Module 4 - Background

Part 1: Facilities Layout

The following information will give you a good background on the importance of correct facilities layout and storage solutions. Read the articles below to assist you with completing the assignments for this module.

Start by reading the article below on Continental Airlines automated storage units.

Anonymous (2002). Continental flying high with automated storage units. Modern Materials Handling. Boston, 57(12), 45. Retrieved on December 12, 2014, from ProQuest in the Trident Online Library.

Abstract:

Continental Airlines recently built a new maintenance building at its Newark hub to better serve the airline's growth. To save space, the airline installed 6 vertical lift modules that hold important parts and tools in a manner that makes them readily available and in proper condition as defined by Federal Aviation Administration requirements.

Here is an excellent article that discusses how to design an efficient warehouse and distribution center for the beverage industry.

Larose, N. (2001, Apr). Efficiencies within four walls. Beverage Industry, 92(4), 64. Retrieved on December 12, 2014, from ProQuest in the Trident Online Library.

Abstract:

Site layout, building dimensions, column bay dimensions, lighting, dock locations and ceiling heights are all essential design elements for efficient warehousing and distribution. The greatest opportunities to reduce costs in the beverage industry are available in the distribution warehouses. To maximize these opportunities, a distributor must determine the operational plan that best fits its business and the facility in which it operates. The most common mistake made by distributor is a lack of planning, which can result in costly errors. Every facility should have a master plan.

This article discusses how important the dock is to a warehouse.

Freese, T. L., (2000, June). The dock: Your warehouse's most valuable real estate. Material Handling Management, 55(6), 97-101. Retrieved on December 12, 2014, from ProQuest in the Trident Online Library.

Abstract:

Docks today must be much more flexible, as well as more efficient, to accommodate the increased number and types of receipts and shipments. The number of docks required is determined by a combination of factors: number of receipts and shipments, type of loading and unloading, types and sizes of vehicles, number and timing of carriers, and different areas in which materials will be utilized, stored or prepared for shipment. Today, given the move to JIT inventories and the tendency for shipments to be in close proximity to the manufacturing location, more and more facilities are being constructed with multiple shipping and receiving docks. If your operations require reverse logistics functions, these, too, must be evaluated for environmental considerations. According to OSHA, more than 10 percent of all lift truck accidents result from poor dock layout and overcrowded conditions. Without well-thought-out layouts, good safety practices and staff training, you put some of your most valuable resources at risk - your people.

Part 2: Process Improvement

The following information is intended to inform you about the importance of process improvement. Start by reading this article on beverage warehousing and how to improve it.

Kibort, S. (1999, March 15). A warehouse [r]evolution. Beverage World, 118(1673), 119-122. Retrieved on December 12, 2014, from ProQuest in the Trident Online Library.

Abstract:

An evolution is occurring in the beverage warehouse. The market dominance of supermarkets and mass merchandisers has increased the number of pick-to-order customers and cases. Under pick-to-order, the picker may have to travel to the same location 10 or more times per route, and because these pick-to-order stores also carry the largest variety of SKUs, the total picking time increases. To complicate matters further, most warehouses are now increasing the number of SKUs they offer to the market. The design of most warehouses compounds these problems. Operations and warehouse managers should focus their efforts on how to improve the warehouse layout, on how and where products are slotted and, on what work methods can be applied to improve the performance and cost of their warehousing operations.

Here is an article which discusses how an organization can help its third party logistics (3PL) company become more efficient.

Apple, J. (2002, Aug). Help your 3PL be more efficient. Modern Materials Handling. Boston, 57(9), 96. Retrieved on December 12, 2014, from ProQuest in the Trident Online Library.

Abstract:

Finding and evaluating process changes that will improve cost and service levels in a warehouse seems like a fairly straightforward task. In a third-party logistics (3PL) environment, though, it is not as easy as some might think. The biggest challenge is to try to find a way to give 3PL partners an incentive to make really big improvements in cost performance.

This article discusses how one company implemented a new WMS to improve their warehousing.

Anonymous, (2002). Warehouse software goes live in 9 weeks. Modern Materials Handling. Boston, 57(12), 53. Retrieved on December 12, 2014, from ProQuest in the Trident Online Library.

Abstract:

Gold Kist, headquartered in Atlanta, markets a complete line of chicken products to retail, institutional and fast food customers. Its warehouse was taxed with high inventory counts, challenging outbound order mixes and a growing order volume. Working closely with its warehouse management system supplier, GoldKist installed and went live with its new software in just nine weeks.

Case Assignment Reading

Gilmore, D. (2002, November). Achieving transportation excellence. World Trade, 13(11), 36-38. Retrieved on December 12, 2014, from ProQuest in the Trident Online Library.

Graham, D. D.  (2003, April). Warehouse of the future. Modern Materials Handling, 57(7), 13. Retrieved on December 12, 2014, from ProQuest in the Trident Online Library.