We all saw the shift from shopping in-store to online during the pandemic. And although e-commerce sales grew 14.2% in 2021, this growth is more on par with pre-pandemic levels as consumers are returning to in-store shopping. Omnichannel retailers must find a balance to support both in-store and online customers as shopping habits continue to change in 2022.

To be prepared for peak this year, it’s time to evaluate processes, from hiring seasonal labor to managing accurate inventory, in order to prepare for periodic spikes in fulfillment.

Flex labor to meet demand

Retailers need to add seasonal labor more often than the one time holiday sprint. This can be extremely difficult because not only is labor already scarce, but reliable labor is even harder to come by. Finding and hiring labor outside of “traditional peak” can be even more challenging. According to a recent survey by Modern Materials Handling, 60% of respondents said there were “too few candidates to interview”. This begs the question, how do you fulfill more orders with less labor?

To increase productivity and meet peak demand, operations should consider automating the picking (and replenishment) process. Speeding up fulfillment provides a competitive advantage, and enables your business to meet service level agreements (SLAs) such as same or next day delivery.

There are several technologies on the market, so when labor is hard to come by, make your existing labor force more efficient with tools that will enhance their job performance. For example, implementing barcode scanning to confirm picks will increase order accuracy. In addition, autonomous mobile robots can help attract, train and retain employees. By directing an associate directly to a pick location, the risk of human error is reduced and productivity increases, which means more orders going out the door.

Stay ahead with “just in case” inventory

Keeping inventory organized will help ensure more accurate inventory counts. With supply chain disruptions unexpectedly interfering with inventory availability, stocking additional Just In Case (JIC) inventory might be the way to go this season. Another consideration though is end of season turnover. After each season, sporting goods stores must liquidate or deeply discount products to free up storage space. To reduce the financial impact this has on an operation, be sure to look at historical data to find the sweet spot. The right amount of inventory on hand will help you avoid “out of stock” messages and can provide a competitive advantage against those less prepared.

Timing is everything. Another way to stay ahead is to consider fulfilling orders directly from stores to end users. Connectivity throughout all store locations and fulfillment warehouses will provide inventory information across your entire operation. This reduces stock outs and ultimately improves customer satisfaction.

Customer satisfaction is the ultimate goal

To keep customers coming back for more, retailers will need to provide excellent customer service in 2022. Therefore, getting orders out the door quickly and accurately is a necessity to earn repeat business. Additionally, meeting or exceeding delivery expectations and offering alternatives for pick-up such as curb side and buy online pick up in store (BOPIS) can attract new customers.

As order volume increases, so do returns. Operations need a solution to ramp up both order fulfillment and replenishment to keep up. Automation will not only benefit your business in the off season, but it will enable you to scale up quickly to manage the influx of customer orders and potential returns as well. Technology offers flexibility and scalability to meet the changing needs of your business. Using technology and labor together, will enable you to pick and putaway faster than labor alone.

Partnering with a warehouse fulfillment solution provider allows you to design your picking strategy to be flexible and scalable when you need it. Deploying autonomous mobile robots, increase efficiencies in your entire warehouse, starting with your labor force. Moving from picking to packing to putaway, AMRs can lead the way to faster fulfillment. Get ready for peak fulfillment with 6 River Systems!

The post Scaling up for peak fulfillment this season appeared first on 6 River Systems.

1. Labor Shortages Will Continue

One of the biggest trends that remains for the warehousing industry in 2022 is labor shortages. This has been a concern for warehousing professionals for several years now, and it does not look like it will be resolved anytime soon. According to a recent survey from Modern Shipper, a whopping 73% of warehouse operators can’t find enough labor. This is up from 26% in 2021.

Naturally, a rise in the cost of labor accompanies the shortage. Faced with rising costs, warehouse operations must be creative to be considered an attractive employer. Integrating autonomous mobile robots (AMRs) can help attract, train and retain employees while reducing time to productivity. 6 River Systems’ AMR, Chuck uses system-directed picking which empowers associates to be more productive. Associates learn how to pick with Chuck in 15 minutes, increasing their time to productivity compared to a traditional cart picking and employee training comes at an overall lower cost.

2. E-Commerce Will See More Growth

In 2021, e-commerce sales grew 14.2% over 2020, with more total retail sales shifting to e-commerce. With higher order volumes, expedited shipping and less hands on the floor, operations need help getting orders out the door. 6RS’ Guaranteed SLA feature enables you to introduce flexibility into your operation and reduce complications for floor managers without the risk of compromising important shipping dates.

3. The Rise of Robotics
Various forms of robotics have been used in warehouses for several years now, and the adoption rate is accelerating. AMRs have seen spectacular growth, from $0.99 B in 2017 to a forecast of $6.97 B in 2022, a CAGR of 47.6%. AMRs help by reducing unnecessary walking, increasing fulfillment speed, and enabling associates to get more done in less time.In traditional warehouses, employees can easily reach exhaustion from walking over ten miles per day. Chuck’s system-directed picking eliminates long walking distances and time spent searching for items. Once picking or replenishment is complete, Chuck autonomously travels to the next pick location and the associate follows without having to push a heavy pick cart.

4. An Increasing Number of SKUs
Consumer expectations are driving a trend toward inventorying a larger number of SKUs. Warehouse managers worry if they don’t stock a slow-moving item, their customers will shift to a supplier who will. In addition, the pandemic-induced supply chain disruptions are causing a shift from striving for lean inventory to having extra items on hand, just in case. With shifting consumer behaviors and more SKUs on hand, there is a greater need for flexible and configurable fulfillment solutions that support mixed picking methods such as discrete, batch, cluster and zone. Whether you’re picking jeans or computer components, Chuck can be configured to pick and transport a variety of products.

5. Millennials Are Making Up a Larger Portion of the Workforce
Born between 1981 and 1996, millennials are rising into leadership positions in warehouses as the previous generation retires. Millennials grew up with the internet and smartphones, and they have different expectations than their predecessors. A 2020 Gallup poll indicated that, above all, millennials want an employer that cares about their well-being. In addition to more work-life balance, this new generation of leaders wants more purposeful work.Many warehouse tasks are dirty, dull, and potentially dangerous. Because the 6RS solution reduces the long walk and manual strain part of picking, associates are safer by reducing the risk of workplace injury allowing them to focus on value-added work. An element of gamification comes with a fulfillment automation solution. By creating some friendly competition through a daily picking competition, associates of all ages will be motivated to push the envelope if they have incentive.

6. Returns Handling and Replenishment Are Becoming Increasingly Important
Online sales are increasing, which in turn means product returns are on the rise. Under the best conditions, reverse logistics can be a complicated process. Every minute a returned product sits waiting to be received back in inventory, it loses value. With our Returns Putaway capability, it’s easier to get returns back on the shelves to maximize warehouse space and profitability. Processing replenishment should also be a top priority to keep inventory stocked. To avoid short picks, establish a replenishment process so products aren’t left at the dock door and orders can be filled correctly.

7. Risk Management is a Focus
The COVID-19 pandemic suddenly made warehouse operators aware just how vulnerable they were to unforeseen disruptions. Enormous difficulties in staffing, employee safety, and supply chain delays became the order of the day. As a result, risk management has risen in prominence. Risk management seeks to take preemptive action to minimize disruption to operations such as delays, product damage, and threats to employee safety. Then there is the question of economic shocks – and, of course – diseases. Despite labor shortages and unpredictable demand, operations need to fulfill orders quickly and correctly to meet delivery expectations. 6RS AMRs provide a system-directed approach which reduces risk and human error. By navigating the shortest path throughout the warehouse, employees are more productive pick to pick.

8. Omnichannel Fulfillment – Consumers Want It
The rise of e-commerce along with a global pandemic led to all kinds of new shopping habits over the last few years. We saw some customers shifting to buying online and picking up in store (BOPIS), with curbside pickup as an added bonus. Some in-store customers went online to look for deals and have products delivered to their homes or to order a different color or size from another store. Others expected the option to buy online and return in store. As we see e-commerce starting to slow, in-store shopping is seeing growth again with an increase of 8.2% in 2021 over the previous year.

As consumers demand more ways to shop, retailers are transforming their warehouses and expanding into dark stores or pop-up warehouses to accommodate omnichannel order fulfillment. With the shift from picking full cases and pallets to picking eaches for direct to consumer (D2C), warehouse managers need to equip their facilities and adjust their picking strategies accordingly. Ensuring inventory visibility across the entire organization will be the key to success for omnichannel fulfillment.

The Outlook

As we approach Q2 2022, it’s fair to say labor shortages will continue and supply chain disruptions will still be unpredictable. No matter what happens, versatility and risk mitigation should be top of mind for operations/warehouse managers. With a flexible fulfillment solution, you’ll be able to flex the labor you do have, increase productivity to accommodate shifting demand and support omnichannel fulfillment.

Ready to tackle your top fulfillment challenges? Set up some time to share your supply chain priorities and learn how 6 River Systems and Chuck can help your operations run more efficiently.

The post Eight Warehousing Trends Continuing in 2022: What You Need to Know appeared first on 6 River Systems.

E-commerce behemoths such as Amazon have forever changed the perception of how orders should be fulfilled, both in terms of time and accuracy. But, while your company might not be promising same-hour delivery, these changing expectations are not to be ignored– in fact, they should be shaping your ever-changing warehouse order picking strategy.

Furthermore, the COVID-19 pandemic is straining supply chains around the world, disrupting business activities and impacting both manufacturers and consumers alike. The aftershocks of this era will also shape warehouse order picking activities going forward and guide warehouse managers in the design of agile and more resilient strategies for dealing with possible future occurrences.

Because we’re your ally in all things warehouse systems and types, we’ve compiled this best practices guide to guarantee that your business is putting its best foot first as it operates in the fluid world that is order fulfillment.

In this guide, we’ll discuss:

• What is warehouse order picking?
• The different types of warehouse order picking
• Tried and true methods used in order picking
• Best equipment for warehouse order picking
• Best hiring practices for warehouse order pickers
• Best practices for improving warehouse picking productivity
• Further reading on warehouse order picking

What is warehouse order picking?

Warehouse order picking is a simple concept, but in practice, it can be quite complex. Simply put, warehouse order picking refers to the necessary labor and parts involved in pulling an item from inventory to fulfill a customer’s order. It’s a process that might sound like the most uncomplicated aspect of your business, but when you crunch the numbers and realize that it amounts to an average of 55% of operational costs within any given distribution center, budget-conscious warehouses quickly find that ineffective systems could stop them from further innovation.

If your business fulfills orders, it’s key that you develop a warehouse order picking strategy that emphasizes speediness, order pulling accuracy and organization, as well as investments that might aid the three points as your demand shifts in the future.

Generally speaking, order picking and order selecting falls entirely under the umbrella of warehouse logistics, but that doesn’t mean your current practices must always be assessed by the decision-makers at the top. For instance, if your competitors are undercutting you in terms of fulfillment time or you have received public online complaints concerning order accuracy from customers, the first factor you need to reassess is your warehouse order picking process.

By streamlining your business’ methodology, staff and technology, you can:

• Offer faster order fulfillment times to customers
• Invest in technologies that can promote automation
• Promote accuracy in your orders
• Retain trustworthy, able and happy warehouse staff
• Minimize cost and maximize asset utilization
• Save precious time and money that will help you focus on the future of your business

Though best practices for warehouse order picking are not “one-size-fits-all,” the right organization, communication, smart investing and good common sense can help you make the most of your fulfillment process.

The different types of warehouse order picking

Warehouse order picking strategies must be customized to fit your business’ unique fulfillment needs. Selecting an overarching plan from the most used categories below will help you to develop a framework if you are reworking your current order picking plan — or even starting from scratch: 

• Zone Picking — Zone picking often is put into place when the warehouse is compiling orders that contain multiple components and in large warehouses to reduce walk times for individual pickers. The inventory is organized into “zones” where an order picker or automated piece of equipment is stationed with the unique SKUs found only in their zone. To fulfill an order, bins or totes move through each zone, with associates simultaneously collecting products for multiple orders. Once a bin gets to a zone, the picker puts in the required number of SKUs to fulfill several orders at once. The bin passes from zone to zone until all items are collected.
• Discrete Picking — In discrete picking, instead of the worker being assigned to a specific “zone” in the warehouse, they compile each piece of necessary inventory in the order, one line at a time. This plan might work well for a warehouse with a small team that isn’t inundated with complex customer orders. While it may take more time in the pick area, the tradeoff is that it minimizes the number of touches to ship an order. An order can be picked with one touch, without having additional sorts in a discrete picking methodology.
• Batch/Multi-Order Picking — This works well for businesses that are interested in picking up the pace in regards to order fulfillment. Batch picking calls for managers to assess current orders for popularity and place them into batches by their SKU. From there, pickers are in the best location of the warehouse to get orders fulfilled as quickly as possible. Batch picking works especially well for e-commerce businesses with somewhat predictable ordering trends, like those specializing in food and apparel.
• Cluster Picking — Efficiency is the name of the game for cluster picking, which involves a single picker compiling multiple orders at a time, usually dealing with a variety of SKUs. This method can give you a serious leg-up when it comes to speed, but you will need to integrate special technologies and resources to make it successful in your warehouse, such as a sharp, well-trained picker, a mobile cart, automated equipment and voice solutions.
• Wave Picking — Wave picking makes a whole lot of sense if your warehouse is grappling with high fulfillment demand coupled with plenty of diverse inventory. In wave picking, a single picker prepares each order, line-by-line, but instead of simply being compiled in the number that it was placed, all warehouse orders are first assessed to maximize shipping and picking operations. This strategy allows “waves” of orders to be shipped and compiled throughout the day, prioritized by time and importance.

In addition to the five most common picking types, many companies will combine two or more to better fit the unique needs of their warehouse. For instance, managers may integrate the successful points of the above to make a zone-batch picking, zone-wave picking or zone-batch-wave picking plan that fits their changing needs best.

Tried and true methods used in order picking

When it comes to implementing an order picking process that works best for your warehouse, picking one or more of the above types is key, but you will need to consider a host of supporting factors first. From available space to strategies to comprehensive training practices, a full order picking re-vamp entails an investment in both time and sometimes capital in order to pull off a change successfully.

Let’s take a look at how you can do this:

• Ensure that your production schedule allows for 100% availability of inventory — Offering competitive and guaranteed shipping dates to your customer must be a standard and predictable part of your business. In order to make this a sustainable reality, you must have a minimum level of inventory per day, as well as an effective communication procedure for when you might be running low on an item. 
• Plan your picking routes carefully — Just because your warehouse’s picking routes improved your productivity when they were first implemented doesn’t mean that they shouldn’t face constant scrutiny as your business grows. Require your warehouse manager or picking specialist to establish routes that eliminate backtracking, which can cause major slowdowns. Also, keep in touch with your pickers to better understand the factors that may be slowing them down.
• Implement velocity-based slotting — Your warehouse manager might be a whiz when it comes to organizing your inventory with the trusted warehouse slotting method, but have you made them aware of your current product velocity analysis? Those working behind a desk may be aware of this information, but that doesn’t mean that everyone notices how often a product sells, specifically if your business’ warehouse is a booming one. This means that, based on its specific velocity, a product might be sitting in a “prime slot,” even though it hasn’t been picked in days. Make the appropriate manager aware of each product’s velocity so that they can make the necessary, time-saving changes in your warehouse’s overall organization.
• Invest in smart automation — Smart automation is the future; its inherent qualities promote more accurate and time-efficient picking, all in ways that can be completely customizable to your business. This investment can be a big decision, but it is much less overwhelming — and a lot clearer — if you include all warehouse managers and supervisors in the conversation, instead of simply keeping it between a salesperson and a boardroom. That way, you can assess all factors to select what smart automation equipment best fits the needs of your growing business.
• Keep records of error data — It’s easy to blame picking errors on negligent employees, substandard equipment or inefficient shipping companies, but coming to a quick conclusion might mean that you are hastily selecting a “fall guy.” Instead, keep thorough records of all error data, including missed time targets, and properly analyze it to get a better idea of who is to blame. If you have a hardworking, honest staff, for instance, it might be time to implement a velocity-based slotting plan, integrate smart automation or re-assess your inventory routes.

The best equipment for optimized warehouse order picking

You might have invested in the best and brightest staff to establish your warehouse’s order picking strategy, but that doesn’t mean that it can’t all fall apart due to faulty, out-dated or unnecessary equipment.

Here’s a look at a few commonly used types of order picking equipment that can help to optimize your warehouse’s picking processes:

• Mobile Robots — Over the last few years Robots have quickly increased their level of intelligence and flexibility as machine learning and artificial intelligence (AI) have been built in. The result of these innovations is a new style of robot that is suited to work side by side with warehouse pickers. Modern warehouse robots are designed to complement traditional picking processes. These robots have been designed to operate on the floor in the same spaces where associates are at work, often in collaboration with those associates. In this model, the robot is assigned a task and automatically navigates to a pick location. When it arrives at a location, a picker will pull product from a shelf or carton and place it in a bin or tote on the robot. The robot is then directed by the software controlling the system to the next pick location until all the items for an order are in the tote and ready for delivery to the pack station. Mobile Collaborative Robots can be very effective for fulfillment centers with a high variety of orders, including a significant number of multi-product orders. Because the robot is responsible for all of the non-value-added travel between tasks, associates on the floor are more productive because they remain in their zone where they are focused on picking items from the shelves.
• Heavy-Duty Equipment — This can include anything from the aforementioned smart automated robots to forklifts that have a larger load capacity than the one you are currently using. Whether or not your warehouse is using either of these tools is beside the point; the main takeaway is a simple one — big capital expense, less manpower and more machinery. Of course, not all facets of a warehouse will — or should — be completely automated, but if the available warehouse picking tools save your company more time and money in the long-run, take advantage of the technologies and order picking machines out there.
• Voice-Picking Equipment — The term “voice picking” refers to the paperless, hands-free system that gives pickers instructions in real-time. This technology is a big one as it allows workers to keep their hands and eyes free as they move about the warehouse. In terms of equipment, voice-picking usually requires a headset and microphone connected to a wearable device along with a manual cart that they pull around the warehouse. A big advantage is that many voice-picking devices are also equipped with multi-modal feedback functions, which allows pickers to communicate necessary information back into your system.
• Barcode Scanners — Barcode scanners have been used for years throughout the field of inventory tracking, but that doesn’t mean the piece of equipment is out-dated. In fact, the newest barcode scanners have cutting-edge features that promote automation throughout the supply chain. Today’s best barcode scanners cut down the possibility of human error, eliminate paper and printing costs, give time-saving information on SKU location and are hooked up to software that automatically analyzes your inventory. For even more efficiency, you can use a mobile put-to-light system in conjunction with barcode scanners and mobile robots to inform pickers of inventory location.
• Weight Scales and Software — Yet another way to reduce errors in the form of under- or over-packaging orders is through implementing electronic weight scales in your warehouse. Weighing the package before it goes out for shipment ensures that the correct items are, in fact, a part of the order. Additionally, the data compiled by the smart weight scales software can help predict changing shipping costs.

Best hiring practices for warehouse order pickers

There’s no question that order selecting and picking are tough jobs, especially considering today’s pickers are under more pressure than ever when it comes to efficiency. Over the past several years some companies dealt with a fair amount of blowback from pickers who were overwhelmed by strict picking quotas. Of course, corporations don’t set out to overwhelm its pickers, which means that faulty hiring practices could be to blame for the bad publicity.

Here are some qualifiers and tips to ensure that your pickers can handle the demanding work:

• The pickers are physically and mentally able to perform work in the long-term — Most successful warehouse picking requires the worker to move from task-to-task in the most timely manner possible. It might not be a trying job when it comes to strategy or innovation, but it is one that requires some physical and mental prowess. Make sure that each prospective employee knows exactly what the job entails in terms of physical expectations, walking speed, lifting requirements and efficiency before you move them forward in the hiring process.
• The pickers understand the job’s low margin for error — Picking is not a job for those who cannot follow directions. This might be a hard thing to determine in the hiring process, but their application, previous experience or general behavior might be good indicators as to just how meticulous they will be in the warehouse.
• The pickers are put through adequate training — If your company is at all interested in precision, it’s key that you supply your picker with the most thorough training possible before you put them on the line, and on-the-job, they should be provided with tools that give them constant feedback.

These might be common-sense hiring techniques, but they are all integral in guaranteeing that the right products get into the hands of your customers in the timeliest fashion possible.

Best practices for improving warehouse picking productivity

Order picking is one of the essential functions of a warehouse operation. Utilizing the right picking methodologies, leveraging technology to streamline processes and following sound hiring practices will go a long way in optimizing your workflows and contributing to the bottom line.

To help you further optimize order fulfillment workflows, let’s take a look at best practices for improving warehouse picking productivity.

Design your warehouse for optimal flow

Each functional area of your warehouse should be designed and positioned to flow from one activity to the next. This design is based on how inventory flows through each area, from receiving to outbound shipment. For instance, goods flow through a typical warehouse this way: Receiving – Storage – Replenishment – Order picking – Sorting – Packing – Shipping.

Such a logical flow of inventory eliminates scenarios in which associates have to double back across areas to perform an order fulfillment activity. Also, each area should be designed to accommodate the expected amount of traffic. Aisles should be wide enough to facilitate the smooth flow of associates and equipment without causing congestion — even during periods of high-volume traffic.

Leverage goods-to-person technology

Reducing the number of people and steps it takes to execute a process reduces the number of errors, and this is particularly true in order fulfillment. Errors during picking leads to unsatisfied customers and returns. Or if detected before orders are packaged and shipped, wasted time and resources in packing and repacking orders.

Goods to person technology (such as AS/RS, carousels and flow racking) reduces the need for human involvement in the picking process. It also cuts down overall travel time, human fatigue and the number of steps required to pick orders, thus speeding up the order fulfillment process. Most importantly, it removes the need for personal interaction during picking activities, a significant benefit as warehouses are implementing social distancing measures to keep employees safe in the midst of the COVID-19 pandemic.

Zone fast-moving SKUs together

Savvy warehouse managers leverage the 80/20 rule to speed up order fulfillment. Essentially, this rule stipulates that 20% of products account for 80% of customers’ orders. As such, zoning high-volume SKUs (i.e., creating a warehouse within a warehouse) is a great way to optimize order picking activities. For one, it reduces travel times because pickers no longer have to travel through the warehouse to pick frequently ordered items.

Ensure that the zone is properly designed and situated to facilitate high-volume traffic and activity. It’s a good idea to position zones containing high-velocity SKUs closer to shipping and receiving areas.

This idea can also be extended to include SKUs that are frequently ordered together, such as shampoo and conditioner, staples and staplers, etc. Placing such items together helps reduce travel time and speeds up picking activities.

Ensure the safety of pickers

Picking and packing require associates to handle items that have been handled by other employees and may still be handled by others within your warehouse.

Automating order picking activities, deploying goods-to-picker technology, redesigning pick zones and leveraging collaborative robots are best practices for simultaneously optimizing productivity and staying operational during the COVID-19 pandemic.

The CDC stipulates that people should maintain a distance of at least 6 feet at all times. While you can reduce the number of pickers operating in close proximity (to meet the CDC’s social distancing requirement), this will slow down high-volume operations and reduce overall productivity.

With the right technology and management strategy, you can ensure the safety of your warehouse employees and still rapidly process orders to meet consumer demands.

Other best practices include:

• Use well-labeled dividers, totes and bins to subdivide inventory for easier and faster picking. It’s ideal for storing and sorting through large quantities of tiny items.
• Prioritize replenishment of fast-moving, frequently picked items.
• Place picked items directly into shipping cartons.

Wrapping up

There’s no “one-size-fits-all” picking strategy or best practice given the variety of products, workforce capabilities, facility sizes and geographical locations of warehouses across the globe. Nonetheless, the above best practices have been proven to improve order fulfillment activities, irrespective of the unique conditions in your facility.

These best practices support greater throughput, increase productivity and drive higher accuracy and faster cycle times, thus boosting customer satisfaction and maximizing overall efficiency. Interested in more? Let’s discuss the solution that’s right for you. Contact us today.

More resources on warehouse order picking

For the latest information on the warehouse order picking process, best practices, methods, equipment and hiring techniques, visit the following resources:

• What Are the Different Types of Order Picking in the Warehouse?
• 5 Ways to Improve Order Picking Productivity
• Order-Picking Methods and Technologies for Greener Warehousing
• Tips for Boosting Picking Speed
• Warehouse Basics: Picking Fundamentals
• Warehouse Picking Best Practices: Top 50 Articles
• Order Pickers Should Be Like Fast Food Workers
• Improve Your Order Picking Procedures
• How Will Covid-19 Change Distribution?
• How Covid-19 redesigned the warehouse layout

Related Posts:

1. How to Manage (and Improve) Warehouse Operations

2. 7 Steps to Improve Your E-Commerce Order-Fulfillment Process

3. What is a Pick-to-Light System?

4. Learn How Autonomous Robots Move in Warehouses

5. Zone Picking vs Wave Picking: Which is Best?

The post The ultimate guide to warehouse order picking appeared first on 6 River Systems.

Definition of inventory replenishment 

The inventory replenishment meaning, otherwise known as stock replenishment, refers to the process of inventory moving from reserve storage to primary storage, then onto picking locations. It’s important to note that inventory replenishment is sometimes used to define both ready-to-sell inventory as well as raw materials received from suppliers.

How inventory replenishment works

Depending on the unique structuring of your business, a team or series of teams will be compiled to oversee inventory. Usually, these teams consist of the warehouse managers and/or planners who focus on ensuring that the company has enough stock to produce goods and/or fulfill orders.

These teams can be broken down into a variety of disciplines, with some focusing on inventory ordering procedures as the company grows and evolves, and others grappling with the short-term; the latter are the professionals who spend their time monitoring the inventory counts.

When the counts drop to the pre-proposed re-order point, then the designated team will contact the appropriate parties within the supply chain to replenish the items. Remember, this occurs with both ready-to-sell inventory as well as raw materials, direct from the supplier.

Every competent warehouse has its own set of replenishment rules. Typically, these are somewhat moveable, depending on the severity of the case, but they are usually written after a demand forecast is produced.

Factors that impact inventory replenishment methods

If you ask any seasoned warehouse manager, planner, salesperson, product manager or warehouse worker about stressful events that transpire in warehouses, chances are they will mention that stress levels can peak quickly when inventory replenishment plans fail. As mentioned above, all competent warehouses have strategies that relate to replenishment, but that doesn’t mean that every plan will cover every unforeseen situation. 

Let’s look at some of the most pressing factors that impact even the most adept warehouses’ replenishment strategies:

Your company’s forecast has fluctuated

Because all forecasts consist of unconfirmed demand, there’s no question that the numbers can fluctuate greatly based on the changing needs of customers. Another issue would be if one of your suppliers experiences a hiccup and your company can’t secure comparable raw materials in time for production to be unaffected.

Your warehouse space is not optimized

A common point of contention that warehouse managers and planners face concerns the utilization of warehouse space. Perhaps, a planner wants to secure “x” amount of space for the holding of extra inventory or raw materials. If the warehouse manager is not able to provide the appropriate space, then the agreed-upon inventory replenishment plan cannot be fully utilized.

Your end-to-end visibility is poor

These days, end-to-end visibility is the name of the game when it comes to supply chain efficiency. When you don’t provide accurate, real-time info regarding your current stock levels to your suppliers, then there can be a delay in the replenishment process.

Best practices for seamless inventory replenishment

To ensure that your company is always able to replenish its inventory as needed, be sure to follow these best practices:

Assess and re-assess your forecast

Include all parties in this discussion, from your planners to your sales team to your warehouse manager to your suppliers, long-term customers and beyond. Ensure that your colleagues have their own forecasts ready before meeting and compare these numbers against the specific factors that affect your business’ replenishment plan. And, when you’re there, come up with a realistic plan to execute if and when your current replenishment plan and/or forecast fails.

Formulate effective stocking level strategies

Stocking level strategies vary depending on the size and specialty of the business, which means that yours must be tailor-made to fit the needs of your inventory and supply chain. If you are starting from scratch when it comes to strategy, be doubly clear that all parties involved — especially your long-term customers and suppliers — are aware of your strictest targets. It’s only then that you can discuss your stocking level strategies in terms of hard data.

Create better end-to-end visibility

Do your due diligence to ensure that your entire supply chain is in the loop when it comes to your changing stock levels. Within this system, make room for additional information that details shipment times within your fleet.

As you can see, when it comes to replenishment, so many of the challenges concern communication, organization and competent forecasting. Be flexible and realistic about your numbers so that your company never has to deal with a lack or surplus of inventory. Interested in more? Let’s discuss the solution that’s right for you. Contact us today.

Related Posts:

1. Basic Warehouse Terms and Workflows, Explained
2. 50 Expert Warehouse Management Best Practices
3. 5 Ways to Streamline the Warehouse Order Fulfillment Process
4. How to Manage (and Improve) Warehouse Operations

The post What is inventory replenishment? appeared first on 6 River Systems.

From making use of old-fashioned, diligent auditing to investing in the latest and greatest in data-tracking tools, now’s the time to begin holding the reigns when it comes to monitoring your warehouse efficiency. So, wondering how to measure efficiency? Here are some of the simplest, yet most effective ways you can get started:

1. Complete regular and extensive operational audits
2. Define your warehouse goals
3. Establish KPIs for your warehouse workers
4. Chart your fulfillment performance

As you can see, the key elements of efficiency measurement lie in a warehouse manager’s ability to look at a variety of indicators to see how they function together best. Here’s what you need to know to put these strategies to use and how to measure warehouse efficiency.

1. Complete regular and extensive operational audits

How else can you be certain of where your business stands in terms of inventory, safety, or efficiency if you don’t conduct regular in-house audits? To rev up your audit so that it places the most focus on efficiency, pay the most attention to these components:

• Your warehouse’s capacity and throughput — Don’t forget to differentiate between the current data and the optimum data that you would like to build towards.
• Your warehouse’s layout and flow — Make note of any trouble areas that might be holding up your machines or workers in regards to the warehouse layout and inventory flow systems.
• Your storage systems — Are any of your storage systems difficult or dangerous to access?
• Your customer service performance metrics — Safeguard your happy customer base while still ensuring that your business is seeing the return that it needs.
• Your systems are performing to the best of their abilities — Watch out for any glitches in your systems that may be causing major slowdowns; schedule maintenance and checkups with IT for broader analysis.
• Your safety and security systems are functioning at 100% — Nothing can cause a bigger hiccup for a warehouse than being forced to endure operation-halting breaches in security or safety.

Once your internal audit is complete, compile easy-to-access registers for managers to update as changes occur.

2. Define your warehouse performance goals

Now that your operational audit is complete, schedule meetings with the appropriate department heads and discuss your goals for warehouse efficiency moving forward. Once you and your colleagues are clear on what these numbers might be — including your proposed timeline — you can now make official updates to your warehouse systems.

In this update, make the necessary organizational, staffing and inventory tracking changes to ensure that every functioning component in your warehouse has efficiency in mind. From there, establish registers that promote visibility among all departments so that others, both in-house and throughout your supply chain, are privy to any shifts as they happen in real-time.

3. Establish KPIs for your warehouse workers

You’ve likely already set some crude warehouse KPIs (key performance indicators) for your warehouse workers, but now that you have your new operational audit inventory counts and fulfillment data handy, it’s time for you to make the necessary adjustments.

Instead of focusing on just a few areas, challenge yourself by establishing specific KPIs that are custom-fit for each worker or job title. Here are the main areas that should be included in yours:

• For packers — Volume received per hour, cycle time for each receipt (including accuracy percentage) and cost of receiving for each line.
• For pickers — Number of order lines picked per hour, order pick cycle times, quality metrics and cost of picking for each order line.
• For shippers — Order process per hour, cycle time per order, quality percentage per order and cost of shipping for each order.

Once you have used your valuable audit data to compile these updated KPIs, keep your workers in the loop on the changes — and be sure to provide extra efficiency training if the shifts in expectations are significant.

4. Chart your fulfillment performance

Now that you have updated your warehouse workers’ KPIs to reflect your efficiency goals, it’s time to take a holistic look at your fulfillment performance. Naturally, many factors come into play here — and you’ve already put several into effect if you’ve been following this list so far — but the most disruptive can also be the least obvious.

Take a look at your entire supply chain and use your current data-tracking software to analyze some of the spots that might be slowing down your order fulfillment speeds the most. Once you have zeroed-in on these, report the metrics to your workers and set up overarching productivity measurements (not just KPIs) that give each and every department an idea of your big-picture goals.

When it comes down to it, warehouse efficiency is less about promoting speed and more about looking at the hard data; you will always be able to quickly and confidently define the most sluggish points when you carefully chart these warehouse metrics.

Related posts:

1. 5 ways to streamline the warehouse order fulfillment process
2. The ultimate guide to warehouse order picking
3. 50 expert warehouse management best practices
4. How to manage (and improve) warehouse operations

The post 4 ways to measure warehouse efficiency appeared first on 6 River Systems.

What does it take to be considered a top logistics provider? Factors like revenue and warehouse space play a big role. To curate this logistics companies list, we considered the number of warehouses each company operates as well as year-over-year growth from 2016 to 2017, using the Top 20 3PL Warehouses 2017: Growth amid change report from Logistics Management, as well as other factors, such as smaller companies managing to stand out and make their mark in areas like conservation and technology advancements.

The companies on this list service just about every industry imaginable, from automobiles to aircraft. Some of them field commercials during the Super Bowl. Others make their mark more locally. Each one shares the drive needed to continue establishing themselves as players in this industry.

The list of the largest logistics companies in the world and service providers below aren’t ranked or rated in any way. Instead, we’ve highlighted some global logistics industry and providers examples, their important facts, and statistics about each company’s growth and achievements.

1. GXO Logistics

@XPOLogistics

GXO Logistics helps companies around the world find supply chain solutions suited to their needs. They spend over $450 million dollars per year on major technology investments to continue pushing the field forward.

Three key facts about GXO Logistics:

• Showed a revenue increase of 18.4% year over year from 2016 to $4.19 billion
• Looking to continue investing in robotics and automation, customer service and visibility, improving the digital freight marketplace and the area of data science.
• Ranked as 2018’s #1 Logistics Company by Transportation Topic magazine

2. DHL Supply Chain North America (Exel)

@DHLUSXPO

DHL allows companies to focus on their core business while they handle the process of cataloging and shipping their goods around the world. Their ready-to-go solutions help save companies a lot of time and money.

Three key facts about DHL Supply Chain North America (Exel):

• One of only 13 companies certified as a top employer by the Top Employers Institute
• Generated annual revenue of $68.31 billion in 2017
• Increased its global output by 3.1 percent in 2017

3. Americold

@americoldtweets

Americold provides temperature-controlled storage and distribution of perishable food items. They make sure goods arrive at grocery stores and restaurants around the country in pristine condition.

Three key facts about Americold:

• Recognized as the world’s largest operator and owner of temperature-controlled warehouses
• Saw its 2017 global warehouse revenue grow by 6.0% year over year
• A successful January 2018 public offering made it the first owner-operator of temperature-controlled infrastructure to be publicly traded

4. Ryder Supply Chain Solutions

@RyderSystemInc

Ryder manages fleet optics, transportation, and supply chain functions from behind the scenes for over 50,000 customers. They proudly tout their 99% on-time delivery rate and maintain 44 million square feet of warehouse space.

Three key facts about Ryder Supply Chain Solutions:

• Named by Forbes as one of America’s best employers in 2018 for the fourth year in a row
• Uses autonomous vehicles, drones, wearables and sensors in smart warehouses around the country
• Saw its full-year revenue increase by 8% to $7.3 billion

5. GEODIS North America (OHL)

@GEODIS_Group

This firm ranks among the top logistics companies in the country. They maintain warehouses for different industries throughout the US covering over 37 million square feet of space.

Three key facts about Geodis North America:

• Maintains an international network across over 120 countries, ranking number one in France
• Fulfilled over 2.3 million orders over the 2017 holidays
• Had its revenue increase by 3.1% to $12.16 billion thanks to its 3PL acquisitions

6. FedEx Supply Chain

@FedEx

Provides 3PL solutions for small and large companies throughout the company. They provide personalized service and technology making it easy to perform order fulfillment functions.

Three key facts about FedEx Supply Chain:

• Received recognition as a top 3PL provider from Multichannel Merchant in 2018
• Handles over 508,000 direct-to-consumer shipments each day and processes 358 million annual returns
• Developed FedEx Returns Technology geared towards simplifying the process of return management for  high-volume merchants and other supply chain issues

7. Lineage Logistics

@OneLineage

Lineage Logistics provides customized and dependable cold-chain solutions to businesses nationwide. They’re constantly expanding to make sure they’re in a position to provide logistics support to any company in need.

Three key facts about Lineage Logistics:

• Maintains a nationwide network of high-tech distribution warehouses
• Oversees over 26.5 million square feet of warehouse space
• Began construction in 2018 on its first fully automated warehouse in Sunnyvale, TX

8. Kenco Logistic Services LLC (KLS)

@KencoGroup

Kenco Logistic Services LLC (KLS) provides distribution, transportation, material handling and real estate leasing services for various industries. They actively seek partnerships with their customers in order to turn their supply chains into a competitive edge for them.

Three key facts about Kenco Supply Services LLC (KLS):

• Named as a top 10 3PL provider in logistics for five years in a row
• Maintains warehouses in 23 US states and one in Canada
• Generated over $535 million dollars in revenue since 2014

9. NFI Logistics

 @NFIindustries

This international company provides 3PL services to companies ranging from Fortune 500 companies to start-ups. Their 10,000-strong workforce helps out everyone from industrial giants to clothing retailers.

Three key facts about NFI Logistics:

• Works to include sustainable green solutions in all of its warehouses
• Generated $3.09 billion in annual revenue in 2017
• Ranked #10 as a 3PL provider by Transportation Logic magazine

10. DB Schenker Logistics Americas

@DBSchenkerUSA

Provides industry support for the worldwide exchange of good with its fleet of trucks, ships and airplanes. They assist business at the top of a number of industries like automobiles and technology.

Three key facts about DB Shenker Logistics Americas:

• Partnering with Cisco Technologies to foster innovation in the logistics arena
• Found in over 2,000 locations around the world
• Managed to increase its consignment volume last year by 2.6 over 2016

11. DSC Logistics

@DSCLogistics

DSC Logistics helps companies manage the complexities of supply chain management and helps them optimize their innate strengths to their advantage. The company makes themselves adaptable in order to configure solutions beneficial to their customers.

Three key facts about DSC Logistics:

• Ranked #28 on Transportation Logic magazine’s list of top 3PL companies
• Customer base includes Kellogg Co, Sega, Starbucks, Yahama and Whirlpool
• Made $415 million in revenue in 2017

12. UPS Supply Chain Solutions

@ups_scg

UPS Supply Chain Solutions provides a one-stop shop for companies seeking help with managing the logistics of getting their products around the company. Their well-known brand gives them an edge in gaining the trust of new customers.

Three key facts about UPS Supply Chain Solutions:

• Currently ranked #2 on Transportation Logic Magazine’s Top 50 Logistics companies
• Ended 2017 with net revenues of $12 billion dollars
• Posted a profit of $1.1 billion in 2017

13. CEVA Logistics North America

@cevalogistics

CEVA Logistics provides companies with both LTL and FTL transportation services for their products around the country. Their ocean and air freight capabilities allow them to expand their reach around the world.

Three key facts about CEVA Logistics North America:

• Finished 2017 with revenue totaling $7 billion
• Experienced in handling logistics in many industries aerospace, retail logistics, consumer packaged goods and electronics
• Averages 8,000 loads on the ground per month

14. Saddle Creek Logistics Services

@SaddleCreekLog

Saddle Creek Logistics Services gives companies access to flexible warehouse storage, synchronized inventory distribution and efficient and cost-effective transportation services. They work to help companies find solutions suited to the industry they work in.

Three key facts about Saddle Creek Logistics Services:

• Key customers include Sam’s Club, Pepsi Cola North America, Proctor and Gamble and Lowe’s
• Increased its warehouse square footage by 2.3%
• Generated a net revenue of $510 million in 2017

15. DSV North America

@DSV_AS

DSV North America helps businesses side-step the complications of logistics project management by installing seamless solutions for all of the moving parts involved. They’ve helped everyone from healthcare companies to renewable energy providers.

Three key facts about DSV North America:

• Saw a 42.5% increase in earnings in 2017 vs. 2016
• Generated an overall net revenue of $74.9 million in 2017
• Has over 40,000 employees in 80 countries

16. Penske Logistics

@PenskeLogistics

Penske Logistics provide companies with efficient supply logistics solutions. They step in to manage everything from warehouse management and distribution to transportation services.

Three key facts about Penske Logistics:

• One of the major companies looking into using blockchain technology to manage logistics data
• Makes over $400 million per year in revenues
• Services customers including BMW, Daiman, Sony and General Motors

17. Kuehne + Nagel, Inc. (The Americas)

@KNLogistics

Kuehne + Nagel’s placement of its logistics offices at strategic points around the world allow it to take advantage of the global desire for goods from around the world. Their customers come from industries ranging from oil and gas to marine logistics.

Three key facts about Kuehne + Nagel, Inc:

• Named as the number one ocean freight forwarder by Transportation Logic magazine
• Listed by Forbes as one of the U.S.’s top employers in 2017
• Made $22 billion in revenue worldwide in 2017

18. WSI Supply Chain Solutions

@WSI_Logistics

WSI Supply Chain solutions support their nationwide logistics solutions from their home base in Appleton, WI. They companies achieve cost efficiency by shortening lead times and increasing efficiency.

Three key facts about WSI Supply Chain Solutions:

• One of the largest privately held 3PL providers in the country
• Ranked as one of the top 50 dry storage warehouses in the country
• Had 52 warehouses located around the US in 2017

19. Warehouse Services, Inc.

@WSI_ISMI

Warehouse Services, Inc prides themselves on delivering bottom-line value while reducing the overall costs of their customers. They continue to expand their presence throughout various regions of the country.

Three key facts about Warehouse Services, Inc:

• Recycles over 14 million tons of wood and foam materials every year
• Named as a Certified Women’s Business Enterprise
• Moving towards eliminating the need for paper in logistics management

20.  APL Logistics North America

@APLLogistics

API Logistics North America prides itself on being an innovator since establishing itself back in 1980. They introduced the concept of the guaranteed LCL/LTL service, changing the way things got done in the industry.

Three key facts about APL Logistics North America:

• Specializes in services including air freight forwarding, purchase order management and customs brokerage
• Offer door-to-door delivery in key ports from the US to Asia
• Provide comprehensive NAFTA intermodal services

Honorable Mentions

These growing logistics companies may not be the largest in terms of revenue or number of locations, but we think their substantial growth and achievements make them worth a mention.

1. Barrett Distribution

@barrettdc

While it may not be the largest logistics company overall, Barrett Distribution has grown to over 400 employees and a network of more than 3 million square feet of state-of-the-art warehousing capacity, strategically located across the US. A privately held company, high performance teams serve more than one hundred and fifty customers in an array of industries, from fast-moving consumer goods to the highly demanding automotive parts and online retail markets.

Three key facts about Barrett Distribution: 

• As a trusted advisor to customers since 1941, Barrett provides customized third party logistics, omni-channel distribution and direct-to-consumer fulfillment services.
• Barrett has invested in technology and systems, developed their people, and created a proprietary process methodology they call the Barrett Blueprint®
• Barrett has warehouses in the Northeast, Southeast, Mid- Atlantic and Southern California

2. ACT Fulfillment

ACT Fulfillment has grown rapidly, with growth between 20% and 25% each year for the first seven years since the company was founded in 1994. But the company’s growth didn’t stop there. In 2013, the company had expanded to more than one million square feet, with plans to expand to a third facility. ACT Fulfillment provides warehousing and fulfillment services including receiving, handling, shipping, and more with the goal of building relationships with customers and going above and beyond what’s offered by other third-party distribution and fulfillment warehouses.

Three key facts about ACT Fulfillment: 

• Began in 1994 with 5,000 feet of fenced-off warehouse space
• Served as the West Coast Distribution Center for Burlington Coat Factory from 2000 to 2006
• Burlington Coat Factory accounted for 70% of gross revenue and 41% of gross revenue in 2005 and 2006, respectively, but the company still achieved revenue growth of 12.5% in 2007

Interested in more? Let’s discuss the solution that’s right for you. Contact us today.

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