Developing a warehouse move plan is critical to successfully transitioning to a new facility. Here are key aspects to plan for months before your intended move in date.
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There are several basic principles that apply to warehouse layout design and running an effective distribution center operation. Without the proper layout and design of your distribution center, no matter the square footage, you will face capacity issues, decreased productivity, and storage inadequacies.
In this blog, we’ll discuss the 28 key principles that you should consider for warehouse layout design and productivity.
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Fulfillment cost per order (CPO) is the sum of all the warehousing expenses involved, including:
- receiving, putting away and storing the product.
- fulfilling orders through picking, packing, shipping.
- reverse logistics or returns processing from customers.
Historically, fulfillment managers only looked at the labor portion of the CPO. But, this may only be 50% of the costs. A fully loaded cost per order is a better metric and includes facilities and occupancy costs and packing material costs.
This blog shows you how to calculate the fulfillment cost per order, cost per line, and cost per box shipped.
Read More >Every fulfillment business, regardless of size, faces the same daily pressure to meet service levels making ‘Dock to Stock’ the battle cry of every receiving department. Dock to Stock involves efficient internal processes as well as setting vendor compliance policies between a vendor and the merchant operation. These combined practices allow warehouse receiving to move incoming receipts and new product into inventory quickly.
The most important element of Dock to Stock is validation that the vendor has shipped the correct items and the correct quantities from the purchase order. If the vendor’s shipment deviates from the purchase order, inventory counts can be inaccurate and customer service could get delayed. If you can avoid those costly issues, Dock to Stock can help streamline receiving and get items where they need to be faster.
The biggest challenge you’ll face in relocating a warehouse is disruption to your business. If you are fully invested in inventory at an existing 3PL or your internal facility, how will you transfer inventory to start up the new facility without having to shut down for days or even weeks?
Read More >Installing automation and conveyance systems in your fulfillment and distribution center is a major capital expense and long lead time. It requires considerable expertise, time to plan, and implement these systems properly.
Read More >As we shop this Christmas season, we have had three examples that stand out from all the rest:
- We had our first same day order and same day delivery from Amazon.com. It wasn’t something we requested but we pleasantly surprised to get. Amazon has two distribution centers in Richmond, VA where we live. The order was placed on a Saturday in the late morning and delivered within four hours to our home. Frankly, I know that this isn’t an economical option for most businesses (maybe including Amazon). But I’ll tell you it is a formidable marketing weapon. It was extremely fulfilling to receive the item so quickly without leaving home.
In many cases, businesses are holding on to their installed order management system or ERP for more 
than 10 years – sometimes 15+ years – if they believe they’re the right fit. On the face of it, this is sound thinking; considering the time and expense involved in implementing a new system.
Your order management system or ERP may be right for your call center, the merchandisers’ management of inventory, accounting systems and integration with your web platform. But are your fulfillment system requirements the same as they were 10-15 years ago? For many businesses, the answer is a resounding no.
Maybe you’re being too conservative by expecting incrementally greater productivity from your distribution center’s warehouse management system each year without additional functionality. In most companies, direct and indirect labor accounts for more than 50% of the total cost of fulfillment, excluding cost of shipping. People productivity in a DC is largely based on the feature/function set designed into the systems.
Read More >Summer time is here, the kids are out of school, time to hit the pool, right? I know that you don't want to 
hear this, but it is prime time to conduct an operational audit to identify those areas needing improvements. Believe it or not there are only 5 months left before the Holiday season is here again! Make certain that you have ample time to implement your fixes, develop strategies and plans for the distribution center. What are the objectives you and your management team have set for improving operations this year?
Here are a few areas to look at for your operational audit in order to determine what changes will be most beneficial to your distribution center and operations:
Read More >Once viewed as a cost center and a necessary evil, warehousing and fulfillment are now being seen as a
potential competitive advantage. The enhanced overall view of the supply chain is placing increased emphasis on the importance on the warehouse and operations.
A well thought out material handling solutions plan can improve the bottom line of many businesses, but a poorly thought out or implemented project can put the entire business at risk. We see many cases where warehouses are misapplying the available technology to their specific problems or issues.
Consideration has to be given to the reason for considering the technology or material handling solutions to determine what desired results or objectives are needed. This information will help determine if the proposed solution is appropriate and will deliver the results needed.
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