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The logistics of Haiti
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| 2010.02.05 20:55:09 | |
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by Angela Cavallari Walker In the wake of Haiti's deadly earthquake on January 12, 2010, an estimated three million people are in need of food, water and medical supplies. The unconfirmed homeless rate is anywhere from 200,000 to 1.5 million, says the American Red Cross. So far, fundraising campaigns have been successful, but that is just the first step of many when it comes to the tedious task of delivering these products into the hands of those in dire need. Logistics volunteer organizations such as the American Logistics Aid Networks or ALAN play a critical role in the herculean effort to get these items into areas ravished by disaster. ALAN acts as the primary contact for donated products, equipment, and services such as warehousing, material handling, and transportation. The non-profit organization was founded in response to the aftermath of Hurricane Katrina. Back then, there was not a system in place to communicate and distribute disaster donations to areas most impacted by devastation. “I saw most of the relief groups have things that they did not expect to arrive," says ALAN President, John Menzies. ALAN developed a system using an Aidmatrix platform that enables both state federal relief agencies to post supply chain needs. The portal matches NGO needs to ALAN sponsors and volunteers. An NGO or a non-governmental agency refers to any group with no representation of government. “As an organization we want to support a specific need by an NGO," says Menzies. Currently, military and government agencies control most of the supplies that go in and out of Haiti. Menzies describes Haiti's logistical status as a pull situation rather than a push. For Haiti, the real challenge right now is priority setting and getting supplies there. Overall, Menzies has been pleased with the progress in Haiti as donations continue to flow in through product matches. “We''ve helped our NGOs connect and helped some people on the ground by enabling relationships to get things done.” Click here to view and track the logistical progress of these supplies delivered to Haiti
Tags: Haiti | logistics | operations | air freight | shipping Hits: 795 |
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Are Supply Chains Becoming More Regional?
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| 2009.08.17 19:39:08 | |
Are Supply Chains Becoming More Regional?According to an article posted on FT.com, a leading business information website, “Manufacturers are abandoning global supply chains for regional ones in a big shift brought about by the financial crisis and climate change concerns.” Gerard Kleisterlee, chief executive of Philips, one of Europe’s biggest companies, told the Financial Times, “A future where energy is more expensive and less plentifully available will lead to more regional supply chains.”Tags: operations | supply chain | fulfillment | georgia Hits: 116 |
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Annual logistics report shows Georgia as top shipping port in nation
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| 2009.07.21 19:02:27 | |
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Annual logistics report shows Georgia as top shipping port in nation by Angela Cavallari WalkerGeorgia''s shipping industry is a bright spot in a dark economy, says the Council of Supply Chain Management Professionals (CSCMP) in its annual report released this month. The Port of Savannah was one of only three international ports to see gains and experienced the largest increase of TEUs of all top ten ports. The logistics industry uses twenty foot equivalent units or TEU''s-a term of measurement used in intermodal transport. Savannah''s port traffic increased its TEU volume by an impressive 3.65%. According to Georgia Port Authority (GPA) over the next 10 years, Savannah''s container terminal will be adding more efficient equipment designed to move cargo at much higher speeds. Additionally, the Savannah channel depth will rise from 42 to 48 feet to make room for larger ships carrying heavier loads of international cargo. The CSCMP report found a decrease of over 11% in air freight volumes for Georgia, and 9.4% nationally. A major reason for this decrease can be blamed on a financially flopping economy and inflated fuel costs in 2008. International cargo was impacted slightly less than domestic freight. However, in May of 2009, Atlanta''s Hartsfield-Jackson received the coveted World Air Cargo Award for "Airport of the Year" - bragging rights for Georgia''s logistics industry. Other promising factors for continued growth in Georgia include $932 million in highway stimulus funds, and the pressure to create more efficient ways of moving goods throughout the world. Tags: supply chain | import | export | operations | warehousing | georgia Hits: 989 |
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SBC Fulfillment Finishes the GA State Site Deliveries
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| 2009.07.07 14:36:47 | |
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After traveling over 1,500 miles and carrying a total of 709 boxes, the 2009 Georgia State Site Deliveries have finally come to an end. This year SBC Fulfillment assisted 17 different publishers by delivering and setting up their materials at each of the 13 sites scattered around the state. The deliveries began on Monday June 22nd and ended the following Friday. The week proved a great success and was executed smoothly (other than the occasional under-sized table). SBC Fulfillment received materials from publishers all across the nation. After receiving the materials, SBC sorted them by site and by publisher. Once all materials were received, they were staged by site for delivery. SBC had two teams to go out on the deliveries, each carrying one-two sites to the predetermined locations. The routes were coordinated in a manner that minimized the time and distance traveled. The drivers used GPS and other mapping technologies to take them from site to site. At each site, the materials were taken out of their boxes and setup for display. “Each publisher’s materials were setup as if they were our own” says Andy Whitaker, Project Manager for the Georgia State Site Deliveries. It took an average of approximately two hours per site to deliver and setup all materials. Before the week of the deliveries, SBC did a mock-setup of the materials for each publisher to eliminate any surprises and to ensure that the materials were setup in a uniform manner at each site. Of course, some creativity had to be used at certain sites due to space constraints. SBC Fulfillment continues to be a low-cost, high-quality service provider to all publishers. If you were not on board for the GA State Site Deliveries this year, be sure to sign up next year! SBC Fulfillment also offers other services such as assembling of sample boxes, sample distributions, book retrievals, product storage, and sample box retrofitting. Tags: fulfillment | operations | warehousing | georgia Hits: 561 |
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Retrievals for the GA Evaluation Sites Coming Soon!
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| 2009.07.07 14:34:23 | |
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The 2009 Georgia Textbook Submissions evaluation period is coming to an end. The dates set for retrievals from the Evaluation Sites are for the week of July 20th – July 24th. SBC Fulfillment will be offering retrieval services to all publishers. SBC would retrieve all materials remaining at each of the sites and coordinate the returns to each publisher. SBC Fulfillment offers these services at the rate of $9 per box per site, with a minimum fee of $50 per site. If you wish to be added to the list, please contact Andy Whitaker at 678.370.0776 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it for an estimate. Tags: Education | outsourcing | georgia | operations | fulfillment Hits: 530 |
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SBC Fulfillment's total business outsourcing: an easy and economical fit
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| 2009.07.07 13:47:00 | |
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Tags: operations | fulfillment | outsourcing | warehousing Hits: 605 |
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How to Select a 3PL
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| 2009.06.19 13:55:06 | |
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I read this grat article today on "How to select a 3PL." It is written by David Blanchard. Here is a summary
Before selecting a third-party logistics provider (3PL), Marc Tanowitz, principal with Pace Harmon, an outsourcing advisory services firm, suggests that manufacturers consider these five fundamentals: Know Your Demand Master (and Own) the Forecast Set Clear and Fair Expectations Measure Business Impact Tags: outsourcing | fulfillment | operations | warehousing | supply chain Hits: 573 |
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The Dos and Don'ts of Third-Party Logistics
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| 2009.06.19 13:51:10 | |
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I ran into this great article called "The Dos and Don''ts of Third-Party Logistics."written By David Blanchard. Here is a summary The whole idea behind using a third-party logistics provider (3PL) is to avoid having to devote corporate resources that could be better-used on core manufacturing tasks. That doesn''t mean, though, that a manufacturer should abdicate responsibility for keeping an eye on what the 3PL is doing, particularly since a logistics provider typically has direct contact with your customer base. According to Dan Montgomery, vice president of business development for APL Logistics, a provider of third-party warehousing and other logistics services, there are several techniques that manufacturers can use to effectively measure and monitor their 3PLs. The following from Montgomery are some basic dos and don''ts: Tags: warehousing | outsourcing | fulfillment | operations Hits: 360 |
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SBC Fulfillment offers better alternative to do-it-yourself e-commerce
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| 2009.06.17 18:59:28 | |
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SBC Fulfillment offers better alternative to do-it-yourself e-commerce If you survived the challenges of establishing your own brick-and-mortar business, then you may think starting an e-commerce web site would be easier, right? Not so fast. In fact, hanging a shingle in the cyber-world can be one of the most confusing and frustrating experiences for a business owner. What you don''t know can hurt you. Google keywords "order fulfillmnt" or "e-commerce fulfillment", and you are bombarded with thousands of search results from advertisers hawking sites anywhere from $20 up to $20,000. It leaves you wondering where your price point could or rather should be. And you have to think about the added effort of purchasing, implementing, tracking, and maintaining shopping cart software. But you don''t have to go it alone. Fulfillment service companies such as SBC Fulfillment offer a solution that allows your orders to come directly to them through an e-commerce portal, and then ship directly to your customers...fast! SBC partnered with Magento , an ECOMMERCE software company, to bring together the process of getting your products ordered from the web, packaged, shipped and into the hands of your customers. Magento ’s platform is designed to tie seamlessly into SBC Fulfillment''s warehouse management system (WMS), packaging and shipping services. Features include the following: · Marketing Promotions and Tools · Search Engine Optimization · Analytics and Reporting · Site Management · Catalog Management · Browsing capabilities The control is still in your hands with SBC''s Warehouse Management System, where you can manage all your orders online. Plus, you will save the time and expense of researching and purchasing costly software. With all the benefits to this value-added service it makes you wonder why anyone would do-it-yourself. To learn more about this new product offering click here
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Atlanta fulfillment company puts emphasis on eco-friendly services
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| 2009.06.15 13:20:03 | |
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Tags: outsourcing | import | fulfillment | operations | warehousing | sustainability Hits: 431 |
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On Leaving North Carolina…
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| 2009.06.08 18:24:46 | |
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As I write this I cannot help but think of the James Taylor song “Carolina in my mind .” This song has a certain sadness to it. I must say, building a business more fun than taking a business apart. SBC Fulfillment has not been immune to this year’s recession. In the past, we thought the textbook business to be recession proof; however this year is proving that theory wrong. As a result of these tough economic times, we closed down our North Carolina warehouse effective June 1, 2009. Chad Ross has done a wonderful job the past 12 years running the North Carolina Operation. He has been a tremendously loyal and hard working employee. Many of you have sent me letters over the years singing praises over his performance. Chad and I really appreciate the work you have given us into the North Carolina facility. Chad Ross and his team would like to say thank you to everyone in the textbook publishing industry with whom he has worked over the years. Chad is moving into the next phase of his professional career. I believe Chad plans to start his own business, providing services similar to those he performed for SBC over the years. Since SBC Fulfillment will not be supporting the North Carolina Caravan this year, I would encourage you to contact him at the following email if you are interested in his services. Chad can be reached at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
Thank you for your support over the years. SBC Fulfillment will continue operations from our Atlanta Georgia facility. If we can assist you with your warehousing, distribution, packagings, and/or fulfillment needs, please do not hesitate to give me a call at 678-370-0772.
Sincerely, Brian Schoenbaechler President SBC Fulfillment Tags: north carolina | fulfillment | operations | packaging | warehousing | outsourcing Hits: 363 |
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Fulfillment service offers A'La carte menu to cater to clients
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| 2009.06.01 20:42:46 | |
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When it comes to the challenge of meeting customer''s needs one size does not fit all. Companies such as SBC Fulfillment offer creative solutions customized to meet their customer ’ s ever-changing needs. Starting a business can be an overwhelming process, but add the stress of importing, storing, shipping, and managing those orders and you may be tempted to throw in the towel the first day. The process is not only complicated but can be time-consuming. SBC Fulfillment recognized this and built their services to meet the challenges of today ’ s businesses. When Atlanta-based company Info Retail Inc. needed a storage and order management solution, they turned to SBC to meet the demand for their business. The challenge Info Retail Inc. specializes in providing marketing solutions to the retail industry. One component to this solution is the ability to build and deliver creative displays for their retail customers. The inventory can vary dramatically literally in shape and size so finding a secure facility where these products could be stored was key. In addition to a limitless amount of storage available, Info Retail needed to be able to order, manage, and ship these displays to their clients throughout the United States without the investment of leasing additional space or purchasing and maintaining costly software to accomplish this. SBC Fulfillment was able to provide the ample amount of secure storage in their more than 60,000 square feet of warehouse space located in Atlanta. Each display was assembled and drop-shipped directly to SBC ’ s warehouse, where it was immediately inventoried and readied for shipment. SBC ’ s web-based Warehouse Management System was an integral piece to managing and tracking Info Retail’ s orders. This online product seamlessly ties into Info Retail’ s internal processes allowing them easy and secure access to enter, ship, and track their orders all in real time. SBC refers to this process as their “ glass warehouse ” technology wherein the order is processed and shipped within a 24-hour window. Tags: operations | fulfillment | outsourcing | ecommerce | georgia | warehousing Hits: 481 |
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Outsourcing inventory management and order fulfillment makes cents
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| 2009.05.18 16:41:38 | |
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Many small business owners are met with the challenge of picking, packing and shipping their product. The costs can be overwhelming when companies have to consider employees, warehouse and forklifts. Especially in these harder economic times, the time and impact can be quite costly. Companies cannot just control and manage their costs, they must reduce their costs so they can pass on the savings to their customers. Here are the top 10 reasons why outsourcing your fulfillment and shipping services just makes cents: 1 . Storage and overhead costs : One top expense for business owners is the cost of storing their products. Items such as bar code scanners, forklifts, and warehouse space can eat into your budget AND profits. SBC Fulfillment offers all of these services without the upfront expense of purchasing software, warehouse space, or hiring employees. 2 . Streamlined process : SBC Fulfillment specializes in providing a trained staff, efficient process, and the customer service that businesses need. Solid customer service is essential for repeat business and referrals. SBC uses Lean methodologies in their quest for perfection. 3 . Growing pains : Whether your business is downsizing or going through a period of growth, SBC allows you to avoid the non-value added time spent looking for warehouse space and employees. SBC Fulfillment can leverage their capacity across multiple clients as your business cycle ebbs and flows. 4. Time to focus : Managing your back office operations takes time and time is money. SBC allows you to focus your time and energy on marketing, promotion, developing your client relationships. Do not spend another second jumping through hoops to expedite a last minute order. Let SBC worry about it for you! 5. Cost variables : By outsourcing your inventory and order fulfillment needs to SBC you can avoid the liability of a business lease, full-time employees, or the security systems that will need to be in place BEFORE you can see a return on investment (ROI). 6 . Competitive edge : Consumers today are accustomed to paying shipping and handling charges when purchasing online. Often, they will make a buying decision based on those costs alone. SBC Fulfillment fees are cost-effective allowing you to pass the savings on to your customers. Additionally, our high quality customer service can be a competitive advantage for repeat business from loyal customers. 7. Labor liability : The cost of employing a staff is often the highest expense for companies. Salaries, benefits, worker’s compensation, and general liability are just a few of the expenditures associated with hiring a staff. 8 . Buying Power : Most business owners underestimate the amount of money spent on shipping and packaging alone. But with SBC Fulfillment you get a bulk discount on these supplies as your needs increase or decrease. 9 . Cost reduction: SBC can help shrink your current operating costs in numerous areas, allowing your profit margin to increase. 10. Freedom from physical inventory: Why add the responsibility of managing inventory when you can outsource those needs to shipping and inventory experts? Give yourself the time and freedom to focus on what matters most to you and your business. In an economy that is putting the squeeze on your bottom line, there is no better time than to look to ways to maximize your business’s profits. To learn more about how you can shrink your warehousing, inventory, and shipping costs visit www.sbcfulfillment.com . Tags: outsourcing | fulfillment | operations | packaging | ecommerce Hits: 466 |
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Customer Spotlight: Remedy Media Group
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| 2009.05.04 21:55:51 | |
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SBC Fulfillment would like to welcome its newest customer, Remedy Media Group. Remedy joined as a client in April after an extensive search for the right fulfillment service with the most streamlined and fully integrated services. Jason Mosby, Managing Member for Remedy has been most impressed with the versatility and hands on approach that the team at SBC has been able to deliver.“ Flexibility is the main reason we chose and are able to work with SBC,” says Mosby.
Remedy Media Group. Group was formed in 2002 and is headquarted in Raleigh, North Carolina with offices in Atlanta, Georgia and Washington D.C. It was crucial that they were able to offer an additional component to our products and services, says Mosby. Remedy’s main product focus is on developing branding, e-commerce software, as well as design and development for the entertainment industry. Remedy was able to utilize SBC’s packaging, shipping, and the customer service component not just for their business but for their clients as well. “We needed the most consistent way to ship to our customers,” says Mosby. Tags: outsourcing | packaging | warehousing | fulfillment | operations Hits: 698 |
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E-Commerce Order Fulfillment Services
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| 2009.04.15 12:50:59 | |
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Great post here on outsourcing ecommerce fulfillment. The post is a very well written and a concise summary of outsourcing ecommerce order fulfillment. The only part of your post that I think is debatable is the cost aspect. I think it a bit strong to say that in-sourcing is always cheaper than out-sourcing. Some variables that my make outsourcing cheaper are asset utilization and the cost of capital. Tags: ecommerce | packaging | warehousing | outsourcing | operations | fulfillment Hits: 522 |
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Selecting a contract packager
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| 2009.04.01 20:31:36 | |
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April 1st, 2009 Written by Rick Lingle, Technical Editor
More than 150 packaging professionals shared their advice about selecting a contract packager (CP), aka a co-packer or private-label manufacturer, in a 2009 Packworld.com online survey.
Here are some of the responses, edited for clarity.• Check capacity limitations. • Contract packagers must be more cost-effective than we are, and that must be borne out by the cost, service, and quality of the products they offer. • Make sure that they have a good management team—everything else falls into place with a good management team. • Do not be fooled by the RFQ or low-price formats. It is near impossible to write a proper specification that includes all aspects of contract packaging and manufacturing. Review your presenters and view the facilities and personnel of your final three. Have them write an inclusive quotation specifically noting things not included. Check financial stability, these days especially. • Make sure they have regulatory approvals. Make sure they maintain control of EVERYTHING. • Select them for their merits and do not try to remake them in your image. In other words, if you select a particular CP because it operates lean or is faster on turnaround, don''t burden them with unnecessary overhead or procedures just so they can be like your operations. • Audit the co-packer before business is assigned (see Acing the audit, packworld.com/article-26725). • Make sure they are a good fit. Do your homework about who they are, how long they have been in existence, and what they do best, and talk to someone who has used them before. • Choose a contract packager that has the proven capability already in place to handle the packaging you need them to fill. Contract packagers, in an attempt to grow their business, will offer to service different packages where their capability is unproven or in early stages. If you choose to use them under these circumstances, be prepared for productivity issues that result from them climbing the learning curve. • If a new supplier, start with a small job as a "test drive." • They should be conversant with packaging standards and well-equipped with modern equipment and testing appliances; have trained and skilled manpower to deliver goods; and their work performance should be time-bound. • Size and service are not usually commensurate. • Make sure to look at their procedures for packaging: How many deviations or exceptions have been written regarding their packaging process? Lastly, look at the shipping process. • Visit the facility and talk to key individuals who will be running your products, check HACCP programs, and review the last independent inspection report • Find a company that specializes in a niche you are looking for and with locations that best suit your business model. • Make certain the CP understands your product to facilitate technology transfer. It is the responsibility of your organization to ensure the CP understands its responsibility for the service they are providing. • How much of the work does the CP actually do itself? The less they have to outsource, the better your pricing and end product will be. • Find one that has a culture similar to your company. • Go with a co-packer that is as good a company or better than your own. • Make sure you have a written and agreed upon co-packing specification that clearly spells out which components you will be supplying and what components the co-packer is supplying, even down to date-code stickers, etc. • Make sure you understand what you want performed and by when. Document the scope of work and quality parameters. Understand why you are using a contract packager—for product launch, to handle increased demand, or part of a long-term strategy • First visit the co-packer as well as at least two other co-packers that you''re considering. Then, audit them for QA and cGMP compliance if you think they will be selected. Verify their compliance to systems and that they can meet your needs and determine what other value-added capabilities they can provide. Don''t make your decision based on price alone! • Use your instincts when selecting them: If it feels bad, it probably is; if it feels right, it probably is. • Have a NDA even for pricing! Know who else uses the facility, and ask for a pie chart of volumes by customer. • Having a CP in close proximity helps projects run more smoothly. • It is best to find the co-packer that can do exactly what you want and not let the contract packer do what is best for them. • Define the critical supplier selection criteria before initiating the sourcing process. Supplier selection should be based on capability, capacity, financial viability, and the confidence you have in the supplier''s ability to perform. Negotiations and costing should follow. The rationale is that a low cost means nothing if the supplier cannot perform and meet your requirements. • Work with the co-packer on package design and procurement just like you would work with your internal engineers. • Perform an on-site inspection of their facilities and watch them process other orders. Remember that your product, your name, and your reputation will be in their hands. • Find a company that is knowledgeable about your business, is flexible, and is willing to work with you. • Develop a confidence level to be able to talk about all parts of the cost picture, including the contractor''s profit, if possible. • Spend some time upfront on preliminary qualification before inviting companies to bid on jobs. • They must have quality systems in place since they are an extension of our company. • I''ve learned to make them test their equipment to make sure things will work the way they say they will. I will be there for the start-up of a new job. Next month: Packaging professionals share their advice about using contract packagers. Tags: outsourcing | packaging | operations | fulfillment | warehousing Hits: 529 |
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Where to Warehouse: The Top 10 for 2009
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| 2009.02.25 18:40:47 | |
Where to Warehouse: The Top 10 for 2009Where’s the best location for a distribution center? That would be Henderson, KY, according to Chicago Consulting. The consultancy, which helps companies design and engineer their supply chains, has released its 12th annual 10 Best Warehouse Networks for 2009. To see a chart depicting the best warehouse locations for 2009, click here. Tags: outsourcing | operations | fulfillment | warehousing Hits: 870 |
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2009 North American 3PL Market Report
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| 2009.02.24 22:27:24 | |
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I received this today from the organization eyefortransport .
To get many more findings, graphs and statistics please download the report at http://events.eyefortransport. It is the one event that CEOs leave the office for – speakers to present at the Summit include the CEOs/Presidents of Ryder System, Schneider Logistics, Golden Gate Logistics, Greatwide, and many more, plus 3PL user presentations from GE Healthcare, Kimberly-Clark, Hewlett-Packard, IBM, General Motors, Toyota, Dell, Coca-Cola, PepsiCo, Philips, Labatt, the Home Depot, Jurlique, Rhodia, Pfizer, MeadWestVaco, and many more. Check out the attendee list here, and sign up for event updates here. N.B. The sooner you register, the better your price - so get in early and save when you register here. Tags: operations | fulfillment | outsourcing Hits: 1841 |
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Best Practices for RF Mobile in 3PL and Warehousing Operations
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| 2009.02.16 20:31:24 | |
Best Practices for RF Mobile in 3PL and Warehousing OperationsPosted 02-10-2009 at 02:21 PM by Kevin Collins
Introduction If your role in the supply chain is to have stock immediately available to meet your customers'' needs, then it is time to take a closer look at best practices for RF (radio frequency wireless). As a distributor or 3PL, know that RF technology advances are now at the forefront of internal operational improvements in wholesale distribution. RF is a mature technology and has been implemented in thousands of facilities. There is little question, therefore, that the modern warehouse is wireless, incorporating paperless receiving, putaway, picking, shipping and inventory counting. (According to Pembroke Consulting, well over 2/3rds of industrial distributors already use wireless local area networks). In this chapter of our Best Practices series, we''re going to look at how to use RF in your operation to respond to the not uncommon scenario in which your customers demand almost 100% order accuracy (often comprised of smaller and more frequent shipments) at the same time that you''re asked (by management or ownership, or your lenders if you''re the owner) to increase productivity and reduce costs. Cost reduction is key because an analysis of your labor costs will likely show that picking and packing are two of the most labor intensive and costly jobs in your operation. (This is certainly true if you''re picking and packing without the aid of automation). Does the following description characterize your operation? “At each step, employees record items, quantities and locations on paper.” This type of manual picking and packing is a primary source of errors, expense, and decreased efficiency. Replacing paper and pen by integrating wireless automation into your operation should produce improvement in all three areas. Why Wireless While it is possible to address errors, expense, and decreased efficiency in other ways, RF automation could be the right solution for you. Productivity improvements materialize due to substituting technology for potentially error-prone human activities such as order processing, inventory control, or picking. Data can move directly from the warehouse floor into your business system rather than via process of manual counting and recording and entering information into the system. Information from hand-held wireless scanners provides real-time stock information and can even eliminate the need for manual inventory counting. To make data continually available to employees whenever it is needed reduces lapses in productivity and virtually eliminates wasteful trips to a stationary terminal, docking station or dispatch location to grab pick or putaway instructions. If two pickers can do the previous work of three pickers, then your picking productivity has just jumped 50%. If this means that your picking accuracy increases from 95% to over 99%, your customers will be happier. The benefits of happier customers and avoiding the costs of correcting mistakes will appear on the bottom line. If this is what you want, the next step is to determine just what level of automation is appropriate for your needs. Wireless Starts with a Barcode? The bar code is the heart of the modern warehouse or distribution center. Barcodes help identify items when they arrive, when they are later picked to fill orders and shipped out, and when they are counted during cycle or annual physical counts. The best way to capture and manage the information on these barcode labels, particularly if you want to quickly and accurately ship thousands of items, is with RF technology. Using RF barcode scanning to capture real-time data and send it wirelessly to back-end operations, financial, and customer service systems is the standard for today''s warehouse. While simplicity is one of the key reasons, RF networks also offer great efficiency by enabling warehouse employees to interact with the system directly from the point of activity. NOTE: while we''re deliberately focusing on barcode-reading RF applications, there are other RF-enabled applications such as wireless VoIP solutionsUnderlying Technology An RF network essentially extends a wired local area network into the warehouse space where the data is collected. Networks are fairly simple, having only three primary technology components; a mobile RF scanner or terminal, an access point or base station, and a network controller connected to a server holding some kind of database application. The location and number of access points depends on a variety of factors, including the warehouse size, product composition, cabling, interference, racking design and layout. The exact number of access points is determined by a site survey (which we discuss later in the chapter). With the access points in place, users communicate with the system with scanners that link the warehouse employee and the RF system. Data is usually entered either by scanning barcode labels or by using a keyboard or touch-screen. Benefits RF wireless systems are increasingly common because the advantages generally far outweigh the initial costs. As companies become more experienced and adept using the technology, these increases in productivity, inventory accuracy and order visibility progressively reduce overall costs every year. Here is a laundry list of what you can gain: Greater Efficiency and Throughput With a streamlined paperless wireless system, you should also be able to track barcoded products from receiving, putaway, and picking, to packing, shipment confirmation, and cycle counting. These greater efficiencies should allow you to handle more orders during peak periods. Increased Storage Capacity/Greater Flexibility in Inventory Allocation With greater picking, packing, and putaway flexibility, you should be able to escape the clutches of fixed inventory allocation by moving to a random storage model. Putaway can become based on the specific space requirements for each product, something that will boost your space utilization and increase the percentage of your potential storage capacity. Lower Head Counts (Permanent and Seasonal) By employing automated data capture, you can immediately reduce the number of employees who were previously doing redundant manual data entry. You should also be able to reduce seasonal or temporary labor costs by providing novice pickers with more accurate and intelligent routing/pick lists that will greatly increase productivity. Faster Employee Training By relying on the system accuracy and ease-of-use of RF terminals, you should be able to train employees faster. This is especially important if you use a temporary workforce and loads of overtime to meet seasonal or demand peaks. Greater Data Entry and Accuracy Barcode scanners liberate users from the limitations and errors of hand recording which requires printed reports and unnecessary data re-entry. With multiple processes available within a single application, the user is able to accurately complete tasks in a timely fashion. Faster Inventory Counts Counting is faster because errors have previously been eliminated and safety stock levels reduced (due to the confidence of having more accurate real-time inventory data). Faster Error Correction Depending on your Warehouse Management System (WMS), warehouse staff can obtain real-time feedback, which enables problems to be confirmed and investigated quickly. For instance, if too much product arrives from a supplier, exceeding the purchase order, the system can alert the buyer or receiver that it is invalid. The extra cartons can be immediately set aside or refused. Reduced Travel Time by Warehouse Personnel Wireless can help reduce travel time for warehouse personnel by enabling companies to distribute work to individual employees by zones. Sounds good, doesn''t it? Many points in the supply chain can realize important advantages of accurate, real-time data. RF is certainly one of the warehouse improvement projects you can make with a higher than average investment/return ratio. Let''s look closer now at some specific warehousing operations where RF can be applied: Warehouse and 3PL Scenarios Receiving Most businesses (certainly 99% of the SmartTurn blog readership) receive products or shipments. The products or goods to be received can range from incoming raw materials and components and daily consumables (think of hospitals, restaurants and light manufacturing), to products ready for retailers'' store shelves. Regardless of the type of business, there is a general receiving process common to each scenario: the receiving company must track/count delivery of the goods, update their databases and financial/accounting records, confirm with the shipper that the order arrived and then initiate some kind of payment process. Integrating RF into this sequence provides significant advantages over the paper-based environment that has existed since even before the Dutch East India Company ruled international trade. An RF-enabled employee receiving a carton can quickly scan the barcode, sending this information (part and PO numbers, and quantity) to the database, where the item is noted as received. At virtually the same moment, the quantity received can be compared with the quantity ordered to immediately determine if there is any disparity. If a disparity exists, or the goods are damaged, immediate action can be taken. This sequence would typically take just seconds, immediately after removing the carton from the trailer. The carton is rapidly processed and forwarded to its destination, whether the warehouse, production department or shipping/staging area. Putaway RF increases the number of putaways processed per hour. Real-time access to product information enables companies to implement flexible putaway and storage. Employees can receive dynamic instructions on pallet and bin locations, optimizing warehouse space and workers'' time. Inventory Management Once the goods are put away, they become inventory. Anyone with more than a year in the warehousing industry is likely familiar with the drudgery that is the laborious task of physical inventory. Using sheets of paper and pencils is both inefficient and inaccurate. In contrast, the RF version of inventory management is much easier to perform, faster and nearly eliminates human error. Because product movements have been recorded in real time, RF systems provide accurate, real-time inventory information with the current inventory data available. The result is huge time savings over manual paper counting/data entry systems. Just think of the time difference when grocery shopping for the checkout clerk to either scan a product bar code or manually type it in. The non-wireless/classic inventory scenario requires employees to count (some cynics might say interpret) part and stock numbers and then mark them and the respective quantities on counting sheets. The much more elegant RF scenario has the employee scanning an item''s bin or shelf label, and then either manually counting the quantity or scanning the each item within a bin. One key result is that you can generate inventory reports much faster and identify discrepancies. The benefits of faster and more accurate inventory data pays off for both customer service and sales, as well. Service and sales reps can do quick inventory checks and notify customers (with much greater confidence) that what they are ordering is actually available for shipment. This eliminates the frustrating requirement of having to either call down to the warehouse to confirm product availability or check it personally. Picking/Order Fulfillment RF scanners increase picking speed and accuracy as well as improve a wide range of picking principles, including individual selection, and batch selection. With efficient pick/putaway assignments in hand, employees are directed to correct storage locations in the warehouse. Once there, they can confirm the correct item has been picked, and from the correct location. A WMS with location-based features and functionality uses picking activity and order status data to generate pick lists optimized according to the pick policy including zone, aisle, location, customer and employee. This significantly reduces the distance and length of time to pick items. Shipping Shipping problems generally increase as warehouse throughput or volume rises. They also generally increase in proportion to the number of product codes and serial numbers that employees must copy as items are removed from or loaded into trucks. RF communication enables employees to record the shipment of the item by simply scanning the item''s bar code. Your Own RF Implementation: some things to think about Integrating RF automation into your operation by moving your operation from a completely manual system involves more than just installing an RF system. It also involves a process learning curve for the employees who will operate the equipment. Make sure that you include training in your project planning. While training should be fairly quick, there are process changes (call them improvements) that you will have to implement. Conclusion To have access to accurate real-time at all times means that there is no productivity break. Employees will no longer have to make “deadhead” trips to a stationary terminal, docking station or dispatch locations to receive pick or putaway. You''ll be able to make critical decisions faster and take action at the point of activity. You can do more, faster, with less wasted time and without adding additional employees. The relatively low cost of a wireless LAN has encouraged adoption by both large and small companies. If you''re interested in joining, we invite you to read the next chapter in our series. We''ll look at Best Practices for Setting Up an RF Network, discussing the options and steps to ensure your experience is successful. NOTE: implementing technology and automation has to positively impact your customers. Greater efficiency for you, while negatively impacting your customers–regardless of whatever your gains–may ultimately make this a losing proposition.Kevin Collins, Director, Product Management SmartTurn, Inc. 177 Fremont St. San Francisco, CA 94105 USA Sales: 1-888-667-4758 Tel: 1-415-685-4200 Fax: 1-415-685-4201 About SmartTurn SmartTurn™ Inventory and Warehouse Management System is the first true on-demand warehouse management system to provide enterprise class functionality at a fraction of the cost of traditional license and install software. Designed for quick implentation, ease-of-use, real-time inventory accuracy and warehoues performance, the SmartTurn system provides visibility on every item across single or multiple warehouses. Founded on the premise that software should be smart, simple and safe, SmartTurn’s customers span the value chain of most industries to include manufacturers, wholesalers as well as 3PLs. SmartTurn is privately held and backed by leading investors, NEA and Emergence Capital Partners. Website www.smartturn.com About the Author Mr. Kevin Collins joins SmartTurn having been in the warehousing and distribution business for over 15 years, where he fulfilled leadership roles for a military distribution company, a third party logistics service provider, a heating, ventilation and air conditioning company, a retail service warehouse and a general merchandise/wholesale grocery warehouse where he also partook in two acquisitions. Mr. Collins has spent his entire career learning the art of warehousing and logistics, and has been in every conceivable role within a warehouse. During his career span, Mr. Collins has also had the privilege of working directly with application developers learning about software from inventory and procurement to transportation and warehouse management systems. Mr. Collins brings to SmartTurn an invaluable background and information about processes, software and logistics, and the intricate balances between them. Tags: operations | fulfillment Hits: 3697 |
TIP: Make your wireless implementation a business project, not an IT project.| bschoenbaechler |
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The Complexities of Shipping & Handling Fees
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In "The Complexities of Shipping & Handling Fees" by Alicia Orr, editor in chief, Catalog Success, we learn that most catlogers are making money off their shipping and handling. "According to F. Curtis Barry & Co., an operations consulting firm, about half of catalogers charge customers more for S&H than the actual costs of the outbound freight."
"Barry suggests doing a shipping study that looks at all of the factors together to discern if you’re charging the right amount. “This also will help to determine places within your S&H where you can potentially reap some cost savings,” he says."
The bottom line is that at a minimum catalogers ande-commerce companies should be rcouping their costs. Some compnies have even turned it into a profit center. Tags: operations | fulfillment Hits: 341 |