Skip to main content

Optimize Labor Costs in Your Warehouse | LoadProof

 


During one of my implementations, I was talking to this DC Director, this was a lady that had this amazing knack to formulate processes completely on the fly, that worked for their complicated manufacturing and distribution center, that was handling a lot of these eye glass prescriptions. The challenge with this operation was that their product was very small and also very fragile, which means it is pretty much a norm to break a lens before a vision/glass prescription is fulfilled completely, which means the same order would go through the processes multiple times. Basically the process was the order would get downloaded into the WMS that was running the distribution center and this order could come from any one of the 20 or so systems that were feeding orders to these guys, then the closest lens would get picked, which would get sent to the manufacturing center, where the product would get tracked inside the manufacturing process where it would be ground to the specification in the vision prescription, then it would come out, and then it would get packed put and then shipped out to the customer, now this sounds simple enough, now imagine doing this for 8,000 to 15,000 orders every day, in order keep the picking process efficient you had to bulk up and get the most bulk, so the resulting picking process is efficient with the least travel time and then it needs to be sorted pair by pair, so that the glass for the left eye and the glass for the right eye are put together, so essentially this is the first time, when the prescription is fully seen with the lens, and then this whole thing as a pair is sent to the manufacturing process, during the grinding process, one of the lens might get broken, which means, the entire process needs to be repeated by re-downloading an order, meaning we are starting from scratch again, so the order goes through the picking process, then gets sent to the manufacturing process, then after the grinding process is complete, it comes to the DC and then shipped out of the WMS, because the WMS had all the manifesting capabilities. And also the other complexity was the orders were coming from so many different systems, so the right system needs to be updated back for the order status, especially in the broken scenarios. This lady had not only a lot of experience, but also had seen a lot of variations in the processes and also the way the business has changed. So when she asked me a question on how to solve this problem, I had to pay special attention to it, because had it been easy, she would have solved it long ago.

So the challenge was to address the issue with some of the vendors that would ship these weird small boxes that would have a few lenses inside them. Some of them were specialty and had to be procured from specific vendors only. And there were many vendors that were not following the packing procedures that were instructed to them and there are some really high end glasses that are stylish and expensive, sometimes like a jewelry, which means extra special attention needs to be paid, as this impacts not only the function but also the form, hence the image of the customer needs to be paid careful attention to. Hence the variation of these vendors, as not all the vendors sell all kinds of SKUs, there are only certain vendors that perform the specialized work for a variety of reasons. So from a distribution perspective it is not fair to charge all the vendors the same cost, if one vendor or a set of vendors are making me bend over backwards just to process their shipments. I should be charging them more because they are making me spend more labor on their product because they are not following the instructions perfectly and hence costing me more.

Click here to continue reading this article.


Comments

Popular posts from this blog

Optimize Your Warehouse Replenishments with these Best Practices | LoadProof

  This best practice is about making  replenishments  inside the warehouse. It is important to stay on the top off replenishments always in your warehouse. If you have just one shift that you are running it would help a lot. If you spend extra hours in the evening and then do the topping off all your active locations it will be helpful for the pickers in the next shift. In the next morning when the pickers come after all the locations will be full and they can start picking right away without wasting time in replenishments. If you have two shifts running either choose the second shift or have a third shift if possible and keep doing the top off replenishments. There are active replenishment locations and these active locations have Min and Max. Whenever your inventory falls below min, replenishments are going to get triggered or it will get triggered if there is an order that needs a lot of picks from a particular location. This will drive the location down which will tri...

Picture Documentation for Freight Claims White Paper – Part I | LoadProof

  INTRODUCTION This document describes the benefits of an effective Picture Documentation System(PDS) that helps with getting Freight Claims Paid faster. An effective pictures documentation system helps with 1 – Get Freight Claims paid much faster by making pictures available quickly and easily, 2 – Provides visibility to the damages through pictures. The visibility gained provides insight into the handling mistakes made while the orders are fulfilled, so that the parties can determine and establish accountability boundaries and get the shipper paid. BACKGROUND What are Freight Claims? A freight claim is a legal demand by a shipper or a consignee to a carrier for financial reimbursement for a loss or a damage of a shipment. Freight Claims are claims submitted by manufacturers/suppliers/shippers to transportation vendors and or carriers, when the goods the Supplier shipped did not arrive at the destination in a pristine state. Instead it arrived as damaged, the packaging was damaged...

3PL Panacea: The Flexible Mobile Supply Chain Platform | LoadProof

  The third-party logistics (3PL) business is tough, because it covers a wide gamut of service offerings, that include some combination of: Just move my boxes and/or pallets. Move my boxes and/or pallets and store them in your warehouse. Move my boxes and/or pallets and operate my facility. Own all the labor and activities in my facility. Offer all distribution services for my product (All I will do is download my orders into your system/supply chain). I’ve even run into more complicated models of operation, including both tightly and loosely coupled models.  In a tightly-coupled model, the supply chain systems of the 3PL, including orders, inventory, transportation, advanced shipment notices, purchase orders, and more, are tightly integrated into the shipper’s supply chain systems. All this information seamlessly flows between both supply chain systems of the 3PL and the shipper. They stay in synch with each other and the parties perform the functions in their respective syst...