Warehouse Management [1]

 Warehousing’s Role in the Supply Chain

 Warehouse operations – procesele de baza dintr-un depozit
 Warehousing Trends
- From Warehouse to Distribution Centre (DC)
- From DC to Omni-channel DC
 Picking strategies and Equipments -metode si sisteme de
colectare a comenzilor
 What makes a DC successful
 1. What is Warehousing

Internal

Processing
• Purchases • Customer Shipments
• Customer Returns • Vendor Returns
• Transfers • Transfers
• Outside • Outside Processing
Processing supplier- components and
• Pick • Assembly
sourced components resources in work in
• Pack • Storage
and resources in your process
• Inspection • Move
manufacturing processes
• Count • Replenish
 Function of a Warehouse in a Supply Chain

A warehouse is the point in the supply chain where goods are

stored for varying lengths of time.

Warehouses can be used to add value to a supply chain in two

basic ways:

1. Storage. Allows product to be available where and when

its needed.
2. Transport Economies. Allows product to be collected,
sorted, and distributed efficiently.
 Transport Economies
Transportation carriers usually give discounts for bigger
loads.

• Consolidation of multiple small loads into a larger

load gives access to economies of scale in
transportation.
– Full truckload (TL) shipments are less costly than less-than-
truckload (LTL) shipments.
– Waiting to accumulate a full load for TL shipment from
origin to destination can cause excessive delay.
• Warehouses function as transshipment terminals
for consolidation, cross-dock, and break-bulk
activities.
 Warehousing’s Role in the Supply Chain
The resources are space (the building), labor (the people),
and knowledge (information/data and workers’ skills).

The modern warehouse or distribution center (DC)

provides resources to support both traditional and value-
added activities.
 2. Consolidation Warehouse
Supplier
A
A

Supplier Consolidation
B A B C Customer
B Warehouse

C
Supplier
C

• A consolidation warehouse is used to combine multiple loads

into a single load.
• Instead of costly LTL or infrequent TL shipments from each
supplier directly to the customer, a consolidation warehouse
provides less-costly and more frequent TL shipments to the
customer.
 3. Cross-Dock Warehouse
Supplier
Customer
A A
A C
A B
A
Supplier Cross-Dock
B B B A B C Customer
B Warehouse

A
C B
C C
Supplier C
Customer
C

Warehouse receives TL shipments of products from multiple suppliers to one receiving dock
then sort products by purchase orders, destination and transfer with no “storage time”
shipments to the final destination directly to an shipping dock to make final deliveries.
Cross-dock operations needs large staging areas where inbound materials are sorted and
outbound shipments are staged and ready to ship within hours.
Receiving and shipping are usually coordinated so that no storage is required at the warehouse
product is exchanged between trucks so that each truck going to a retail store has products
from different suppliers.

Many warehouse cross dock facilities are temperature-controlled to maintain your cold chain
requirements (Cold chain management).
One way to classify cross docking operations is according to when the customer is assigned to
an individual pallet or product.
• In pre-distribution cross-docking, the customer is assigned before the shipment leaves
the vendor, so it arrives to the cross dock bagged and tagged for transfer.
• In post-distribution cross-docking, the crossdock itself allocates material to its stores. For
example, a cross dock at a Walmart might receive 20 pallets of Tide detergent without labels
for individual stores. Workers at the crossdock allocate 3 pallets to Store 23, 5 pallets to Store
14, and so on.”
A simple Cross-Docking

Freight has been

docked in the
center of the floor,
while forklift trucks
drive along the
walls to carry
freight to the
appropriate
departing trailers.
 Crossdock in at least two of these conditions:

• Product destination is know upon receipt or you are

able to package and label destination for immediate
delivery.
• You daily ship to less than 200 locations.
• More than 70% of products fit conveyors.
• You receive large quantities of individual items.
• Products arrive pre-labeled.
• Some products are time-sensitive.
• Distribution center is near capacity.
• At least some inventory is pre-prices.
 4. Break-Bulk Warehouse
Deconsolidarea/Divizarea unitatilor de incarcatura (containere, paleti, cutii, etc) si
separarea marfurilor pe fiecare client (eventual repaletizare)

Customer

Sursa Depozit A

Supplier Break-Bulk
A A A A Customer
A Warehouse

Customer

• At a multi-market warehouse, a large long-distance TL shipment from a supplier to broken

down into smaller loads that are delivered a short-distance to each customer.
• Multi-market warehouses are usually located close to or in each major market served.
• Se foloseste foarte mult in cazul distributiei catre retaileri unde se solicita si reambalarea
produselor conform cerintelor specifice ale clientului: ex ofertele 2+1 – kitting and
packaging
In cazul combinarii operatiunilor Break-Bulk cu Cross-Docking, operatiunea se numeste BBXD
(Break Bulk Cross Docking)
 5. Traditional Warehouse

Pallet Storage

Warehouse
Receive Putaway Store Pick Ship

Returned goods depots

 Warehouse Traditional Activities
Product receiving,
storage, which requires putaway and inventory management
shipping, which requires picking the items from storage and combining
them into orders. Shipping

Storage

Receiving
 6. Warehousing Trends
- From Warehouse to Distribution Centre (DC) -
- From DC to Omni-channel DC –

The supply chain of the future is

more about pieces than pallets

Statistic: A mere 10% of distribution centres exclusively handle pallets, while 66% handle a
mixture of pallets, cases, split cases, and pieces. (sursa: Logistics Management 2018
Distribution Center Survey)

Today’s distribution center is different than it was 15 or even just five years ago

Amazon insinuates the company has its eye on 3D printing as new way of replacing the
traditional warehouse model.
How does warehousing support
supply chain strategy?
 Warehousing Trends (1)
The Warehousing Trends reflect an industry expanding and
facing up to omnichannel pressures, e-commerce and SKU
growth, and more item and case handling.
Omni-channel – toate canalele de vanzari online si offline (de
contact cu produsele) ale clientului functioneaza integrat (magazin, on-
line, social media, web chat, telefon, etc). Necesita platforme care permit
activitati cross-channel. De exemplu, vizualizez on-line stocul si comand
produsul pentru a fi livrat catre cel mai apriopiat magazin de domiciliu.
Se face colectarea produsului si sunt programat sa-l ridic din magazin (click
& collect) sau sa-l primesc acasa (direct to consumer – home delivery).
How omni-channel is changing DC design/size?
What current operations best practices keep pace with the new economy?
What technologies are leading the way in omni-channel fulfillment?
How managers are keeping costs in line while improving service under
increasing pressure?

Are your operations keeping pace with the dynamics of

omni-channel fulfillment?
You need to be flexible enough to adapt to varying order
profiles, volumes and order filler workflows.
 Warehousing Trends (2)

Retailers has to adjust their order fulfillment strategies to keep up

with rising consumer expectations .
The most effective strategies and solutions currently available:
1. Enhance Picking Productivity : the shift to paperless picking
solutions increase productivity by up to 50 percent (Pick-to-light,
Put-to-light, Voice picking, Radio frequency (RF) technology -
Handheld and mobile RF devices, etc).
2. Improve Omnichannel Distribution with Put Walls*
Put Walls maximize efficiency by serving as points of demand
consolidation enabling intelligent order batching, adjustments and
other allocations among wave, pick and put.
3. Automate for efficiency - intelligent automation solutions (see
next slide).
Warehousing Trends (2)
3. Automate for efficiency -
intelligent automation
solutions:
• Warehouse execution systems
(WES) - WES software optimizes
your facility, delivering real-time
responsiveness with automated
decisions based on constant
analysis of orders, inventory, labor,
processes and equipment.
• Automated storage and retrieval
solutions - Ideal for operations
with high-turn inventory storage
and short order cycles, AS/RS
systems provide quick access to
products, while reducing storage
labor and footprint requirements.
• Unit sortation - Designed for ultra-
light, irregularly shaped and
polybagged items, these systems
deliver the highest throughput at
minimum speeds for years of
reliable, low-maintenance
operation.
 Today’s Distribution Center
Flow Through
Merge-in-Transit

VAS
Storage

Distribution
Center
Cross Dock
Consolidate/
Receive Putaway Store Pick VAS Cross-Docking/ Ship
Break- Bulk

Returned VAS- Value Added

goods depots Services
2016 Amazon’s distribution facility prototypes across its North American supply chain:
•Fulfillment and redistribution centers (75)-centre de distributie ale produselor comandate online
•Sortation centers (26)
•PrimeNow hubs (43)
•Delivery/sortation stations (16) - located close to metropolitan population centers
 New Warehouse or Distribution Centers
Facilitati moderne de distributie
Minimizarea timpului de depozitare si a costurilor asociate
Individual stores’ orders are generated automatically on a daily basis.
These are directed to the appropriate warehouses. Order fulfillment begins when a
warehouse downloads a store’s order to its information system. There are a variety of
methods used to replenish stores’ inventories. Several of these avoid the need for
warehouse storage, saving the company storage and handling costs.
Those methods are:
1. Cross-dock: A full inbound pallet is redirected to an outbound shipment.
2. Cross-distribution: An inbound pallet is broken down into cases right on the dock, and
then the cases are immediately distributed to outbound pallets.
3. Vendor-managed inventory: Vendors of some non–store brand items such as bread and
soft drinks handle replenishment, and those items come directly from the vendor’s
warehouse to the stores.
Warehoused replenishment items are handled as full pallets, or broken down into cases,
depending on quantities ordered:
1. Block pick: An entire pallet of goods in the warehouse is placed on an outbound truck.
2. Case pick: Individual cases or packages are pulled from inventory, placed on pallets and
shrink wrapped, and then placed on outbound trucks.
Computerized information on incoming orders is checked against incoming shipments of
stocks to determine which items can be filled using cross-docking or cross-distribution right
in the loading area. These items are then subtracted from a store’s order.
The remaining items are filled from warehouse supplies.
 New Warehouse or Distribution Centers
Minimizarea timpului de depozitare si a costurilor
corespunzatoare acesteia
- Maximum adding of value (including final assembly).
- Real-time data collection.
- Aim at maximizing profit of demand
Customers are demanding more individualization of orders and
quicker response. The warehouse is closer to customers and uses
relatively inexpensive resources, so it often makes sense to move
final packaging, labeling, and configuration to the warehouse or DC.
These are value-added services (VAS) like product packaging,
repackaging, labeling (etichetare), shelf-ready displays, Kitting,
postponement and Light Assembly Services, ASN and invoicing.
VAS provide flexible postponement, customized assembly, packaging,
and last mile delivery strategies to enhance the shipper's B2C strategy.
WMS must allow the creation, editing, and processing of
VAS order.
 Example of value-added services
Kitting and Packaging
• A kit is a process of building kit products by assembling their component materials (raw
materials, semi-finished products or finished products) and sold as a single product. It
consists of a finished good that contains sub-components. Many companies use kits to add
value to the products they sell. It may be a computer company putting a keyboard, mouse,
and speakers together with the computer to sell as a single unit, a cereal company that
puts a toy in with the cereal, items assembled according to the retailer’s requirements
such as “five-pack”, “buy two, one free” offer, etc.
• The problem that can arise when a company uses kits is the opportunity for human
error. First, someone needs to calculate how many of a product goes into a kit and how
many kits are being made. Then, a worker needs to go get the parts. Depending on the size
of the kit and the number of kits produced, this can become a headache and time-wasting
event. When making a kit, one must deduct the ‘sub-components’ of the kit from inventory
so they can be used to make the kit. Then the newly kitted item needs to be added into
inventory and put into pickable bins. With all the interaction between the warehouse and
the accounting department, mistakes are a constant worry.
• WMS helps streamline the whole process. It automatically calculates the number of
products needed and where they are located, to minimize both headaches and time
wasted. WMS directs the picker to the chosen work area for building kits. It automatically
deducts the ‘sub-components’ out of inventory and feeds the adjustment up to the ERP
system. Once a kit is completed, the WMS software automatically adds the new product
and puts it into a designated bin location, from which the product can be easily transferred
into bins available for order fulfillment. Every step of the process helps to minimize the
chance of human error and to maximize productivity.
 Postponement method applied
in warehouse management
(see also SCM push-pull model )
• Postponement: A warehouse with facilities for light
manufacturing activities like assembling, packaging
and labeling can enable postponement of final
production until the exact demand is known.
• The benefit here is a reduced level of risk and lower
inventory as the final labeling and processing activity
is done only on knowledge of the actual demand and
thus the basic product is used for a variety of labeling
and packing configuration.
Building a Flexible e-Commerce Center

These are some elements of a flexible e-commerce

warehouse/fulfillment center:

– High-speed, multi-level conveyor systems (up to 25,000

units per hour).
– Goods-to-Person and Goods-to-Equipment fulfillment.
– A warehouse execution system (WES) that syncs with
existing WMS, ERP software, fulfillment picking, and
materials handling equipment.
– Robotic technology for order picking and retrieval.
– Handheld applications for order accuracy and user
mobility.
– Value-added services, including product customization and
postponement.
 Reduce order fulfillment times

(4) – DTC “each” pick area

– piece picking area in the
DC to do more drop
shipments and next-day
deliveries for e-commerce
orders.

(8) Parcel shipping area -

customer orders received
online are picked, labeled
for shipment and delivered
to a parcel shipping area
(8) for UPS and FedEx
pickup.

Creating the infrastructure to support a growing e-commerce

channel today
(DC-ul organizat pentru a prelua comenzile canalului E-commerce)
E-commerce and e-fulfilment
There are many
different reasons for
outsourcing e-
fulfilment:
lower set-up costs;
faster set-up times;
scale economies with
multiuser operations;
reduced transport
costs through order
consolidation with
other users, and
easier expansion of
geographic coverage.
 Inside the Omnichannel DC
The explosion of e-commerce has forced warehouse operators to rethink
how they equip facilities and fulfill different channels. Managing multiple
channels within one facility requires significant capital investment in
systems and technology, such as:

• Inventory management system that spans the entire supply chain for
achieving real-time visibility.
• Distributed order management system to decide cost-effectively whether to
drop orders into a DC, e-commerce fulfillment center, combination DC, or
store to meet customer service levels.
• Warehouse Management System.
• Warehouse Control System to direct the flow of materials within the
warehouse and communicate with all the materials handling equipment.
• Conveyors for moving products to appropriate locations.
• Sortation units that deliver items to shipping locations.
• Picking/packing systems for directing workers what to pick, how many, and
where to pick or pack. Some DCs are starting to use robotic picking
technology.
• Automatic Storage and Retrieval Systems (AS/RS).
• Miscellaneous: Robotics, goods-to-person, transportation management
systems, RFID, equipment to apply labels to cartons.
7. Warehouse operations – design
and control
 The five basic elements of a warehouse are:
1. Receiving area (zona de receptie)
2. Storage area (zona de depozitare)
3. Shipping area (zona de expeditie)
4. Storage and Material handling system (sistemele de depozitare si
manipulare a produselor)
5. Information system:
– WES - an IT platform that interfaces with an existing ERP system or
WMS to optimize inventory flow and execute more complex picking
production commonly found in e-commerce facilities.
– WMS (sistemul informational WMS)
– WCS - responsible for maximizing the efficiency of the materials
handling subsystems, and often the activities of warehouse workers
themselves. It provides a uniform interface to a broad range of
materials handling equipment such as ASRS, carousels, conveyor
systems, sortation systems, and palletizers."
– DOM (Distributed Order Management)- pentru omni-channel – este
un modul optional intre Order Management si WMS care stabileste
cel mai profitabil mod de colectare a comenzii (magazin, fabrica sau
centru de distributie) si transport la destinatie.
WES vs DOM?
There are many variations on this basic pattern
 8. Typical Warehousing Activities
Colectare
Receptie Depozitare comenzi

Reserve Forward Order Sort &

Receive Putaway Replenish Ship
Storage Pick Pick Pack

• Receiving
(unloading,
verifying,
inspecting)
• Putaway or cross-
docking
• Order picking,
Replenish
replenishment
Reserve Forward Picking • Sortation, packing
Storage O
Pi rd • Shipping
ck er
in
g
Order Picking (verifying, loading)
Packing, Sorting • Within storage
Putaway

areas:
y

& Unitizing
wa

consolidation,
ta
Pu

rewarehousing,
cycle counting
Receiving Shipping
Cross-docking
 General structure of warehousing process

Aviz/Factura

Stivuire pe dest. livrare

Purchase ASN*
Order

Sortarea/
pregatirea
Create Transfer Order
comenzilor
ASN*-advanced shipping notification pentru livrare
Warehouse Space Requirements

Management of Business Logistics, 7th Ed.

 The relationship between warehouse activities and
warehouse resources is shown in this chart.

Resources
Activities
Space Labor Knowledge

Receive Receiving Dock Receiving Crew Purchase Order, ASN or

(Receptie) (operatori receptie) manifest

Put items away Storage Receiving Crew Layout of space, handling

(depozitare) equipment

Pick to orders Storage/pick stations Pickers Customer orders

(Preluare,colectare (operatorii de
comenzi) pregatire comenzi )

Stage and Load Staging / Shipping Area Loaders Customer order, Transport
(Stivuirea si incarcarea Manipulanti marfa, information
comenzilor pe rute) Motostivuitoristi
 8.1. Receiving

Reserve Forward Order Sort &

Receive Putaway Replenish Ship
Storage Pick Pick Pack

• Receiving introduces inventory into the warehouse

and prepares it for storage or customer order
fulfillment.
• It is the process of unloading, verifying, inspecting,
and staging of material transported to a warehouse
in preparation for putaway or cross-docking,
sometimes including sorting and repackaging of the
material.
 8.2. Putaway

Reserve Forward Order Sort &

Receive Putaway Replenish Ship
Storage Pick Pick Pack

• Putaway is the process of moving material from the receiving area to a

storage location or, in the case of cross-docking, directly to the shipping
area.
• A putaway algorithm is used in the WMS to search for and validate
locations where each movable unit in the putaway queue can be stored.
• The efficiency of all subsequent warehouse operations depend on
performance of the putaway algorithm.
• Inventory and location attributes are used in the algorithm to make the
selection.

Putaway – transferul produselor receptionate in locatiile din zonele de

depozitare decise de sistem sau catre zona de expeditie in cazul operatiunilor
cross-docking.
 8.3. Replenishment
Reaprovizionarea zonei de picking
Reserve Forward Order Sort &
Receive Putaway Replenish Ship
Storage Pick Pick Pack

• Replenishment is the process of

moving material from reserve
storage (zona de rezerva) to a
forward picking area (zona de
colectare a produselor din comanda)
so that it is available to fill customer
orders efficiently.
• Other types of in-plant moves
include:
– Consolidation: the process of
combining several partially filled
storage locations containing the same
type of item into a single location or
several orders into a single shipment.
– Rewarehousing: the process of moving
items to different storage locations to
improve handling efficiency.
 Replenishment
Which skus* to store in the fast-pick area?
How much of each sku to store there?

Depozit – Forward-pick or fast-pick area that is

Depozit – more convenient to pick, but space is
Zona de Zona de
rezerva limited.
colectare Colectarea comenzilor din zona de
colectare reaprovizionata anterior
din zona de rezerva.
Este specifica articolelor cu viteza
mare de rotatie.

Colectarea comenzilor direct din

zona de rezerva/stocare.
Este specifica articolelor foarte
mari sau cu miscare lenta.

*sku (stock keeping unit) is the smallest physical unit of product that is tracked
by the organization.
 8.4. Order Picking
Colectarea produselor din comanda pe baza
notei de colectare
Reserve Forward Order Sort &
Receive Putaway Replenish Ship
Storage Pick Pick Pack

• Order picking is the process of removing goods from

storage in response to specific customer orders.
• Attributes not contained in the customer order are
assigned using the preferences stored in the
customer master file.
Why is Order Picking Important?

• Order picking is the most critical

activity in most warehouses because
it is the point at which customer
expectations are actually filled.
• Order picking represents 50% of all
operating costs in a typical
warehouse.
In general you should be
able to practically eliminate
time spent searching for
lost inventory and improve
pick labor productivity.
 Type of picking units
Zona de rezerva Zona de Colectare

or Piece picking
 Example: Cartons Picking

Fig. 1.a. Carton Picking Ways Fig. 1.b. Carton Picking Ways

Cartons are picked from pallet flow rack

onto a conveyor – direct picking from Cartons are picked from Gravity Flow Rack
reserve area. (plan inclinat) onto a conveyor – multiple
See the next slide to see an other way of fast picking area
cartons picking
 Carton Picking from Pallet Rack

Fig. 1.c. Carton Picking Ways

• Low pick density means lost of traveling for order picking cases
• Cases picked onto pallet jack (transpalet see fig. 2 ) or conveyor
• Fast movers typically stored in floor storage or bottom level of
pallet rack
Cartons are picked from the bottom (dedicated), most convenient level;
when the bottom position is empty, a restocker refills it by dripping a pallet
from above. Newly arriving pallets are inserted into the high overstock
area (randomly).
Fig.2. Manual pallet jack (Transpalet)
Conveyor – banda transportoare
 Picking methods.
Metode de colectare a comenzilor

The type of pick process you

use is driven by cost, handling
characteristics, and order
profile.
Being able to match the right
pick process to the order
profile will result in
improvements.
 Picking methods description
Release Description Picker Line Perio Pros Cons
Method s Per Items ds per
Order Per Shift
Pick
Discrete A single order is filled. Single Single Single simple, risk of picking errors least productive,
Picking of omission is reduced, excessive travel
One person picks one order,
provides fastest response in time, relatively
(Pickingul one product at a time. Orders
a service window low number of
pe are not scheduled and may be
environment, picking orders picked
comanda) picked at any time on a
accuracy accountable to a simultaneously,
particular day.
single person, little greater risk of
1 operator/comanda coordination with other picking area
pickers required, no space congestion
required for order
consolidation, and relatively
low control system
sophistication required
Zone The total pick area is organized Multipl Single Single flexible with different skills or Multiple pickers
Picking into distinct zones managed by e equipment associated with a accountable for
one person responsible for hybrid warehouse, reduced picking accuracy,
Pickingul
picking all lines for each order travel time/congestion/delays high coordination
pe statii
that are in her zone. Two due to the ability to further with other pickers
de
variations of zone picking subdivide zones, relatively required, space
colectare
include: Sequential zone high number of orders picked and coordination
Pick and
picking, when the order is simultaneously, reduced required for order
Pass
passed from one zone to the picking area congestion consolidation
next, one at a time.
Simultaneous zone picking,
when the order is consolidated
in a designated location after
zone picking is done from all
applicable zones
independently.
 Picking methods description (continued)
Release Description Picke Line Perio Pros Cons
Method rs Item ds
Per s Per per
Order Pick Shift
Batch A group of orders Single Multip Single greater risk of picking and sorting
Picking are filled at the le productivity, best errors, coordination
same time, one for orders with few required between bulk
Pickingul
line at a time by (1-4) lines and picking and individual order
consolidat al
one order picker. small cube, sortation , individual order
comenzilor
reduced travel processing time dependent
time, drastically upon total batch processing
reduced picker time, space required for
travel time, very individual order sortation,
high number of residual product handling
orders picked can be relatively high,
simultaneously relatively high control
system sophistication
Wave Orders may be Single Single Multipl better coordination Risk of productivity loss if
Picking released in e with shipping shipping schedule is
waves timing unbalanced
Pickingul pe
(hourly or each
loturi de
morning or
comenzi
afternoon)
according to the
schedules of
outgoing
vehicles. One
picker picks one
order one line at
a time.
 Picking methods description (continued)
Releas Description Pickers Line Periods Pros Cons
e Per Items per
Metho Order Per Pick Shift
d
Zone- Each picker is assigned Multiple Multiple Single Potential for requires more
Batch a zone, and will pick a higher control due to
Picking part of one or more productivity complexity in
orders, depending on nature
Mixul
which lines are stocked
de
in the assigned zone.
picking
Zone-
Batch
Zone- Each picker is assigned Multiple Single Multiple Potential for requires workload
Wave a zone, and picks all higher balancing between
Picking lines for all orders productivity pick zones
stocked in the assigned
zone.
Zone- Each picker is assigned Multiple Multiple Multiple Potential for requires more
Batch- a zone, and picks all higher control due to
Wave lines for orders stocked productivity complexity in
Picking in the assigned zone. nature

Modificarea prioritatilor în care comenzile sunt alese, agregate (consolidate) și livrate se

face prin alegerea uneia sau a mai multor metode de picking care sa permita încărcarea
si livrarea la timp a comenzilor clientilor.
 Picking Method
General rules based on the order profile

Total Orders: Low

Basic Order Picking Picks Per Order: Moderate to High
Nr linii comanda: Moderat spre Mare

Total Orders: Low to High

Batch Picking Picks Per Order: Low
Nr. Linii comanda: Mic

Total Orders: Low to High

Wave Picking Picks Per Order: Moderate to High

Total Orders: Moderate to High

Zone Picking
Picks Per Order: Low to Moderate
 Picking Systems

• Person to Goods (P2G) - picker-to-stock systems

Human pickers walk up and down aisles picking orders.
They might have radio-frequency (RF) devices instructing them
on where to go and what to pick rather than a paper pick list,
but it’s very much a “person to goods” method that involves
significant travel by pickers.
• Goods to Person (G2P)
Human pickers operate workstation using automated
picking solutions such as AS/RS (automated storage &
retrieval systems) by eliminating nearly all the travel
involved in order picking.
 Picking Systems
System Description Pros Cons

Paper Picking A printed pick list that includes higher likelihood of

SKU’s and locations picking errors;
requires manual pick
confirmation
Label Picking A bar coded label is printed for each reduces likelihood of
SKU or full case with correct location counting errors, improves
address, SKU identity, and customer productivity
order number.
Pick-to-Light The use of a visual display to paperless picking, order Need a warehouse
visually lead the picker through the accuracy operator in one
process of picking each line in the stationary location
assigned zone.
Pick-to-Voice The voice picking system allows improve picking accuracy
warehouse staff to concentrate on and speed, very useful
the picking process without looking where items were not
at paperwork and having both hands bar-coded such as fresh
free to perform the pick. produce, so a handheld
scanner could not be
used.
Radio The use of onboard and hand-held reduced travel time and
Frequency terminals displaying picking delays, high order
(RF) Units instructions via RF data accuracy
communication links from the picker
to the control computer in real-time.
Also provides a means of confirming
or correcting picking orders.
 Picking Systems (cont.)
System Description Pros Cons

Mobile cart Use Pick Cart Picking issued by combines pick-to-light, voice
picking order management systems automation and RF technology to
and allowed multiple enable fulfillment of low-velocity
customers orders picking in items, enhanced mobility and go-
the same time (Batch Pick to anywhere flexibility
Cart*-multi-order pick-to-
tote)
Put-wall* Provide goods-to-person reduces likelihood of counting
systems fulfillment for multi-line, errors, improves productivity
mixed and single SKU orders
AS/RS Provide goods-to-person Increase labor productivity, space
systems fulfillment using AS/RS savings and improve pickings
solutions accuracy
O metoda de picking poate utiliza ambele sisteme de picking (person to good and
good to person – a mix of automated and manual processes) prin implementarea unei
solutii software de WS Inventory Management.

The integrated solution utilizes a pick and pass fulfillment strategy with a batch cart
that moves between automated and traditional zone. See example below.**
Picking Solutions for the Warehouse
(Pick-To-Light (PTL) Picking Solution)
 Develop a Pick Size Classification Scheme
Next develop a classification scheme for picks based on the size of the pick. Usually
designers will use pallet”, “case”, and “piece” pick sizes

Piece Pick Case Pick Pallet Pick

Picking Conveyors order picker trucks
Application of picking Picking conveyors are conveyors used
for moving totes or cartons in order
conveyors picking area. It can be used for
broken-case or case picks,
sometimes even for pallet picks and
are popular for use in zone picking
with either progressive assembly or
downstream sortation. In application
to zone picking with progressive
assembly, the conveyor moves
cartons or tote pans to the first zone.
They either stop or are diverted for
picking. If there is nothing to pick,
they continue forward to the next
zone..

Pick-to-conveyor systems can greatly

improve the picking productivity by
eliminating much of walking or lifting
Courtesy of Cornerstone associated with pick-to-cart systems.
Automation Systems, Inc.
Application of order picker trucks
An order picker truck is an
industrial truck, typically for
use in narrow aisle order
picking. It is composed of an
extendable mast, a long load
platform, a stand-up operator
platform, and a load former.
The operator platform moves
vertically up and down along
with the load platform, which
facilitates manual loading and
unloading directly from the
storage rack. Order picker
trucks in a warehouse are
typically used for case picks
from pallet racks in order to
fill a customer order.
 Deciding on a Picking Approach

Single Order Picking Multi-Order Picking(wave) Batch Picking

(see next slide)
Sorting Picks at End of Tour after
Batch Picking
After the different groups of
Order #1 orders have been
Order #2
identified, the designer has to
make a decision about how
each group of orders will be
picked.
 Batch Picking Example*
A group of orders are filled at the same time, one line at a time by one order picker. Usual
batch sizes are from 4 to 12 orders, depending on the number of order lines per order.

Sorting the list based on

travel sequence

Dupa colectare exista riscul aparitiei erorilor Consolidarea comenzilor pe

la sortarea si alocarea articolelor pe linii de produse, anterior
comenzile clientilor. procesului de picking
 Mobile Cart Picking Systems
Wave Order Picking
Ideal for large number of small item with low demand

Order Management Setup Pick Cart Setup Pick Cart Pick Cart Picking

Transfer totes to Continue picking in

Pick Cart Picking pick by light zones pick by light zones
 Wave Picking – Pick to cart

Pick to cart using

Pick-to-light systems

Distanțele de mers pe jos sunt reduse la minimum prin selectarea mai multor
comenzi dintr-o dată.. Avantajul major al programului Pick to Cart este că etapa
de consolidare care durează mult după alegerea loturilor nu mai este necesară.
 Wave Picking Equipment

When designing a wave pick process, consideration

needs to be given to the tradeoffs between reduced
travel time and excess handling requirements.
Wave sizes usually run from 4 to 12 orders per wave
depending on the average picks per order in that
specific operation.
You will need enough aisle space in your layout if
you intend to use pick carts like those shown in the
left image.
Cart picking is a great technique where shipping boxes can placed directly into the carts
location, no separate packing process is necessary, once the order picking process is
complete, close and label the box shipping. An application of picking carts could be used
for both broken-case and case picks simultaneously.

Wave/Batch Picking - permite planificarea colectarii comenzilor in functie de graficul livrarilor

 Put-Wall System

Comenzile clientilor sunt colectate in regim batch intr-un cos mare care apoi este
adus in zona PUT TO WALL. Aici dupa scanarea fiecarui articol se aprinde un bec
frontal care indica in ce cosulet trebuie depus articolul. Fiecare cosulet reprezinta
comanda unui client. Cand comanda clientului s-a finalizat se aprinde un bec
pozitionat in spatele raftului, se tipareste adresa de livrare si cosuletul este preluat
de operator pentru ambalarea produselor.
 Divizarea spatiului de colectare in
Zone Picking

Zone Picking : Scan, Pick and Pass – more picking less travel
Spatiul de picking al produselor este divizat in zone de picking, un operator/zona de picking.
Acesta colecteaza produsele din zona sa si paseaza containerul de colectare operatorului din
zona de picking adiacenta.
 Deciding on a Picking Medium
Alegerea sistemului de transmitere a informatiilor de picking

Radio Frequency (RF)

Barcode Picking

Paper Picking List

Voice Picking

Keep the For each picking approach you

operator’s hands need to decide on a mechanism
and eyes free to for how picks will be
make order communicated to pickers.
picking more
efficient. Pick To Light
 Improve Picking by using Technology
To maximize picking efficiency, world class warehouse operations had adopted technology
that is some of today’s most advanced systems. In addition to hand-held RF readers and
printers (hands not free), companies are introducing pick-to-light and voice recognition
technology.
Pick-to-light system - an operator will scan a bar-coded label attached to a box. A digital
display located in front of the pick bin will inform the operator of the item and quantity that
they need to pick. Companies are typically using pick-to-light systems for their top 5 to 20%
selling products. Inflexibile and expensive.
Voice picking systems inform the operator of pick instructions through a headset. The pick
instructions are sent via RF from the company’s ERP or order management software. The
system allows operators to perform pick operations without looking at a computer screen or
deal with paper pick tickets. Many world class warehouse operations have adopted voice
picking to complement the pick-to-light systems in place for their fast moving products.
Intense concentrations – not for high picking densities.
Pick-by-Vision – prin utlizarea AR (Realitatea Augumentata). Cu ajutorul unor ochelari
inteligenți operatorul este ghidat în depozit prin afisarea pe lentila ochelarilor a locatiei de
picking si cu ajutorul miniscanerului atasat ochelarilor poate realiza scanarea codurilor de
bare. Proiectul-pilot a demonstrat o creștere a eficienței operatorilor cu 25%.
Mobile cart picking - combines pick-to-light, voice automation and RF technology to enable
fulfillment of low-velocity items, enhanced mobility and go-anywhere flexibility
Pick by robotic and AS/RS technology
 Pick-to-light system - prezentare

Tiparirea notei de colectare Atasarea notei la container Scanarea notei de colectare

Identificarea ledurilor aprinse care desemneaza locatiile de colectare a produselor

Dupa colectarea produselor se apasa butonul verde Needs WMS and Pick-to-Light Software
 Voice picking systems

Comanda si liniile de colectare ale Voice vs. RF Scanning (bar code scanner
produselor se transmit in casca order picking time)
operatorului, acesta confirmand Voice improves picking speed 15%-30% and
fiecare linie colectata. accuracy 1-2% above RF based picking
 8.5. Sortation and Packing
(sortarea si ambalarea)

Reserve Forward Order Sort &

Receive Putaway Replenish Ship
Storage Pick Pick Pack

• Sortation is the process of merging, identifying,

inducting, and separating items to be conveyed to
specific destinations.
• Packing is the process of unitizing orders for
shipment.
• Sortation and packing is only required after piece
and case batch order picking.
 Packaging
• Most materials are put into unitised loads for
movement
• This means that they need packing and
packaging
• The most common standards are:
– Pallets
– Containers
• Two types of packaging are
• Industrial packaging to ease movement
• Consumer packaging that appeals to customers
 Purpose of packaging
• Provides containers for moving items (such as tanks
for liquids)
• Gives conveniently sized load for movement – either
combining small items or breaking-up large ones
• Identifies the products contained and gives
information about it
• Protects items while they are being moved through
the supply chain
• Gives unit loads to make handling easier
• Assists in marketing, promoting the product,
advertising and giving information to customers
Packing Size Error

Checking

Items are assigned to totes by a

computer program that knows sizes
of product, so arriving totes should
close completely. When this failes, as
in this photo, the program is revised.
 Checking, Sortation and prepare to shipping

Checking

Customer orders arriving at ambient checking. After they are checked and closed,
they are loaded on a cart (far left).
 8.6. Shipping
(Livrarea)

Reserve Forward Order Sort &

Receive Putaway Replenish Ship
Storage Pick Pick Pack

• The process of staging, verifying, and loading orders to be

transported from a warehouse.
• The ASN for each order is generated during the picking
process and is sent to the customer.
• Customer-specific shipping instructions for each order are
retrieved from the preferences stored in the customer master
file.
• Carrier selection is made using the rate schedules contained
in the carrier master file.
Shipping Zone

Shipping

Customer orders sorted

by delivery truck (rute de
livrare), so the routing
has already been done.
Each cart can be rolled
onto the appropriate
truck.
What makes a DC successful?
Typically warehouses are rated on throughput speed, accuracy, and efficiency
(cost). Warehouse managers, in general, expect:

1. To ship all orders received by cutoff the same day, if

inventory is available.

2. To attain inventory accuracy over 99% (99% of all items are

in the location shown on the warehouse system or records).

3. To attain shipment accuracy well over 99% (the order is

shipped exactly as requested over 99% of the time).