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To some, a warehouse may still suggest a great cavernous facility with
products sprawled on shelves that march regimentally north, south,
east, and west. It bristles with workers charging about on forklifts,
fulfilling the bawling orders of a “boss”, who balances a cigar in one
hand and a clipboard over-laden with shipping and receiving bills in
the other. Better yet, it’s by the water. In today’s world, this
image is a little… hackneyed.
Warehouses are now sleek facilities that cater to businesses that need
products on demand (or at least they should be). They are well
ordered with containers that are bar coded, telling you what’s inside
down to the size, number, and color. Radio frequency technology is
utilized to tell a forklift operator where to pick up a container and
where to take it.
Behind it all is a powerful Warehouse Management System (WMS), which
combines leading edge computer hardware and software technology. It
uses a three dimensional model to locate containers within .10 of a
foot.
The WMS tracks who is doing
what, when, where, and how much. It tracks the travel time of a
forklift and the amount of time it takes to grab the item. Its
omniscient eye takes all this information, and more, and puts it into
a database that gives you real-time analysis of activities within your
distribution center. While it is referred to as a Warehouse
Management System, it is actually better thought of as a solution,
since it integrates the multiple technologies and principle mentioned
above. Taking a non-technical view of a WMS, let’s review the five
related, yet autonomous components:
RADIO FREQUENCY TECHNOLOGY
– Radio frequency is another name for a wireless terminal network. It
uses technology similar to that of a cellular telephone to connect
your computer to user terminals. These terminals are usually of two
varieties: handheld and vehicle mounted. In both cases, the
terminals move about the distribution center (inside and out) while
communicating with the warehouse management software.
BARCODE TECHNOLOGY –
Encrypting an identifying code into a symbol is a technology that
surrounds our everyday life, the most common use being the UPC codes
on consumer products. In a warehousing environment, barcode help you
identify locations, items, and orders. Attaching a scanner and
printer to a radio frequency terminal allows you to verify information
and virtually eliminate manual data entry.
AUTOMATED TASK DISPATCHING
– The WMS software keeps track of workers and tasks to be performed.
By comparing the worker’s profile – what tasks can be done, in what
priority, and where – with the task waiting to be executed, the
dispatching software instantly assigns a new task as each is
completed. There is no opportunity for workers to indiscriminately
pick work assignments. The warehouse supervisors use a “scoreboard”
display monitor to supervise the work in process and may re-deploy
workers on a real-time basis if load leveling is required.
LOCATOR SYSTEM – While it
doesn’t require a computer, establishing rules to control the flow of
people and products is often left undone or incomplete in a manual
environment. A WMS incorporates the rules specific to each
distribution center and enforces conformity. By defining the types of
product racking, methods of put-away, replenishment and picking, the
WMS efficiently controls the movement of products from receiving to
shipping.
PROCESS REENGINEERING – It
is often stated, and observed, that much of the benefit of a computer
system is derived from the analysis that goes into its design. If you
did the research and analysis for a project, implemented the process
changes, but never developed the software, a significant percent of
the benefit would still be realized without the trauma of implementing
new computer systems. |
To make the undertaking less traumatic, call in
an expert. But, be aware that the key to success is in selecting an
integrator with the skill required to manage the human element as well
as being able to manage the technology.
The actual installation of a WMS presents the
opportunity to reduce operating expenses and improve productivity and
resource utilization. It can increase sales while reducing expenses.
A WMS can increase sales in several ways:
IMPROVING FILL RATE – In many distribution
centers, overstock is tracked with some form of manual locator system,
usually handwritten labels or cards. Too often product is lost or
inaccessible during order picking. A WMS always remembers the
product’s location and will dispatch bin replenishment prior to
depleting inventory.
IMPROVING ORDER QUALITY – The elimination of
handwritten information and the use of scanned bard codes ensures that
the correct item is shipped and the correct order quantity is
recorded.
REDUCING ORDER TURNAROUND TIME – Paperless order
picking enables an immediate dispatch of work assignments. An order
can move from the customer’s computer, through order processing, and
into the hands of the order picker in a seamless flow of information.
INCORPORATING UCC-128 COMPLIANCE – Compliance
with UCC-128 container marking presents the opportunity to provide
customers with sophisticated electronic commerce services.
ADOPTING CONTAINER LABELING – The ability to
comply with your customer’s unique requirements for carton labeling is
a service that can help your organization differentiate itself from
your competitors.
REDUCING LOST INVENTORY – Warehouse Management
Systems use a bar coded or RFID encoded license plate to track all
pallets and/or cartons. As a result, the WMS knows at any given
moment the location and disposition of your inventory. Each location
in the distribution center is assigned a unique bar code to quickly
direct the worker to the proper location.
INCREASING WORKER PRODUCTIVITY – A WMS controls
the dispatch of work assignments, eliminates indiscriminate picking
and alleviates down-time between tasks. In addition, the WMS records
statistics on worker performance to provide productivity trending
reports. The adage “if you want to make something better, measure it”
applies a thousand fold here.
ELIMINATING YEAR-END PHYSICAL INVENTORIES – The WMS facilitates a cycle count process. By combining manual cycle
counts with those generated and assigned by the system, year-end
physical inventories may be eliminated. Once the rules have been
defined, usually in conjunction with the financial auditors, the WMS
controls the execution throughout the year.
ELIMINATING PAPER – Radio frequency technology
provides the immeasurable benefit of real-time information, allowing
adjustments to be made accurately while the work is in process. This
technology also eliminates the paper usually associated with each
task. When annualized, the cost of these multi-part custom forms are
considerable – not to mention the cost of document storage and
retrieval.
The benefits of a WMS are apparent. However,
business owners and managers often assume a conservative course –
especially when integrating new technologies into what they view as
tried and true systems. It is this conservative posture that may
provide them the “temple of doom” perspective when it comes to their
distribution centers.
While you may enjoy incremental growth and
perceive stability within you operation, your competitors are out
there positioning themselves for quantum sales leaps and significant
increases in market share.
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