Business Overview of Strategic Alliance
Management Style
I believe coaching establish the base for a “continuous improvement” culture. It allows to develop
team work, employee ownership and performance improvement.
Personal Criteria Used to Measure Success
Consistent positive results due to changes implemented
Less waste
Increase in quality
Improved labor efficiency and effectiveness
Execution Factors
Executive Business Vision
Diligent
Endorse Formal Documentation/Practices Fully
Utilize Available Resources and/or Acquire Additional if Needed
Research Materials as Needed
Customer Order Profile

Product Mix

Lines per order

Cube per order

Lines and cube per order
Order Mix Profiles
- Warehouse operating plotting strategies

Family mix

Handling unit

Order increment
Page 1
Family Mix Profile
The strategy of zoning the warehouse to create a virtual warehouse within a warehouse.
Zoning the warehouse by family will yield good productivity, customer service and storage
density performance.
% of Orders
35
30
25
20
15
% of Orders
10
5
0
A
Only
B
Only
C
Only
A&
B
A&
C
B&
C
A, B
&C
Handling Unit Mix Profile
The full/partial pallet mix and full/broken case mix are the two handling unit mix profiles.
Full/Partial Pallet Mix Profile
In general, it is a good idea to establish separate areas for pallet and case picking –
replenishing a case picking line/area from a pallet reserve/picking area. Orders should be
classified as a pallet pick order, a carton pick order, or a mixed order.
Full/partial pallet mix profile
80%
75%
70%
60%
50%
50%
% Orders
40%
30%
30%
20%
10%
% Lines
20%
15%
10%
0%
Loose
Carton
Full Pallet
Page 2
Mixed
Full/Broken Mix Profile
Warehouse locations should be established in separate areas for full and broken case picking –
replenishing a broken case picking line/area from a case reserve/picking area.
Full/Broken Case Mix Profile
70%
60%
50%
40%
% Orders
30%
% Lines
20%
10%
0%
Full Case Only
Broken Case
Only
Mixed
Order Increment
Pallet Order Increment Profile
16%
14%
12%
10%
8%
Series1
6%
4%
2%
100%
95%
90%
85%
80%
75%
70%
65%
60%
55%
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Using the graph as an example, quarter and half pallet unit loads should be built so when a
customer places an order of a1/4 or ½ pallet, the unit load is already preconfigured.
The practice to encourage customers to order half- or quarter-pallet quantity increments
should be implemented.
Precautions should be practiced to control the complexities of mixing FIFO and the loss of
storage density. The percentage of preconfigured quarter-pallets should be estimated based
on weekly demand and has a replenishment location.
Page 3
Lines Per Order Analysis
Single line orders may represent an opportunity to create a dynamic forward picking line.
Single line orders may be backorders or small emergency orders.
Lines per Order Analysis
70%
% of Orders
60%
50%
Full Case Orders
40%
Broken Case Orders
30%
Overall
20%
10%
0%
1
2
3-5
6-9
10+
Lines per Order
Lines and Cube Per Order Analysis
Lines
per
Order
1
2-5
6-9
10+
Totals
%
Orders
Total
Cube
Cube
per
Order
0-1
176
100
8
2
286
1-2
2-5
5-10
10-20
20+
15
24
6
1
46
16
27
6
1
50
7
15
6
6
34
3
10
4
4
21
3
2
3
1
9
Totals
220
178
33
15
446
64%
10%
11%
8%
5%
2%
100%
143
69
175
255
315
270
1227
%
Orders
49%
40%
7%
3%
100%
Total
Lines
220
623
248
225
1316
% Lines
17%
47%
19%
17%
100%
This is a joint illustration of orders which could be batched together from picking into
compartmentalized picking carts, totes, or shipping containers.
The order with more than 10 line items which occupies more than 20 cubic feet, is a candidate
order for a single operator to pick on a pallet.
Page 4
Calendar Profile
Seasonality Demand
Seasonality Inventory Demand
2500
2000
Units Shipped
1500
Units Received
Units Returned
1000
Units in Inventory
500
0
Jan
Feb
Mar
Apr
May Jun
Jul
Aug Sep Oct
Nov Dec
Chart helps identify storage needed to accommodate near-peak activity levels, specially critical
peak inventory and activity levels. A popular rule of thumb for planning purposes is to design
material handling systems to accommodate the average day of peak week.
Daily Activity
Volume
Time Window
900
800
700
600
500
400
300
200
100
0
Receipts
Orders
8a to 12 p
12p to 4p
4p to 8p
8p to 12a
12a to 4a
4a to 8a
4 Hour Period
Chart reveals the interfunctional and interprocess relationships in the warehouse. Order
picking activity tracking allows for a smooth order fulfillment schedule planning.
Page 5
Warehouse Quality Performance
Key indicators for inbound and outbound handling
Putaway accuracy – The percentage of items putaway correctly
Inventory accuracy – The percentage of warehouse locations without inventory discrepancies
Picking accuracy – The percentage of order lines picked without errors
Shipping accuracy – The percentage of order lines shipped without errors
Warehouse Cycle Time Performance
Key track performance areas
Dock-to-Stock Time (DTS) The elapsed time from when a receipt arrives on the warehouse
premises until it is ready for picking or shipping
Warehouse Order Cycle Time (WOCT) The elapsed time from when an order is released to
the warehouse floor until it is picked, packed and ready for shipping
Warehouse Key Performance Indicators (WKPIs)
Financial
Productivity
Utilization
Receiving
Receiving cost
per receiving line
Receipts per
man-hour
% Dock door
utilization
Putaway
Putaway cost
per putaway line
Putaways per
man-hour
Storage
Storage space
cost
per item
Inventory per
square foot
Order
picking
Picking cost per
order line
Order lines
picked
per man-hour
Shipping
Shipping cost
per customer order
Orders prepared
for shipment
per hour
% Utilization of
shipping docks
TOTAL
Total cost per
order, line and
item
Total lines
shipped
per total manhour
% Utilization of
total throughput
and storage
capacity
Page 6
% Utilization
of putaway
labor
% Locations
and
cube occupied
% Utilization of
picking labor
and
equipment
Quality
% Receipts
processed
accurately
% Perfect putaways
Cycle Time
Receipts
processing
time per receipt
Putaway cycle
time
(per putaway)
% Locations
without
inventory
Inventory days on
hand
% Perfect picking
lines
Order picking
cycle
time (per order)
% Perfect
shipments
Warehouse order
cycle time
% Perfect
warehouse orders;
Total warehouse
cycle time = Dockto-stock time +
Warehouse order
cycle time