warehouse summit mena

In the face of adversity, Tenacity is the means to success

Email: [email protected] Website: www.ivanreynolds.co

Warehouse Summit MENA

Understanding Global Best Practice

in

Warehousing Transformation

Dubai 29 – 30 April 2019

mailto:[email protected]

http://www.ivanreynolds.co/

We do not want an Airport for Dubai; we want

Dubai to be an airport for the world.

H.E Sheik Mohammed bin Rashid Al Maktoum

Reflections on Happiness and Positivity

“ We have seen that quality service is more profitable than normal service, provided we master the art of managing resources and obtaining maximum efficiency from costs.”

H.E Sheik Mohammed bin Rashid Al Maktoum

My Vision – Challenges in the Race to Excellence



Driving warehousing innovation into the heart of business improvement -

Benchmarking

Preparing for a shift in capability and performance –

Best Practices – Warehouse operations

Transforming operations to deliver to the on demand customer –

Best Practices – Supply Chain

If you’re told your warehouse has no problems,

the inability to see them IS the problem.





Driving warehousing innovation into

the heart of business improvement

Benchmarking





Bench.mark – Something which can be measured and used as a standard that other things can be

compared with.

Oxford Dictionary

A measurement of the quality of an organization's policies, products, programs, strategies, etc., and their comparison with standard measurements, or similar measurements of its peers.The objectives of benchmarking are:

(1) to determine the current status quo(2) to determine what and where improvements are called for(3) to analyse how other organisations achieve their high performance levels (4) to use this information to improve performance.

Business Dictionary

Definition of Benchmarking

There is no single benchmarking process that has been universally adopted.





• The term benchmark, originates from the history of guns and ammunition, in

regards to the same aim as for the business term; comparison and improved

performance.

• The introduction of gunpowder arms replaced the bow and arrow from the

archer, the soldier who used the bow. The archer now had to adapt to the new

situation, and learn to handle the gun.

• The new weapon left only a mark on the target, where the arrow used to be

visible, and with the bow gone, the soldiers title changed to marksman, the man

who put the mark.

• The gun was improved already in the early beginning, with rifling of the barrel,

and the rifle was born. With the industrialization of the weapon-industry in the

mid-1800's, The mass production of ammunition as a cartridge replaced the

manual loading of black-powder and bullet into the gun.

• Now, with standardized production of both the high-precision rifle, as well as the

cartridge, the marksman was now the uncertain variable, and with different

qualities and specifications on both rifle as well as ammunition, there was a

need for a method of finding the best combination.

• The rifled weapon was fixed in a bench, making it possible to fire several

identical shots at a target to measure the spread.

History of Benchmarking



https://en.wikipedia.org/wiki/Marksman



Types of BenchmarkingB

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The following is an example of a typical benchmarking methodology that can be used:

Identify problem areas: Benchmarking can be applied to any business process or function - range of

research techniques may be required.

Identify other industries that have similar processes:

Identify organizations that are leaders in these areas: Consult customers, suppliers, financial

analysts, trade associations, and magazines to determine which companies are worthy of study.

Survey companies for measures and practices: Target specific business processes measures and

practices to identify business process alternatives leading companies are employing.

Visit the "best practice" companies to identify leading edge practices: Agree to mutually

exchange information beneficial to both and use the results.

Implement new and improved business practices: Take the leading edge practices

and develop implementation plans to gaining demonstrated value from the process.

Benchmarking Methodology





Pitfalls and Pathways

➢ Be specific, define exactly what you wish to benchmark➢ Understand why you want to benchmark – what is you end goal➢ Make sure that you compare apples with apples – misaligned benchmarking can only lead

to complications➢ Do not over elaborate, keep the process simple – KISS➢ Ensure that the benchmark settled on is appropriate for your business or operation. ➢ Be careful of who dictates what the benchmark should be – what do they know?

✓ Benchmarking does not have to be against external sources only – use internal standards where you can

✓ Use financial measurements to set operational targets and benchmarks – cost per ton to determine picking rate

✓ Budgets are your benchmark!✓ Evaluate your KPI’s and determine if they add value or are just a statistic – if no value-

add, there’s nothing to benchmark, drop the measurement.





Who set the benchmark for these companies?





Internal Benchmarking

What defines your internal benchmark? It is the best that you have achieved!

Year-on-Year statistics – how do you use them? Last years highest/lowest/best is this years benchmark

Value-added measurements If it is worth doing, it is worth measuring – conversely, if it is not worth measuring, it is probably not worth doing

Decide if you want to follow the industry leaders

Or be the industry leaders

Benchmarking is only the foundation Benchmarks will not work if you do not introduce and apply best practices!

Continuous Improvement should dictate your benchmark

The link between benchmarking and best practices





Preparing for a shift in capability and performance

Best Practices – Warehouse Operations





Physical Operations:

Minimize Touches - Eliminate superfluous steps, double handling of items, needless

back & forth to the control room.

Stock Layout - Have the fast moving items closest to the shipping areas and

heaviest items at floor level for easier handling – practice FIFO

Warehouse Layout - Minimizing travel time between picking locations to greatly improve productivity by

providing thorough fares and isles to allow for straight travel wherever possible

Warehouse Traffic Plan - Have set directions and routes of travel to prevent people and equipment

having to cross-over or travel against each other to improve efficiency and safety

Preplan Picking Waves - Replace picking on the basis of order sequence with technology that can plan out

picking waves thus streamlining turnaround times and increasing labour efficiency

Label Visibility - Use clear, readable labels that can be read by both people and scanners or other

equipment to reduce errors and improve picking or binning speed

Assigned Storage

Locations - Use assigned storage locations to ensure that stock and pallets are placed in

specific locations. This can minimise lost or misplaced inventory and reduces time

spent looking for materials







- Install an AS/RS (ASRS). Benefits include maximization of warehouse storage space, reduced

inventory levels, accurate inventory tracking, reduced labour, increased picking & packing accuracies

and efficiency, reduces picking errors, damages and lost stock.

- Integrate your systems to maximise efficiencies i.e. AS/RS with WMS, WCS

or WES solutions. These technologies work together, each increasing the

usefulness of the other.

Technology:

The right technology will ensure that your Warehouse Operations are running at peak efficiency.

- Implement a WMS for maximum efficiency. A good warehouse management solution will synergise

warehouse operations. It can integrate with your ERP or Inventory Management System (IMS) so that

your inventory stays in sync - increasing accuracy, reducing costs and improving customer satisfaction.

- Barcodes, RFID tagging, handheld scanners or even newer technologies such as wrist-

mounted RF units, handheld mobile systems, voice pick, pick-to-light order fulfillment,

etc. will all synergise the picking process and improve efficiencies and accuracy.






ASN – Advanced shipping NotificationRFID – Radio Frequency Identification RF – Radio FrequencyUFHR – Ultra High Frequency RadioWIFI – Wireless NetworksMobility – Mobile ComputersAS/RS – Automated Storage & Retrieval SystemERP – Enterprise Resource PlanningWMS – Warehouse Management SystemWCS – Warehouse Control SystemWES – Warehouse Execution SystemDTC – Direct to ConsumerNFC – Near Field CommunicationsLTL – Less than Truck Load

RFID inventory solutions allows for long-range

mobile scanning, forklift mounted computers,

and other best of breed technologies to enable

real-time tracking of inventory, labor

productivity, and delivery status.

NFC (Near Field Communication) is a contactless,

identification & interconnect technology for close-range

wireless communication between mobile devices.

This enables a mobile phone to communicate with another

NFC compatible device within a radius of about 3-4

centimeters by providing a wireless connection.

Both devices to be able to send and receive information

over an NFC connection which does not rely on Wi-Fi, 3G,

4G, LTE or otherwise and also costs nothing to use.

It is currently used primarily in the retail industry but is

also used in the service industry

Technology Continued:

To maintain productivity your mobile workforce needs

access to critical data — fast.

Mobile computers or portable data terminals provide

workers the convenience of on-site data retrieval allowing

them to keep moving through their tasks. Portable data

terminal devices are used to collect data, both manually

entered and/or captured by scanning barcodes or RFID tags.






- Cycle counting benefits;

• Keeping on-hand balances correct

• Quality assurance test of inventory control both physical and systems wise

• Efficient way to accurately gauge & improve inventory accuracy

• Causes minimal disruption to operations

• Allows for targeted counting by product, batch, bin, section, or whatever measure is decided.

- When discrepancies are identified;

• Investigate the reason for the discrepancy

• Make appropriate changes to warehouse management procedures to prevent reoccurrence

• Train staff and take corrective action against staff

- Warehouse Hygiene;

• Remove damaged inventory immediately to a separate storage location

• Keep inventory clean for both hygiene purposes and customer satisfaction

• Keep bins and storage locations clean, neat and tidy – stop vermin infestation

• Keep picking isles and lanes clean during the picking operation

Inventory Management:






- Implement Cross Docking:

▪ Speeds up operations

▪ Eliminates excessive inventory handling

▪ Delivering goods needed for orders direct to the shipping dock

▪ Bypasses warehouse operations

▪ Reduces the order cycle time and material handling costs.

- Use standardised bins and storage containers. Standardisation will;

▪ Minimise the variety of material handling equipment you need

▪ Makes it easier to find and store materials

▪ Eliminate wasted time while pickers search for the right equipment

▪ Gives the warehouse a neater appearance and improves organisation

▪ Reduce MHE and R&M costs

Process;





Best Practices – Warehouse HSE1. Lead from the front: Management should lead Safety and HSE Practices from the front – first to comply, first to set the example

2. Develop a Safety Culture:Empower you Safety Officers to enforce safety requirements and to stop any unsafe operation or acts until the situation is rectified. Include an HSE moment/safety action for the day in all pre-shift meetings or Tool-Box-Talks.Set clear minimum safety standards to reinforces the expectation that safety is always the priority.Have a ‘Zero Tolerance’ policy for safety violations and PPE non conformance. Hold a quarterly Safety Quiz –mandatory for everyone include management (Lead from the front) and have the results posted for all to see.

3. Establish HSE KPI’s for everyone:Establish safety KPI’s such as Safety Inspections, Reporting of Unsafe Conditions (UC), Unsafe Acts (UA), Near Misses (NM) etc.

4. Safety Committee and Safety Communication:Establish a safety committee with representatives from all departments. Hold a monthly safety meetings and post minutes on all notice boards for all to read. Post clear safety signage at all key locations around the facility.

5. Provide Regular Training:This is critical if a decent Safety Culture is to be developed. At least one safety training to be conducted per week and one Safety Campaign conducted per month. Safety Campaigns can focus on issues like Heat Stress Management, PPE & Safety Rules Compliance, Safe Forklift Operations and Warehouse Hygiene & Standards.





Transforming operations to deliver to the on demand customer






“The supply chain stuff is really tricky.”

Elon Musk - CEO of Tesla and SpaceX






1. Upstream Integration – Vendor Compliance:Introduce clear and specific labeling requirements, set standard case quantities,

uniform containers sizes etc. Integration and Standardisation of packaging and

labeling requirements will benefit both companies.

2. Establish Advanced Shipping Notification:By leveraging electronic advanced shipping notifications within the warehouse operations, MHE availability

and labor can be planned with more certainty.

3. Schedule Delivery Windows to enable Simultaneous Shipments:Schedule delivery window times to plan product entry and manage inbound traffic flow. By integrating this

process with the advanced shipping notifications, multiple deliveries can be scheduled simultaneously, or

placed into an integrated cascade plan to accommodate different aspects of inbound stock requirements

4. Take Advantage of Automatic Data Collection TechnologyAutomate and Cut Errors. Introduce automated systems that can facilitate data exchange and transfer from the supplier through to the customer. Integrate upstream through to downstream automated data tracking

processes means one less step to manage—plus you are able to collect more accurate and timely data that

helps you make smart supply chain decisions.






5. Downstream Integration – Customer Compliance:Have clear-cut SLA clarifying delivery standards and strategy. Agree on set delivery windows, backdoor procedures and documentation flow. Include cross-docking for bulk deliveries, or specialist products. As in upstream integration, integration and standardisation of packaging and labeling requirements will benefit

both companies

6. Implement Cross-Docking:With cross-docking, products can be loaded

from one transportation unit to another,

completely bypassing warehousing and

storage by sorting products in a staging area

before re-loading items directly onto the next

truck.

This is effective for full load and LTL

shipments and is very effective for larger

distribution centers that are strategically

located for transferring shipments from one

transportation route to another.





Omni-channel success is achieved by more than just order fulfillment. A sound omni-channel supply chain strategy requires optimization & synchronisation of inventory, distribution & transportations functions across all channels.

▪ eCommerce Fulfillment, direct to consumer ▪ Direct to store order replenishment ▪ Big Box retailer compliance ▪ DC to DC distribution ▪ Wholesaler and Distributor ▪ Direct to customer/consumer▪ Returns management and reverse logistics


Benefits of omni-channel distribution centers include:

▪ Reduced inventory in your supply chain

▪ Greater variety of products & greater visibility into availability

▪ Simplified order picking and reverse logistics

▪ Reduces delivery time and increase customer service

▪ Expanded shipping options with improved order accuracy

An omnichannel warehouse is different from a traditional warehouse in that it handles incoming orders from online, brick-and-mortar, and all other possible channels.

Omni-Channel Expertise





Summary - Driving Warehousing Innovation

Benchmarking

• Be specific, define exactly what you wish to benchmark – end goal

• Compare apples with apples

• Do not over elaborate, keep the process simple – KISS

• Use internal standards - Year on Year measurements

• Use financial measurements & budgets as benchmarks

• Benchmarks will not work if you do not introduce and apply best practices!

• Continuous improvement is the link between good benchmarking and best practices

External Benchmarking:

Internal Benchmarking

Continuity

• Identify like companies against whom you wish to bench mark





Summary - Shift in Capability and Performance

Warehouse Best Practices

▪ Improve Physical Operations: Minimise touches, plan warehouse & stock layout & traffic plan, pick waves, label visibility, assigned locations

▪ Invest in and introduce Technology: Bar coding, wrist mounted RF & RFID Tagging, advanced picking systems & mobile, AS/RS, WMS, NFC – integrate

▪ Improve your Inventory Management: Cycle counting, addressing of discrepancies immediately accompanied with corrective action, warehouse hygiene

▪ Synergise warehouse Processes: Cross docking, standardisation of equipment, MHE & bins

▪ Improve HSE&Q:Lead from the front, empower the HSE team, apply zero tolerance, training & campaigns





Summary - Transforming Operations

Supply Chain Best Practices

o Upstream & Downstream Integration – Vendor & Customer Compliance – standardised packaging, labeling documentation etc.

o Establish Advanced Shipping Notification – Plan inbound to maximise floor synergies and efficiencies

o Delivery Windows - Scheduled deliver time slots, enable Simultaneous Shipments

o Implement Cross-Docking – Synergise operations, minimise pressure on warehouse operations, deliver direct from supplier or manufacturer to customers

o Look to interfacing omni-channel warehousing and distribution – multi-faceted synergistic operations



warehouse summit mena

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