Nov
23
Using wave management to improve efficiency in the warehouse
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Efficient utilization of the labor force is often a key objective for many warehouses. Grouping transactions is often an effective method as it facilitates better staff utilization and can shorten overall transaction times helping to better meet schedules and requirements.
Within logistics this grouping of common activity is called wave management. Wave management can relate to various tasks including allocating stock/inventory, picking, packing and cycle counting.
Effective wave management intelligently groups warehouse activities prior to “releasing” duties to the workforce. The resultant batch of work is carried out together in an allotted time window.
Warehouse management systems are often used to facilitate better wave management (this is common rationale behind many businesses cases looking to implement WMS as it generates improved productivity form the workforce.).
Whilst wave management doesn’t require technology – the advantage of utilizing a WMS for wave planning is that the WMS is better equipped to quickly process the levels of transactions, look for synergy and produce an output plan that the team can follow.
But what activities should you group?
Whilst businesses may view logistics activity in a holistic framework tasks can be broken down into smaller common groups. For example
Picking
Picking is often one of the first activities to be reviewed by wave management. As a process, its probably one of the most labor intense which provides one of the greater opportunities for improvement. Many organizations look to simplify picking by grouping the activity around customers, product groups or destination.
Routing
With routing and picking being so closely aligned its not a surprise to see that wave management can offer improvements. Routing management will usually commence prior to picking (determining number of parcels pickups, schedules, locations etc). Once completed it easier to establish picking requirements.
Cycle counting
Most organizations do not shut down for physical inventory counts. And as such many organizations look towards perpetual stock checks as a means of validating stock. Whilst often an overlooked process, developing a suitable schedule and process which takes account of labor efficiencies can still pay dividends
Packing
Packing activities, reliant on completed pick tasks can be segmented to take into account of customer specific handling requirements (e.g. special packaging or sorting).
Replenishment
For many organizations (especially those in high volume manufacturing situation) stock replenishment is a key task and one which can benefit from wave management. Once again this task is closely coupled with the pick wave. Replenishment tasks are initiated to re-stock Kanbans or forward holding storage locations. Following a pick wave the replenishment wave moves the inventory in the pick locations to the new stores location.
Summary
Wave management can greatly improve the use of labor resulting in increased productivity. There can be many types of waves many of which are closely related. Dedicated warehouse management systems (WMS) usually have some form of wave management functionality.
Nov
2
Introduction to Warehouse Management Systems (WMS)
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Warehouse Management Systems (WMS) are typically software solutions whose primary purpose are to co-ordinate and administer the storage and movement of products and materials within a company’s warehouse and related processes.
What does a Warehouse Management System (WMS) do?
Whilst most WMS will have a broad range of related functionality this typically includes tools that help with:
Stock picking,
Inventory control,
Label printing,
Returns,
Cycle counting,
Some WMS systems will go beyond the physical warehouse and extend functionality to
Yard management,
Transport,
Labor (i.e. Timecards)
Key Benefits of Warehouse Management Systems
WMS can provide numerous benefits including
Faster goods movement,
Better management information,
Reducing errors
Reduced levels of data entry
Optimization of storage locations,
Improved planning
WMS can help facilitate automation and are often coupled with other solutions such as RFID and warehouse control systems that manage materials-handling.
For the businesses that utilize products incorporating shelf life (of life expiry dates) WMS can help in prioritizing dispatch of appropriate goods, eliminating errors and reducing material scrappage due to life expiry.
WMS Solution Providers
Though there is a wide variety of Warehouse Management Solutions which predominantly come from 3rd party companies that specialize in WMS, there are some packages, provided by ERP vendors, that come as a bolt on to ERP software (SAP for example). Most systems will offer some level of integration into other software including existing legacy products).
While bolt on ERP software modules are popular well known providers like RedPrairie and Infor have competed well with the large ERP vendors and have been successful in sectors such as FMCG and 3PL organizations with their products commonplace in many companies around the globe.
Many WMS systems do not rely solely on traditional use of desktop computers with systems available through PDA’s or other mobile devices. This can offer various benefits both in management information (real time tracking for example) and of course in the nature of warehouse tasks which are not typically desk bound.
WMS in SME’s
Whilst WMS are often prominent in large organizations Small businesses have been slow to implement the solutions. High volume (high number of SKU’s) and complex warehouse operations tend to benefit most from WMS where smaller organizations cannot capitalize on the benefits (due to scale) and also typically experience issues in interfacing (or funding the implementation) with other software packages such as Finance and procurement packages.
Many SME’s have looked at the cost of such systems and compared that to typically cheap labor rates coupled with relatively simple process and cannot justify the capital expenditure.
WMS costs are typically a mixture of software ,WMS hardware and implementation. As with any software deployment, ROI is realized over time. How much time will typically depend on the size of the organization and its complexity of operations prior to the WMS being deployed.
One WMS fits all
Many warehouse systems are customizable and can be tailored to suit the business sector they are deployed in and its common to find WMS in many industries from manufacturing, pharmaceuticals through to distribution and retail organizations.