Page 18 - Inbound Logistics | April 2017 | Digital Issue

10TIPS

STEP-BY-STEP SOLUTIONS

Optimizing Your Distribution Center Site

aximizing the efficiency of Ensure adequate space in Consider crossdocking.
your distribution center (DC) staging bays. Take an organized Designate a particular area of
M site requires strategic planning 4 approach to creating space for the 8 the facility for staging or holding
and ongoing analysis. Stan Krawitz, outbound process. Allow for 50 feet of inventory based on your outbound
executive vice president, founder, and space from the dock to give employees requirements. Incorporate a strate-
head of Canada for real estate advisory enough room to stage for shipment. gic role for the crossdocking system to
firm Savills Studley, offers these tips to play within the warehouse ecosystem.
help you get started. Find and install proper racking. This creates operational efficiencies
To maximize flow efficiency, the inside the facility and increases speed
Select a site location with labor 5 type, location, and density of rack- to market.
pool availability in mind. When ing should align with inventory carrying,
1 selecting a DC site, it is critical to pick practices, and order characteristics. Incorporate automation.
choose a location with a workforce Consider the product’s needs and how Robotics and advanced retrieval
that has the education and experience you take it off the rack. 9 systems can minimize labor costs
required to run your facility properly. and maximize work output. The supply
Refine pick strategy regularly. of industrial robots will reach 400,000
Align facility layout with inven- Business changes with each season units by 2018 and grow by a rate of
tory management operations. 6 and order. Being able to stay on 15 percent annually, according to the
2 There should be a fluid flow from top of order characteristics is critical International Federation of Robotics.
inbound inventory all the way to out- to long-term efficiency. Conduct an
bound staging and transportation. inventory optimization study regularly Set up an area to test
Consider the processes taking place and utilize data analytics. operations improvements.
within the facility when determining the 10 Before rolling out processes to
location and proximity between areas. Create transportation effi - improve operations, test the idea on
ciencies. Schedule simultaneous a smaller scale to cultivate data and
Install the right lighting. Not all 7 outbound shipments to maximize make necessary adjustments. When
areas of a DC use light in the same your resources and utilize your trans- encountering issues such as quality
3 way. Consider operations within the portation network efficiently. Increase control and returns, determining and
facility when selecting lighting systems. visibility within a network and opti- executing solutions can be complex.
Cost-saving practices include installing mize the flow of goods by establishing Fine tuning strategies in a smaller
timers that ensure lights are only used advanced shipping notifications from the designated area allows for maximizing
when needed, as well as using LED point that the purchase order is placed. efficiency before rolling out solutions
bulbs that minimize energy usage. across the entire facility. n

16 Inbound Logistics • April 2017