Storage and

Warehousing
Techniques
Warehouse Processes
Part 2
Section 5
 Picking is paramount to any warehouse operation
 It is the most labour intensive
Picking  It is fundamental to customer service
systems  There are often extensive floor space
requirements
 There may be limited scope for automation

On average up to 65% of the warehouse’s operating expenses

can be attributed to the Picking function.
 Order process
Travel
7 Pick
The pick 11
Pack
Check
process and 43
Paperwork
Error
Order errors

likely errors 12 correc-

tion 2 Quantity
misread
Item
12 23 omitted
30
Wrong item
15 picked
Misscount-
ing
45
Pick volumes

5
ABC layout

C B A B C
C Zone
Despatch B Zone
Slow movers
Medium movers, 35%
A Zone
45% SKU, SKU,
Fast movers, 20% SKU,
5% frequency 15% of frequency
80% of order frequency
 Slotting Optimization scientifically determines the best picking profile
Product for your warehouse, and enables you to make timely, intelligent
decisions as ordering trends change.
location tool
- Slotting Are fast-moving items in the most accessible locations?
Are slots allocated in the most efficient manner according to product
size and weight?
Are pallets allocated to the correct height slot
Is your storage capacity optimized for your current stock?
Are items that sell together close to each other
As input data changes, such as seasonal ordering trends or new or
discontinued products, Slotting Optimization can revise its
recommendations incrementally, to keep your warehouse at
maximum efficiency without costly overhauls.
 Speed
• Distance and ease of access

Accuracy
• Clear ID and instructions
Picking Layout
essentials • Picker to goods or goods to picker
• Possible need for multiple pick faces for same
product

Equipment
• Safety and efficiency
 Pick by order
Pick by • All lines are collected for a specific customer order.

order • Minimal handling, order sizes are typically high.

Picking Pick by • All lines are collected for a specific customer order, and labels are

procedures label attached to each item during picking.

• Minimal handling, order sizes are typically high.

Cluster picking
Cluster • Take several individual orders out at the same time

picking • It can be confusing without technology

 •Pick by batches
• Products collected for a large number of orders with
the same product lines.
Picking • Fewer runs but increased handling and sortation,
mainly large quantities of small orders.
procedure •Pick by zones
s • Products are categorized into specific groups and
picked from defined areas
• Reduced walking distance, increased sortation
•Pick by waves
• Large batches of orders are collected for defined
periods, e.g. arrival of vehicle
Physical devices that interface with WMS During picking

Pick to Voice system

Wireless Radio Data Terminal (RDT)

Physical devices
that interface with
WMS during the
picking process
Heads-up Display (HUD)

pick to light
Pick by label

• Each operator is given a

•batch of labels detailing location,
•quantity etc - once all labels are
•attached to the products and placed in
•a carton or onto a pallet the individual
•order pick is complete
Cluster Picking method
 Zone picking
Can be simultaneous or sequential
Each person is allocated their own area
Dispatch Area

Products
Products
orders

Order Release
Point
Products
 Batch
picking
Wave picking
• There are two basic planning elements and benefits of
wave picking.
• To organize the sequence of orders and assignment to
waves, consistent with routing, loading and planned
departure times of shipping vehicles or production
requirements, etc., to reduce the space required for
shipping dock handling to assemble orders and load; and
• To assign staff to each wave and function within a wave,
with the expectation that all the work assigned to each
wave will be completed within the wave period and thus
more effectively utilize the staffing throughout the shift.
Goods to person
Increased use of automation – goods to person

Order distribution System (ODS) is a dynamic goods-to-person solution.

It is especially strong in business processes where a large numbers of
order lines are fulfilled from relatively low numbers of articles. Totes or
cartons are transported by a conveyor system to operators who place
goods into order totes controlled by put-to-light displays.
 Pick location Replenishment
identification processes
Product
identification Operating
processes

What affects Order Warehouse

management
picking release
strategy software

performanc Picking
technology Stock

e? availability

Pick location
appropriate to Walk
product size and distances
dynamics

Product
and/or pack Pick face Handling Picker
size and quantity and unit (pallets, training
weight stock cover totes, etc.)
Picking strategies and
equipment
 The human factor

Ergonomic design Light loads (max

Comfortable
Safety first of storage system 25 kgs men, 15 Adequate lighting
temperature
and equipment kgs women)

Good
Clear instructions Clear labelling Adequate breaks communication Good supervision
with team
Replenishment

When using pick or forward locations

• Replenishment is the replacement of goods picked from the
forward locations

Goods are transferred from bulk or reserve locations

• This can be done overnight, at the beginning or end of a shift or
during the picking process depending on the urgency – however
try not to replenish at the same time as you are picking
• Ensure sufficient items in pick location for duration of shift if
possible
• Biggest error is to have an empty pick location
 Value Adding Services

Sub- Shrink
Labeling Testing Packing
assembly wrapping

Promotional Gift Call centre

Tagging Kimball Tag
work wrapping support
Picking& Packing Operations
PACKING SERVICES
• Packing Design
• Warehousing and Distribution
• Packing Supplies
•Labeling • Garment Hanging
• Promotional Stickers Price Labels • Shrink Wrapping Incorporating: Sleeving
• Barcoding
• Auto Bagging
• Safety/Warning Labels
• Instruction Labels • Labelling Incorporating: Tagging,
• Product Labels • Pick and Packaging & Fulfilment
• Buy One Get One Free • Packaging
• Organic Processing & Warehousing
• E-Commerce Fulfilment Services
• Magento Shipping (customization)
Dispatch

Random quality
Weigh product as Recording of batch
checks on exit Pack products
an alternative to numbers, serial
depending on securely and safely
physical count numbers etc.
product value

Load manifest Loading in Load optimisation Smooth the flow of

compilation sequence (e.g. Cubiscan) despatches

Vehicle sealed and

recorded
 Load optimisation

Vehicle load configuration –

Pallet configuration – no overhang
Optimum number of
- Optimum number of cartons
pallets/cartons

http://onpallet.com/
Packing on dispatch

Stretch-wrap by hand
Pallet straps (courtesy of Velcro)
Stretch-wrap machine

Automatic carton erector and sealer

Shrink-wrap tunnel
(Courtesy logismarket) Packing station, (courtesy Cisco Eagle)
Housekeeping/Supervision

If you have a large Dealing promptly

Provision, allocation
warehouse you may Replenishment of with non-
and maintenance of
have separate teams fast moving items conforming, lost or
equipment
for the following: found stock

Security of high
Identification of non- Ensuring efficient Work flow and
value or hazardous
moving stock space utilisation congestion
stock

Cleanliness of Review of
warehouse procedures
 • Staff training and awareness
• Use of CCTV
• Use of lockable cages or Carousels for high value goods
• Parking of cars away from the warehouse
• Random searches

Minimising • Regular cycle counts

• Staff vigilance
Theft • Especially in dark, less accessible areas of the warehouse.
These are prime areas from which product will disappear.
Same goes for inventory near exit doors. Staging areas for
both incoming and outgoing shipments may be too close
to the dock doors. If no one is around to keep an eye out,
it would be easy to take something and put it in a truck.
• Conduct security surveys/audits (Independent)
• Use security tags for vehicles leaving the warehouse
 Perpetual inventory or cycle counting
Use ABC analysis to determine how many and how often you count which items
of stock e.g. 8% of A, 4% of B and 2% of C items
Monthly, quarterly, annual stock checks
Depends on what you agree with your auditors
Stock
counting
N.B. You need to be organised:
Who’s counting, are they trained and motivated, what are you counting,
when do you count, what tools do you need.
 How often stock turns over in a
warehouse

How to calculate:
• Divide the total throughput(dividing inventory
Stock turn by time) of items by the average number of
items in stock
• Or
• Divide the total cost of sales by the total
average cost of goods stored at a particular
time
Stock Month Sales per month
Average no. of units
in stock

turn
January 40,000 150,000
February 32,000 165,000
March 35,000 170,000

• The following table April 90,000 175,000

provides data regarding May 100,000 165,000
sales and average stock June 75,000 153,000
holding per month. July 45,000 126,000
• Calculate the stock turn. August 32,500 122,000
September 40,000 165,000
October 58,000 185,000
November 74,000 195,000
December 84,000 110,000
Stock turn

Average no. of units in stock

Month Sales per month (units) (units)
January 40,000 150,000
February 32,000 165,000
March 35,000 170,000
April 90,000 175,000
May 100,000 165,000
June 75,000 153,000
July 45,000 126,000
August 32,500 122,000
September 40,000 165,000
October 58,000 185,000
November 74,000 195,000
December 84,000 110,000
705,500 156,750
Stock turn = 4.5
 Days stock in hand
What Is Inventory Days on Hand? Inventory Days on Hand is a
measurement of how many days it takes a business to sell through their
stock of inventory. Financial analysts and investors use it to determine how
efficiently a business manages inventory dollars

Days on hand = (Average inventory for the year / Cost

of goods sold) x 365

Say a company has inventory that’s worth $43,780 and its cost of goods sold
(COGS) is worth $373,400 for the year 2018.
Using the formula above, the company would calculate inventory days on hand
like so:
Inventory days on hand: 43,780 / (373,400) x 365 = 42.795 days
•If you know your inventory turnover ratio, you can also
calculate inventory days on hand using this formula:
•Inventory Days on Hand = # of days in your accounting
period/inventory turnover ratio

•Say a company wants to calculate its inventory days on hand

for the past year, and knows that their inventory turnover
ratio for the past year was 4.2.
•
•Using the formula above, the company would calculate
inventory days on hand like so:

•Inventory Days on Hand: 365 / 2.5 = 86.904