Lean Warehousing Driving Supply Chain Effectiveness by Leaning

Lean Warehousing Driving Supply Chain Effectiveness by Leaning Your Warehouse Chris Barnes – Consultant, Product Support Services, QAD

Lean Warehousing Safe Harbor Statement The following is intended to outline QAD’s general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, functional capabilities, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functional capabilities described for QAD’s products remains at the sole discretion of QAD. 2

Lean Warehousing Objectives Best practices you can implement today Understand advance strategies with QAD Warehousing Cover 50 lean warehousing practices 3

Lean Warehousing Tell Me About You Do you have a warehouse Any lean initiatives in the warehouse Do you use WMS What would you like to get from this session 4

Lean Warehousing Warehousing Defined A building, or a part of one, for the storage of goods or merchandise To some in the JIT world, warehousing is considered a waste 5

Lean Warehousing “Top Pressures” Driving Lean Warehousing 45% do more with less 35% increased demand / supply fluctuations 31% better utilization of resources 39% rising operating costs 28% customer turn time requests 28% customer turn time requests Source: Aberdeen Group - Warehouse Management Excellence, Maximizing Resources & Efficiency, Nov 2010 6

Lean Warehousing “Top Actions” to Improve Warehouse Management 54% Better systems integration 39% Improve labor efficiency by reassessing software and warehouse resources 39% Increase visibility into inventory and order status 36% Improve throughput through systems or automation 32% Realign / consolidate products across our facilities 21% Improve perfect order rate by improving pick accuracy and on-time shipment Source: Aberdeen Group - Warehouse Management Excellence, Maximizing Resources & Efficiency, Nov 2010 7

Lean Warehousing Lean Warehousing Principles Flexibility Lead time reduction Risk reduction Reduce variation Business plans as guidelines Source: Aberdeen Group - Warehouse Management Excellence, Maximizing Resources & Efficiency, Nov 2010 8

Lean Warehousing 50 Ways to Lean Your Warehouse 1. 2. 3. 4. 5. 6. 7. Get organized Marked aisles & areas Look at lighting Straight flows Slotting strategy Minimize travel Flexible picking strategies Source: Aberdeen Group - Warehouse Management Excellence, Maximizing Resources & Efficiency, Nov 2010 9

Lean Warehousing QAD Warehousing Flexible Picking Discrete Batch Cluster Zone Pick & pass 10

Lean Warehousing 50 Ways to Lean Your Warehouse 8. 9. 10. 11. 12. 13. 14. Establish appropriate pick locations Use voice pick where appropriate Measure warehouse performance Share performance information Business intelligence Use RF data collection Leverage alerts & messaging 11

Lean Warehousing RF Task Management and inquiries save time and provide real-time information updates. 12

Lean Warehousing Alerts and Instant Messaging 13

Lean Warehousing RF Messaging 14

Lean Warehousing 50 Ways to Lean Your Warehouse 15. 16. 17. 18. 19. 20. 21. 22. 23. Wave management Ensure inventory positions Focus on inventory accuracy Use cycle counting Get rid of excess inventory Get rid of space wasters Store obsolete materials off-site Improve cube utilization Vary storage location sizes 15

Lean Warehousing Cube Utilization Vertical Honeycombing wasted space improved beam spacing 16

Lean Warehousing 50 Ways to Lean Your Warehouse 24. Know your order profile 25. Store loads according to size 26. Space allocation by planned inventory levels 27. Use reserve storage and forward pick 28. Implement random storage 17

Lean Warehousing Reserve Storage / Forward Pick Reserve Random Unit 4 Unit 1 Reserve Loc Unit 2 Unit 3 Reserve Loc Forward Pick Dedicated 040-BX-001 040-EA-001 18

Lean Warehousing 50 Ways to Lean Your Warehouse 29. Consider fluid loading 30. Use the correct equipment 31. Consider planned & opportunistic cross docking 32. Leverage advanced shipment notice (ASN) 33. Minimize packaging 34. Store receipts without checking or repacking 35. Run a scheduled dock 36. Replace checking with auditing 19

Lean Warehousing 50 Ways to Lean Your Warehouse 37. Quality sampling and auditing available on receipt 38. Measure to improve labor performance 39. Cross train 40. Identify your superstars 41. Use standard operating procedures 42. Perform layout assessment 43. Minimize aisle widths 44. Optimize staging areas 20

Lean Warehousing 50 Ways to Lean Your Warehouse 45. Store in aisles 46. Standardize pallet sizes 47. Standardize unit loads 48. Storage racks over dock doors 49. Case flow racks in pallet racks 50. Interleave work tasks bonus 50 ½. Leverage a solid WMS 21

Lean Warehousing QAD WMS is Fully Integrated into QAD Apps Task Management QAD Apps Yard & Dock Management Productivity Tracking Receiving Inventory Lot, S/N, Exp VAS Wave Planning Cross Docking Shipping / Manifesting Put-Away Optimized Picking Slotting Replenishment 22

SSM SSM SSM SSM SCP SCP SCP SCP WMS WMS WMS WMS BI BI BI BI Green Financials Financials Purchasing Purchasing Transportation Transportation Transportation Transportation MSW MSW MSW MSW// /PSW PSW PSW PSW White Configurator Configurator Configurator Configurator Black DM DM DM DM EAM EAM EAM EAM Field Field Readiness Lean Warehousing Value Chain Certification Belt Value Chain Certification 23

Lean Warehousing Core Principles of Lean Warehousing Visible customer consumption Reduce lead time Pull system Reduce variation Create velocity Focus on process discipline Total cost of fulfillment 24

Lean Warehousing Metrics Affected Process Benefit Value Bin Level Location Mgt Reduced labor cost Improved fill rate Reduced Inventory level Improved Inventory accuracy Less warehouse space -20 to 30% 10 to 40 pts -10 to 30% To 99.9% -20 to 50% Receiving Labor reduction -20 to 30% Real Time Put Away, Product Slotting Labor reduction Inventory accuracy improved -20 to 30% To 99.9% Mobile Device Based Order Fulfillment Labor reduction -20 to 30% 25

Lean Warehousing Next Steps Ask your account manager for a Lean Warehousing Q Scan 26

Lean Warehousing Questions & Answers Chris Barnes: [email protected] 27

www.qad.com QAD Inc 28