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.
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Lean Warehousing
Objectives
• Best practices you can implement today
• Understand advance strategies with QAD
Warehousing
• Cover 50 lean warehousing practices
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Lean Warehousing
Tell Me About You…
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Do you have a warehouse
Any lean initiatives in the warehouse
Do you use WMS
What would you like to get from this session
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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
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Lean Warehousing
“Top Pressures” Driving Lean Warehousing
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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
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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
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Lean Warehousing
Lean Warehousing Principles
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Flexibility
Lead time reduction
Risk reduction
Reduce variation
Business plans as guidelines
Source: Aberdeen Group - Warehouse Management Excellence, Maximizing Resources & Efficiency, Nov 2010
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Lean Warehousing
50 Ways to Lean Your Warehouse
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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
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Lean Warehousing
QAD Warehousing Flexible Picking
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Discrete
Batch
Cluster
Zone
Pick & pass
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Lean Warehousing
50 Ways to Lean Your Warehouse
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Establish appropriate pick locations
Use voice pick where appropriate
Measure warehouse performance
Share performance information
Business intelligence
Use RF data collection
Leverage alerts & messaging
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Lean Warehousing
RF Task Management
and inquiries save time
and provide real-time
information updates.
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Lean Warehousing
Alerts and Instant Messaging
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Lean Warehousing
RF Messaging
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Lean Warehousing
50 Ways to Lean Your Warehouse
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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
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Lean Warehousing
Cube Utilization
Vertical
Honeycombing
wasted space
improved
beam spacing
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Lean Warehousing
50 Ways to Lean Your Warehouse
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Know your order profile
Store loads according to size
Space allocation by planned inventory levels
Use reserve storage and forward pick
Implement random storage
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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
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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
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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
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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
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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
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SSM
SSM
SCP
SCP
WMS
WMS
BIBI
Green
Financials
Purchasing
Transportation
Transportation
PSW
MSW/ /PSW
MSW
White
Configurator
Configurator
Black
DM
DM
EAM
EAM
Field Readiness
Lean Warehousing
Value Chain Certification
Belt
Value Chain Certification
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Lean Warehousing
Core Principles of Lean Warehousing
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Visible customer consumption
Reduce lead time
Pull system
Reduce variation
Create velocity
Focus on process discipline
Total cost of fulfillment
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Lean Warehousing
Metrics Affected
Process
Bin Level Location Mgt
Benefit
Value
•Reduced labor cost
• -20 to 30%
•Improved fill rate
• +10 to 40 pts
•Reduced Inventory level
• -10 to 30%
•Improved Inventory accuracy
• To 99.9%
•Less warehouse space
• -20 to 50%
Receiving
•Labor reduction
•-20 to 30%
Real Time Put Away,
Product Slotting
•Labor reduction
•-20 to 30%
•Inventory accuracy improved
•To 99.9%
Mobile Device Based
Order Fulfillment
•Labor reduction
•-20 to 30%
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Lean Warehousing
Next Steps
• Ask your account manager for a Lean
Warehousing Q−Scan
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Lean Warehousing
Questions & Answers
Chris Barnes: c9b@qad.com
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www.qad.com
© QAD Inc
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