Warehouse Operational Training

Training Development Program for Supervisor and Executive
WAREHOUSE & STORES OPERATIONS

Agenda
1. Warehousing
i. Design & Lay Out Principle

ii. Storage & Equipment
iii. Material Handling Equipment
2. Picking Strategy
i. Order Picking
ii. Automation Picking
3. Inventory Management
i. Holding Stock
ii. Cycle Count
Location | July 1, 2021 Page 2

Agenda
4. Resources Planning
i. Productivity Data
ii. Work Hours Calculation
iii. Manpower Calcualtion

Warehousing

Warehouse Role in Supply Chain

Warehouse Type
Consolidation Warehousing
Bundles shipments from a number of sources (suppliers) in the same
geographical area and combines them into larger at best full truck loads for
long-haul transport to customers or trans-shipment points
Break-Bulk Warehousing
This type of warehousing, at the receiving end of a transportation route,
separates large, consolidated freight loads into smaller loads according to
destination or customer.
Cross-dock warehouses
Transferring goods from incoming trucks at receiving docks to outgoing trucks
at shipping docks, or goods are staged for a short time (< 24h) before loading.
Avoids placing goods into storage
Hub-and-spoke system
Combines the benefits of consolidation, cross-docking, and break-bulk
warehouses. Similarly to cross-dock facilities they did not hold stock but just
function as trans-shipment points for sorting of goods. The locations are road,
sea or airfreight concentration points.

Hub and Spoke System
DHLE Asia Air Network

Design and Layout
Why Have Warehouses?

There are four main reasons for having warehouses
 To provide a buffer against variations in supply and demand, by holding
stock – a safety net, in effect.
 To safeguard stock from damage, theft and deterioration.
 To record accurately receipts, current stockholding and dispatches, and
provide an interface with all other parts of the business system being
served.
 To enable “value-adding” processes to be conducted such as ticketing
stock for customers or repacking.

Design and Layout
Warehouses Construction Consider to

Location
• the location of the markets being served,
• the location of manufacture of the products being sold.
Building type; Consider to
• Building High
• Loading docks and Offices
• Design Floor
• Building Column Spacing
Warehouse Operating Functions;
• Delivery vehicle unloading area – this is where goods are actually
brought into the warehouse.
• Unpacking, checking and reforming area – this is where goods are
checked and reformed into unit loads that can be stored within the
warehouse.
• Temporary storage (sorting) – this area is only required if there is a
need to control the flow of goods inwards for smoothing or sorting.
• Reserve storage – this is the main store for stock within the
warehouse.
Design and Layout
Warehouse Operating Functions (Continued);

• Working storage (selection) – in some warehouses, changes in unit
load patterns are required and, for example, pallets may be reduced
or part pallets may be consolidated together. This is more important
where picking activity will take place.
• Order consolidation – this is where all the items required for a
particular order are brought together and packaged ready for
dispatch.
• Dispatch – this is the area that enables stock to be moved from the
warehouse onto collecting vehicles.

Receiving and Dispatch
 Receiving
• Speed and information accuracy critical for all subsequent activities like
picking
• Most WMS’s will not release orders if product is not in the system, even if
the product is sitting on the dock!
• Common KPI is ‘dock to stock’ time
 Dispatch
• Throughput speed key, since most operations are subject to cut off times
for same - or next-day dispatch
 Reasonable design rule of thumb:
• Receiving and dispatch (staging and work areas) usually account for
15%-20% of the warehouse floor area (can be up to 30%, depending on
systems and operations circumstances).
• Should not be used as a blanket assumption. It is supposed to 12 m from
the rack.
Source: Cranfield University

Receiving and Dispatch
 The required height for receiving and dispatch activities is generally low, so
mezzanine or other ‘high’ solutions not required
• Floor stacking or drive-through racking for pallet staging
• Can use headroom above marshalling for slow-moving storage/picking,
mezzanine office (ensure adequate clear height for MHE in marshalling
areas)
 Receiving and dispatch typically do not account for the majority of labor in a
warehouse
• Picking optimization is key
• In loose-case receiving operations, receiving represents a higher
percentage of labor
Source: Cranfield University

Typical Floor Area Required for Receiving
Excludes Unloading Bays and Docks
 Access to unload vehicles

 Staging area for checking, labeling
• Location for products to be held prior to put away
 Palletization / wrapping area
 Sortation area
 Quarantine locations for returns, damage, QA hold, etc.
 Adequate travel space for selected MHE and operator maneuverability
 Receiving office for paperwork processing, data entry, driver reception, etc.
 Value-added services area (e.g., co-packing, bundling, price labeling, pre-
retail)

Typical Floor Area Required for Dispatch
Excludes Loading Bays and Docks
 Staging area for wrapping, checking, labelling, etc.

• Location for products to be held prior to dispatch
• In operations where the same customers or stores are served daily,
staging bays may be dedicated
• ‘Picking ahead’ is a viable operational process; speeds despatch
process but increases staging requirement
 Packing area for smaller-piece operations
 Order assembly
 Adequate travel space for selected MHE and operator maneuverability
 Despatch office for paperwork processing, data entry, etc.
 Access to load vehicle

Design and Layout
Data relating to all the above activities needs to be sourced and analyzed
before a warehouse design can be prepared accurately, and should include
the following:
• Physical characteristics of the product stored, for example fragility, size and
perishability.
• Stock holding volumes (cartons, pallets).
• Throughput (number of orders, lines per order, items per line, receipts, etc).
• Equipment available for storage and handling.
• Cost data (buildings, equipment, labor).
• Existing equipment and buildings constraints.
• Statutory requirements.
• Market trends – what is likely to happen in the future.
• Synthetics – the analysis, modeling and simulation required to establish optimum
equipment.
• Labor availability and quality.
• Service level requirements – what customers expect.
• Safety and security.
• Capital and time available.
• The relationship with other parts of the system – both internal with other departments
within the same organization and external with customers and suppliers.

Design and Layout
Five important principles in the process of warehouse design;

1. Unit Loads; “the assembly of individual packages, usually of a like kind, to
permit convenient composite movement”
2. Using Warehouse Cube; Stock should therefore be stacked as high as
possible and as densely as possible by racking system
3. Minimizing Movement; fast, batching, bulk stock (reserve), carousel, zoning,
eliminating paper work.
4. Controlling Flow; trough flow (cross dock), U flow.
5. Safety and Security; truck, MHE activity, pedestrian
6. Marshalling, Goods Receiving and Dispatch; receiving stock into the
warehouse prior to being put away, and is also used for consolidating goods
prior to dispatch

Controlling Flow
Shelving
Packing
area
Inbound area Outbound area
Advantages (cont)
Advantages
• Shared use of space/equipment • Optimises both pick / putaway
• Better security with single-sided entry and exit • Good when few SKUs make up much of volume
• Minimise travel distance for cross-dock operations • Good layout for interleaving
• Separate ‘human’ traffic from MHE traffic Disadvantages

• Ease of identifying inbound vs. outbound loads • Increased putaway distance
U-Shaped Layout • All product must travel the width of the building, always in
Source:onCranfield
one side and out on the/ Rushton,
University other Oxley, Croucher

Controlling Flow
Inbound Bulk Packing Outbound

Shelving
area storage area area
Flow-Through Layout
Advantages
• Single direction of flow; therefore, limited cross traffic and design is able to accommodate more doors
• Best for high-volume operations and long, narrow buildings
Disadvantages
• Product must travel entire length of the building

Source: Cranfield University / Rushton, Oxley, Croucher

Design and Layout
Marshalling, Goods Receiving and Dispatch, considering to;

a. The type, size and number of vehicles
b. The means of access on to the site. (maneuver safely)
c. Traffic flow around the site
d. Maneuvering for all vehicles used on the site.
e. Space requirements, checking and quality control. Sufficient space to
segregating product
f. Product characteristics and throughput
g. Unit load characteristics and throughput; MHE requirement
h. Environment; There may be restrictions on night operation for
example
i. The number of loading and unloading bays required
j. Control and administration; Office required for document processing
k. Security & safety personal of personal

Storage and Equipment
There are three main types of storage.

1. Palletized unit loads.
2. Small parts;
3. Long loads.

Palletized unit loads
The simplest method you can use for storing it is to place one
pallet on top of another in rows without any racking.
Block stacking is cheap, uses only simple equipment and can

make good use of cube. The disadvantages are that there is
the possibility of damage, control can be difficult, utilization can
be poor if the product cannot be stacked high enough and
there is no means available to adopt a first in – first out (FIFO)
policy.

Floor / Bulk Storage / Block Stack
Advantages
• Low cost
• Flexible / Quick access to stock - high
productivity
• Good use of the square floor area (though
not the height)
• Excellent space utilization with high
number of pallets/SKU
Deeper bays mean
Disadvantages lower utilization!
• Honeycombing
• FIFO rotation
Suitability
• Suitable for product range where there are

few product lines, each with high stock
level and stackable
• Strict FIFO is not required
Effective pallet utilization of 70% - 80%

Source: Rushton, Oxley, Croucher (modified)
Individual Pallet Access
If there are a lot of items stored, with relatively low quantities of each,
then it is good practice that every pallet in a warehouse will need to
be
accessible without moving other pallets first. This means that racking
is required, along with either a manual or computerized system for
recording what quantity of which product is stored in which location.

Racking Types
• Adjustable Pallet Racking

The standardized “teardrop” connection design makes the uprights and
crossbeam interchangeable with those from other manufacturers
Configuration “Selective Pallet Racking” wide aisle (4m), narrow (3m).

• Adjustable Pallet Racking

In Very Narrow (1.5m); order selectors, turret trucks, and swing mast trucks
required.

Advantages
Adjustable / Selective • Flexible, versatile system
Pallet Racking • Excellent stock access
Disadvantages
• Poor building utilisation (due to the
aisles)
• Lower productivity compared to floor
storage
• Difficult to accommodate pallets of
varying heights
• Higher capital investment in racking
and MHE
Suitability
• Suitable for fast-moving and slow-
moving product
• Product lines with low level of pallet
holdings per SKU
Effective utilisation of pallet position is 90%

to 95%

Adjustable Rack Check List
a = height of leg
H = pallet + load + a + clearance
 Advantages
Very Narrow Aisle (VNA) Racking - Flexible, versatile system
- Good stock access
- Excellent space utilisation
 Disadvantages
- More expensive MHE requirement (VNA or even
wire-guided trucks)
- Low productivity if MHE not dedicated to each
aisle
- Lengthy training
- Requires excellent floors
- May require additional fire safety measures
 Suitability
- Space is extremely expensive or limited
 Effective utilisation of pallet positions is 90% to 95%

• Double Deep Racking

More pallet position in storage than APR.

Double-Deep Racking Advantages

• Improved space utilisation as
compared to APR
Disadvantages
• Loss of pallet selectivity (FIFO)
• Honeycombing
• More expensive MHE requirement

(double-deep truck)
• Inability to utilise full height of some
high-bay buildings due to MHE
capacity
• Lower productivity and operator
visibility
Suitability
• SKUs that cannot block stack but have
between 4-8 pallets/SKU
Effective utilisation of pallet positions is

85%

Class discussion
Recommend a suitable storage system for the following

products
• Warehouse A with 8 pallets in inventory
• Warehouse B with 5,000 pallets of inventory and 30
SKUs (i) FIFO not required, (ii) FIFO required
• Warehouse C with 5,000 pallets of inventory and 3,000
SKUs
What kind of industry or application would call for each
type of racking? Where have you seen it in use?
• Flow Rack
• Drive-in
• Mobile racking
Rank these from most to least space-effective
• Single-deep rack
• Drive-in rack
• Block stacking
What are the down sides to space efficiency

Double Deep Racks Check List

 Check straddle widths of truck when design 9m+
 Beam length must be increased to accommodate wider straddle leg
 Check height
 Use upright protectors/ pallet guide
Pallet Support Bar

• Drive-in/Drive-through Racking
This racking system has been designed to allow a fork lift truck
to drive into the bay creating very high density storage for non-
stackable loads. It is useful for operations with limited stock
keeping units (SKUs) and high quantities of pallets per SKU.
FIFO is difficult to maintain in drive-in racking systems however.

Drive-In Racking Advantages

• Excellent space utilisation
Disadvantages
• Operationally more difficult to manage
• Honeycombing
• Loss of pallet selectivity (FIFO/batch

management)
• Pallet must support its own weight,
standard and uniform load required
• Higher maintenance costs
• Lower productivity compared to APR
Drive-through racking • Max recommended depth is 8 pallets

is basically the same
Suitability
as drive-in, but can be
accessed from both • Operations with few SKUs and high
sides. pallets/SKU
Effective utilisation of pallet positions is 70%

Drive In Rack Check List
Source: Crown Equipment Corporation

• Push-Back Racking
This is a racking system that incorporates a carriage or other
sliding device that makes it possible to feed multiple pallets into
the same location, “pushing back” the previous pallet. This can
be used in wide aisle and narrow aisle applications.
Push-back rack. Same pros and cons

as drive-in but operationally simpler.
Pallet flow rack is similar but requires
access from both sides

• Gravity Flow Rack (Pallet Live)

This is a racking system which uses some type of gravity
conveyer system built into each racking level. Pallets are loaded
in one side and flow to the other side for picking. It works well for
high density storage where first in first out (FIFO) rotation is
necessary.
IN
OUT

• Cantilever Racking
This is a racking system where the shelving supports are
connected to vertical supports at the rear of the rack. There are
no vertical supports on the face of the rack allowing for storage
of very long pieces of material such as piping, timber or carpets.
Cantilever rack
for rods / pipes

• Wire Decking
Wire decking can be used with
adjustable pallet racking and
cantilever racking, and is usually
used when a product is placed into
racking without pallets. Wire
decking increases safety,
productivity, and reduces product
damage. There are other types of
decking available including solid
decking, but fire inspectors
generally do not like solid decking
since it reduces the effectiveness
of sprinkler systems.
Individual items can be stored in
carousels or in drawer systems as
well as in shelving. Carton live
storage can also be used.

• Wire Decking
For some types of product, it is likely
that cases could fall from their rack
locations and cause safety risks
• Small product
• Loosely palletized
• Few cases per SKU
• Non-palletized product
For these types of product, you should

consider using wire decking or wooden
shelving within your racks
• Careful of fire risk from wood!

When to Use a Beam on the Bottom Level

A beam is sometimes required on
the floor level
• Sanitation reasons
• Ergonomic picking/handling Outriggers, or

base legs
• MHE requires bottom-level beam
Check with your MHE vendor about

whether a floor-level beam will be
necessary!
A beam is sometimes required above

Bottom
the top
Beam
level of product, as well
• In-rack sprinklers
An informative article on selecting racking and determining rack dimensions:

http://www.naseco.ca/docs_public/PR%20Planning%20&%20Selection.pdf

Other Pallet Storage Systems
Power Mobile
racking
AS/RS for dense storage and

minimal handling, also
available for smaller loads

Stacking racks
(temporary) suitable
for seasonal or odd-
shaped loads
Pallet Flow
racking


Small-Item Storage Systems: For Piece-Picking
Most common small-item storage is long- or

short-span shelving, suitable for moderate-
volume goods with varied case dimensions
Carton-flow rack is similar to pallet-flow

racking but is used for open-case picking,
suitable for high number of pieces/SKU in
an each-picking operation
Other systems include totes/bins, drawer

units, mobile storage and horizontal/ vertical
carousels

Racking & Space Utilization

Task Example: wide aisle adjustable pallet

racking
Length: 100 + 100 + 1200 + 100 + 1200 + 100 = 2,800
mm
Half gap = 50 mm
Pallet = 1000 mm
Half RT aisle = 1350 mm
Total = 2,400 mm
Floor area: 2,800 x 2,400 = 6.720 sq.m.

Pallett area: 2 x 1,200 x 1,000 = 2.4 sq.m.
Floor area utilisation = 2.4/6.72 = 36%

Task Example: wide aisle adjustable pallet racking

Building height 20 m excl. services, reach truck operation up to 10m max lift height.
Pallet height: 1,300 mm
125 (10375) no obstruction

1300
100 (8950) Top beam
125
1300
100 (7425)
100
1300
Based on a reach truck
100 (5925)
100
operation we can operate 7
1300 pallets high. Therefore 14
100 (4425) pallets on a space of 6.72
75
1300 sq.m.
100 (2950)
75 ~ 2.1 pallets per sq.m.
1300
Beam 100 (1475)
Floor Space 75
Pallet 1300

Class discussion
Recommend design a suitable storage system for the following data:
•Warehouse Space wide x length; 40,000 x 90,000 mm

•Warehouse Cube high is 15 m.
•There are 7000 pallets and; 50% of it have 12 lot/SKU (A Category). And the rest is 5
lot/SKU (B category).
•The average pallet high is 1500 mm.
•The order of product category A and B is 6 pallet in average per day.
•Sometimes the order of product A is by cases.
•Pallet standard is 1200 x 1000
Please design :
•What kind of rack where have you seen it in use?
•Considering the honeycomb and the accelerate picking and the warehouse utilization.
•Consider the office station will reduce the space
•Consider the staging area
There are two kind of beam length which usually used

•2300 mm for pallet face 1000 m
•2700 mm for pallet face 1200 m
One group will present their results in front of the class. Others compare and ask questions.

Material Handling Equipment
Pallet SKU
A few pallet standards in the world
• 1000mm x 1200mm (Standard UK and

US pallet) What are some other
units loads that you
• 1200mm x 1200mm have seen?
• 1000mm x 1000mm (commonly found in

Taiwan and Japan)
Plastic Pallet Board
• 800mm x 1200mm (Euro pallet)
Types of pallet
• Wood pallet board
• Plastic pallet board
• Corrugated pallet board
• Pressboard and fiberboard pallet board Corrugated Pallet Board

THE DANGEROUS PALLET!

Poor Quality Pallet Take note when visiting

customer existing site for
issues identification

Slip sheets are another common unit load

• Thin cardboard-like (manufactured from solid
fiberboard, corrugated materials) sheet on which
cases are placed
• Similar to a pallet load (length and width), without the

pallet!
• Require special attachment (push-pull device) to

forklift

Terminology Related to Pallets
A ‘skid’ is a pallet with no

bottom deck.
From a design perspective, the two most important considerations are likely:
• Overall height (plan for this in height of rack levels, typical dimension is ~15
cm)
• Four-way entry (if pallets can only be accessed only from two sides, will drive
pallet orientation)
• Don’t forget about pallet overhang!
Source (picture): www.generalpallet.com

A post pallet is a stackable pallet with permanent or removable support posts on all
four corners of the pallet, used for temporary storage or to stack ‘non-stackable’ goods
These are
‘stack
racks’.
Pallets sit
inside of
these.

Materials handling frequently depends on

the storage decision made and the
products to be handled:
The most common Lift trucks are the
following:
Pallet jack (powered or manual)

Pallet stacker
Counter-balanced forklift (CBT)
Reach truck (RT)
Turret truck (for very narrow aisles)
Different types of attachments can

modify purposes of lift trucks but often
impact speed as well. Man down and
up versions are available for certain
trucks

Additional Fork Truck Selection Considerations

Fuel Types;
1.Electric vehicles are designed for indoor use only, additional
batteries and charging/transfer stations
2.Liquefied Petroleum Gas (LPG) has the advantage of minimal
smoke (however heavy use indoors requires adequate ventilation)
3.Petrol or Diesel fork trucks should be for outdoor use only.
Tire Type;
1.Cushion tires are solid tires generally with no tread pattern designed
for use indoors on smooth solid surfaces.
2.Pneumatic tires require air and are designed for use outdoors on
uneven and loose surfaces.

Pallet Jack, Pallet Truck or Low-Level Order Picker
Walk-behind or ride-on
models are available. Many
feature small steps for
reaching high areas, as well
as small work area
convenient for writing and
clipboard storage. Ground-
level use only.
Type : Manual or Electric

Load Capacity : 1000 ~ 2000 kg
Working Aisle : 2.1 ~ 2.5 m
Extended models
available for carrying
two pallets at a time

Stacker
Similar to power pallet
truck, except the forks
can raise and lower
Type : Platform (Option)

Lifting Height : 4.5 ~ 5.5 m

Counter-Balanced Truck (CBT)

Commonly known as
a forklift. Multi-
purpose vehicle
used for nearly any
warehouse purpose.
Type : Sit (stand-up also available)


Reach Truck
Stand-up vs. sit-down
reach trucks may require
varying aisle widths.
Always validate aisle
width requirements with
your vendor.
Type : Stand or Sit


Very Narrow Aisle / Turret Trucks
A man-up order picker lifts the

picker to the actual warehouse A turret truck may be used for
location for case or unit picking, but additionally for putaway
Man-down turret truck
picking. Forks are forward- and replenishment since its forks
- take note of visibility
facing and cannot be used for ‘slide’. Also called a combi truck or
issues at high bays
putaway and replenishment. a lateral stacker. Turret trucks are
for operators!
extremely expensive compared to
Type : Man-up or Man-down most other MHE. A turret truck’s
mast rotates 180 degrees, so it can
access either side of an aisle without
Lifting Height : 6 ~ 12 m physically turning around. Pick-up &
delivery (deposit) areas are typically
Working Aisle : 1.8 ~ 2.1 m used with turret trucks.

Comparison of MHE Types

Warehouse Space Utilisation
Fork Lift 44%
12.0
Reach Truck 53%
Height, in meters
Very Narrow Aisle Truck 63%
8.0
6.0
4.5
2.1 ~ 2.4 ~ 3.5 ~ 2.7 ~ 1.8 ~

2.5 2.7 4.0 3.0 2.1
Working Aisle Minimums, in meters
Lifting Heights
15 m
11,5 m
5,4 m
3,7 m
1,8 m
WP ST WE WE RR TSP

Performance Pallets Throughput
WP
One Pallet up to 6 Km/h max speed
PR
One Pallet up to 12 Km/h max speed
PE
Two Pallets up to 12 Km/h max speed
PE
Three Pallets up to 16/20 Km/h max speed
Troughput Pallets/h

Diesel Hand Pallet

Stacker
Turret Truck Swing mast truck


Transporting / Pulling

Case Picking: Low Level

Case Picking: Mid/High Level

Small-Item Picking
Cases are frequently picked to pallets
Special picking equipment is generally required for

picking at the piece level
Roll cages, picking trolleys, tow carts, totes and

automated solutions such as pick-to-belt and
sortation systems may also be used


Small-Item Storage Systems: For Piece-Picking
Most common small-item storage is long- or

short-span shelving, suitable for moderate-
volume goods with varied case dimensions
Carton-flow rack is similar to pallet-flow

racking but is used for open-case picking,
suitable for high number of pieces/SKU in
an each-picking operation
Other systems include totes/bins, drawer

units, mobile storage and horizontal/ vertical
carousels

Picking Strategy

Order Picking
The picking operation should look to achieve the following objectives:

•Minimize movement.
•Simple administration.
•Eliminate ineffective time.
•Lowest error rate.
•Fastest order turnaround.
The design of the picking flow should be such that:

• The order picker ends up fairly close to the original starting point.
• The picking document should have the picks sorted in the same
sequence as the picking flow.
• Fast-moving product should be stored close to the point of dispatch
and the main cross aisle and additional cross aisles put in to allow
short cuts.
• Larger bulkier items would be stored towards the beginning of the
pick flow to ensure that product is not damaged

Order Picking
Picking Productivity
Productivity in order picking is measured by the pick rate – the
number of items, lines or pallets picked over a given period of time,
usually an hour.
Cycle Time
Cycle time is the amount of time it takes to get an order from order entry
to the point of dispatch – the shipping dock. Customers’ increasing
expectations in terms of how quickly they want to receive orders has
increased the emphasis on reducing cycle times from days to hours or
minutes. Immediate release of orders to the warehouse for picking
include methods that provide concurrent picking of items within large
orders thus reducing cycle times
An example being splitting an order into different parts and giving one
part each to a number of picking staff

Order Picking
Accuracy
Regardless of the type of operation, accuracy is a key objective.
Virtually every decision made in setting up a warehouse will have some
impact on accuracy, from the product numbering scheme, to the design
of product labels, product packaging, the design of picking documents,
location numbering scheme, storage equipment, lighting conditions, and
picking method used.
Technologies that assist in picking accuracy include pick-to light
systems, counting scales, and barcode scanners. Beyond the design
aspects of an order picking operation, employee training, accuracy
tracking, and accountability are essential to achieving high levels of
Accuracy.

Order Picking
Item Picking
Where individual items are picked.
1. Basic Order Picking
In the most basic order picking method, product is stored in fixed locations on
static shelving or pallet racking. An order picker picks one order at a time
following a route up and down each aisle until the entire order is picked. The
order picker will usually use some type of picking cage or trolley, or pick product
directly onto a pallet.
This basic order picking method can work well in operations with a small total
number of orders and a high number of picks per order. Operations with low
picks per order will find the travel time excessive in this type of picking and
operations with large numbers of orders will find that the congestion from many
pickers working in the same areas slows down the processing.

Order Picking
2. Batch Picking
In batch picking, a number of orders are grouped together in batches. An order
picker will pick all orders within the batch in one run using a consolidated pick list.
In operations with low picks per order, batch picking can greatly reduce travel
time by allowing the picker to make additional picks while in the same area. As
multiple orders are being picked at the same time, systems and procedures are
required to prevent orders being mixed.
In very busy operations, best practice is batch picking is often used in conjunction
with zone picking and automated material handling equipment

Order Picking
3. Zone Picking
In zone picking, the picking area is broken up into individual pick zones.
Order pickers are assigned a specific zone, and only pick items within that
zone. Orders are moved from one zone to the next as the picking from the
previous zone is completed in assembly line style (also known as "pick and-
pass"). Usually, conveyor systems are used to move orders from zone to zone. In
zone picking it is important to balance the number of picks from zone to zone to
maintain a consistent flow to maintain productivity.
Zones are usually sized to accommodate enough picks for one or two order
pickers. Creating fast pick areas close to the conveyor is essential in
achieving high productivity in zone picking. Zone picking is most effective
in large operations with high total numbers of SKUs, high total numbers of
orders and low to moderate picks per order, such as mail-order
operations. Separate zones also provide for specialization of picking
techniques such as having automated material handling systems in one
zone and manual handling in the next..

Order Picking
4. Wave Picking
A variation on zone picking and batch picking where rather than orders
moving from one zone to the next for picking, all zones are picked at the
same time and the items are later sorted and consolidated into individual
orders/shipments. This is the quickest method for picking, but sorting and
order consolidation can prove to be difficult.

Order Picking
Basic Order Picking Total Orders: Low

Picks Per Order: Moderate to High
Batch Picking Total Orders: Low to High
Picks Per Order: Low
Zone Picking Total Orders: Moderate to High
Picks Per Order: Low to Moderate
Wave Picking Total Orders: Moderate to High
Picks Per Order: Moderate to High

Primary Order - Picking Methods
Pick by Order Batch Picking

 One order per circuit of the picking  Multiple orders are picked at one
face time
 Must ensure that  Slow picking rate due to travelling  Faster picking rate
time
WMS supports  Secondary sortation required if
chosen picking  Appropriate when order count is orders not separated by tote or on
low and one order will typically fill cart during picking
methodology the capacity of the picking trolley
 Appropriate for small orders
 Zone and pick-by-
line may require Zone Picking Pick by Line
double-handling;  Stock is laid out & picked in zones  Exact quantity of ordered goods are
consider impact on brought to the picking area (EX:
 All items from one zone in an order Total of 500 cases of SKU ‘A’ and
damage, shrinkage, 600 cases of SKU ‘B’ needed today
are picked and then moved on to the
productivity next zone (pick and pass), typically for all orders. All 1100 cases picked
by conveyor at once)
 Overall goal is to
reduce operator  ‘Wave picking’ is when all zones are  Picking area is laid out with a
picked simultaneously and collated location for each order; goods are
travel time later (no pick and pass); picking fast taken to each order’s location until
but sortation slow all cases have been allocated to all
orders
 Must balances picks per zone
Source: Cranfield  Appropriate for cross dock
 Appropriate with high number of
University / Rushton,
orders and many lines per order
Oxley, Croucher

Order Picking
Typical Warehouse Operating Costs

20%
50%
15%
15%
Order picking Shipping Receiving Storage
Order picking typically accounts for 50% of the direct operating costs
In a manual picking environment, 50% to 70% of the picker’s time is spent on

travelling, with only a small proportion of time spent physically picking
Source: Cranfield University / Dr. Edward Frazelle

Order-Picking Principles
Optional Walking Patterns

 Picking methods and equipment should be
appropriate for the application 002 004 006 008 010 012 014 016 018 020 022 024
• Careful not to over-engineer 001 003 005 007 009 011 013 015 017 019 021 023
• Simulation may help to select best picking

method
• Basic order picking effective for many 001 002 003 004 005 006 007 008 009 010
operations
 Good IT system for effective picking 020 019 018 017 016 015 014 013 012 011
• Walking order
• Effective reporting for slotting purposes
001 003 005 007 009 011 013 015 017 019
Heaviest
 Stock availability at the pick face must be Product
maintained 002 004 006 008 010 012 014 016 018 020
020 018 016 014 012 010 008 006 004 002
• As much as 15% of picking process can be Lightest

Product
delays in waiting for replenishment 019 017 015 013 011 009 007 005 003 001
High-volume picking areas should be centrally

located for easy access to dispatch area

Order-Picking Principles
 Consider a special area for fast-moving product
 Picking stock should be concentrated in the smallest feasible area, with care
taken to avoid congestion
• Try to avoid ‘foot’ traffic and MHE traffic in the same areas for safety
 This often involves keeping the reserve stock and order-picking stock separate
• Vertical separation: Picking stock at lower level and reserve stock at higher
levels (good for operations with high replenishment but rarely works
‘perfectly’ in practice)
• Horizontal separation: Reserve stock on one side of the warehouse and
picking stock on the other side
 Some interesting articles on picking and other concepts
http://www.theprogressgroup.com/publications/wp5_pick.html
http://www.strategosinc.com/Downloads/NAVSUP529/ns10.PDF
http://usco.kuehne-nagel.com/pdf/KN_wp_Design_for_Payback_070104.pdf

Automation Options for Picking
 Automated storage and retrieval system (AS/RS)

An ASRS is a system of rows of rack, each row having a
dedicated retrieval unit that moves vertically and horizontally
along the rack, picking and putting away loads. Unfortunately
the high costs of ASRS equipment and the length of the
retrieval times make it difficult to incorporate into a piece-
picking operation.
 Automatic Picking Machines
Fully automated picking machines (such as A-frames) are still pretty rare and
are used only where very high volumes of similar products are picked such as
music CDs, or, where high volume in combination with high accuracy
requirements exist such as pharmaceutical fulfillment.

 Pick-to-light
Pick-to-light systems consist of lights and LED displays for each pick
location. Pick-to-light systems have the advantage of not only increasing
accuracy, but also increasing productivity
 Carousels
Horizontal carousels work on the same principle as those
used at baggage reclaim at airports, although on a smaller
scale. Horizontal carousels are most common in picking
operations with very high number of orders, low to moderate
picks per order, and low to moderate picks per SKU.
Horizontal carousels provide very high pick rates as well as
high storage density. Pick-to-light systems are often
integrated into carousels.
Vertical Carousels (similar to a small scale Ferris wheel) are
frequently used in laboratories and specialty manufacturing
operations and are rarely used in regular order picking
operations.
 Voice-directed Picking
Voice technology has come of age in recent years and is now a
very viable solution, although it is not widespread. Directions are
given to staff via head sets.
 Automated Conveyor and Sortation Systems

Automated conveyor systems and sortation systems will be integral to any
large-scale piece-pick operation. The variety of equipment and system
designs is enormous.
 Automatic guided vehicles (‘lights-off’ operation)

The Trouble With ABC Analysis
You will need to classify each SKU as

an A, B or C mover when determining
where to place SKUs within the DC
There are many methods to calculate the ABC classification of a given SKU
An ABC classification based on pure case movement indicates the relative
volume of each case
Many companies use financial value for their ABC analyses

• Helps to identify the most profitable products
Neither of these ABC classifications is necessarily a good indicator of which

SKUs require the most work within the warehouse

The Trouble With ABC Analysis

Slotting
Slotting is the process of determining the specific warehouse location for each
SKU and is based on:
• Frequency
• Product weights and dimensions Slotting research paper
provided for your
• Segregation requirements information
• Separation of similar SKU numbers
• Separation of products with similar appearances
• Fragrance transfer
• Family mix distribution (which product groups ship together)
The most important concept in slotting is frequency, which is based on the
number of trips to a location, and NOT the total outbound volume
• In keeping with the goal to minimise travel distance, the largest time-
consumer in the picking process
You may want to create more than one pick face per SKU, depending on
desired replenishment frequency
Be sure to specify the slotting objective prior to doing this analysis, i.e., reduced
travel, reduced crushing/damage, etc.

Stock Movement
Picking Cycle in Warehouse:
• FIFO (First In First Out)
• LIFO (Last In First Out)
• FEFO (First Expired First Out)
• Etc.

Class discussion
How do the following affect picking productivity?
• Material handling equipment
• Unit of measure of picks (e.g., case, each)
• Lines (or SKUs) per order
• Cartons (or items) per line
• Cartons (or items) per order
• Carton or item weight and

dimensions
One group will present their results in front of the class. Others compare and ask questions.

Inventory

Why Hold Stock?
There are several reasons for holding stock:

• Cost of purchasing. The more orders that are placed, the greater the costs in
terms of administration. Typically suppliers offer greater discounts the larger the
order.
• Variability of demand. Stock needs to be carried to avoid stock outs.
• Variability of supply. Suppliers’ lead times can vary (the time from receipt of
an order to delivery).
• Speculation. Stock is sometimes purchased against anticipated price rises,
industrial action, sudden demand changes and so on.
• Work in progress. Semi-finished stock moves between different sections of the
manufacturing process.
• Economies of production. Low unit production costs are achieved through
long production runs, which inevitably results in short term inventory peaks. A
balance needs to be struck between stockholding costs and production
economies.
• Costs of not holding stock. This includes the cost of losing customers if stock
is not available.

Holding Stock
Stockholding Costs
The cost of holding stock varies from industry to industry, and from
business to business. Martin Christopher states that “It is estimated
that in total it (inventory) costs a minimum of 25 percent per annum
of the book value of inventory just to hold it” 2 The cost of holding
stock is made up of two main elements – the investment in the
inventory and the storage costs

Holding Stock
There are a number of costs associated with holding stock:
•Cost of working capital/opportunity cost. If a company needs to borrow
money in order to purchase stock, then interest needs to be paid on the loan.
•Staff wages
•Equipment costs (racking, fork lift trucks etc)
•Heating, lighting, water
•Rent
•Duty / Tax
•Insurance. These costs are directly related to stockholding. The higher the
stocks, the greater the premium that has to be paid.
•Repairs and maintenance
•Shrinkage (theft)
•Deterioration / Weakening
•Depreciation
•Obsolescence. Stock may become obsolete if stored for too long, especially
in fashion or technology where change is rapid

Holding Stock
Overflow storage areas need to be considered when calculating total

storage costs, including any movement to and from these locations,
and associated administrative costs.
Because of the high costs of holding inventory, policies should be
adopted by the organization to minimize the amount of stock held.

Inventory Accuracy
• Line Accuracy ?
Total number of Line / SKU that were cycle counted AND had
the incorrect Qty per Line / SKU within Total number of
line/SKU that were cylcle counted according to Data Base
(WMS)
• Location Accuracy ?
Total number of locations that were cycle counted AND had the
incorrect SKU, quantity, lot ID, date and status within Total
number of locations that were cylcle counted according to Data
Base (WMS)

How Eliminate Inventory Accuracy Error
Behavior
Maintaining inventory accuracy must be an integral part of your behavior
and of your organization. Like quality, customer service, and plant
safety, accuracy must be promoted throughout the organization as
everyone's responsibility. Processes are often shortcut if they impact on
short term productivity and profitability. In the long term, this will reduce
an organization’s ability to service its customers to expected levels, and
could result in losing customers.
Defining the Process
Define clearly the processes in an organization that affect inventory.
Each of these processes can then be evaluated to find out where and
why errors occur, and steps taken to correct them. Formal checks can
be put in place at critical points to reduce problems. Input is required
from all areas within the organization to gain a complete understanding.

Procedure Documentation
The processes and procedures within them should be written down,
once identified, and staff advised that they must follow them. It
should include everything the employee needs to know to complete the
task. Good practice requires that procedures should also include the
correct method for filling out and processing paperwork, the sequence
and timing of entering data, and any checks that are required to be
performed.
Employee Training
Go through the processes with staff to ensure they have a thorough
understanding of what needs to be done for each documented task.
Revisions to procedures should take place periodically, but not too often
as this can cause confusion.

Employee Testing
Employees should be tested to ensure they understand what is required
of them. Those you have identified as not having understood properly
must be retrained.
Monitoring
Any actions observed which do not comply with the written procedures
must be addressed immediately with the employees involved

Cycle Count – Inventory Counting
• A cycle count is an inventory management procedure where a

small subset of inventory is counted on any given day.
• Cycle counts contrast with traditional physical inventory in that
physical inventory stops operation at a facility and all items are
counted, audited, and recounted at one time.
• Cycle counts are less disruptive to daily operations, provide an
ongoing measure of inventory accuracy and procedure execution,
and can be tailored to focus on items with higher value or higher
movement.
.
What is differences
between Stock Count

Determining Count frequency
There is much debate on the method of determining cycle count

frequency
Pareto method
Derived from the Pareto principle, is to cycle count inventory by
percentage of inventory value. This leads to the expensive items
being counted most frequently.
This traditional approach may appeal to accountants by minimizing
the variance in inventory value. However, it can be inefficient from a
supply chain
. management perspective. Inventory shortages of even
a small, inexpensive component can bring the entire assembly line
to a halt while the component is re-ordered.

Cycle counting by usage

Cycle counting by usage states that items more frequently accessed
should be counted more often, irrespective of value. Every time an
employee adds or removes an item, there is a risk of introducing
inventory variance. Logical inventory zones can be set up to
distinguish items depending on how frequently they are touched.
Volume consumed and volume transacted and volume moved are
all ways of determining this.
Hybrid
.
Most cycle counting frequencies are determined first by a computer
running some kind of Pareto-like or frequency analysis, and then
changing the count frequency, or ABC code, as needed per item..

Cycle counting (perpetual inventory).

This is a process that can be used to avoid the company having to
suspend operations whilst stock is counted. Cycle counting is the
regularly scheduled count of products, normally daily, based on
some predefined parameters.
Inventory can be broken down by ABC classification, and each
classification of product assigned a count frequency. The more
important class A items may need to be counted 10 times a year, B
items 5 times, and C twice for example.
.

Cycle Count
Automation
To conduct efficient and accurate cycle counts, many organizations
use some form of software to implement an inventory control
system, which is part of a warehouse management system. These
systems may include mobile computers with integrated barcode
scanners that allow the operator to automatically identify items, and
enter inventory counts via keypad. The software then transmits data
to a database on a host system which can generate inventory
reports
.
Dangers
Cycle counts can introduce inventory errors if the cycle count
process is poorly executed or performed infrequently

Cycle Count
Differences in the physical count and the stock file can be down to
any number of reasons, and include:
•Inaccurate counting.
•Inaccurate keying of stock counts.
•Stock incorrectly receipted.
•Stock incorrectly shipped.
•Shrinkage.
Corrections need to be made to the stock file on completion of the

stock check to ensure that the file now reflects reality
.

Resources
Planning

Productivity

Work Hours Calculation

Man Power Calculation



Bibliography
Handbook of Physical Distribution Management, John Gattorna, Gower, 1981

David E. Mulcahy Warehouse Distribution & Operations Handbook
Frazelle, Edward H. Various sources of information from The Logistics Institute, Georgia Institute of
Technology.
Frazelle, Edward H. World-Class Warehousing. Atlanta, GA: Logistics Resources International, Inc.,
1996.
Rushton, Alan, John Oxley and Phil Croucher (Editor). “The Handbook of Logistics and Distribution
Management (Creating Success).” 2000.
Cranfield University. Various notes from courses in the Logistics and Supply Chain Management MSc
program.
Pilot, Vincent, Facility Design: A Discussion on Warehousing Concepts , A Practical Approach to Design,
6 November 2006
The 36 Chartered Institute of Logistics and Transport, for use in 2006
http://en.wikipedia.org/wiki/Cycle_count
A free book online!! http://www.isye.gatech.edu/~jjb/wh/book/wh-sci.pdf


Warehouse Operational Training

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Warehouse Operational Training

Uploaded by

Copyright:

Available Formats

Training Development Program for Supervisor and Executive

WAREHOUSE & STORES OPERATIONS

i. Design & Lay Out Principle

Location | July 1, 2021 Page 2

Location | July 1, 2021 Page 3

Location | July 1, 2021 Page 4

Location | July 1, 2021 Page 5

Location | July 1, 2021 Page 6

DHLE Asia Air Network

Location | July 1, 2021 Page 7

Why Have Warehouses?

Location | July 1, 2021 Page 8

Warehouses Construction Consider to

Warehouse Operating Functions (Continued);

Location | July 1, 2021 Page 10

Source: Cranfield University

Source: Cranfield University

Location | July 1, 2021 Page 12

Excludes Unloading Bays and Docks

 Access to unload vehicles

Location | July 1, 2021 Page 13

Excludes Loading Bays and Docks

 Staging area for wrapping, checking, labelling, etc.

Location | July 1, 2021 Page 14

Location | July 1, 2021 Page 15

Five important principles in the process of warehouse design;

Location | July 1, 2021 Page 16

Inbound area Outbound area

• Separate ‘human’ traffic from MHE traffic Disadvantages

Location | July 1, 2021 Page 17

Inbound Bulk Packing Outbound

• Best for high-volume operations and long, narrow buildings

• Product must travel entire length of the building

Location | July 1, 2021 Page 18

Marshalling, Goods Receiving and Dispatch, considering to;

Location | July 1, 2021 Page 19

There are three main types of storage.

Location | July 1, 2021 Page 20

Palletized unit loads

Block stacking is cheap, uses only simple equipment and can

Location | July 1, 2021 Page 21

Floor / Bulk Storage / Block Stack

• Suitable for product range where there are

Effective pallet utilization of 70% - 80%

Individual Pallet Access

Location | July 1, 2021 Page 23

• Adjustable Pallet Racking

Location | July 1, 2021 Page 24

• Adjustable Pallet Racking

Location | July 1, 2021 Page 25

Adjustable / Selective • Flexible, versatile system

Pallet Racking • Excellent stock access

Effective utilisation of pallet position is 90%

Location | July 1, 2021 Page 26

Adjustable Rack Check List

- Good stock access

- Excellent space utilisation

- Requires excellent floors

- May require additional fire safety measures

 Effective utilisation of pallet positions is 90% to 95%

Source: Rushton, Oxley, Croucher (modified)

Location | July 1, 2021 Page 28

• Double Deep Racking

Location | July 1, 2021 Page 29