MSc.

Do Thi Phuong Nam

Content

Warehouse Receiving and

put-away
Pick preparation
Picking
strategies and
processes equipment

MSc. Do Thi Phuong Nam

Case study: Case study: Fresh
Order-picking
Minnetonka produce cross-
methods
Warehouse docking facility

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Warehouse operation

Warehouse processes: Pre-receipt Receiving Put-away Storage

receiving and put-away

Picking Replenishment Value-adding Despatch

services
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Figure shows warehouse activity as a percentage of cost

Warehouse manager is
What needs to be discussed prior to
involved in specifying
receiving:
and agreeing
• the packaging, • size and type of cartons;
• items per carton, • type of transit packaging;
Pre-receipt and • cartons per • palletized or non-palletized delivery
pallet, of product;
receiving goods • TiHi (cases per • size and type of pallets;
layer, layers per • specific labelling;
pallet) • position of label on carton and
• any specific pallet;
labelling • carton quantities;
required, • mode of transport, delivery quantity
• the mode of and frequency of delivery.
transport
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Pallet
dimensions
TiHi
concept

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Offloading and checking

• On arrival: vehicles checked against the booking
reference  allocated a loading bay or location in the

Preparation yard
• Vehicle seals need to be checked against the delivery
LMS paperwork.
• To offload temperature-controlled vehicles together
with the current temperature of the goods.
• The most common method of unloading palletized
vehicles onto a loading bay is with a powered pallet
truck, hand pallet truck or pallet jack

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Cross docking
Cross
docking
Products are moved directly from
goods-in to the despatch bays after
going through checked system

Retailers use cross-docking for

receive products from multiple
suppliers, sort and consolidate to
shipping different stores

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Cross docking process

High-speed In-motion Label Transportation

camera tunnel labelling verification to shipping

Multiple receiving lines

Warehouse processes:
pick preparation
In-motion Destination Divert to Final verification
weighing scan shipping lane scan
Multiple shipping lanes

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Trend analysis Stock Keeping Unit – SKU code (Example)

Past Now
Input time Size
Brand name ‘Small’
’11/07/ 2015’
‘ZARA’ Color
‘Màu Xanh’

Push strategy Pull strategy ZA-CVX-71115-HN-SM-XA

Supply-driven Demand-driven
economy economy
Warehouse
Product description
‘Hà Nội’
‘Cotton Váy Xòe’
Full-case and pallet Item, eaches,
picking broken-case or
split-case picking
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Picking ABC analysis Double ABC categorization allows you to combine these two
interrelation (higher level)
factors into one layout for facility  This can be done by
producing a nine-box grid as follows:
• AA products are those that generate the most sales and are
sold most frequently
• CC products on the other hand are defined as slow movers in
that they sell the least and move less frequently

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Product code Annual demand Pick list Revenue per

(in thousand) frequency unit of product
85058 200 20000 4000000
79001 250 15000 3750000

Example:
67553 400 2000 800000
12865 600 1000 600000

ABC analysis ABC analysis 13866 800 500 400000

(higher level) 13700 1000 100 100000

85866 1000 40 40000

Use ABC analysis to classify all 72333 100 80 8000

products following the criteria of 77577 500 10 5000
their value and frequency of sales.
77212 1000 1 1000
5850 9704000

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Practice: Practice:
• Sally who owns a grocery store is fairly profitable but Jake who manages an electronic store in Southampton needs to
would like to focus on the items that create more revenue analyze his products to make sure that he concentrates on items
with high a frequency of input purchasing. Use ABC that bring him the highest revenue together with a high
ABC analysis analysis to prioritize items that are of most “worth” using
the rule 70/20/10
ABC analysis frequency of sales. Use ABC analysis to prioritize items that are
most suitable to his requirement using the rule 70/20/10.

Frequency of input Frequency of sales

In stock Item price Jake’s inventory In stock (items/month) Item price (£/item)
Sally’s inventory purchasing (turns/month)
(items/month) ($/item)
(turns/month) Tumble dryer 200 300 520
Apples 150 0.10 240 Washing machine 36 600 1600
Toothbrushes 100 4.00 580 Air-conditioner 40 550 2100
Paper towels 200 1.50 630 Liquidizer 100 25 1150
Flowers 50 0.50 68 Laptop 51 250 2680
Squash 30 0.25 25 Television 22 1300 852
Magazines 200 1.00 31 Water heater 52 100 680
Stools 100 15.00 12 Refrigerator 23 1000 720
Balloons 400 1.00 52 Coffee maker 125 70 960

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Warehouse pick area layout • The most effective route begins at the front
of the racking nearest the dispatch bays.
• Heaviest items are picked first.
ABC matrix application in warehouse zoning • The picker should be able to pick from both
sides when moving up and down the aisles.
CC BC AC Warehouse
• Shortcuts are programmed into the system
pick area to minimize travel.
layout
Frequency

CB BB AB • The picker ends up as close to the despatch

area as possible.
• Multiple pick locations for the most popular
CA BA AA items need to be set up to avoid congestion
at the pick bays.
Packing area
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Picking strategies and

equipment

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Picking strategies Handling equipment: Types of pallets

• By Entry Points and Decking
 Two-way entry
 Four-way entry
 Open Deck Pallet
Pick to Cluster Batch Zone Wave
order picking picking picking picking  Solid Deck Pallet
the picker takes one operators can take operators pick products products are picked orders are combined
 Double Face Pallet
• By Design
order or part of an several orders out for several orders, which from defined areas in and released at
order (assignment) into the warehouse are consolidated into the warehouse and specific times during
and travels through at the same time one picklist and once each picker is the day or to
the warehouse until picked are later broken assigned to a specific
zone or zones and
associate them with
different operative
 Block Pallet
the whole order or down into their
assignment is
completed
constituent order only picks items from
within those zones
requirements  Stringer Pallet
Onpallet.com/ free online pallet calculator | Online Palettier-Rechner | Ordinateur du
Picker to goods palettiseurs | Calcolatrice per palletizzatori online | by Lorenz Pan AG
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Handling equipment: Types of pallets Handling equipment: warehouse and DC

• Different Types by Material

1 2 3 4
1 2 4 5
3

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Handling equipment: warehouse and DC Handling equipment: container yard

1 2

3
4
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Storage equipment

Order picking methods

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paper pick lists: detail the

order number, location, pick by label: a series of

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product code, description labels on a sheet, which is pick by voice
and quantity to be picked printed in pick order
1. What problem does Wayne face?

Case study: 2. What did he do to solve this problem?

Minnetonk
pick by light/pick to light: light And then what is another problem that
barcode scanning: series of vertical radio frequency indicator, LED or LCD modules Wayne continues to face from this solution?
bars of varying widths that represent identification (RFID): 2 mounted to shelving, flow racks,
letters, numbers and other symbols. types of RFID tags – pallet racks or other storage

a
passive and active locations.
3. What theory did you get from your
reading? State the content of this theory.

Picking methods are Warehouse

put to light: order currently in use in
consolidation and a automated picking. 4. What is the purpose of the theory did you
batch pick of products. today’s warehouses mention in question 3?

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1. What problems 2. What are the 3. In order to choose

Case study: does Kevin face? effects of those

problems?
one of 4 cross-docking
systems, what should
Kevin consider?

Fresh produce
cross-docking
facility
4. What theory did 5. From your
Kevin apply to solve understanding of the
this issue? theory that you
mentioned in question
4, what is the purpose
of this theory?
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