Warehouse Management

• Concepts and Trends

• Warehouse operations – design and control
• Warehouse Layout & Design Principles
• Storage and Handling Equipment from small to
large units
• Physical inventory - how you improve Inventory
Record Accuracy
• Warehouse Management System
• Warehousing Key Performance Indicators (WKPIs)
 What is Warehousing

Internal

Processing
• Purchases • Customer Shipments
• Customer Returns • Vendor Returns
• Transfers • Transfers
• Outside • Outside Processing
Processing supplier- components and
• Pick • Assembly
sourced components resources in work in
• Pack • Storage
and resources in your process
• Inspection • Move
manufacturing processes
• Count • Replenish
 Function of a Warehouse
in a Supply Chain

A warehouse is the point in the supply chain where goods are

stored for varying lengths of time.

Warehouses can be used to add value to a supply chain in two

basic ways:

1. Storage. Allows product to be available where and when

its needed.
2. Transport Economies. Allows product to be collected,
sorted, and distributed efficiently.
 Transport Economies
Transportation carriers usually give discounts for bigger
loads.

• Consolidation of multiple small loads into a larger

load gives access to economies of scale in
transportation.
– Full truckload (TL) shipments are less costly than less-than-
truckload (LTL) shipments.
– Waiting to accumulate a full load for TL shipment from
origin to destination can cause excessive delay.
• Warehouses function as transshipment terminals
for consolidation, cross-dock, and break-bulk
activities.
 Warehousing’s Role in
the Supply Chain
The resources are space (the building),
labor (the people), and knowledge
(information/data and workers’ skills).

The modern warehouse or distribution center (DC)

provides resources to support both traditional and
value-added activities.
 Consolidation Warehouse
Supplier
A
A

Supplier Consolidation
B A B C Customer
B Warehouse

C
Supplier
C

• A consolidation warehouse is used to combine multiple loads

into a single load.
• Instead of costly LTL or infrequent TL shipments from each
supplier directly to the customer, a consolidation warehouse
provides less-costly and more frequent TL shipments to the
customer.
 Cross-Dock Warehouse
Supplier
Customer
A A
A C
A B
A
Supplier Cross-Dock
B B B A B C Customer
B Warehouse

A
C B
C C
Supplier C
Customer
C

Warehouse receives TL shipments of products from multiple suppliers to one

inbound dock then sort products by purchase orders, destination, SKU or store
location and transfer with no “storage time” shipments to the final destination
directly to an outbound dock to make final deliveries.
Cross-dock operations needs large staging areas where inbound materials are
sorted and outbound shipments are staged and ready to ship within hours.
Receiving and shipping are usually coordinated so that no storage is required
at the warehouse.

Companies with global supply chains are particularly well positioned to benefit
from Cross-Dock operations, a process at distribution centers in which
product is exchanged between trucks so that each truck going to a retail store
has products from different suppliers.

Many warehouse cross dock facilities are temperature-controlled to maintain your

cold chain requirements (Cold chain management).
A simple Cross-Docking

Freight has been docked in

the center of the floor, while
forklift trucks drive along the
walls to carry freight to the
appropriate departing
trailers.
 Crossdock in at least two of these conditions:

• Product destination is know upon receipt.

• Destination is ready for immediate delivery.
• You daily ship to less than 200 locations.
• More than 70% of products fit conveyors.
• You receive large quantities of individual items.
• Products arrive pre-labeled.
• Some products are time-sensitive.
• Distribution center is near capacity.
• At least some inventory is pre-prices.
 Break-Bulk Warehouse
Deconsolidarea/Divizarea unitatilor de incarcatura (containere,
paleti, cutii, etc) si separarea marfurilor pe fiecare client (eventual
repaletizare)
Customer

Sursa Depozit A

Supplier Break-Bulk
A A A A Customer
A Warehouse

Customer

• At a multi-market warehouse, a large long-distance TL shipment

from a supplier to broken down into smaller loads that are
delivered a short-distance to each customer.
• Multi-market warehouses are usually located close to or in each
major market served.
• Se foloseste foarte mult in cazul distributiei catre retaileri unde se
solicita si reambalarea produselor conform cerintelor specifice ale
clientului: ex ofertele 2+1 – kitting and packaging
In cazul combinarii operatiunilor Break-Bulk cu Cross-Docking,
operatiunea se numeste BBXD (Break Bulk Cross Docking)
 Traditional Warehouse

Pallet Storage

Warehouse
Receive Putaway Store Pick Ship

Returned goods depots

Warehouse Traditional Activities
Product receiving,
storage, which requires putaway and inventory management

shipping, which requires picking the items from storage and combining
them into orders. Shipping

Storage

Receiving
 Warehousing Trends
- From Warehouse to Distribution Centre (DC) -
- From DC to Omni-channel DC –
The supply chain of the future is
more about pieces than pallets

Today’s distribution center is different than it was 15 or

even just five years ago

Amazon insinuates the company has its eye on 3D printing

as new way of replacing the traditional warehouse model.

How does warehousing support

supply chain strategy?
 Warehousing Trends (1)
The Warehousing Trends reflect an industry expanding and
facing up to omnichannel pressures, e-commerce and SKU
growth, and more item and case handling.
Omni-channel – toate canalele de vanzari ale clientului
functioneaza integrat (magazin, on-line, social media, web chat, telefon,
etc). Necesita platforme care permit activitati cross-channel. De exemplu,
vad online stocul din magazin si comand achizitia acestuia on-line de la cel
mai apriopiat magazin. Se face colectarea produsului si sunt programat sa-
l ridic din magazin (click & collect) sau sa-l primesc acasa (direct to
consumer – home delivery).
How omni-channel is changing DC design/size?
What current operations best practices keep pace with the new economy?
What technologies are leading the way in omni-channel fulfillment?
How managers are keeping costs in line while improving service under
increasing pressure?

Are your operations keeping pace with the dynamics of

omni-channel fulfillment?
 Warehousing Trends (2)
Retailers has to adjust their order fulfillment strategies to keep up with
rising consumer expectations .
The most effective strategies and solutions currently available:
1. Enhance Picking Productivity : the shift to paperless picking solutions
increase productivity by up to 50 percent (Pick-to-light, Put-to-light, Voice
picking, Radio frequency (RF) technology - Handheld and mobile RF
devices, etc).
2. Improve Omnichannel Distribution with Put Walls*
Put Walls maximize efficiency by serving as points of demand
consolidation enabling intelligent order batching, adjustments and other
allocations among wave, pick and put.
3. Automate for efficiency - intelligent automation solutions:
– Warehouse execution systems (WES) - WES software optimizes your facility,
delivering real-time responsiveness with automated decisions based on
constant analysis of orders, inventory, labor, processes and equipment.
– Automated storage and retrieval solutions - Ideal for operations with high-turn
inventory storage and short order cycles, AS/RS systems provide quick access to
products, while reducing storage labor and footprint requirements.
– Unit sortation - Designed for ultra-light, irregularly shaped and polybagged
items, these systems deliver the highest throughput at minimum speeds for
years of reliable, low-maintenance operation.
 Today’s Distribution Center
Flow Through
Merge-in-Transit

VAS
Storage

Distribution
Center
Cross Dock
Consolidate/
Receive Putaway Store Pick VAS Cross-Docking/ Ship
Break- Bulk

Returned VAS- Value Added

goods depots Services
2016 Amazon’s distribution facility prototypes across its North American supply chain:
•Fulfillment and redistribution centers (75)-centre de distributie ale produselor comandate online
•Sortation centers (26)
•PrimeNow hubs (43)
•Delivery/sortation stations (16) - located close to metropolitan population centers
 New Warehouse or Distribution Centers
Minimizarea timpului de depozitare si a costurilor
corespunzatoare acesteia
-Maximum adding of value (including final assembly).
-Real-time data collection.
-Aim at maximizing profit of demand
Customers are demanding more individualization of orders
and quicker response. The warehouse is closer to customers
and uses relatively inexpensive resources, so it often makes
sense to move final packaging, labeling, and configuration to
the warehouse or DC.
These are value-added services (VAS) like product
packaging, repackaging, labeling (etichetare), shelf-ready
displays, Kitting, postponement and Light Assembly Services,
ASN and invoicing.
VAS provide flexible postponement, customized assembly, packaging,
 Example of value-added services
Kitting and Packaging
• A kit is a set of parts or materials to be assembled and sold as a single product. It
consists of a finished good that contains sub-components. Many companies use
kits to add value to the products they sell. It may be a computer company putting
a keyboard, mouse, and speakers together with the computer to sell as a single
unit, a cereal company that puts a toy in with the cereal, items assembled
according to the retailer’s requirements such as “five-pack”, “buy two, one free”
offer, etc.
• The problem that can arise when a company uses kits is the opportunity for
human error. First, someone needs to calculate how many of a product goes into a
kit and how many kits are being made. Then, a worker needs to go get the
parts. Depending on the size of the kit and the number of kits produced, this can
become a headache and time-wasting event. When making a kit, one must deduct
the ‘sub-components’ of the kit from inventory so they can be used to make the
kit. Then the newly kitted item needs to be added into inventory and put into
pickable bins. With all the interaction between the warehouse and the accounting
department, mistakes are a constant worry.
• WMS helps streamline the whole process. It automatically calculates the number
of products needed and where they are located, to minimize both headaches and
time wasted. WMS directs the picker to the chosen work area for building kits. It
automatically deducts the ‘sub-components’ out of inventory and feeds the
adjustment up to the ERP system. Once a kit is completed, the WMS software
automatically adds the new product and puts it into a designated bin location,
from which the product can be easily transferred into bins available for order
fulfillment. Every step of the process helps to minimize the chance of human error
and to maximize productivity.
 Postponement method applied
in warehouse management
(see also SCM push-pull model )
• Postponement: A warehouse with facilities for light
manufacturing activities like assembling, packaging
and labeling can enable postponement of final
production until the exact demand is known.
• The benefit here is a reduced level of risk and lower
inventory as the final labeling and processing activity
is done only on knowledge of the actual demand and
thus the basic product is used for a variety of labeling
and packing configuration.
 Building a Flexible e-Commerce
Center
These are some elements of a flexible e-commerce
warehouse/fulfillment center:

– High-speed, multi-level conveyor systems (up to 25,000

units per hour).
– Goods-to-Person and Goods-to-Equipment fulfillment.
– A warehouse execution system (WES) that syncs with
existing WMS, ERP software, fulfillment picking, and
materials handling equipment.
– Robotic technology for order picking and retrieval.
– Handheld applications for order accuracy and user
mobility.
– Value-added services, including product customization and
postponement.
 Reduce order fulfillment times

(4) – DTC “each” pick area

– piece picking area in the
DC to do more drop
shipments and next-day
deliveries for e-commerce
orders.

(8) Parcel shipping area -

customer orders received
online are picked, labeled
for shipment and delivered
to a parcel shipping area
(8) for UPS and FedEx
pickup.

Creating the infrastructure to support a growing e-commerce

channel today
(DC-ul organizat pentru a prelua comenzile canalului E-commerce)
 THE BUILDING OF RETAIL BUSINESS NETWORKS
Retail networks have three key components to help retail trading partners execute
an omni-channel strategy:
• Platform: includes an engine, the network and a graph-based architecture.
• Development environment: enables third-party developers and IT departments
to use prebuilt APIs to create applications that integrate with the platform.
• Business applications: allow trading partners to find, evaluate and install prebuilt
applications for their business needs.
Warehouse operations – design and
control
The five basic elements of a warehouse are
1. Receiving area (zona de receptie)
2. Storage area (zona de depozitare)
3. Shipping area (zona de expeditie)
4. Storage and Material handling system (sistemele de depozitare si
manipulare a produselor)
5. Information system:
– WES - an IT platform that interfaces with an existing ERP system or
WMS to optimize inventory flow and execute more complex picking
production commonly found in e-commerce facilities.
– WMS (sistemul informational WMS)
– WCS - responsible for maximizing the efficiency of the materials
handling subsystems, and often the activities of warehouse workers
themselves. It provides a uniform interface to a broad range of
materials handling equipment such as ASRS, carousels, conveyor
systems, sortation systems, and palletizers."
– DOM (Distributed Order Management)- pentru omni-channel – este
un modul optional intre Order Management si WMS care stabileste
cel mai profitabil mod de colectare a comenzii (magazin, fabrica sau
centru de distributie) si transport la destinatie.
WES vs DOM?
There are many variations on this basic pattern
 Typical Warehousing Activities
Colectare
Receptie Depozitare comenzi

Reserve Forward Order Sort &

Receive Putaway Replenish Ship
Storage Pick Pick Pack

• Receiving (unloading,
verifying, inspecting)
Replenish
Reserve Forward Picking • Putaway or cross-
Storage O
Pi rd
docking
ck er
in
g
Order Picking
• Order picking,
Packing, Sorting
replenishment
Putaway

• Sortation, packing
y

& Unitizing
wa

• Shipping (verifying,
ta
Pu

loading)
Receiving
Cross-docking
Shipping • Within storage areas:
consolidation,
rewarehousing, cycle
counting
 General structure of warehousing process

Aviz/Factura

Stivuire pe dest. livrare

ASN*

Sortarea/
pregatirea
comenzilor
ASN*-advanced shipping notification pentru livrare
Warehouse Space Requirements

Management of Business Logistics, 7th Ed.

The relationship between warehouse activities and
warehouse resources is shown in this chart.

Resources
Activities Space Labor Knowledge
Receive Receiving Dock Receiving Crew Purchase Order, ASN or
(Receptie) (operatori receptie) manifest
Put items away Storage Receiving Crew Layout of space, handling
(depozitare) equipment
Pick to orders Storage/pick stations Pickers Customer orders
(Preluare,colectare (operatorii de
comenzi) pregatire comenzi )
Stage and Load Staging / Shipping Area Loaders Customer order,
(Stivuirea si Manipulanti marfa, Transport information
incarcarea Motostivuitoristi
comenzilor pe rute)
 Receiving

Reserve Forward Order Sort &

Receive Putaway Replenish Ship
Storage Pick Pick Pack

• Receiving introduces inventory into the warehouse

and prepares it for storage or customer order
fulfillment.
• It is the process of unloading, verifying, inspecting,
and staging of material transported to a warehouse
in preparation for putaway or cross-docking,
sometimes including sorting and repackaging of the
material.
Receiving – type of unit storage
 Putaway

Reserve Forward Order Sort &

Receive Putaway Replenish Ship
Storage Pick Pick Pack

• Putaway is the process of moving material from the receiving area to a

storage location or, in the case of cross-docking, directly to the shipping
area.
• A putaway algorithm is used in the WMS to search for and validate
locations where each movable unit in the putaway queue can be stored.
• The efficiency of all subsequent warehouse operations depend on
performance of the putaway algorithm.
• Inventory and location attributes are used in the algorithm to make the
selection.

Putaway – transferul produselor receptionate in locatiile din zonele de

depozitare decise de sistem sau catre zona de expeditie in cazul operatiunilor
cross-docking.
 Replenishment
Reaprovizionarea zonei de picking
Reserve Forward Order Sort &
Receive Putaway Replenish Ship
Storage Pick Pick Pack

• Replenishment is the process of moving material from reserve

storage (zona de rezerva) to a forward picking area (zona de
colectare a produselor din comanda) so that it is available to
fill customer orders efficiently.
• Other types of in-plant moves include:
– Consolidation: the process of combining several partially filled storage
locations containing the same type of item into a single location or
several orders into a single shipment.
– Rewarehousing: the process of moving items to different storage
locations to improve handling efficiency.
 Replenishment
Which skus* to store in the fast-pick area?
How much of each sku to store there?
Forward-pick or fast-pick
area that is more
convenient to pick, but
space is limited

Forward pick area :

Depozit – Depozit - zona de colectare
Zona de a comenzilor
rezerva

*sku (stock keeping unit) is the smallest physical unit of product that is tracked
by the organization.
Replenishment – multiple fast pick
area
 Order Picking
Colectarea produselor din comanda pe
baza notei de colectare
Reserve Forward Order Sort &
Receive Putaway Replenish Ship
Storage Pick Pick Pack

• Order picking is the process of removing goods from

storage in response to specific customer orders.
• Attributes not contained in the customer order are
assigned using the preferences stored in the
customer master file.
Why is Order Picking Important?
• Order picking is the most
critical activity in most
warehouses because it is the
point at which customer
expectations are actually
filled.
• Order picking represents 50%
of all operating costs in a
typical warehouse
 Type of picking units
Zona de rezerva Zona de Colectare

or Piece picking
 Example: Cartons Picking

Cartons are picked from pallet flow rack
onto a conveyor – direct picking from
reserve area.
See the next slide to see an other way of
cartons picking
Cartons are picked from Gravity Flow Rack
(plan inclinat) onto a conveyor – multiple
fast picking area
 Carton Picking from Pallet Rack

Fig. 1 Carton Picking Ways

• Low pick density means lost of traveling for order picking cases
• Cases picked onto pallet jack (transpalet see fig. 2 ) or conveyor
• Fast movers typically stored in floor storage or bottom level of
pallet rack
Fig.2 Manual pallet jack Cartons are picked from the bottom (dedicated), most convenient level; when
(Transpalet) the bottom position is empty, a restocker refills it by dripping a pallet from
above. Newly arriving pallets are inserted into the high overstock area
(randomly).
Conveyor – banda transportoare
 Picking methods
Metode de colectare a comenzilor

Sortiment
 Picking methods description
Release Description Pickers Line Periods Pros Cons
Method Per Items per
Order Per Shift
Pick

Discrete A single order is filled. Single Single Single simple, risk of picking errors least productive, excessive
Picking of omission is reduced, travel time, relatively low
One person picks one
provides fastest response in number of orders picked
(Pickingul order, one product at a
a service window simultaneously, greater
pe time. Orders are not
environment, picking risk of picking area
comanda) scheduled and may be
accuracy accountable to a congestion
picked at any time on a
single person, little
particular day.
coordination with other
1 operator/comanda pickers required, no space
required for order
consolidation, and relatively
low control system
sophistication required
Zone The total pick area is Multiple Single Single flexible with different skills Multiple pickers
Picking organized into distinct or equipment associated accountable for picking
zones managed by one with a hybrid warehouse, accuracy, high
Pickingul
person responsible for reduced travel coordination with other
pe statii de
picking all lines for each time/congestion/delays due pickers required, space
colectare
order that are in her to the ability to further and coordination required
Pick and
zone. Two variations of subdivide zones, relatively for order consolidation
Pass
zone picking include: high number of orders
Sequential zone picking, picked simultaneously,
when the order is reduced picking area
passed from one zone to congestion
the next, one at a time.
Simultaneous zone
picking, when the order
is consolidated in a
designated location after
zone picking is done
from all applicable zones
independently.
 Picking methods description
(continued)
Release Description Pickers Line Periods Pros Cons
Method Per Items per
Order Per Shift
Pick

Batch Picking A group of orders Single Multiple Single greater productivity, best for risk of picking and sorting
are filled at the orders with few (1-4) lines errors, coordination
Pickingul
same time, one line and small cube, reduced required between bulk
consolidat al
at a time by one travel time, drastically picking and individual
comenzilor
order picker. reduced picker travel time, order sortation , individual
very high number of orders order processing time
picked simultaneously dependent upon total
batch processing time,
space required for
individual order sortation,
residual product handling
can be relatively high,
relatively high control
system sophistication
Wave Picking Orders may be Single Single Multiple better coordination with Risk of productivity loss if
released in waves shipping shipping schedule is
Pickingul pe
timing (hourly or unbalanced
loturi de
each morning or
comenzi
afternoon)
according to the
schedules of
outgoing vehicles.
One picker picks one
order one line at a
time.
 Picking methods description
(continued)
Release Description Pickers Line Periods Pros Cons
Method Per Items per Shift
Order Per Pick

Zone- Each picker is assigned a Multiple Multiple Single Potential for higher requires more control due
Batch zone, and will pick a part of productivity to complexity in nature
Picking one or more orders,
depending on which lines
Mixul de
are stocked in the assigned
picking
zone.
Zone-
Batch
Zone- Each picker is assigned a Multiple Single Multiple Potential for higher requires workload
Wave zone, and picks all lines for productivity balancing between pick
Picking all orders stocked in the zones
assigned zone.
Zone- Each picker is assigned a Multiple Multiple Multiple Potential for higher requires more control due
Batch- zone, and picks all lines for productivity to complexity in nature
Wave orders stocked in the
Picking assigned zone.

Modificarea prioritatilor în care comenzile sunt alese, agregate (consolidate) și livrate se

face prin alegerea uneia sau a mai multor metode de picking care sa permita încărcarea
si livrarea la timp a comenzilor clientilor.
 Picking Method
General Rules
Total Orders: Low
Basic Order Picking Picks Per Order: Moderate to High
Nr linii comanda: Moderat spre Mare

Total Orders: Low to High

Batch Picking Picks Per Order: Low
Nr. Linii comanda: Mic

Total Orders: Low to High

Wave Picking Picks Per Order: Moderate to High

Total Orders: Moderate to High

Zone Picking
Picks Per Order: Low to Moderate
 Picking Systems
• Person to Goods (P2G)
Human pickers walk up and down aisles picking orders.
They might have radio-frequency (RF) devices instructing them
on where to go and what to pick rather than a paper pick list,
but it’s very much a “person to goods” method that involves
significant travel by pickers.
• Goods to Person (G2P)
Human pickers operate workstation using automated
picking solutions such as AS/RS (automated storage &
retrieval systems) by eliminating nearly all the travel
involved in order picking.
 Picking Systems
System Description Pros Cons

Paper Picking A printed pick list that includes higher likelihood of

SKU’s and locations picking errors;
requires manual pick
confirmation
Label Picking A bar coded label is printed for each reduces likelihood of
SKU or full case with correct location counting errors, improves
address, SKU identity, and customer productivity
order number.
Pick-to-Light The use of a visual display to paperless picking, order Need a warehouse
visually lead the picker through the accuracy operator in one
process of picking each line in the stationary location
assigned zone.
Pick-to-Voice The voice picking system allows improve picking accuracy
warehouse staff to concentrate on and speed, very useful
the picking process without looking where items were not
at paperwork and having both hands bar-coded such as fresh
free to perform the pick. produce, so a handheld
scanner could not be
used.
Radio The use of onboard and hand-held reduced travel time and
Frequency terminals displaying picking delays, high order
(RF) Units instructions via RF data accuracy
communication links from the picker
to the control computer in real-time.
Also provides a means of confirming
or correcting picking orders.
 Picking Systems (cont.)
System Description Pros Cons

Mobile cart Use Pick Cart Picking issued by combines pick-to-light, voice
picking order management systems automation and RF technology to
and allowed multiple enable fulfillment of low-velocity
customers orders picking in items, enhanced mobility and go-
the same time (Batch Pick to anywhere flexibility
Cart*-multi-order pick-to-
tote)
Put-wall* Provide goods-to-person reduces likelihood of counting
systems fulfillment for multi-line, errors, improves productivity
mixed and single SKU orders
AS/RS Provide goods-to-person Increase labor productivity, space
systems fulfillment using AS/RS savings and improve pickings
solutions accuracy
O metoda de picking poate utiliza ambele sisteme de picking (person to good and
good to person – a mix of automated and manual processes) prin implementarea unei
solutii software de WS Inventory Management.

The integrated solution utilizes a pick and pass fulfillment strategy with a batch cart
that moves between automated and traditional zone. See example below.**
 Develop a Pick Size Classification Scheme
Next develop a classification scheme for picks based on the size of the pick. Usually
designers will use pallet”, “case”, and “piece” pick sizes

Piece Pick Case Pick Pallet Pick

 Deciding on a Picking Approach

Single Order Picking

Multi-Order Picking(wave)
Batch Picking
(see next slide)
Sorting Picks at End of Tour after
Batch Picking

Order #1
After the different groups of
Order #2 orders have been
identified, the designer has to
make a decision about how
each group of orders will be
picked.
 Batch Picking Example*
A group of orders are filled at the same time, one line at a time by
one order picker.

Consolidarea
comenzilor pe linii
Dupa colectare
de produse,
exista riscul
anterior procesului
aparitiei erorilor la
de picking
sortarea si
alocarea articolelor
pe comenzile
clientilor.
 Mobile Cart Picking Systems
Wave/Batch Order Picking
Ideal for large number of small item with low demand

Order Management Setup Pick Cart Setup Pick Cart Pick Cart Picking

Transfer totes to Continue picking in

Pick Cart Picking pick by light zones pick by light zones
 Wave / Batch Picking – Pick to cart

Pick to cart using

Pick-to-light systems

Distanțele de mers pe jos sunt reduse la minimum prin selectarea mai multor
comenzi dintr-o dată.. Avantajul major al programului Pick to Cart este că etapa
de consolidare care durează mult după alegerea loturilor nu mai este necesară.
 Wave / Batch Picking Equipment

Cart picking is a great technique where shipping boxes can placed directly into the carts
location, no separate packing process is necessary, once the order picking process is
complete, close and label the box shipping. An application of picking carts could be used
for both broken-case and case picks simultaneously.

Wave/Batch Picking - permite planificarea colectarii comenzilor in functie de graficul livrarilor

 Put-Wall System

Comenzile clientilor sunt colectate in regim batch intr-un cos comun care
apoi este adus in zona PUT TO WALL. Aici dupa scanarea fiecarui articol se
aprinde un bec frontal care indica in ce cosulet trebuie depus articolul.
Fiecare cosulet reprezinta comanda unui client. Cand comanda clientului s-
a finalizat se aprinde un bec pozitionat in spatele raftului, se tipareste
adresa de livrare si cosuletul este preluat de operator pentru ambalarea
produselor.
 Divizarea spatiului de colectare in
Zone Picking

Zone Picking : Scan, Pick and Pass – more picking less travel
Spatiul de picking al produselor este divizat in zone de picking, un operator/zona
de picking. Acesta colecteaza produsele din zona sa si paseaza containerul de
colectare operatorului din zona de picking adiacenta.
 Deciding on a Picking Medium
Alegerea sistemului de transmitere a informatiilor de
picking
Paper Picking List

Radio Frequency (RF)

Barcode Picking

Voice Picking
For each picking approach you
Keep the
need to decide on a mechanism
operator’s
for how picks will be
hands and eyes
communicated to pickers.
free to make
order picking Pick To Light
more efficient.
 Improve Picking by using Technology
To maximize picking efficiency, world class warehouse operations had adopted technology
that is some of today’s most advanced systems. In addition to hand-held RF
readers and printers (hands not free), companies are introducing
pick-to-light and voice recognition technology.
Pick-to-light system - an operator will scan a bar-coded label attached to a
box. A digital display located in front of the pick bin will inform the operator of the item
and quantity that they need to pick. Companies are typically using pick-to-light systems
for their top 5 to 20% selling products. Inflexibile and expensive.
Voice picking systems inform the operator of pick instructions through a
headset. The pick instructions are sent via RF from the company’s ERP or order
management software. The system allows operators to perform pick operations without
looking at a computer screen or deal with paper pick tickets. Many world class warehouse
operations have adopted voice picking to complement the pick-to-light systems in place
for their fast moving products. Intense concentrations – not for high picking densities.
Pick-by-Vision – prin utlizarea AR (Realitatea Augumentata). Cu ajutorul unor
ochelari inteligenți operatorul este ghidat în depozit prin afisarea pe lentila ochelarilor a
locatiei de picking si cu ajutorul miniscanerului atasat ochelarilor poate realiza scanarea
codurilor de bare. Proiectul-pilot a demonstrat o creștere a eficienței operatorilor cu 25%.
Pick by robotic and AS/RS technology - Automated Storage & Retrieval System
 Pick-to-light system - prezentare

Tiparirea notei de colectare Atasarea notei la container Scanarea notei de colectare

Identificarea ledurilor aprinse care desemneaza locatiile de colectare a produselor

Dupa colectarea produselor se apasa butonul verde Needs WMS and Pick-to-Light Software
 Voice picking systems

Comanda si liniile de colectare ale

produselor se transmit in casca Voice vs. RF Scanning (bar code scanner
operatorului, acesta confirmand order picking time)
fiecare linie colectata. Voice improves picking speed 15%-30%
and accuracy 1-2% above RF based picking
 Sortation and Packing
(sortarea si ambalarea)
Reserve Forward Order Sort &
Receive Putaway Replenish Ship
Storage Pick Pick Pack

• Sortation is the process of merging, identifying,

inducting, and separating items to be conveyed to
specific destinations.
• Packing is the process of unitizing orders for
shipment.
• Sortation and packing is only required after piece
and case batch order picking.
 Packaging
• Most materials are put into unitised loads for
movement
• This means that they need packing and
packaging
• The most common standards are:
– Pallets
– Containers
• Two types of packaging are
• Industrial packaging to ease movement
• Consumer packaging that appeals to customers
 Purpose of packaging
• Provides containers for moving items (such as tanks
for liquids)
• Gives conveniently sized load for movement – either
combining small items or breaking-up large ones
• Identifies the products contained and gives
information about it
• Protects items while they are being moved through
the supply chain
• Gives unit loads to make handling easier
• Assists in marketing, promoting the product,
advertising and giving information to customers
Packing Size Error

Checking

Items are assigned to totes by a

computer program that knows sizes
of product, so arriving totes should
close completely. When this failes, as
in this photo, the program is revised.
 Checking, Sortation and prepare to
shipping

Checking

Customer orders arriving at ambient checking. After they are checked and closed,
they are loaded on a cart (far left).
 Shipping
(Livrarea)
Reserve Forward Order Sort &
Receive Putaway Replenish Ship
Storage Pick Pick Pack

• The process of staging, verifying, and loading orders to be

transported from a warehouse.
• The ASN for each order is generated during the picking
process and is sent to the customer.
• Customer-specific shipping instructions for each order are
retrieved from the preferences stored in the customer master
file.
• Carrier selection is made using the rate schedules contained
in the carrier master file.
Shipping Zone

Shipping

Customer orders sorted by

delivery truck (rute de livrare), so
the routing has already been
done. Each cart can be rolled
onto the appropriate truck.
What makes a DC successful?
Typically warehouses are rated on throughput speed, accuracy, and efficiency
(cost). Warehouse managers, in general, expect:

1. To ship all orders received by cutoff the same day, if

inventory is available.

2. To attain inventory accuracy over 99% (99% of all items are

in the location shown on the warehouse system or records).

3. To attain shipment accuracy well over 99% (the order is

shipped exactly as requested over 99% of the time).
 Distribution Centre Master Plan
The initial decisions of warehousing are related to planning.
• A master plan of the layout, space requirements, and material-handling design
should be developed first and a specific site for the warehouse selected.

• These decisions establish the character of the warehouse, which, in turn

determines the degree of attainable handling efficiency.
Whether the warehouse is a small manual operation or a large automated facility,
the following three principles are relevant to improve warehouse efficiency and
effectiveness:

– General Design Criteria,

– Handling technology, and
– Storage plan.

73
DISTRIBUTION CENTER DESIGN - MADE EASY
 Top 10 Trends in DC Design
• 36- to 40-foot ceiling heights for stacking, racking, and e-commerce
mezzanines.
• Flat and dry concrete slab surfaces for optimal rack layout, void of any
moisture issues.
• Exterior and interior LED lighting systems, coupled with natural light from
clerestory windows (in favor of traditional roof-mounted skylights).
• Extra car parking areas designed to accommodate e-commerce
employees.
• Deeper truck courts with 100-percent concrete surfaces and specific
trailer storage drop areas.
• "LEED-light" sustainable design, which includes white roof systems,
indigenous plants material, recaptured rainwater, low-flow toilets, fewer
blacktop surfaces, locally sourced construction materials, and bike racks to
encourage alternative commuting.
• Wider column spacing (56 to 60 feet between support beams) to optimize
staging for rack designs and conveyor systems common in e-commerce
facilities.
• Narrow aisle widths to maximize storage capacity (modern materials
handling equipment complements today's tighter aisle configurations).
• Dock equipment tailored to the occupant's specific needs (edge-of-dock,
pit-style, and mechanical load levelers).
• Cross-dock building design to maximize throughput.
 Warehouse General Design Criteria
• Warehouse design criteria address physical facility
characteristics and product movement.
• Three factors to be considered in the design
process are:
– the number of stories (etaje) in the facility (depozit),
– height utilization, and
– product flow

77
 Warehouse General Design Criteria
1. Number of stories (etaje) in the facility

• The ideal warehouse design is limited to a single story so that

product does not have to be moved up and down.
• The use of elevators to move product from one floor to the
next requires time and energy.
• The elevator is also often a bottleneck in product flow since
many material handlers are usually competing for a limited
number of elevators.
• While it is not always possible, particularly in central business
districts where land is restricted or expensive, warehouses
should be limited to a single story.

78
 Warehouse General Design Criteria
2. Height utilization

• Regardless of facility size, the design should maximize the

usage of the available cubic space by allowing for the greatest
use of height on each floor.
• Most warehouses have 20- to 30-foot ceilings (aprox 6 – 9 m
inaltimea plafonului) (1 foot = 12 inch; 1 inch = 2.54 cm),
although modern automated and high-rise facilities can
effectively use ceiling heights up to 100 feet. Inaltimea ideala
este 9.5-10.5 m.
• Through the use of racking or other hardware, it should be
possible to store products up to the building's ceiling (plafonul
cladirii).
• Maximum effective warehouse height is limited by the safe
lifting capabilities of material-handling equipment, such as
forklifts.
79
 Warehouse General Design Criteria
3. Product flow

• Warehouse design should also allow for straight product flow

through the facility whether items are stored or not.

• In general, this means that product should be received at one

end of the building, stored in the middle, and then shipped
from the other end.

• Straight-line product flow minimizes congestion and

confusion.

80
 Materials Flow, Goods In, Goods Out
In functie de amplasarea principalelor zone – receptie,
depozitare, expeditie – exista trei variante de flux al marfurilor
intr-un depozit :

circulatia marfurilor in
linie dreapta

circulatia marfurilor in
arc de cerc de 90°

circulatia marfurilor
in arc de cerc de 180°
 Handling technology
Tehnologia de manipulare a produselor
Material Handling is concerned with the movement of
materials for short distances generally within a warehouse, or
between storage areas and transport

• Right Definition
– Handling technology uses the right method to provide the right
amount of the right material at the right place, at the right time, in
the right sequence, in the right position, in the right condition, and
at the right cost.
• This is a relatively broad definition of material handling.

• Handling technology is the second principle focuses on the

effectiveness and efficiency of material-handling.
The elements of this principle concern:
• movement continuity and
• movement scale economies.
 Movement continuity
• Movement continuity means that it is better for a material handler
or piece of handling equipment to make a longer move than to have
a number of handlers make numerous, individual, short segments
of the same move.
• Avoid starts and stops which require extra handling and
additional space. Exchanging the product between handlers or
moving it from one piece of equipment to another wastes time and
increases the potential for damage.

• Thus, as a general rule, fewer longer movements in the warehouse

are preferred.
• Nu se recomanda utilizarea mai multor echipamente de manipulare
pentru deplasarea unui produs in depozit de la locul de stocare la
destinatie-provoaca riscuri de distrugere si pierdere de timp.
• How Many Touches? Ideally, items should only get one touch during
the picking process. Methods that pick directly into shipping
cartons instead of totes eliminates an additional touch at the
packing station as well, or in some cases, the packing process
altogether. În mod ideal, 3-5 atingeri ale produsului, în timp ce
acesta este în depozit (receptie, picking, replanishment,
expeditie/contracolectare). 83
 Movement scale economies
• Movement scale economies imply that all warehouse
activities should handle or move the largest quantities
possible.
• Instead of moving individual cases, warehouse activities
should be designed to move groups of cases such as pallets
or containers.
• This grouping or batching might mean that multiple products
or orders must be moved or selected at the same time.
• While this might increase the complexity of an individual's
activities since multiple products or orders must be
considered, the principle reduces the number of activities
and the resulting cost.
• Eficient este sa manipulezi cantitati mari in schimbul
unitatilor individuale pentru a te folosi de principiile
economiei de scala.
84
 Material Handling Systems Selection
Alegerea echipamentelor de manipulare
a produselor din depozit

The choice of best depends on:

• Throughput – fluxurile de produse
• Physical characteristics of loads – size, weight, etc
• Number of loads to be moved – from receipts,
internal movements for sorting, and then deliveries
• Distance to be moved – from the size of the
warehouse - the physical characteristic of the workplace
• Speed of movement required – how quickly the
warehouse has to respond to demands, etc.
Types of Material Moving Equipments
A. Conveyors (conveioare sau benzi transportoare)

B. Hoists & Cranes - mecanisme de ridicat

C. Industrial Trucks (carucioare industriale manuale

sau motorizate)
 A. CONVEYORS
(benzi transportoare)
Used for moving materials continuously
over a fixed path

A.1 TYPICAL CONVEYORS

1. Roller Conveyor
2. Belt Conveyor
3. Wheel Conveyor
4. Chain Conveyor :Flight, Slat, Apron, Bucket
5. Chute Conveyor
A.2 TYPICAL ACCESSORIES

1.Pallets
2.Boxes
3.Tote pans
4.Skids
5.Optical code or bar code reader
 Example
Roller Conveyor
Conveioare cu role
• Rollers attached to side rails supported by a steel frame.
• The type of roller (steel, rubber, and wood) and the spacing of rollers depend on the type
of load to be carried.
• It can be gravity-operated or power-driven.
• Gravity-operated conveyors have a slight downward slope.
• On the power-driven conveyor, some of the rollers are driven by chains or belts to provide
the motion for the material on the conveyor
 B. CRANES
(mecanisme de ridicat)
Equipment for raising, shifting, and lowering
heavy weights by means of a projecting
swinging arm or with the hoisting apparatus
supported on an overhead track

TYPES
1. Hoist
2. Jib crane
3. Bridge crane
4. Gantry crane (example)
5. Tower crane (example)
6. Stacker Crane
Gantry Crane
Macara portal
Basically a bridge crane with the
boom supported at one or both
ends by vertical gantry legs
traveling on rails installed at
ground level (instead of on an
overhead runway)
Tower Crane
Macara pivotanta
A hoist that travels on a horizontal
boom attached at one end to a
vertical post, with the other end
of the boom being supported by a
guy line to the top of the post
 C. INDUSTRIAL TRUCKS
(Carucioare industriale)
Equipment for carrying loads over varying paths.

TYPES
1. Lift trucks (transpalete)
2. Hand trucks (carucioare manuale)
3. Fork trucks (moto-electrostivuitare)
4. Turret trucks (for VNA rack storage) –
furca se roteste stanga-dreapta)
5. Trailer trains (electrocare)
 Hand Carts/Trucks

• A handcart or hand-truck is a wheel-mounted

platform with handles to manually push or pull
the unit

CARUCIOARE PLATFORMA

LIZA
Hand Lift Truck/Pallet Jack Tractor-Trailer Train
Transpalet Electrocare
This is a series of carts pulled by a
This is a hand-operated truck that can
self-propelled tractor. It is mainly
raise loads hydraulically or
used for stop&go operations
mechanically to clear the floor before
carrying loads within 200 to 300
transporting them to the desired
feet
destination
Power-Driven Platform Truck Forklift Truck

A much larger device than the power- A forklift truck is an operator-

driven hand-truck. It carries load and ridden, power-driven truck with
operator. A diesel or gasoline engine forks in front that lift and carry
or an electric motor supplies power heavy loads on skids or pallets

ELECTROSTIVUITOARE si MOTOSTIVUITOARE
Side-loader Truck
Forks on the side

Turret Truck with forks that can rotate left or right to

place or pick up a load without the truck having to turn in
an aisle
Narrow Aisle Straddle Truck with out-riggers to balance
loaded truck
Narrow Aisle Reach Truck fork truck with
telescoping forks

VNA (Very Narrow Aisle) Pallet

Racking
Automated Guided Vehicle System
An AGV is a computer-controlled vehicle that moves along a
predetermined path and performs certain duties, according to
instructions sent by a system operator located at a station.
 Storage Plan
• According to the third principle, a warehouse design should
consider product characteristics, particularly those pertaining
to volume, weight, and storage.
• Product volume is the major concern when defining a
warehouse storage plan.
• High-volume sales or throughput product should be stored in
a location that minimizes the distance it is moved, such as
near primary aisles and in low storage racks.
• Such a location minimizes travel distance and the need for
extended lifting.
• Conversely, low-volume product can be assigned locations
that are distant from primary aisles or higher up in storage
racks.

100
 Storage Space Layout
Zonare a spatiului de depozitare al depozitului
A zone classifies a set of locations that share common properties.
A zone enables defining constraints for putaway, retrieval, and picking of SKUs in the
warehouse and can also be applied on a user using task management.
A Location is the physical place where inventory is stored.
Modalitati de zonare / impartire a zonelor in depozit
1.Sursele de provenienta Furnizori/Vanzatori
2.Caracteristici similare Utilizare/Functionalitati Forme, Dimensiuni, Greutate
3.
4.
(security
requirements) 5.
6.
frecventa de livrare 7.
echip. stocare si
manipulare 8.
9. Tipul proprietatii Proprii Consignatie Custodie
Temperatura: Ambient 15-25C; Refrigerated – produse refrigerate 2-8 C; Frozen – produse
congelate -6 la -40C
Chimice: Regular – produse normale; Flammable – produse usor inflamabile ; Hazardous -
produse periculoase (prezinta riscuri de scurgere a substantelor ex. clorul, bromul, formarea de
aerosoli)
 Storage Space Layout
(Explicarea modalitatilor de zonare a
produselor)
Example: FROZEN ZONE STORAGE

Order-picking
Order-picking in the frozen foods section.
Space is very expensive here because it must
be kept below 32F (0C).

Note heavy clothing. Workers must take a 20-

minute break every 45-minutes.
Backup generators for warehouse
with Frozen Zone Storage
 Storage Plan by Products Volume Sales
(Access Frequency)
Modalitati de zonare a spatiului de stocare pe baza
frecventelor de livrare a produselor

Product volume is the major concern when defining a

warehouse storage plan.
• High-volume sales (produsele cele mai vandute) or throughput
product should be stored in a location that minimizes the
distance it is moved, such as near primary aisles and in low
storage racks (langa aleia principala si pe primele nivele ale
rafturilor aflate la inaltime mica fata de pardoseala).
Such a location minimizes travel distance and the need for
extended lifting.
• Conversely, low-volume product (produsele cu frecventa mica
de livrare) can be assigned locations that are distant from
primary aisles or higher up in storage racks (la distanta fata de
aleia principala si pe nivelele superioare ale rafturilor).
105
 Zonarea depozitului dupa viteza de rotatie a produselor
Golden, Silver and Bronze Zone

Produsele cele mai vandute (fastest) sunt dispuse de-a lungul aleii principale a depozitului,
celelalte ocupand planuri secundare.
Se micsoreaza timpul de deplasare in procesul de colectare a produselor cu livrare frecventa.
 Modalitati de stocare a produselor dupa
caracteristicile fizice

• Similarly, the plan should include a specific strategy for products

dependent on weight and storage characteristics.
• Relatively heavy items should be assigned to locations low to the
ground to minimize the effort and risk of heavy lifting (articolele
grele se depoziteaza la inaltime mica, aproape de pardoseala
depozitului).
• Bulky or low-density products require extensive storage volume,
so open floor space or high-level racks can be used for them
(articolele in vrac sau de densitate mica necesita depozite cu
pardoseala libera sau stelaje de mare inaltime).
• On the other hand, smaller items may require storage shelves or
drawers (articole mici necesita rafturi cu polite sau dulapuri cu
sertare).

The integrated storage plan must consider and address the

specific characteristics of each product.
107
Example: storage heavier product
Stocarea produselor mai grele

Storage
Heavier ambient product is picked from flow rack.
Produsele mai grele stocate pe un raft gravitational,
aproape de pardoseala.
 Stock Location – Conclusion
Modalitati de alocare a spatiilor de stocare a produselor

• Group Functionally Related Items Together – Order

Picking Easier
• Group Fast Moving Items Together – Work of Moving In
and Out of Storage Reduced
• Group Physically Similar Items Together – For Items that
Require Particular Storage Facilities and Handling
Equipment
• Locate Working Stock from Picking Zone(stocul din care se
colecteaza liniile de comanda) and Reserve Stock from Reserve
Zone (stocul de rezerva ) Separately – Order Picking in
Compact Area
109
 Types of Layouts
• Fixed-position layout
• Process-oriented layout
• Office layout
• Retail layout
• Warehouse layout
• Product-oriented layout
 Types of layouts
-Retail /Service Layout -
Grid Design
Grocery Store
Bread Meat

Produce
Milk

Frozen Foods
Check-
Office Carts
out

© 2001 by Prentice Hall, Inc., Upper

9-111
Saddle River, N.J. 07458
 Retail Layouts - Some Rules of Thumb
(Proiectarea spatiului unui retailer - reguli de baza)
 Locate high-draw items around the periphery of the store
(exemplu produse de panificatie, mezeluri, carne, apa, fructe, lactate, etc)
 Use prominent locations such as the first or last aisle for high-
impulse and high margin items
 Remove crossover aisles that allow customers the opportunity to
move between aisles
 Distribute what are known in the trade as “power items” (items
that may dominate a shopping trip) to both sides of an aisle, and
disperse them to increase the viewing of other items (produsele de
mare interes pentru clienti sunt dispersate de o parte si de alta a aleii pentru a
creste rata de expunere si a altor produse)
 Use end aisle locations because they have a very high exposure
rate (utilizati locatiile din capatul aleilor pentru expunerea maxima a unor
produse)
 Warehouse Layout

Activities that Influence

Warehouse Operations
o No. of Lines per Order
o Quantities per Order Line
o Location of Product to be Picked or Put-away
o Vertical Location of Product in Storage
Racks / Stacks
o Physical Weight, Cube & Dimensions
of the Product
o Capacity of Material Handling Equipment Basic needs:
for Given Product Receiving
o Staging / Non-Staging Requirements of Order Basic storage area (rezerve
o Over-Packing requirements of Small and picking zone)
Pkges. / Picked Items Order selection/sortation
o Accuracy of Inventory Records : Location and preparation for shipping
& Qty. of Item to be Picked or Put-away Shipping
 How Do You Design
a Warehouse Layout?

First step of any warehouse

project is to understand
the Warehouse Activity
Profiling (Data mining)
To Slot or not to Slot? That is the question.

Slotting is the shorthand term for the process of

allocating product, (SKU’s), to locations in the
Warehouse according to business rules and
product characteristics.
 What is Warehouse Activity Profiling?

Warehouse Activity Profiling is the analysis of historical sales

transaction data for the purposes of projecting warehouse
activity and determining storage mode, physical layout, work
flow processes, and labor and equipment requirements.

Types of Activity Profiles

There are four main categories of warehouse profiling:

• customer orders
• item activity
• purchase orders
• inventory levels
 Warehousing Activity Profile

Warehouse activity profile includes two main categories of

profiles:
•A customer order profile - it is an outbound activity and refers
to how the customers are ordering the products ( ordering
patterns of the customer orders).
Has components such as order mix distributions, lines per order
distribution, and lines and cube (greutate, cantitate, m3, etc)
per order distribution.

•An item activity profile provides support in making decision for

storage and slotting (pozitionare) options of items.
Manage information related to the in-house behavior of items in
the warehouse i.e. dynamics (frequency - how often items are
ordered or picked, cube movement - how much is ordered etc.)
of the stock keeping units.
 Customer Order Profiles
• Customer Order Profiles is defined by:
– Order Lines Distribution analiza repartitiei
liniilor de comenzi
– Order Increment Distribution (incrementarea
comenzilor se face in full unit (paleti sau bax-uri):
– Order Mix Distribution – analiza repartitiei
comenzilor pe grupe de produse sau unitati de
livrare-ambalare
• A mix order could be: Family Mix, Full/Partial Pallet or
Full/broken case Mix Distribution
(o comanda mixta este un mix de grupe de produse
sau un mix de unitati de livrare)
Family – grupe de produse; Full/Partial Pallet – paleti/cutii; Full/broken
case – cutii/articole individuale
Order Analysis
 Customer order profiles - Order Lines Distribution
Lines per order distribution Cube (metres) per order distribution

analiza repartitiei liniilor de comenzi

Distributia liniilor din comenzile clientilor

Greutatea medie a unei linii din comenzi

Nr. linii pe comenzi
Lines and cube per order distribution

Ponderea liniilor din comenzi pe unitati de livrare/ambalare

Interpretare: 80% din comenzi au cel mult 5 linii de
comanda (50+15+15). Se poate implementa metoda de
comisionare wave picking zone dar si cross-docking cel
putin pentru comenzile cu 1 singura linie.
 Customer Order Profiles
Order Mix Distribution
Distributia comenzilor pe grupe de produse
Distributia liniilor/comenzilor pe unitati de ambalare ( cutii si produse
individuale)

Produse individuale Cutii Cutii si produse individuale

• Interpretarea graficelor:
• Family mix distribution : din graficul distributia comenzilor pe grupe de produse, rezulta ca 75%
(35+25+15) din comenzile clientilor reprezinta produse din aceeasi familie (grupa).
Ponderea mare de 75% sugereaza zonarea spatiului de comisionare (forward picking) a depozitului pe cele
3 categorii de produse pentru reducerea timpilor de deplasare. Se impune metoda de comisionare zone
picking: Scan, Pick and Pass

• Full/broken case mix distribution: se impune zonarea spatiului de comisionare in 2 zone:

– full case picking pentru comisionarea bax-urilor
– broken case sau pieces picking pentru comisionarea articolelelor unitare
 Item Activity Profile
Primarily item activity profile is used to allocate
each item in the warehouse:

• Storage mode
• Space to allocate for each item category.
• Where the items are to be stored.

Analiza profilului de activitate a unui articol este utilizata

pentru alocarea corecta a acestuia in spatiul de depozitare.
 Item activity profile
The item activity profile includes the following activity distributions:
• Item-popularity distribution - a minority of the items in a warehouse generate
a majority of the picking activity. Use ABC curve or a Pareto Distribution. Se
bazeaza pe numarul liniilor din comanda nu pe cantitatea comandata.
• Cube-movement/volume distribution - se bazeaza pe analiza distributiei
volumelor articolelor comandate (cantitati, greutate, m3, etc)
• Popularity-volume distribution (ia in calcul atat frecventa produsului in liniile
de comenzi cat si volumele acestora (e.g. cube movement m3, weight kg, cant
buc).
• The demand correlation distribution- the demand correlation distribution is
created by ranking items based on their frequency of appearing together on
orders.

Recomandare :
Utilizati tehnicile ABC de clasificare a articolelor folosind Popularity-volume
distribution adica utilizarea simultana a informatiile referitoare la numarul total
al liniilor comandate, cantitatile de livrat si volumul total al produselor
comandate (m3 sau greutate).

De exemplu, un produs poate fi solicitat cu o frecventa mai mica (numar mic de

linii) dar in cantitati foarte mari. Ne aflam in situatia unor comenzi de baxuri sau
paleti care impun plasarea produsului pe statii de colectare de tip baxuri/paleti si
alocarea unor echipamente de stocare/manipulare corespunzatoare.
 Item-popularity distribution
Teoria popularitatii
Se mai numeste ABC sau Pareto Distribution si arata cat de frecvent apar produsele in liniile
de comenzi ale clientilor, respectiv in liniile notelor de colectare transmise catre depozit.

Amplasarea produselor in depozit se face in functie de viteza de rotatie a acestora.

What we discovered in Pareto Distribution where 20% of the items (A class) were picked for
80% of the orders.
20% din produsele colectate au fost prezente in 80% din totalul liniilor de comenzi ale
clientilor.
Consequently, A class items was assigned to the most accessible locations (see Golden zone
slide).
 Pareto Effect and ABC Analysis
Class-based storage – activity level

Zones based on pick frequencies to minimize travel time: from A (high volum &
frequency) to C (Slow Movers)- 80/20 rule applies.
In zona A, aproape de aleia principala, se depoziteaza produsele care au frecventa
mare de livrare, zona B produsele cu frecventa medie de vanzare, zona C produsele
cu frecventa scazuta de livrare.
3D product placement using Pareto
law and ABC Analysis

Warehouse Slotting (alocarea spatiilor de

stocare) using methods of warehouse activity
profile can reduce labour costs by up to 20%!

Location of ABC products (Source DC Expert 3 D drawing package)

 Demand Correlation Distribution
Distributia
Teoria complementaritatii si a similaritatii
articolelor
• Identify relationship (affinity) of demand between
individual items or families.
• frecventa aparitiei impreuna a articolelor in
comenzi determina gradul de corelare al acestora.
– Often based on same style or size
– Sometime complementary items such as shoes & purse
(pantofi si poseta) sau ulei si filtru de masina, etc
• This data can be used when slotting (alocarea
spatiilor de stocare) the warehouse to minimize
movement when filling orders (colectarea
comenzilor).
 Demand Correlation Distribution
Analiza produselor care se comanda impreuna
Item Number Item Number Pair Frequency
189-2-4 189-2-1 58
493-2-1 493-2-8 45
007-3-3 007-3-2 36
119-2-1 119-2-7 30
999-1-8 999-1-6 22
207-4-2 207-4-4 15
662-1-9 662-1-1 12
339-7-4 879-2-8 9
112-3-8 112-3-4 6

Articolele care apar frecvent impreuna in comenzi vor fi pozitionate in locatii

apropiate pentru a minimiza timpul de deplasare la colectarea acestora.
Frecventa cu care anumite produse se vand impreuna.
 Storage Equipment

Simple Pallet Rack Shelving or Static Rack Gravity Flow Rack for small units
Rafturi metalice Rafturi metalice Rafturi metalice
pentru paleti cu polite gravitationale
(stelaje)
 Small Unit Storage Equipment
• Bin / Steel Shelving (Rafturi)
• Modular Storage Drawers in Cabinets
• Carton Flow Racks
• Mobile Storage – manual or computer-controlled systems
such as mini-load AS/RS Systems which moves product in
cartons, trays or totes.
• All the above equipment can also be arranged in
mezzanines to get a better exploitation of the building
cube.
Bin Shelving (Rafturi)

Example:
Small Unit Storage Equipment in Images
Modular Storage Pieces Flow Racks Carton Flow Racks
Drawers in Cabinets

Mobile Storage
 Pallet Storage Modes
• Floor Storage (Block Stacking)

• Rack Storage
– Drive-in Racks
– Dynamic Flow Through Storage Systems
– Push Back Racks
– Selective Rack Double Deep
– Selective Racks
– Very Narrow Aisle
• Unit-Load AS/RS Systems are larger systems that typically store and
retrieve pallet loads. AS/RS (automated storage and retrieval
systems) are computer-controlled systems that store and retrieve
product in distribution centers, warehouses and manufacturing
facilities.
 Floor Storage (Block Stacking)
Stocarea pe pardoseala depozitului

Lane Height
Stocarea marfii
pe pardoseala
Lane Depth depozitului
(3-deep)

Lanes
An efficient storage mode when
• there are multiple pallets per SKU;
• inventory is turned in large increments, I.e., several loads of the same SKU are
received or withdrawn at one time.

Main problems:
• Loss of space due to “honeycombing”
• not effective utilization of the vertical dimension of the facility
 Floor Storage or
Block Stacking
For pallet storage

(Stocarea marfii se face

pe pardoseala depozitului)

Aisle

Stocarea sacilor de cafea pe paleti stivuiti pe pardoseala

 Rack Storage Option
for pallet storage

• Drive-in Racks
• Dynamic Flow Through Storage Systems
• Push Back Racks
• Selective Rack Double Deep
• Selective Racks
• Very Narrow Aisle
 Rack Storage Option
Drive-in Racks

Sistemul Drive-in elimina nevoia de culoare pentru incarcare si

descarcare. Motostivuitorul pozitioneaza paletii pe barele orizontale
ale stelajelor.
Beneficii
• Depozitare de inalta densitate - maximising cubic space
• Mai multi paleti depozitati pe metru cub decat orice alt sistem de
depozitare
• Rotatie scazuta a stocurilor - potrivit pentru bunurile sezoniere
• Ideal pentru aplicatii in mediu rece si congelat
• Accesibil prin sistemul primul intrat - ultimul iesit
• Potrivit pentru bunuri de acelasi tip, in vrac
 Rack Storage Option
Push Back Racks

Stelaje pentru paleti pe conveioare inclinate cu roti/ role

Depozitare si preluare dintr-o singura parte
Beneficii
• Depozitare de inalta densitate - maximising cubic space (crestere a
capacitatii de depozitare cu pana la 75%)
• Mai multi paleti depozitati pe metru cub decat sistemele traditionale
• Rotatie scazuta a stocurilor - potrivit pentru bunurile sezoniere
• Ideal pentru aplicatii in mediu rece si congelat
• Accesibil prin sistemul primul intrat - ultimul iesit (FILO)
• Potrivit pentru bunuri de acelasi tip, in vrac
 Rack Storage
Selective Rack - Double Deep

Description: Selective rack which is 2 pallet loads

deep at each level of storage
Features:
– Each level can be a different sku
– For small lot sizes
– Require special fork trucks with attachment that
extends into rack
– Require high operator skill
– 1 times the capital cost
Considered for:
– Lot sizes which are 8 pallets or less
 Rack Storage
Selective Rack Double Deep

2 deep
5 high
storage
 Rack Storage
Selective Racks
Description: Provide storage for one pallet load per
location.
Features:
– Each pallet load can be accessed without handling
other loads.
– For very small lot size
– Typically positioned back to back
– Provides lowest storage density
– 1 times capital cost

Considered for:
– 4 pallets per lot or less
Selective Rack Example

1 deep
5 high
storage
 Rack Storage
Very Narrow Aisle
Description: Single deep selective rack with narrow
aisle
Features:
– Typical aisle width of 2m (versus 4 m for conventional
rack)
– Requires specialized fork truck
– Provides for high density storage
– Up to 15 meters in height
– Driver may ride up with the load (operatorul in acelasi
spatiu cu incarcatura)
– Vehicle is usually wire guided.
Considered for:
– High storage density with small lot size (densitate
mare de stocare cu o dimensiune mică a lotului
de produs)
VNA:
Electrostivuitoare
Rack Storage
cu operator in
cabina,
Very Narrow Aisle
manipularea prin
lateral a paletilor
si order picking la
nivel inalt in
culoare foarte
inguste de operare
– maxim 2m
latime, capacitate
nominala de
incarcare
maximum 1.5
tone, in culoare cu
1 deep
ghidaj prin
5 high
telecomanda sau
storage
sine.
Very Narrow
Aisle with Turret
Furca VNA de preluare paleti se roteste stanga-dreapta
Truck inside of aisle
 Automated Storage & Retrieval System
(ASRS or AS/RS)
Systems for automatically storing and retrieving loads from defined storage
locations under computer control.
AS/RS - automated storage and retrieval system supported by a warehouse
execution system (WES) permite stocarea automata a articolelor / baxurilor
/ paletilor si colectarea automata a acestora.

AS/RS solutions operate on a “goods to person” principle.

BENEFITS:
High Cube utilization reclaiming up to 75% of floor space by using
overhead space and increasing storage density
Materials are presented to the picker reducing risk of operator injuries,
including repetitive motion syndrome & eliminating up to 2/3 of an
operator's wasted walk and search time
Materials are stored and protected securely inside the storage units
Decreased inventory levels possible through centralized storage & control
2005 version
 Automated Storage & Retrieval System
(ASRS or AS/RS)
The essential components of AS/RS:
An AS/RS comprises five essential components:

1. A rack system to store product

2. A crane/SRM (storage retrieval machine) that runs on a floor
rail
3. A load-handling device/shuttle to move product from the
crane to the rack location
4. A conveyor system to move goods to and from the AS/RS and
dock areas
5. Warehouse management and material flow control
software (WMS, WCS) to control, track and optimize all
product movements 2005 version
 ASRS – Vertical Carousel
Linked shelves rotate vertically on
oval track. Bins hold “small”
materials

Up to 35 fpm
10,000 to 25,000 pound
capacity
10 to 35 feet tall
Option: Pick to Light
Environmental control (clean,
refrigerated or frozen)

Facility Requirements
– Power (3Ø & 1Ø)
– Space
 ASRS - Horizontal Carousel
Linked bins rotate horizontally
on oval track - Shelves hold
“small to medium” size
materials.

Up to 90 fpm
300 to 2,500 pound bin
capacity
6-12 foot high
Option: Pick to Light
Option: Auto Extractors

Facility Requirements
– Power (3Ø & 1Ø)
– Space
 ASRS – Crane In Aisle
S/R Machine travels horizontally
on floor rail w/ a vertical
moving extractor to store &
retrieve payloads from rack
structure on both sides of aisle.

200 to 500 fpm

50 to 10,000 pound loads
10 to 100 foot high
Environmental control (clean,
refrigerated or frozen)

Facility Requirements
– Power (3Ø & 1Ø)
– Space (higher the better)
– Floor loading on grade
 ASRS – Box Picker
Fast controlled-access
storage (small crane in
aisle) for meds & supplies in
bins. Secure or limited
access to 1 bin at a time.

Bins 14”L x 7”W x 3.3” H

687 bins in 75 sq ft.
Store/Pick to 200 / hr.
High capacity drawers
Interface to IT system for
access & inventory control

Facility Requirements
– Power (3Ø)
– Location space
Case Study: Buffalo Trace
Distillery is an advanced
distillery and national landmark,
producing, storing and shipping
a variety of alcohol, including
top-shelf bourbon and whiskey.
Buffalo Trace selected Westfalia
Technologies, Inc. as their
partner in the construction of a
new 83,000 square-foot facility
combining 5 buildings
containing finished goods into a
single facility and featuring a
high-density AS/RS with three
storage and retrieval machines.
AS/RS - automated storage and
retrieval system supported by a
warehouse execution
system (WES). See inbound
logistics, april 2016.
 Unit Load influence Warehouse Design
• Interdependency between the selection of
– Unit load - size
– Unit load container – size and type
– Pallet - size and type and loading method
– Storage Area – type of racks, storage method, height,
length
– Material Moving Equipments: trailers, forklifts, trucks –
type, size, capacity
Unit load is the unit to be moved or handled at one time.
Unit load – unitatea de incarcatura reprezinta un container sau
palet care contine un singur produs sau mai multe produse. Se
formeaza pentru a fi incarcata in mijloacele de transport pentru
livrare.
 Unit Load Principle and Design
• Unit load is the unit to be moved or handled at one time.

• Advantage: handle multiple items -- reduce the number of trips

• Unit loads can be contained in totes (cutii), cartons, pallets, pallet

boxes, etc.

• Enclosure and stabilization is provided by strapping, shrink-

wrapping, and stretch-wrapping

• Unit load specification is an integral part of material handling and

storage system design

– Small Load vs Large Load

Example of Unit Load
 Integrity of Unit Load
Integritatea unitatii de incarcatura
• The unit load may be different along
the supply chain, upstream in the SC,
flow is in larger units, like pallets,
downstream in the SC, product is
successively broken down into smaller
units (see attached image).
• A stock keeping unit, or sku, is the
smallest physical unit of product that is
tracked by the organization.

• Integrity can be maintained in various

ways:
– Boxes - baxuri
– Cartons - cutii
– Pallets - paleti
– Strapping, shrink wrapping – folii pentru
paletizare, benzi securizare paleti, benzi
adezive pentru inchidere colete, cutii
 Moving the Unit Load
• Typically the unit loads are
– Covered in containers
– Carried and stored as containers lying on pallets
– (typically) Carried in trailers

• While planning, you should consider the

dimensional relations between
– Containers
– Pallets
– Trailers
– Storage racks/spaces
 Containers
• Returnability/Reusability – ……Returnabil/Reutilizabil
– Cartons are not suitable for this

• Stackability – …… Stivuire
– Lids or tabs provide this feature

• Nestability – ……Stivuirea interioara cand sunt goale

A container that can stack within another container
when empty.
Lungime 1,200 mm latime 800 mm inaltime 153 mm • Common Pallet
deschiderea ferestrelor din talpa 100 mm * Sizes (W*L cm)
Dimensiuni in concordanta cu ISO,AFNOR, DIN, CEN
– 80 x 100
– 80 x 120
(europalet
standard
EUR)
– 120 x 100
(europalet
atipic EUR2)
– 120 x 120
– 105 x 105
– 85 x 120
EUROPALET STANDARD
The Use of Containers & Pallets
The Use of Containers & Pallets
 Inventory Record Accuracy

Counting Frequency

• ABC Method

• Zone Method

• Location Audit Method

 Cycle Counting Example

A distribution company wishes to count A

items 4 times per year, B items 2 times per
year, and C items 1 time per year. There are
500 A items, 3,500 B items, and 11,000 C
items.

A Plan of cycle counting procedure is shown

in the next slide.
162
 Cycle Counting Plan
Example
Number Count Number of Per Counts per
Class of Items Frequency Counts Cent Day

A 500 4 2,000 10% 8

B 3,500 2 7,000 35% 28

C 11,000 1 11,000 55% 44

Totals 15,000 20,000 100% 80

Note: Daily Count = 20,000 / 250 = 80

163
 Warehouse Management System (WMS)
WMS is the software system that enables
real-time, paperless control of warehouse
operations.
Requires a “Host” system to interface to
– ERP
– OMS (Order Management System)
– Purchase Order data, Sales Order data,
Item Master data
Features
• Inbound (receiving) and outbound
(shipping) operations management
• order management
• yard management (dock door scheduling
functionality most helpful in coordinating
the activities of both the transportation
Achievable WMS goals include: and warehousing departments)
• greater customer satisfaction through • labor or workforce management - Labor
is one of the largest cost drivers in the
shorter cycle times warehouse,
• 100% accurate deliveries • warehouse optimization (space, labor, WS
• better utilization of warehouse resources internal operations) using slotting, Task
Management (easily move people to
• inventory reduction urgency tasks)
• increased productivity. • Others – value-added services,
social media type functionality for private
online chat, etc
 WMS at a glance

Automated materials-
handling equipment
interfaces

Determina locul de
poziționare al remorcii
pentru incarcare

Yard Management System: In some suppliers’ systems, YMS belongs to WMS, in other to TMS.
Implement an alert system between WMS and TMS using common master data and users interface.
Example: TMS sends an alert when a truck is delayed and will not arrive at a dock at the expected
time with impact on customer orders (change or are cancelled..), work shift, etc
 ERP WMS advantages vs BOB WMS
• Avoidance of redundant functionality issues
• Eliminate the interfacing difficulties being an integral part of the ERP system
• Real time data synchronization (inventories records are updated instantly ,
alerts and communications flow automatically across the supply chain from
and to warehouse, etc). In BOB WMS records and activities are replicated
causing processing and visibility delays.
• Decrease costs of WMS implementation (separate applications can double
many of your costs of licensing , maintenance and support )
• BI solution suites for entire ERP (Vendor WMS solution required to purchase a
separate solution for BI (business intelligence)
• Implementation time and costs can be significantly less with embedded WMS
modules because the integration points with the ERP system are already
established and the two systems are designed from the start to work together.
• Training on the system may or may not be priced separately from
implementation;
• Enhancement-bearing service packs or upgrades to an embedded WMS are
delivered as part of the systematic upgrades to the ERP software.

BOB - abreviation of Best-of-Breed

 Company warehouse structure
Physical Sytem Locator
• Memory systems - are solely dependent on human recall (memoria
personalului), someone saying, “I think it’s over there-cred ca sunt
acolo.”

• FIXED LOCATION SYSTEMS- every item has assigned the same location.
A location is empty because no other item may be placed.
• ZONING SYSTEMS – it’s a variation of pure fixed locator systems that
place similar item’s characteristics as size, variety, flammability, toxicity,
weight, lot control, private labeling, and so on in “zones.” Ex: Frozen
zone, Dry zone, Cooler zone, etc.
• RANDOM LOCATOR SYSTEMS - no item has a fixed home and may be
placed wherever there is space, the difference from a memory system is
that each SKU has a location identifier noted in a computer database
which control of where all items are at any given time.
• COMBINATION SYSTEMS – combines best features of fixed and random
locator systems
 Company warehouse structure
Geocodarea
• A company’s warehouse physical structure contains the following entities:
• Sites. A site is a geographical location. A site includes one or several warehouses.
• Warehouses. A warehouse is a commercial building for storage of goods.
• Zone. Each warehouse is divided into multiple zones. Warehouse floor is divided into work
areas and each work area is reffered as a zone. Warehouse processes and systems are
designed around this zone concept, a logical division of warehouse.
Zones are defined by item characteristics
–Velocity (frecventa de colectare-livrare mare, medie, mica)
–Size
–Weather resistance, flammability, toxicity, others
• Aisles (Alei). An aisle is a space for walking with rows of seats on either side or with rows of
seats on one side and a wall on the other. In warehouses, rather than seats they have a rack
to either side.
• Racks (Rafturi metalice sau stelaje). A rack is a material handling storage aid system
designed to store pallets, cases or individual products.
Codificarea randurilor de rafturi: randurile de rafturi din partea dreapta cu numere impare,
randurile de rafturi din partea stanga cu numere pare.
• Shelves (polite). The rack system composed of shelves.
• Bins (celule). A bin is a position on a shelf. Codificarea celulelor se face de la stanga la
dreapta.

OBS. Se pot utiliza pentru codificare cifre sau litere sau combinatii intre acestea.
 Geocodarea unui spatiu din depozit

Exemplu: Produsul
A se afla pe zona
01, aleia 02, pe
raftul din dreapta
01, polita 03,
celula 02.
What are the benefits of integrated warehousing
and transportation to the top and bottom line?
The benefits at top line are:
• improved because of the customer satisfaction provided
through real-time flexibility of handling order changes and
achieving optimal performance metrics such as on-time
delivery, perfect order, order fill rates, increased sales and
on-shelf availability.

The benefits at bottom-line are:

• lower freight costs,
• lower labor costs
• improved throughput (fluxurile interne de marfa)
• better utilization of capital equipment (such as fleet assets
and warehouse forklifts)
• lower overtime costs.
 eCommerce Fulfillment Services
Onorarea comenzilor in sistemele de comert electronic
The growth of online shopping has challenged companies to create efficient eCommerce
fulfillment services. In most cases, have to manage B2B and B2C fulfillment warehousing from
the same facility to control inventory and operations costs.
Order receiving
– Take data in any format and receive it into your warehouse management system.
Consumers e-commerce orders ofen consist of no more than three items.
Inventory management
– Your inventory is managed to a 99.9+ percent accuracy level, aided by a full-featured
WMS system. Items scanned at receipt are immediately visible via web
portal. Inventory is managed using FIFO, LIFO or FEFO processes.
Pick and Pack
– Efficiency in eCommerce fulfillment is critical to profitable online sales. Design efficient
pick processes to minimize time and labor. Orders are picked and automatically verified
for accuracy during scan in at the packing station. Adesea necesita spatiu separat in DC
pentru colectarea comenzilor on-line sau DC separat in cazul volumelor mari ale
cererilor on-line. Producatorii care vand on-line lucreaza cu parteneri specializati pentru
onorarea comenzilor online.
Shipping eCommerce fulfillment orders
– Fulfillment warehousing is just part of an overall eCommerce fulfillment
service. Manage outbound shipments using your parcel account or our own. We are
integrated with UPS, FedEx and all major 3rd party shipping systems for eCommerce
fulfillment. Orders cutoffs are as late as 5 pm. Comenzile primite pana la pranz sunt
livrate in aceeasi zi.
Tracking
– Check order status, delivery status and inventory online 24/7 via easy-to-use web
portal. Can’t get the information you want online? No problem. You will be assigned a
dedicated account manager within our customer service group to answer your
questions.
WAREHOUSE PERFORMANCE EVALUATION
Warehouse logistics is a complex environment. Many factors have impact in
your warehouse efficiency and quality.
For example:
Purchase department:
• How do they buy? Small quantities or big quantities?
• How do the suppliers pack the goods?
• How many suppliers do you have?
Sales department:
• How many order types do you handle?
• How many orderliness per order?
• How long can they send each order type?
• Is there any regulations how many orderliness can they send close to
truck departure?
And this is just a fraction of what you need to look at.
To use a benchmark of KPI as a measure of whether your warehouse is
good or bad is pretty useless.
 Warehouse
Key Performance Measures
“Before implementing improvements, first ensure you
are measuring your current performance”
Financial (cost per unit); e.g.,
– Cost per Order: (Total Whse Cost)/(Total Orders Shipped)
WAREHOUSE Productivity (units per man-hour); e.g.,
– Lines or Orders per Hour: (Lines or Orders Picked & Packed)/(Total
Whse Labor Hours)
Warehouse Cycle Time Performance (hours per unit); e.g.,
• Dock-to-Stock Time - the elapsed time from when a receipt arrives on the
warehouse premises until it is ready for picking or shipping : (Total Receiving +
Putaway Hours)/(Total Receipts Hours)
• Order Cycle Time - the elapsed time from when an order is released to the
warehouse floor until it is picked, packed, and ready for shipping : (Actual Ship
Date) – (Customer Order Date)
Whse- abreviation of Warehouse
See WAREHOUSE PROFESSIONALS … by Newcastle – ind logistica
 Benchmarking
Compare a warehouse with
similar warehouses.

Ex. Calculate Pick rates

(Lines or Orders per Hour)
for similar warehouses

Fit a regression line for size

versus average picks per
person-hour.
Generally, larger warehouses
are less efficient
Larger warehouses have more
travel time
Are smaller warehouses more Regression Line
efficient?
•Pure size hurts efficiency
•Size requires process changes
E.g. Walmart
•Changed the smallest
quantity handled, from
eaches to cartons, etc.
•Utilize cross-docking to
eliminate double Warehouse floor
handling.
 Key Performance Measures (Cont)
• Warehouse space Utilization (avg. units/capacity); e.g.,
– Storage Utilization: (Avg. Occupied Space)/(Available Storage Space)
• Warehouse Quality Performance(%); e.g.,
– Putaway accuracy - the percent of items put away correctly
– Inventory accuracy - the percent of warehouse locations without
inventory discrepancies: (Actual Qty per SKU/System reported
quantity)-ideally you are dealing with a looking to measure closer to
99.9% - 99.999% as a standard. By exmple, in a month where you ship
100,000 pieces, you would have no more than 100 incorrect picks.
– Picking Line accuracy - the percent of order lines picked without errors : (Error-Free
Orders Lines)/(Total Orders Lines Shipped)- se mai utilizeaza si Picking Order accuracy
– Shipping accuracy - the percent of order lines shipped without errors
– On-Time Delivery: (Orders On-Time)/(Total Orders Shipped)
– Loss: (Total Damage + Claims Loss)/(Total Sales)