both flexible and
economical with due respect to equipment
manufacture and installation assembly?
• Does the supplier control the whole job — and
therefore the whole contract?
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• Does the supplier have ample experience in the
field and is he able and willing to see other
completed installations?
• Can the supplier provide an appropriate level of
advice on system specification?
• Can the supplier demonstrate consistent product
quality?
• Does the supplier recognise the five linked
priorities of saving time, space and money in
conjunction with greater control and greater safety?
Productivity Improvements
To contribute to improved cost performance and customer
service in despatch and shipping, review the following
areas for feasible application in your operation:
• Automatic loading and unloading trailers.
• Automatic identification systems, label printers, and
scanner/readers to facilitate data entry.
Paul Morris is Logistics and Distribution Executive, Handbags International.
• Automatic palletisers and depalletisers, shrinkwrap/
stretchwrap/strapping for unitising/stabilising
loads.
• Special attachments on industrial trucks, e.g.
slipsheet, clamp.
• Extendable conveyors that go into trailers.
• Dock levellers (hydraulic).
• Scheduled arrival of both outbound and inbound
carriers and pre-assigned spots for loading/
unloading.
• Provision of computer terminals at the dock areas.
• Partnership with third party operators with
compatible philosophies.
Features and Benefits
These include:
• improved management information through the
timely production of accurate performance
measurements;
• improved management of transport costs with
better relations with owner/company operators;
• reduced administrative costs by reduced paper
handling, reduced manual pricing and checking and
account reconciliation;
• reduced labour effort;
• more accurate forwarding of outbound
merchandise;
• automatic productivity capture;
• service level measurement;
• controlled routing/assembling of merchandise.
 This article has been cited by:

1. Andrew Potter, Biao Yang, Chandra Lalwani. 2007. A simulation study of despatch bay performance in the steel processing
industry. European Journal of Operational Research 179:2, 567-578. [CrossRef]
2. Andrew Potter, Chandra Lalwani. 2007. Developing a methodology to analyse despatch bay performance. International Journal
of Production Economics 106:1, 82-91. [CrossRef]
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