Supply Chain Logistics and Warehouse Management -- Understanding the Supply Chain Logistics Segment (part 2)

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Master Carton and Pallet-Storage Position Identification

In a master-carton or pallet-storage warehouse, SKU position identification has a direct impact on the transaction productivity and accuracy of the forklift truck drivers. Storage position may be identified by a floor stack group that is hung from the ceiling, embedded in the floor, or attached to a upright post or by rack group.

Floor Stack Storage Pallet Position Identification

A master-carton, pallet-floor, or block-storage position identification uses a placard hung from the ceiling for storage lane position identification. Clearance between the placard and the forklift truck mast is a factor. If necessary, the position identification may be embedded in the floor, but identification durability in the floor is a factor. Another option is to erect a rack post between two floor stack lanes. As an employee or forklift truck driver faces the upright post, the left-hand master carton or pallet lane is on an upright post on the left side, and shows master-carton or pal let-storage identifications; the right-hand master carton/pallet lane is on an upright post on the right side, and has the master-carton/pallet-storage identification. An upright rack post maintains clearance between storage lanes.

Rack Identification

Storage SKU position identification is attached to a rack bay metal structural member, in the line of sight (so a hand-held scanner may be used). Rack identifications may be hand written on the position, use self-adhesive labels or tape, or preprinted self-adhesive labels (with individual characters, digits, or the complete identification with human/machine-readable symbologies).

Master-Carton and Pallet Warehouse Storage Vehicle

Master-carton, or pallet warehouse storage vehicle is a key factor in determining aisle width and the master-carton or pallet-position number (load beam levels) above the floor surface. Vehicle aisle width and maximum master-carton or pallet-position (load beam) elevation above the floor influences facility storage utilization, land and building/equipment costs, and annual operating costs.

The vehicle allows the driver line-of sight to use a hand-held scanner line or to manually read the master-carton, or pallet identification and master-carton/pallet position identification to complete a bar-code scan/RF tag read transaction.

Master-Carton and Pallet-Storage Vehicles

Each vehicle group name is determined by a vehicle basic operating characteristic. Storage vehicle type groups are wide aisle (WA); narrow aisle (NA); very narrow aisle (VNA), including a high-rise order picker (HROS), car-in rack, and AS/RS vehicles; mobile-aisle (MA), or transfer or bridge car (T-car); and captive-aisle (CA).

Storage- or Pick-Aisle Characteristics

Storage-aisle philosophy options are:

1. Aisle length. In a short aisle facility, the aisles are 20-feet long (small-item pick aisle) or 75-feet long (in a master-carton or pallet operation). In a WA or NA forklift operation, the rack row and aisles run in the short direction in the facility. The storage or pick area has turning aisles at each rack row and aisle end. The short aisle approach provides lower density and lower employee productivity, due to greater nonproductive aisle end turn numbers. In a long aisle facility, the aisles are 40-feet long (for small-item pick aisle) and 150-feet long (in a master-carton or pallet operation). In a WA, NA, or VNA forklift truck operation, rack rows and aisles flow in the long direction of a facility In a WA or NA storage vehicle design, there is a cross aisle in the middle of the rack rows or aisles to provide easy and quick transfer to another facility aisle. In a VNA, there are no cross aisles-there is a continuous aisle from start to end. A long-aisle warehouse provides greater density and fewer nonproductive employee turning aisles.

2. Aisle width. The storage aisle dimension is SKU to SKU plus six inches. A conventional warehouse aisle width provides sufficient width for two-way employee or vehicle traffic with 4- to 12-inch allowance between two SKUs or two vehicles.

Aisle or Rack Height

The aisle or rack height is determined by an employee's or forklift truck set of forks' reach height to complete a storage or pick transaction. In an employee pick concept, a nominal employee reach height is between 4 feet, 6 inches to 5 feet, 6 inches. A storage rack aisle height is determined by a storage rack height, forklift truck type, or AS/RS crane.

Picker and Forklift Truck Routing

The forklift truck routing pattern has a sequential or arithmetic progress through the storage/pick aisle with SKU storage or pick positions on both sides of the aisle. With a storage put-away or customer-order pick instruction, a routing pattern makes it easier for a forklift truck driver, AS/RS crane, or picker to locate the desired storage/pick position.

Forklift Truck and AS/RS Crane Routing Patterns

A fundamental rule for a successful storage warehouse is that a storage transaction instruction follows a pattern through each storage aisle. An instruction form directs a WA, NA, or VNA forklift truck driver or AS/RS crane to a computer-suggested or employee-determined storage position.

In an employee-directed storage operation, a forklift truck driver selects a deposit storage location and, for a withdrawal transaction, the computer suggests a storage location. In an AS/RS storage design, the warehouse computer determines an identified storage position. To assure proper inventory tracking and storage-position control, the SKU storage position identification and the SKU identifications that were involved in the transaction are sent to the inventory control office to update the inventory file.

A sequential storage aisle number or routing pattern has a WA, NA, or VNA forklift truck driver or AS/RS crane enter an aisle, complete a storage transaction, and exit the same aisle. As the forklift truck driver or AS/RS crane travels through an aisle, the lowest storage position number is at the entrance from a main aisle and the storage position number numbers are progressive to highest number at the end of the aisle. This assures maximum forklift truck driver or AS/RS crane productivity. Storage aisle options are 1) storage position numbers that end with even dig its, located on the right side of the aisle, with position numbers that end with odd digits and are located on the left side of the aisle; or 2) each aisle rack row or side has an aisle number and storage position numbers are progressive for the next storage position.

In a storage warehouse, a forklift truck or single cycle AS/RS crane storage transaction handles one pallet per trip. The aisle routing pattern will have the forklift truck or AS/RS crane enter an aisle from a main traffic aisle, complete the storage transaction, and travel (i.e., back out) to a main traffic aisle. A dual cycle AS/RS crane has ability to carry two pallets and to complete two pallet storage transactions in one aisle or to complete dual commands for each aisle trip. Nevertheless, an AS/RS crane follows the same routing pattern.

Warehouse Operation Customer-Order Fulfillment and Sort

The SKU storage and pick philosophy has an employee or machine transfer SKUs from a pick position onto a load-carrying surface. A load-carrying surface transfers each SKU to an identified location.

Manual Order Fulfillment

Manual order fulfillment places all pick positions at 5 feet, 6 inches to 6 feet above the floor. The height permits a maximum of two pallets or four to five levels of hand-stacked master cartons in a decked rack or shelf levels. There is a wide aisle to allow employees to walk or ride a vehicle through the pick aisles. This design requires the most employees, thus increasing both the required functions and total area. Some manual warehouse pick options include 1) single pick designs, such as a four-wheeled cart, picking into a carton or tote onto a nonpowered conveyor surface, a mobile step stool, rolling ladder, or ladder attached to a cart or pick-position structural member, pallet truck, platform truck, two-wheel truck, or semi-live skid or cart; 2) batched pick designs, such as an aisle-end sort shelf, mobile shelf cart, tote on conveyor, or pick, transport, and sort to shelf, tote, or carton; 3) pick/pack or pick/pass (single pick designs) in which the employee picks into a captive tote or carton; and 4) sort to light.

Mechanized Order Fulfillment

A mechanized order fulfillment warehouse has a medium-sized facility. It uses a conveyor and permits elevated floor or mezzanine construction for additional pick levels. In a two- or three-pick elevated floor facility, pick position replenishment is performed by a WA, NA, or VNA forklift truck or conveyor and increases the area needed for building pick positions. Because SKUs are separated onto a mechanized or conveyor travel path or a manual (or non-conveyable) section, the facility has a medium-sized building and employee number. In mechanized pick designs, employees pick master cartons or loose small items into a tote or loose onto a conveyor path, from a S.I. Cartrac platform, a powered horizontal carousel basket, vertical powered carousel bin, or HROS pick truck, or VNA man-up forklift truck, pick car, and decombe elevating order pick vehicle.

Automatic Order Fulfillment

An automated order fulfillment warehouse has a small facility. Pick positions are narrow and long with multiple pick levels in a stack. Pick positions are replenished by a forklift truck or employee; pick positions release SKUs onto a conveyor or into a carton/tote. There are manual SKU pick positions for non-conveyable SKUs. Automated pick concepts are 1) small-item pick concepts that are an S.I. Itematic, Robo Pic, and an "A" or "H" frame; 2) master-carton concepts that are S.I. Ordermatic, carton AS/RS, and Vertique; and 3) pallet concepts that are a pallet AS/RS or Sort Link.

Order-Picker Routing Patterns

A picker routing pattern guides the picker through the pick aisle to pick positions. Each picker routing pattern follows a pick position and aisle layout. There are many picker routing patterns for an order fulfillment operation. There are advantages for the warehouse when a picker routing pattern matches SKU characteristics, through-put volume, and pick area layout. A picker routing pattern match helps obtain the best picker productivity, accurate picks, on-schedule activity, and on-budget activity. Picker walks to a pick position routing pattern can be 1) a non-sequential routing pattern group, or 2) sequential routing group that includes single side pattern, loop pat tern, horse shoe (i.e., "U" pattern), (d) "Z" pattern, block pattern, and stitch pattern.

Non-sequential Routing Pattern

In a non-sequential pattern pickers determine their own pick path through a pick area aisle. Disadvantages are low employee productivity because an employee may walk the same path twice, employee fatigue from increased walking, and employees spend nonproductive time trying to locate a SKU pick position in a pick aisle. There are no advantages.

Sequential Routing Patterns

The fundamental characteristic of a sequential picker routing pattern is that there is an arithmetic progression to pick position numbers in each pick aisle. Thus, the lowest SKU pick position number (1 or 0) is at the entrance to a pick aisle and highest pick position number (99 to 100) is at an exit of a pick aisle. A picker starts at the first SKU pick position in a pick aisle and as a picker travels down the aisle to the end, the next required SKU pick position is as close as possible to the previous SKU pick position. Sequential picker routing patterns provide an efficient and productive picker routing group. Advantages are reduced employee nonproductive time (two or more trips down a pick aisle), reduced employee fatigue, minimized employee confusion, and increased employee productivity. The basic elements of a picker routing pattern and pick aisle conditions are

1. Pick position numbers that end with an even digit are located on the right side as a picker travels in an aisle; pick position numbers that end with an odd digit are located on the left side as a picker travels in a pick aisle;

2. It uses arithmetic progression through a pick aisle;

3. It keeps a picker in a pick aisle as long as possible;

4. It improves SKU hit concentration and density;

5. It starts pickers in the fast moving and high cube section;

6. Customer order SKU quantity cubed out; and

7. It keeps pick aisles clear, and helps maintain good housekeeping and well illuminated aisles.

Picker Aisle Travel

In an order fulfillment operation, to complete a customer order, a picker travels through a pick aisle to complete transactions. The first option is straight in and out picker travel through a pick aisle. For each pick instruction format, a picker travels in and out one pick aisle. During pick aisle travel, a picker completes all pick transactions. With a straight in and out approach, the lowest pick position number is at a pick aisle (001) entrance and progresses through a pick aisle to the highest pick position number at the pick aisle (001) end. After the transactions are completed, the picker turns the pick cart and walks back through aisle to the main aisle entrance. Leaving aisle 001, a picker walks to the adjacent aisle and enters pick aisle 002. During travel in pick aisle 002, a picker completes all pick transactions and repeats the process for aisle 003. The second approach is serpentine picker travel. During pick aisle 001 travel, the lowest pick positions are at the entrance to pick aisle 001. After all pick transactions are completed, a picker exits pick aisle 001 at the end or at the highest pick position number location and enters pick aisle 002 at the lowest pick position number location. Entering pick aisle 002, a picker walks and completes all pick transactions and enters a main aisle. From a main aisle, a picker enters aisle 003. With a serpentine approach, the lowest pick position number of each pick aisle starts at the aisle entrance and progresses to the highest pick position number at an exit. In a rectangularly shaped order pick area, each aisle entrance has an even number aisle entrance at a main aisle (front) and odd number aisle picker entrance from the rear aisle.

Horizontal Picker Routing Pattern

A horizontal picker routing pattern is used on a carton flow rack, decked rack, or shelf pick approach. A picker routing pattern has a single side picker routing pattern that directs a picker in a pick aisle or along a pick line to the SKU pick position and a horizontal picker routing pattern at an assigned flow rack bay that directs a picker activity across carton flow rack pick positions. A horizontal routing pattern starts as the picker enters a pick aisle along a carton flow rack bay front.

As the picker enters the aisle, the first pick position is the upper first flow rack bay and ends at the lower last carton flow rack bay.

Picker Faces Carton Flow

Rack Bay Pick Positions on an Aisle Right or Left Side

For each a pick aisle layout, a picker enters a pick aisle's right side (single or mirrored pick module) and faces the first pick zone. The carton flow rack bay pick positions are on a pick aisle's right side.

With a right-aisle approach, as the picker proceeds in the pick aisle, at each carton flow rack bay and as a picker faces the pick positions, the first pick position is in a carton flow rack bay upper right-hand corner. At each pick position, the picker starts at a carton flow rack bay upper right corner, progresses horizontally across each carton flow rack bay level, and the last pick position in a carton flow rack bay is at the lower level right corner. With a left-side concept, a picker enters a pick aisle left side (single or mirrored pick module) and faces the first pick zone, the carton flow rack bay pick positions are on a pick aisle's left side. As the picker proceeds in the pick aisle, the first pick position is in a carton flow rack bay upper level left corner. Routing pattern design has the picker start in the upper left corner, work horizontally across each carton flow rack bay level, and end at the carton flow rack bay lower level left hand corner.

With a horizontal routing pattern, the first possible pick position is at a carton flow rack bay top corner at a pick aisle entrance and across the top pick level to a bay end. After all transactions on the carton flow rack bay top pick level, the picker proceeds to the next lower pick level left corner. At each carton flow rack pick bay, a horizontal picker routing pattern is repeated until customer-order or cube completion. As the picker proceeds to the next carton flow rack bay that has a pick transaction, the horizontal pick pattern is repeated at the appropriate level.

A horizontal picker routing pattern is preferred for a pick/pass warehouse that has carton flow rack bay pick positions. This permits a Golden Zone that is between a picker's knees and shoulders, and the arrangement in a pick bay assures good replenishment activity, makes it easy to add SKUs to the pick bay, and high picker productivity.

Order-Pick and Sort-Instruction Label

Pick and sort instructions (characters and digits) are human- and machine-readable symbologies that are important items on a label. With a label, small characters or instructions are difficult to read, thus reducing productivity and increasing errors. The preferred method is to have pick and sort instructions with equal emphasis with different style characters (or digits) with a different colored backgrounds or in a different location.

Picker Instruction

Options for picker instruction are:

1. A computer-controlled printer prints each pick position, SKU description, piece pick quantity, and order number onto a paper. As the picker arrives at a pick position, the picker checks that the document pick position matches the pick position number and removes a SKU quantity from the pick position into a carton or tote. This method is used in a single pick or a batched pick and sort.

2. A computer-controlled printer prints a self-adhesive label with each pick position, SKU description, and order number. As a picker arrives at a pick position, the picker makes sure that the label pick position matches the pick position number, removes the SKU, labels it, and transfers the picked and labeled SKU into a tote or onto a conveyor. Self-adhesive labels are used in batched pick and sort or pick, transport, and sort designs.

3. Paperless pick concept options are:

a. Digital display: a manually controlled paperless pick design. A paperless pick design has a light display at the pick position. When the light is illuminated, it serves as a picker instruction. The pick-to-light method has customer orders sequenced by the warehouse computer. The picker starts at entrance to pick aisle or at the lowest number. For each identification, a warehouse computer activates assigned pick lights within each pick zone or aisle. Walking in a pick aisle to the first lighted pick position, a picker removes product from the position and presses a "pick complete button," that registers the pick. The warehouse computer then reduces the SKU quantity on the digital display by one. If another pick is required at the same pick position, a picker repeats the activity until the digital display indicates zero. Picked SKUs are placed with or without a label onto the vehicle load carrying surface or a powered conveyor. A picker walks in a pick zone to the next pick position. After all picks in a pick zone, a picker presses a pick zone light that activates pick zone pick lights for the next customer order.

b. Computer-controlled paperless picking. In a RF device method, the computer down loads pick instructions to a hand-held or finger scanner. As the forklift truck driver rides or picker walks in the storage/pick aisle, the RF device's digital display indicates the storage/pick position. Arriving at a storage/pick position, the forklift truck driver or picker points the scanner/RF tag reader at the storage/pick position bar-code/RF tag.

The digital display indicates that the SKU is on the forklift truck, withdrawal instructions, customer order, and required SKU pallet or pick quantity. A picker removes the assigned quantity from the pick position onto a vehicle load-carrying surface or powered conveyor. A computer-controlled paperless AS/RS crane or pick method is an automated pick system. A computer transmits a pick impulse to a SKU pick position device to pick/ release one SKU from a pick position onto a conveyor. In some computer-controlled systems, the picker device is a moving flipper. In an AS/RS crane system, a computer directs an AS/RS crane to complete a pallet withdrawal transaction and place a pallet onto a P/D station.

4. A voice-directed pick instruction method uses a computer system and a picker microphone or earphones (headset). The pickers have on-line communication with the computer (using voice recognition and speech synthesis). Each picker talks to the computer via radio transmission through the microphone and receives verbal pick instructions from the computer through the head set. Arriving at a pick position, a picker receives the SKU quantity and removes the SKU quantity from the pick position onto a vehicle load-carrying surface or a powered conveyor.

Pick-Position Replenishment

There are three general options for single-item or carton replenishment:

1. Pallet replenishment. The entire pallet is transferred from a storage area to a pick position.

Pallet replenishment replenishes approximately 50-75 cartons for each transaction, and best used for high-cube or fast- to medium-moving SKUs to a pallet pick position.

2. One- or two-layer pallet layer replenishment. One or two carton layers from a pallet are removed and transferred to a pick position. The pick position is a hand-stack rack position, case-flow rack position, or shelf position used for medium-moving SKUs. One to two master-carton layer replenishment is performed in a storage or pick area. If layer removal is performed in a storage area, master cartons are removed from a pallet and transferred onto a conveyor system or vehicle load-carrying surface for transport to a pick aisle. In a pick or replenishment aisle, master cartons are transferred into a pick position. If layer removal is performed in the pick area, a forklift truck removes a pallet from the storage position and transports it to a pick area. In the pick area, an employee transfers required master-car ton layer(s) from the pallet to the pick position. After a replenishment transaction, a fork lift truck transports the partially depleted pallet from the pick area to an assigned storage position.

3. A method for very slow moving SKUs or for single items involves less than a full pallet layer (that has one or more master-cartons). A picker picks slow-moving cartons from a pallet-storage position and transports the cartons to a pick area. In the pick area, an employee transfers master cartons into an assigned pick position.

Replenishment Timing

Single item (or carton fixed-pick-position) replenishment is performed the moment that a pick position becomes depleted, and with a SKU quantity that maximizes pick position space and employee transaction activity. To achieve this, the replenishment control options are:

1. Manually controlled replenishment. This relies upon employees to determine the time at which single items or cartons are transferred from a storage position to a pick position.

2. Computer-suggested or controlled replenishment. A computer or inventory control pro gram suggests that an employee perform a SKU replenishment transaction. Replenishment is based on SKUs and inventory quantity in the pick position. There are two methods for directing an employee to complete a replenishment transaction. First, a paper document that lists all replenishment transactions is created for each shift. SKUs are listed by SKU or storage position numbers. The description, in a sequential order, is based on the anticipated time that a pick position will become depleted. The first column lists the storage position; the second column is for employee marks, who withdraw a SKU from a storage position.

The employee mark verifies that a SKU withdrawal transaction was completed on schedule.

The third column lists the pick position, and the fourth column is for the employee mark to verify that a SKU replenishment transaction to a pick position was completed. The second approach uses a bar-code scanning/RF tag receiver. The tag is scanned by a hand-held RF device, and the information is transmitted the warehouse computer. The computer determined required replenishment activities and the sequence in which the activities will occur.

In addition to a RF tag device, a bar-code/RF tag is on each SKU, storage position, and pick position. The bar-code scanning/RF tag device transmits replenishment information on line as a position update in the inventory files. A computer-controlled replenishment method is one of the advantages of a warehouse with a WMS program.

Deposit and Withdrawal Transaction Verification and Inventory Tracking

A very important order fulfillment operation activity is SKU deposit and withdrawal transaction verification. Replenishment transaction verification activity options are:

1. Manual memory. An employee remembers the storage and pick positions for a SKU replenishment transaction. An employee remembers the storage location, and when there is a demand to complete a SKU pick position replenishment, an employee remembers the SKU storage location and completes the transaction.

2. Manual handwritten method. A replenishment employee uses a printed form to record each replenishment transaction.

3. Manual bin file. Storage position cards that correspond to a storage position in a storage aisle are used. The cards are placed in sequential order in a cardholder. In a carton order-fulfillment operation, cardholders have a slot for each storage position or pick position in the rack bay. The cardholder is attached to a rack upright post. A card has a storage position number printed on top left side and has three columns. An employee who performs a replenishment transaction completes the columns. One column lists the SKU identification number involved in the transaction. Other columns are used to indicate deposit or withdrawal transactions. After the replenishment transaction is completed, an employee obtains a storage position card from the holder. On the card, an employee lists a SKU identification number and places a mark in the "in" or "out" column (reflecting a transaction). The completed card is returned to a cardholder for future reference.

4. Automatic (or bar-code scanning/RF tag reading) replenishment. Each transaction component (e.g., tote, carton, or pallet) has human/machine-readable symbology as part of a SKU, replenishment/pick position identification, and hand-held bar-code scanner/RF tag receiver.

A replenishment transaction and SKU quantity is transmitted to the inventory computer, and a RF tag receiver accepts a RF tag signal. In a bar-code scanning/RF tag replenishment operation, each tote, carton, or pallet movement, or replenishment transaction activity, or move to a pick position, is bar-code scanned/RF tag read and the scan/read information is sent on-line or delayed to a WMS computer for inventory file update. To complete a replenishment transaction, an employee is directed to a storage position. At the storage position, the employee scans the storage position bar code or receives a signal from a RF tag, transfers a unit or product quantity, and moves to the pick area. In a pick area, the employee scans the SKU and pick position bar-code/RF tag and enters the SKU quantity. The transactions are communicated to the computer inventory file.

Pick and Order Fulfillment

Methods of warehouse sorting are:

1. Manual single item or carton order fulfillment. All pick positions are at 5 feet, 6 inches to 6 feet above the floor. A pallet-storage/pick warehouse uses a forklift truck to complete all storage transactions. A manual pick approach uses wide aisles because employees walk or ride a vehicle through facility pick aisles and because of the large number of employees needed.

2. Mechanized single item carton order fulfillment. This method uses a medium-sized facility.

It utilizes a conveyor and permits an elevated floor, mezzanine construction for additional pick levels, and a medium-sized staff.

3. Automated single item carton or pallet order fulfillment. This approach uses a small facility.

Pick positions are narrow and long, and there are multiple levels in the stack. It also has the small staff.

Customer-Order-Picked SKU Sorting

In a single item master-carton batched pick order fulfillment or an across-the-dock operation with SKUs (or customer orders), SKU or customer-order sorting is critical to accurate and on-time ship ping. Sorting allows an order-fulfillment or across-the-dock operation to handle a high volume of orders and SKUs. In an order-fulfillment operation, sorting is the first post-customer-order pick activity. When a single item, or master-carton pick activity uses a batched pick mode, sorting separates each labeled single SKU, or master carton from a mix of customer orders and labeled SKUs.

Sorting verifies that a SKU was withdrawn from a pick position and was transported to a pack area or directly onto a customer delivery truck.

In an across-the-dock operation, as mixed customer-order labeled SKUs, master cartons, or SKUs are unloaded from the vendor delivery truck and transported on a sort conveyor travel path. For each SKU sort or customer-order label, a scanner/reader on a sort conveyor reads each label and sends the data to a sort computer for sorting each SKU or master carton from the sort travel path into a sort holding area or direct load conveyor lane. SKU sorting requires a 1) human/ machine or human-machine bar-code label or RF tag on each SKU exterior; 2) a sorter constant travel speed; 3) communication between a bar-code scanner/RF tag receiver to a sort computer, tracking device sort computer, and sort conveyor divert device; and 4) customer assigned divet lane with queue space.

To assure maximum good bar code/RF tag reads and diverts activity, SKUs or customer orders are singulated on a sort travel path to a customer assigned sort location. A sort location can be a bin, container, chute, or conveyor. A scanner reads the bar-code/RF tag, and sends the data to a computer that controls the sort. The computer activates a divert device to transfer the SKU or customer order from the travel path to a holding location, outbound staging area, or a delivery truck.

Pack Activity

A customer-order pack activity may be manual, mechanized, or an automated single-customer pick/pack operation; a batched customer-order pick, sort, transport, and pack operation; or a batched customer pick, transport, sort, and pack operation. Shipping options are a carton or a corrugated or chipboard box or a corrugated, treated, or plastic bag. Customer-order pack activity ensures that a picked, checked, and packed SKU is protected against damage or from being lost during delivery and that the delivery address and company return address are clearly listed on the package's exterior. The company's industry (e.g., direct customer contact or catalog; e-mail or direct marketing group; retail store or commercial customer group) determines how SKUs are handled at a pack station.

Customer-Order Pack Activity: Centralized and Decentralized

Pack activity and its relationship to order fulfillment can be described in five parts:

1. Selecting (and, if necessary, forming) shipping carton/tote and applying an address label the exterior;

2. Picked SKUs, company sales literature, and packing slip are placed in the shipping carton/tote;

3. A picked check is done;

4. Carton void spaces are filled; and

5. The shipping carton/tote is sealed.

Pack activities vary according to each pack station type, whether it is a manual, mechanized, or automated order fulfillment operation, and by carton/tote.

Decentralized Customer-Order Pack Activity

If an order fulfillment operation is a pick/pack into a shipping carton/tote operation, pack activity is decentralized. In this type of operation, packing is separated into different activities, and at different locations, on the pick line. After the computer-selected shipping carton/tote is formed and transferred onto the pick line, a shipping label is placed on the carton/tote by an employee or machine-label applicator. At the start station, an employee or insert machine places a packing slip into the carton/tote and the SKU is transferred directly into the shipping carton/tote. Checking is performed by an employee or by using the "check weight on the fly" method. After the carton/tote has been checked, an employee or machine places filler material in the shipping carton/tote void spaces. Finally, the shipping carton/tote is sealed with tape over top flaps or a plastic band around the carton/tote.

Centralized Packing

Packing is centralized in order fulfillment operations that pick/pack into captive totes or is a pick, sort, transfer, and pack operation (or if transfer occurs before sorting). At the central location, a pack station employee handles all functions from the packing slip to making up a computer-suggested shipping carton/tote. The employee completes the checking and transfers SKUs and packing slips into the carton/totes. The employee also adds filler to void spaces in the carton/tote, seals the carton/tote, and applies the shipping label.

Shipping Carton Manifest

Creating a shipping carton/bag manifest involves an employee and a bar-code scanner/RF tag reader to record each shipping carton, bag, or pallet identification. The identification is a human/ machine-readable code on each shipping carton, bag, or pallet. For each delivery company, an identification list is sent (via paper copy, diskette, on-line, or delayed communication network) from the fulfillment facility to the delivery company office. A shipping carton, bag, or pallet manifest can be a hand-written or computer-printed list obtained from a hand-held or fixed position bar-code scanning/RF tag reading device. The warehouse computer transfers the packed parcel information (weight, parcel number, and routing information) to the delivery or freight forwarder company.

Package Load Direct Fluid Load

In a storage/pick or across-the-dock direct load operation, cartons or bags travel from a sort travel path to a delivery truck. A carton shipping conveyor travel path has either a serpentine or straight run gravity conveyor that runs from the sort conveyor to an extendible conveyor (e.g., powered belt, powered roller or skate wheel, nonpowered roller, skate wheel conveyor). The extendible conveyer extends into the delivery truck. Cartons are transferred from the extendible conveyor and placed on the delivery truck floor.

Shipping Carton Unitizing

In a facility that unitizes cartons, orders travel on a shipping lane conveyor. This has travel paths leading from the sort conveyor to a unitizing station. At the unitizing station, cartons to be transferred are placed onto a cart, slip-sheet, or pallet. After the cart, slip sheet, or pallet is unitized to a predetermined height, the filled cart, slip sheet, or pallet is identified with a code and transferred to an outbound staging area. The pallet is added to other pallets or is placed onto a delivery truck.

Return Process

The return process is an order fulfillment operation, in which returned packages and SKUs are taken through the returns process area to final disposition. Return process activities are:

1. Whenever possible, the delivery company presorts return packages by major SKU classification.

2. Delivery company vehicles with returns are staged in a truckyard or delivery company return packages (or BMCs) are unloaded onto a return conveyor or into a returns dock staging area. The delivery company separates high-value SKUs (identified as such on the original order). As returns arrive at the returns dock, the high-value returned SKUs are unloaded to a secured area.

3. Return packages may be opened

a. At a separate open station; the return package is removed from a return BMC or conveyor and an employee opens the package, removes any filler material, and returns the package back to a conveyor travel path; or

b. At an unload station; the return package is opened and transported on a conveyor to a returns process station.

4. Package filler material and empty returns may be transferred to a recycle or trash transport.

If the return package is opened at a separate station, return items are placed into a return carton, which is sent to a returns process station.

5. Customer-order and SKU return verification and return credit is dealt with at a process station.

6. Trash may be handled at a separate open and filler material removal process station; after proper customer verification, the empty return carton is transferred to a trash transport.

7. For each SKU quality, SKUs are either transferred or presorted to an assigned disposition container or transferred as loose items onto a conveyor for later sorting to an assigned container.

8. For each a container, SKUs or mixed totes are transferred from a presorting area to an individual, temporary, non-saleable holding position. SKUs are later transferred to saleable SKU inventory in a storage/pick position.

Warehouse Operation Drawings

The warehouse equipment layout (plan view) drawings have all dimensions and notes necessary to show a completed warehouse. The layout drawing shows all the material handing equipment and SKU or customer-order travel paths. An effective warehouse drawing will identify each functional area, each activity station has an identification, and warehouse equipment is identified with symbol or number.

Block Drawing

A block layout drawing is a schematic building representation that can be developed in a short time at a low cost. A block drawing shows possible building column locations, fire or load bearing walls, receiving and shipping dock areas, where and how each warehouse activity is located in a facility, but does not show any warehouse equipment. Each floor is identified as ground floor or elevated floor. If there are multiple elevated floors in the facility, each elevated floor is identified and shown in sequence adjacent to above the ground floor. This floor arrangement helps the design team to understand the relationship between the elevated floors, potential vertical in-house transport concept travel paths, and employee stairways. A block drawing permits lines drawn between activities or processes to ensure proper SKU or customer-order piece sequential flow. Additional lines represent communication lines between the various warehouse process or activity locations. The design team will list all storage/pick activities, SKU or customer-order flow paths that occur for vendor delivered SKUs or customer orders, and data communication flow paths for vendor-delivered SKUs or customer orders. The team will write an initial description of operations and a flow chart for each activity. Directional arrows on flow charts show a flow direction, activity descriptions, description of operations, SKU classification change, and warehouse computer equipment.

Plan View

A plan view drawing is a two-dimensional view that shows the warehouse facility length and width from a CAD computer. A plan view drawing allows one to trace the SKU or customer-order flow and travel paths through the warehouse. It permits the design team to identify key activity stations and determine facility size and the necessary size for each warehouse activity station. It helps the design team understand warehouse activity, WMS-program interaction locations, and to look for offices and other key administrative areas.

Elevation View

An elevation view drawing is a two-dimensional plan drawn to scale that shows height and width or height and length. The drawing details the warehouse facility and provides a view for the clear distance (space) from the floor to building equipment and to the building's ceiling steel/mezzanine support members, and shows the interface between building items and forklift truck or conveyor.

Detail View

A detail-view drawing is drawn to scale, and shows each warehouse activity area, including all equipment and building items. From a detail drawing one will be able to understand the inter relationship between warehouse activities and space.

Warehouse Operation Review

During the design team's visit to the existing warehouse, the team develops an understanding for actual SKU and customer-order flows and supportive operational data and records. The design team observes each warehouse employee activity. During the warehouse visit (the existing ware house or another company's facility), the design team obtains samples for each warehouse activity document, label, or procedure. Meeting with a warehouse manager, the design team obtains all facility or warehouse vendor drawings, block drawings, training manuals, operational manuals, job descriptions, and descriptions of operations.

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