Warehousing - III

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Warehousing – Part III by khalid_sheikh / LM 1.3.1 of 49

 Warehouse Processes
Pre-advice
QC
Checking
(Prepackaging
/Labeling)
(Order) Picking Is:
Receiving Put-away Storage
 The process of removing items from
REPLENISHMENT
storage to meet a specific demand
Picking
 The basic function around which
most warehouse designs are based
 The costliest activity that is
labor-intensive, error-prone, and
challenging to automate; and has
a direct impact on customer service.
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Importance of Picking
 Productivity improvements in
picking operations can significantly
reduce overall warehousing costs.

 The trade-off here is cost

versus speed and accuracy.

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Four Types of Pick Requirements
 Piece, Each, Unit, Item,
or Broken-Case Picks
for Assorted, Just-in-Time,
Fast Deliveries

 Full-Case or Carton Pick

 Pallet-Layer Pick

 Full-Pallet Pick

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Pick Strategies
 Picker to Goods
(Picker goes to the location of goods)

 Goods to Picker
(Goods are retrieved from their storage location;
and brought to the operator’s workstation
by conveyors; consolidated there with other items;
and placed in a shipping carton for dispatch.)

 Automated Picking

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Types of Picker-to-Goods Operations
 Pick to Order

 Cluster Picking

 Batch Picking

 Zone Picking
 Wave Picking

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Types of Picker-to-Goods Operations
 Pick to Order
(Picking is done separately
for each individual order)

 Cluster Picking
(Picking is done for a number of orders
in a single trip around the warehouse;
goods are put in separate
compartments, or containers for each order
as the picker traverses the warehouse.
Picking and sorting happens simultaneously)

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 Batch Picking
➢ A number of orders are batched together.
➢ Orders are broken down into
their constituent products; and
each individual product line
is consolidated into a pick list
showing aggregated quantities of each item.
➢ The aggregated quantities are picked
from their storage locations.
➢ Then in a second step, the items are
sorted and allocated to individual orders
by putting exact quantities of items
for each order in separate compartments.

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 Zone Picking
➢ A cage, trolley, or pallet containing
a number of compartments or containers
for different orders are passed from one zone
to another zone in the warehouse.
➢ The pick list for each order indicates
items to be picked in different zones.
➢ In each zone, different pickers put the items
picked from their zone into respective containers;
and pass the containers on to the next zone.
➢ The containers are passed through the zones
till all the required items for the order are picked.

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 Wave Picking
➢ Orders are released
at specific times during the day,
e.g., every hour, morning, or afternoon.
➢ The objective is
to associate the orders
with vehicle departures,
replenishment cycles,
shift changes, etc.

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Order-Picking Methods
 Pick by Paper Pick List
 Pick by Label
 Pick by Voice
 Pick by Barcode Scanning
 Pick by RFID Tags
 Pick by Light (Pick to Light)
 Put to Light (Pack to Light)
 Automated Picking

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Pick by Paper Pick List
 The paper pick list lists the order numbers,
locations, product codes, descriptions,
and quantities to be picked.
 The operator usually utilizes a trolley, cage,
pallet truck, or a forklift to carry the different
containers for each order.
 The WMS lists the product lines in the sequence
in which the items are to be picked thus
minimizing the travel distance and
ending up as close to the dispatch bay as possible.
 Any discrepancies are written onto the pick list;
and later manually updated into the WMS
by the supervisor.
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Pick by Label
 Operator is given pick lists, which contain
a series of removable labels printed on
the sheet in the pick order for each order.
 The picker attaches a matching label
to each item picked for the order.
 Any unused labels are returned to the supervisor,
who updates the information into WMS; so that
necessary corrective actions can be planned.

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Pick by Voice
 Warehouse operators wear
a headset with attached microphone.
 The WMS instructs them about transactions
through synthesized voice (e.g., the next picking
location and quantity to be picked).
 Operator communicates back to the WMS
(e.g., “Repeat Instruction,” “Picking Complete,” etc.).
 Some companies require the operator to repeat
the last four digits of the barcode as a way
to confirm that the right item has been picked.

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Watch the Video
https://drive.google.com/file/d/1M-_Tz-ILdht1MGbhaGsZxnJFSkFUwf1K/view?usp=sharing

Advantages of Pick by Voice

 Hands-free operations
 Operator’s eyes are free from terminal.
 Even illiterate operator can perform operations.
 Where companies require the capture of data
such as serial numbers, and/or batch codes,
voice needs to be supplemented by some
form of scanning or image capture
to be 100% accurate.

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Pick by Barcode Scanning
Pick by RFID Tags
 Barcodes and RFID are used
to precisely identify orders,
locations, and items

 They are also used to confirm

the completion of picking operations

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Pick by Light (Pick to Light)
 The picker scans the order number into the system;
the WMS lights up the indicators/displays of only
those locations from where items are to be picked.
 Indicator lights direct the pickers to all the storage
locations to be picked for the order

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  Lighted alphanumeric displays at the location show
the quantity to be picked from that location
 After picking, the picker switches off the indicator
and display to communicate to the WMS
that the item has been picked.

Watch the Video

https://drive.google.com/file/d/1ePh9J9-XgMjDti9BpvODol8he9Wcck32/view?usp=sharing

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Put to Light (Pack to Light)
 The WMS consolidates all the orders
for a group of customers into a pick list
that indicates the aggregated quantities of different
SKUs to be picked for all the orders in the group.
 All the items in aggregated quantities are picked
in bulk and brought to the correct operator station
by cart, pallet truck, or by a conveyor.
 At the operator station,
separate containers (totes) are placed
for each individual order.

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 As soon as the operator scans the item code
of the brought item into the system,
all the containers in which the item is to be placed
lights up displaying the exact quantity to be put.
 The operator puts the required quantity
into all of the lighted containers and
switches off the light to confirm to the WMS
that the item has been picked.
 Picking is completed when all the brought items
are scanned and put into appropriate containers.

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  Put/Pack to light is ideally
suited for cross-docking

 Some retailers ask for the pick sequence

to match their store layouts so that
shelves can be replenished efficiently.

Watch the Video

https://drive.google.com/file/d/1_nByt646pytHP3BLEsjpGHsvRUiOuAUN/view?usp=sharing

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Automated Put-away/Picking
 Automated Storage and
Retrieval Systems (ASRS)

 Automatically Guided
Vehicle (AGV) Systems (AGVS)

Watch the Video

https://drive.google.com/file/d/11cagbnlvmSm-vI64DDyInYY1SrFRqIZi/view?usp=sharing

https://drive.google.com/file/d/1vq2mqJXjjlRXH4UmC-W4wvqsizD6Pjp9/view?usp=sharing

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Automated Put-away/Picking
 Automated Item Dispensing Systems
(e.g., A-Frames)
https://drive.google.com/file/d/1UIpeaXlIMz8Em4t0dUE17AhI4lD5rGSB/view?usp=sharing

 Robots
https://drive.google.com/file/d/1Hcd068sYIAuIAIx2HC1HqVly130H_Rx3/view?usp=sharing

 Augmented-Reality Headsets
https://drive.google.com/file/d/1eX5PV153Yao5PceKgpKrd9jpE42xvqmk/view?usp=sharing

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Augmented-Reality Headsets
(e.g., KNAPP AG’s Visual Picking Technology: KiSoft Vision)

 These use a head-mounted

Augmented-Reality Display,
which displays the information
required for picking
at the exact location and time.

 The mobility, flexibility

and easy operation
make picking operation
fast and error-free.

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 Warehouse Processes (continued)
Pre-advice
QC
Checking
(Prepackaging
/Pricing)
Receiving Put-away Storage
REPLENISHMENT

Picking

Packaging/
Repackaging
Pricing and/or
Labeling
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 Warehouse Processes
Pre-advice
QC
Checking
(Prepackaging
/Labeling)
Receiving Put-away Storage
Advantages of Packing, Pricing REPLENISHMENT
and/or Labeling after Picking
Picking
 Greater flexibility in the use or
allocation of on-hand inventory
 Individual items are available Packaging/
for use in any packaging configurations Repackaging
right up to the time of need
Pricing and/or
 Pricing is current at the time of sale; Labeling
no need for re-pricing/relabeling
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 Warehouse Processes
Pre-advice
QC
Checking
(Prepackaging
/Labeling)
Receiving Put-away Storage
REPLENISHMENT

Picking
Disadvantage of Packing, Pricing
and/or Labeling after Picking
Packaging/
 Increase in Warehouse Repackaging
Order Cycle Time (WOCT)
Pricing and/or
Labeling
Warehousing – Part III by khalid_sheikh / LM 1.3.27 of 49
 Warehouse Processes
Pre-advice
QC
Checking
(Prepackaging
/Labeling)
Receiving Put-away Storage
REPLENISHMENT

Picking Custo-
mization/
Value-
Packaging/ adding
Repackaging Services
Pricing and/or
Labeling
Warehousing – Part III by khalid_sheikh / LM 1.3.28 of 49
 Warehouse Processes (continued)
Pre-advice
QC
Checking
(Prepackaging
/Pricing)
Receiving Put-away Storage
REPLENISHMENT

Picking Custo-
mization/
Value-
Dispatch/Expedite Packaging/ adding
(Sortation, Accumulation, Repackaging Services
Unitizing and Shipping) Pricing and/or
Labeling
Warehousing – Part III by khalid_sheikh / LM 1.3.29 of 49
Sortation and Accumulation
 The items which are picked
in aggregated quantities
need to be sorted into
individual orders.
 This process of sorting is done for
or all batch-picked items leading to
accumulation of all the different items
required for each order into
its carton or container.

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Unitizing (aka Unitization)
 Products are packaged in Consumer Packaging,
which is focused on marketing.
 Industrial/logistical/Protective Packaging
is focused on logistics
 Individual parts or products
(in consumer packaging)
are typically grouped into Master Cartons
(e.g., cartons, bags, bins, or barrels)
for damage protection and
handling efficiency.

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 Master cartons
are further grouped
into larger units
(pallets or containers)
for handling efficiency.
➢ This process of
grouping master cartons
into one physical unit
for efficient material handling
and/or transport
is referred to as
Containerization or
Unitization.

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Unitizing and Shipping Includes
 Checking orders for completeness
 Packaging merchandise into
appropriate shipping containers (units)
 Preparing shipping documents, including
packing list, address labels, and bill of lading
 Weighing shipments to determine shipping charges
 Accumulating orders by outbound carrier
 Loading trucks (in most cases,
this is carrier’s responsibility)

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 Warehouse Processes (continued)Two Options
for Cross-Docking:
Pre-advice
QC (a) Store-Specific
Checking Cross Docking
(Prepackaging
/Pricing) (b) Cross-Docking with
Receiving Put-away Storage
Repackaging
REPLENISHMENT and/or Relabeling

Cross dock Picking Custo-

mization/
Value-
Dispatch/Expedite Packaging/ adding
(Sortation, Accumulation, Repackaging Services
Unitizing and Shipping) Pricing and/or
Labeling
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 Warehouse Processes (continued)
Pre-advice
QC
Checking
(Prepackaging
/Pricing)
Receiving Put-away Storage
REPLENISHMENT

RETURNS Cross dock Picking Custo-

mization/
Value-
Dispatch/Expedite Packaging/ adding
(Sortation, Accumulation, Repackaging Services
Unitizing and Shipping) Pricing and/or
Labeling
Warehousing – Part III by khalid_sheikh / LM 1.3.35 of 49
Classification of Warehouses
 Captive Warehouses
➢ Located inside the factory premises
➢ For monitoring excisable goods

 Field Warehouses
➢ Located near the place of consumption
➢ For servicing the customers and channel partners

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Classification of Warehouses (continued)
 Bonded/Customs Warehouses
➢ Are located near air or seaports for
goods meant for imports and exports
➢ Allow storage of goods
under custom custody, where
taxes are paid only when the goods
move out of these warehouses.
➢ This allows firms to defer
payment of customs duties till
the time goods are actually required.

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Classification of Warehouses (continued)
 Free Trade Warehouses
➢ Are linked to import or export;
these are used by firms to import,
remanufacture, and re-export
without the intervention of
the local customs authorities.

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 Rotterdam (Netherlands), Jebel Ali (Dubai),
and Singapore have very successful
Free Trade Warehousing Zones.
➢ International companies can have their
goods stored, value added, and shipped
in these zones
 without being legal entities
in those countries, and
 without any implications
of import or export duties
or tariffs.

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Classification of Warehouses (continued)
Public Warehouses
 Accommodate several different customers
under one roof, who share the common resources.
 Are supposed to serve all legitimate users,
who rent space as needed, thus,
avoiding the costs of unneeded space.
 Offer more locational flexibility
 May offer several specialized services

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 The Customers of Public Warehouses could be:
➢ Companies with different products
but common customers, such as retailers
or automotive component manufacturers
➢ Companies with the same or similar products
delivering to common customers, such as
tyre manufacturers, bicycle manufacturers,
pharmaceutical companies, etc.

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 The Customers of Public Warehouses could be
(continued from the last page):

➢ Companies needing similar types of services,

such as fulfilment or returns processing

➢ Companies requiring the same

environmental conditions, such as
for hazardous goods, explosives,
or temperature-controlled merchandise

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 Drawbacks of Public Warehouses Include:

➢ Lack of Control by the User:

Users have little say in
where their goods are stored;
often users need to tailor their operations
to fit those of the public warehouse

➢ Sometimes a public warehouse

may not have the space availability
required by the user

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Classification of Warehouses (continued)
Private Warehouses
 Are owned by the firm
storing goods in the facility
 Generate high fixed costs and
reduce flexibility of the firm
to respond to changes
 Offer the users a great deal of
control over their storage need; and
on the operation of the warehouse

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Classification of Warehouses (continued)
Contracted Warehousing
(aka Third-Party or Dedicated Warehousing)
 Is a long-term, mutually beneficial
arrangement, which provides
unique and specially tailored
warehousing and logistics services
exclusively to one client
 Requires that the vendor and client
share the risks associated
with the operation of the warehouse

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Contracted Warehousing (continued)
(aka Third-Party or Dedicated Warehousing)
 Allows the client company
to focus on its core competency
 Ensures that the warehouse
is managed by experts, who solely
focus on the client’s needs and wants
 Is more flexible but less costly
than private warehousing

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Classification of Warehouses (continued)
Multiclient Warehousing
 Mixes the attributes of
contract and public warehousing
 A limited number of customers
(between 2 to 12) utilize
a multiclient facility
 The services are more differentiated
than public warehouse; but less customized
than those offered by contract warehousing

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Classification of Warehouses (continued)
 Retail Distribution Centers (RDCs)

 Public Sector Warehouses

➢ Support public sector organizations,
local government facilities (such as
schools and offices), armed forces, etc.
➢ Include warehouses located close to
areas prone to natural disasters

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To Be Continued…

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