Home' MHD Supply Chain Solutions : MHD Jan-Feb 2016 Contents “When Zebra executives talked to key
management people at a series of warehouse
operations in the US, the two big specifics
that emerged were the equipping of staff
with technology, and automation processes.
These key issues were closely followed by
items such as the number of SKU carried, the
volume of stock carried, and annual inventory
turns,” he added
The top five alignment opportunities
One. First is optimising storage and
distribution network growth to reduce total
landed costs, further improve customer
service, and further reduce fulfilment costs.
The overall objective here needs to be seeing
the warehouse or DC as changing from a
cost centre to a centre with the potential to
expand, adjust the technical and electronic
facilities, and grow in volume and speed
Two. Next in the top five issues is
developing the ability to decrease the impact
of labour turnover and decrease training
time. It is estimated that training time is
currently around 48 hours, and the objective
of reducing this time by 44% is reasonable.
Simplified operation of electronic devices is a
key part. Advanced technology is good – but
simpler advanced technology is better.
Three. The next objective in the list of five
is reducing the rate of returns. It is expected
that the number of returns is expected to
increase substantially. Thus, redesigning
returns management systems from one of the
least automated processes in the warehouse
into one that is far more automated, is vital.
Another key objective that sits alongside the
upgrade of automation for handling returns is
further work to reach the status of ‘no fault’
outbound order fulfilment.
Four. Moving on to the next key
development for the future is increased
automation in both inbound and outbound
handling. In the US the industry vision is
to increase the number of barcoded items
received at a warehouse or DC to 84% by
2018. And, alongside this objective, ensuring
that supplier/partner processes meet the
requirements of and properly utilise the
capabilities of GS1, GDSN, ASN and RFID, as
well as enable stronger collaboration across
the whole supply chain.
Five. And then finally, the matter of linking
and integrating warehouse systems. This will
result in a strong shift away from home-grown
and basic warehouse management systems
to a single source of accurate information.
It is estimated that 68% of organisations will
move to best available cloud-based systems
and increasing collaboration across IT and
operations by 2018.
Ensuring IT and operations alignment
To maximise warehouse and DC productivity,
the operations and IT management must be
addressing the same issues. Although partial
alignment between IT and operations is often
seen today, there is still, in many instances, a
basic technology divide. Surveys in the US are
showing that, today, IT people often envisage
higher levels of WHS integration with other
systems than do operational people.
Streamlining the path
to flawless activity
The goal today is flawless fulfilment, and
the access is via the technological keys of
increased flexibility, automation, integration,
and real-time access to the WMS with a
purpose-built solution. Order filling and picking
remain top priorities for investment due to its
relatively high costs and the greater likelihood
of errors in this area of activity.
MHD SUPPLY CHAIN SOLUTIONS — JANUARY / FEBRUARY 2016
WAREHOUSES OF THE FUTURE
FOR ALL YOUR NEEDS
NOW AND IN THE FUTURE
Do you need to optimise your warehouse to respond to
changing customer needs? Swisslog is a leading global
logistics provider of automated solutions for warehouses
and distribution centres. Based on your business strategy
we plan, design and implement scalable, flexible and high
quality solutions that enable you to meet your customer
needs today and in the future.
To learn more about future trends in warehousing and
Ecommerce fulfilment, see us present at the Online Retail
Supply Chain Summit in Melbourne, 29 February - 2
02 9869 5900
Intralogistics Automation – Design, Develop and Deliver.
BUSINESS TO GUARANTEE AN
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