Saturday, December 27, 2008

Warehouse Transport

When it comes to transporting goods, the quicker the better, right? Well, not always. All products need to be handled with care, whether you're transporting washing machines, toilet paper, or fine china. But what if your cargo is dangerous? I bet you didn't know that there are certain routes that hazardous waste and non-hazardous waste can be transported. Transportation companies are required to follow federal and state regulations that trucks containing radioactive and non-radioactive hazardous materials that specific routs are designated for transport. These routes are collected for each state and stored in a national database. A routing agency is designated by the governor and various Indian tribes responsible to coordinate and review the designated transport routes. The database includes addresses, highways, tunnels, and many landmarks that trucks are allowed to transport hazardous materials.

The other area of concern is border compliance. Hazardous materials must be properly boxed and labeled. Areas of concern are biological safety as well as chemical. Bio safety laws are vast and concern everything from potential environmental leaks to blood borne pathogens. It is vital to have policies and procedures in place to properly handle and transport these materials throughout the US.

Violation of federal and state regulations could mean fines and imprisonment for repeat offenders. There are consultants that can work with companies to maintain proper safety measures and stay within compliance.

A good way to make certain that federal and local are met is to designate a specific manager to over-see that your company follows them. It is important that adequate training is provided to everyone involved in the process and measures are in place to ensure proper protocol.

Source:
AIHA - Home

Industrial Hygiene

I was fortunate enough to read an article by John V. Currie about industrial hygiene. He works on the basic premise that there are six steps to successfully managing hazmat safety on a work site. It is not just a matter of responding to an industrial accident but making a concerted effort to prevent illness and injury in the work place.

Currie’s six steps:
1) Develop a written policy manual, which is endorsed by management, included specific goals to achieve, and the resources to maintain the plan.
2) Establish accountability on all levels of management. He states that it is important not to overburden with so much work that he or she is not able to maintain the high standards required to maintain a healthy and safe work environment.
3) Train employees continually and consistently. Curries states that regulatory compliance should be taught consistently and suggests that several employees be trained which then become in-house trainers.
4) Allocate sufficient resources to safety compliance. Some companies do not have adequate staff so depend on outside consultants to assist them in staying within compliance. Other companies use a comprehensive computer database system, which tracks everything from inventory, transportation, to proper labeling.
5) Never become complacent about maintaining the highest standards of safety. All employees should be held accountable for their actions: even if that means reflecting poor performance standards for allowing hazardous materials to be transported without the appropriate precautions.
6) Document consistently as if you were to be audited at any time.
Currie makes many valid and important points that can be of utmost importance to maintaining a safe work environment, which ultimately could save lives and money because of workers’ compensation claims or penalties for non-compliance.

Source:
http://www.nsc.org

Chemical Warehousing

Do not make the mistake in thinking that just because you may deal in hazardous waste once in a while that you will not be responsible for everything that is involved in storing, transporting, or eliminated the hazardous waste in the proper manner. Hazmat warehousing could include the materials that are flammable or deadly gasses. It would be wise to prepare properly for the maintenance of hazardous materials or allow warehousing facilities that are properly equipped to manage the material.

Hazmat compliance requires adherence to the proper OSHA requirements, training, department of transportation DOT shipping regulations, compliance, and material safety data sheets (MSDS) displayed in proper locations, training, and reporting. The MSDS alone is an enormous data sheet that includes all the chemicals that could be located in a warehouse. Each chemical is broken down into its basic elements, the effects on the human body and environment, and the proper method of treatment in case of exposure and injury.

Warehouses that specifically deal with chemicals are required to have specific fire resistant walls, explosion proof appliances, special industrial chillers, flame and heat detectors, chemical resistant coated surfaces, special mixing rooms, and fire rated cold rooms. This is just to name a few requirements.

Non-compliance to federal and state regulations could mean heavy fines, potential injury, and illness to workers, and potential imprisonment of executive management for repeat offenses.

Sources:
hazmat safety
businessweek.com

Saturday, December 20, 2008

Emergency Action Plan

Per the Occupational Safety and Health Standards (OSHA), upon hire employers should provide employees with a fire prevention and safety response plan in case of an emergency. Employees must be informed of any fire hazards, and an employee emergency plan must be created and practiced to handle any reasonably expected situation.

An emergency evacuation plan should include a written evacuation plan and practice. The plan should include floor wardens that head the evacuation in case of an emergency. There should be one warden for every twenty employees. The wardens plan and practice the evacuation in case of an emergency. Each warden has a designated location to scan for employees that have not departed from the location. It is mandatory to have maps of the building and evacuation route highlighted for easy reorganization posted in highly visible locations. Have a designated location for employees to meet at a location away from the fire such as a parking lot or park near by the work site.

Emergency evacuation training should include actual emergency evacuation drills. Make sure to contact the local authorities, so that they are aware and have the option to be involved with the evacuation practice. The fire department will also work with you to evaluate the effectiveness of the current plan and give suggestions on how to improve the speed at which employees evacuate the building.

It is helpful for each floor warden to have an emergency pack and orange vests to identify him or her, so that employees recognize who to ask for instructions and assistance.

Sources:
http://www.osha.gov

Warehouse OSHA Compliance

Federal regulations require companies in the U.S. to meet Occupational Safety and Health Standards (OSHA) in an effort to reduce or eradicate work related injuries or illness. Organizations are required to provide a formal written safety plan if they have ten employees or more. An oral safety plan is acceptable for companies that have fewer than ten employees. The written plan must cover preventative measures and disaster recovery steps, which list the actions that are required in case of an emergency.

Safety training must be provided for each potential hazard that may occur in your warehouse.

For example:
The training for a forklift / pallet jack operators must address safety areas such as avoidance of collisions by the use of signs, horns, and proper lighting and driving. Operators should be trained on how to conduct a proper inspection and hazard recovery.

A janitorial service should cover topics such as chemicals used and repercussions and first aid in case of chemical exposure.

Another area of importance is instruction on what to do in case of exposure to a chemical hazard and where the first aid equipment is kept.

Safety training should include a combination of classroom and hands-on demonstration. Employee training should be ongoing and revised to keep up with changing industry and OSHA standards. Non-compliance could mean hefty fines that could ranges from $7,000 per incident to $70,000 for willful repeat violations.

Sources:
OSHA Compliant Safety Programs & Training
http://www.osha.gov

Warehouse Security

Unfortunately, thousands of dollars worth of inventory is lost or stolen because of theft from either outside sources or employees. Companies have experienced loss because of vandalism, theft, or hazards. The benefit of a security system is the peace of mind gained because of constant monitoring of the warehouse and its inventory. The use of security systems is more cost effective than many believe it to be, and loss can be prevented or mitigated by taking advantage of a variety of options.

Several Methods of Security

A good method of monitoring inventory loss is through the use of an inventory management system that utilizes an internal software system that integrates a myriad of scanning and voice controlled tracking methods, which employs part numbers or SKUs.

Close circuit television is another method that will allow you to monitor individuals and activities that are in the warehouse. Supervisors and managers have the capability of monitoring several areas from a remote location. This option can allow you to capture and archive the information for future reference. There is a wide scope of video conferencing systems to accommodate a wide variety of needs and price range.

Do your homework when researching a security system. A good company will provide you a consultant that works with you to create a system that are suitable and cost efficient to meet your needs. Make sure the security company is licensed, has a good reputation, and to get three or four quotes from different vendors.

Sources:
Security Systems
http://www.buyerzone.com/security

Saturday, December 13, 2008

Belt Conveyor Systems

Conveyor systems come in many configurations and sizes. Along with sorter systems and overhead systems, there are belt conveyor systems.
Conveyor systems form the core of the distribution center. Cartons travel from multiple conveyors and are then merged in the next level of packaging. Conveyors carry cartons to meter belts, which place the packages equidistantly. They are weighed, labeled, and the UPC codes are compared for accuracy. The cartons then travel into appropriate locations for palletization and shipping.

The gravity roller is a non-powered system that can be built for temporary or permanent uses. They are good for moving uneven or open packages.

The low profile conveyor system is versatile and used for packaging, sorting, small parts transfer, and streamlining.

The skatewheel conveyor is a workhorse. It is a heavy- duty conveyor used for shipping, and assembly. It is best for smooth flat bottom items and is used for dip configuration, lid extractors, and customer pushing.

Shoe sortation sorts at 75 to 200 cartons per minute. It is useful for moving a variety of products and packages that are varying sizes and shapes. It is exceptionally good for delicate items, because it moves smoothly.

The vertical conveyor speaks for itself. It fits almost anywhere because, it moves up and down rather than horizontally. It is typically in a spiral configuration, saves space, and moves the items through a controlled decent.

Companies like Bastian Solutions offer consulting services as part of the purchasing experience, so take advantage of the expertise of professionals to help you determine your needs.

Sources:
bastiansolutions.com
Modern Materials Handling

Warehouse Overhead Conveyor Systems

Sorters are used in many industries including general merchandise, apparel, specialty, catalog, retail, wholesale, and parcel post including envelopes. Merchandise picking and sorting systems help to decreases errors and increases productivity by providing a fast, consistent form of transportation that can be modified to suit the needs of the warehouse facility. Part of the sortation system in manufacturing and distribution plants is the overhead conveyer system.

The overhead conveyor is a motorized suspended system that is either a bi-rail or a single rail transportation system typically for lighter loads.

The automated electrified system is used for long distances, sorting, buffering, and distribution. It is versatile, fast, can incline and decline, and has the capability of moving to a 90-degree angle.

The enclosed tracer is most economical. It is used for moving parts, dipping, assembly, and mobile storage. It is useful for moving product between buildings and long distance.

The overhead chain conveyor can conform to the structural contours of the building. It can easily be modified to add workstations, relocate the conveyor, or revise the path to accommodate business needs.

Overhead conveyor systems are an excellent alternative in tight spaces. They are an effective yet innovative way to streamline your warehouse practice.

Sources:
World Intellectual Property Organization
Overhead and Ceiling Hung Conveyor Systems

Warehouse Sortation Systems

So easily overlooked, yet such an integral part of the warehousing business is the distribution sortation systems. Having the right sortation system conveys improved cost and customer service by increasing efficiency. Take into consideration the automation of order picking integrated with material handling via a conveyor system. Commodities are categorized by conveyable and non-conveyable. Conveyable goods move along the distribution center at various speeds depending upon the product and processing requirements. The packages move at a high volume to their destination, to truck docks, and routs.

Sortation Techniques
Low rate sortation typically moves items at about 15 to 20 items per minute and includes the use of a diverter arm that comes across the conveyer to divert the produce onto another conveyor. It can be either manual or automatic. Included in this category is the right angel transfer sorter, which moves the product onto another conveyor at a 90-degree angle.

The medium speed sorter moves approximately 30 to 100 items per minute and typically includes sorters like pop-up wheel sorters for smaller, uniform packages, or multi-belt sorters for sorts at 30 degrees or 90 degrees.

High-speed sortation is available in a variety of configurations. The carousel is used to sort products that are a variety of sizes, and SKUs to be sorted to various locations. A high-speed sorter can accommodate up to 500 SKUs.

There are sorters than can move product at 10,000 items per minute. Sortation systems play a fundamental roll in the distribution industry, so it is imperative to work with a consultant in the field to choose the appropriate system for your warehouse.

Sources:
Diamond Pheonix
bnet.com

Saturday, December 6, 2008

Investing In Warehouse Technology

There is so much to an automated storage and retrieval system that a blog can only scratch the surface of a topic, so I strive to give you basic knowledge about a topic but endeavor to try to inform as much as possible effectively but as concise as possible. In this spirit, I will write about the benefits of an automated system, which lowers labor costs, order time and increases pick and pack accuracy.


New technology allows warehouse facilities to take advantage of the huge strides in warehouse distribution methods in the endeavor to reduce costs and improve accuracy. Warehouse distribution centers have turned to the automation of many of the practices. Part of the goal of automation is to increase accuracy of put away and replenishment as well as many other functions to an astounding 99% accuracy rate. How? By investing in new technology.
For instance, pick to light and voice is the use of voice directed order picking, sortation, retrieval, picking, sorting, and retrieval process. The goal is to work fast and efficiently, by reducing error and as well as reduce labor costs while increasing return on investment.

An automated system is not cheap but there are studies to demonstrate that the implementation of the right system will reduce costs over the long term while increasing productivity. Research the options thoroughly and work with a consultant to make sure that the system you invest in is right for your business.

Source:
Automation drives warehouse profits

Automated Guided Vehicles - AGV

A concern for many warehouse facilities is saving costs, in part because of labor cost, and workers ’ compensation claims due to injuries. The two are indelibly intertwined. Although warehouse companies take appropriate measures such as safety training, safety gear, and reward systems for low or no injuries. Inevitably, someone will file a claim because of taking a wrong step, bumping into something, or worse. Automated guided vehicles have become an integral part of a large manufacturing and distribution plants. Both by providing a safe and efficient method of transport and picking and packing but also lowering labor costs and fewer workers’ compensation costs.

Fewer workers mean fewer incidents of accidents and reduced labor and material costs. However, what does this entail? Not just a forklift, but also a major integrated system. Robotic cars that have a pre-defined path using either of three methods that follow a path throughout the distribution center. The robotic carts follow these paths using buried inductive wires, surface mounted magnetic or optical stripes, or laser guidance. These vehicles are highly sophisticated integrated systems that allow large operations to perform the same duties as forklift operators, which do pick up and deliver of pallet loads.

Another benefit is that it allows large operations to perform at high capacity through 24-hour shift operations. It is possible for distribution centers to use hundreds of these vehicles at a time. They can be coordinated on the floor to provide instant reporting to track stock and interface with the order department as well at the integration with robotic palletizers and wrappers.

This new technology has become a boon in the industry as a major roll for warehouses to work efficiently and effectively.

Sources:
http://www.highbeam.com/doc/1G1-16137369.html

Choosing a Warehouse Forklift

The selection of forklifts for warehouse facilities is phenomenal, so when you need one which do you need? Warehouses move thousands of products a day that range in size and weight from several thousand pounds to light items that require assembly. Warehouse facilities utilize automated guided vehicle systems (AGVS) that range from simple manual controlled vehicles like forklifts to sophisticated computer integrated systems.


One type of automated vehicle is the forklifts. There are several determining factors to consider when choosing a forklift.

Will it be for indoor or outdoor use and the type of combustion process are you interested in using. For instance, are you interested in going the “green” route by purchasing an electric forklift that is clean burning and typically quieter. The other option is a gas or diesel burning vehicle, which is less expensive.


Another consideration is the type of product that you will be moving. Weight and height requirements are very important. Will the product weight several hundred or several thousand pounds? Will the item or pallet be five feet or twenty feet tall? Center of gravity will also be a determining factor, which will affect the load capacity of the vehicle.

Think about the aisle space you have and maneuverability that will be required by the vehicle. A stock picker is designed for both pallet handling and picking product at tall heights. A rider pallet truck and tow truck is for low-level order picking, high-speed transport, or dock work. A turret truck is used for very narrow aisle and is designed for pallet handling and case picking.

First step first: Determine what is the main purpose or job for which the forklift is needed?

Source:
Forklift Comparisons
MHIA.org Automatic Guided Vehicle Systems

Sunday, November 30, 2008

Why Warehouses Use Credit Card Processing Systems

Today’s society is incredibility busy yet with inflation, consumers want to find ways to save money. Consumers are comparing prices by researching catalogs and the Internet for the best deals or sales on potential purchases. Individuals are finding deals, saving money in gas and time by purchasing gifts online, and having them delivered to the receiver. Warehouse facilities that offer credit card processing primarily help increase profitability.

To increase sales, warehouses can assist retailers to promote 90 day same as cash bill me later options that offers point-of-sales-credit to on-line customers. This gives customers an alternative to credit card use. It also speeds transactions, because consumers are accustomed to using their ATM.

Warehouses that offer credit card processing provide order-processing streamlining, deliver the funds directly to the retailers account, track rejected transactions for exception reporting, and provide it both for direct orders and web stores. The warehouse can accept credit, debit, country cards, PayPal, bill me later, and bank transfers, which gives consumers an abundance of payment options. Warehouses can also accept global payment types for multi-currency, recurring payments, and payment security.

Companies such as The Golf Warehouse offer the use of a system like GERS Retail Systems, which is simple to use and simple to teach employees. It allows the warehouse to provide immediate inventory look-up and reservation with quick check out. This system offers benefits like higher productivity, a higher incidence of repeat customers because of order accuracy, higher customer satisfaction, managing deliveries and customer pick-ups, and it integrates with the warehouse management systems.

Sources:
Gogetagrip.com
cybersource.com
businesswire

Tuesday, November 25, 2008

Warehouse Slotting

A warehouse manager must keep track of not only how much inventory passes through the warehouse for retailers but also the placement of that inventory to maintain an efficient operation. This includes monitoring the location the items are placed within the warehouse, time it takes for the merchandise to be picked, assembled, and packed as well as the height of the inventory on the shelves.


There is an abundance of forethought that must go into determining placement of the incoming product to avoid waste. If you have a high volume fulfillment facility, you will need to maximize storage space, oversee shipping errors, and productivity. The best approach is to conduct a slotting analysis.


What is slotting?

In the most basic sense, it is the optimization of materials handling by strategic placement of inventory. The benefits include:

  • Increased picking and packing productivity by reducing travel time for the workers
  • Reducing labor required to replenish inventory by maximizing space. i.e. pre-selected space for specific palletized items
  • Reducing labor required to pick and pack by streamlining processes
  • Improving material flow by reducing response time to batch items
  • Shelving items according to weight so that heavy items are on the bottom and lighter on top thus reducing injuries
  • Increasing accuracy by separating similar items

What has been mentioned is only a fraction of the benefits of slotting inventory appropriately. By the use of software planning tools via a warehouse management system, you will increase space, reduce shipping errors, and increasing productivity

Sources:
CEI Logistics
Manhattan Associates

Sunday, November 23, 2008

Why Use a Warehouse?

Have a great product to send to market, but you do not have the resources to receive, store, and distribute those goods? Then a warehouse facility may be the best method of distribution for your company. Warehousing provides an enormous advantage for industries that do not have the capital resources to establish a warehouse facility. Here are some of the benefits of warehousing.

Warehouses do not just offer a place to store products. They also offer services like:

  • Customer service personnel to manage orders, customer issues, and problem resolution
  • Inventory management to track just in time production and inventory movement
  • They track the movement of the inventory by monitoring when the merchandise arrives to the facility, where it is stored, how much of it is transported
  • A warehouse facility also offer a pass through for inventory that needs a drop off and pick up point for products that are on their way to a destination

Transportation plays a major role for warehouse facilities. Because of the sheer volume of goods that flow through warehouse facilities, the warehouse is able to negotiate transpiration costs and ultimately save money for the retailer

Warehouses specialize in different types of product services. Some warehouses may have the facility to store and transport frozen foods. Another may deal in soft goods such as clothing and offer steaming and pressing services, which prepare the product for display at the department store. Another warehouse may deal in the particular storage and transport of produce. It is critical to understand the maintenance requirements of your product, and how the warehouse will keep those products safe and viable through storage and transport.

Source:
Fulfillment Services

Warehouse Safety Precautions

Workplace injuries account for millions of dollars in workers’ compensation claims every year. Unfortunately, the only people that these claims benefit are the attorneys that are representing the claimants. The injured party is unable to work, which ultimately affects their income, and the company is often embroiled in litigation. Incident rates affect the yearly rate that the company pays the worker’s compensation insurance carrier. Unfortunately, that rate tends to increase annually. The more injuries that the company claims; the higher the insurance rates are.

According to the U.S. Department of Labor, Occupational Safety and Health Administration (OSHA) Office of communications, there has been a consistent decrease in workplace accidents and illnesses the last six years. Warehouses that have made a concerted effort to reduce accidents do reap rewards. The benefit of this effort is lower absenteeism, fewer workers’ compensation claims, less litigation, and few administrative costs. The ultimate prize is a lot less money disappearing from the coffers.

Ralph Cox with the Charlotte, NC based company Tompkins and Associates, the following precautions are recommended.

  • Make success a measure of success
  • Continually train employees
  • Apply disciplinary action if safety rules are not followed by implementing progressive discipline
  • Pay attention to near misses; do not just address the result but the cause as well
  • Request that someone from another similar facility conduct an unofficial inspection
  • Exercise constant vigilance by conducting monthly or even weekly inspections
  • Encourage anonymous reports from employees about potential hazards

Ultimately, a safe workplace leads to fewer expenses due to illness and injuries. Research additional tips on OSHA.gov.

Source:
hr tools
logistics management

Monday, November 17, 2008

Warehouse Automation

How do warehouses keep track of their inventory? What is coming in or going out? How much is coming and where does it go? It is easy enough to bring inventory into a warehouse and place it on pallets and shelves to be picked and packed later, but inventory costs would sky rocket without any monitoring system.

Warehouse companies have the option of using a warehouse management system (WMS). A WMS is a warehousing system that allows the company to:

  • Centrally manage orders using a computerized tracking system. The system will integrate an automated data collections method through the implementation of a complex system using radio frequency through a portable computer terminal with bar code scanners. There are also much more sophisticated tracking systems, which uses voice recognition software.
  • Automate materials handling equipment such as carousels and serration systems
  • Offer an advanced shipment notification as well as replenishment needs
  • Cycle count
  • Track labor for productivity reporting
  • Offers work and task management
  • Track cross docking
  • Follow inventory ownership, billing, and invoicing for multiple businesses
  • Tracks quantity, location of the item at any point, and unit of measures
  • Tracks order information to determine where to stock, pick, and sequence with which to perform the function most efficiently

It is obvious that by utilizing a warehouse management system, a warehouse company can control the movement and storage of material, which reduces inventory and labor costs as well as increases storage capacity and inventory accuracy.

Sources:
Corewms.com
Inventoryops.com

Apparel Logistics

When we go shopping at the departments stores, we see clothing nicely pressed and on hangers. The clothing is labeled, tagged, and presented so that we see them in the best light. Fortunately, for retailers, the process begins at the warehouse.

Typically, garment manufacturers do not normally worry much about the how the apparel arrives to the retailer. The garments are arbitrarily tossed in cartons that are the incorrect sizes, which increase creasing and damage. To top things off, the boxes and poly bags that the garments are packed in need to disposed of.

Warehouses offer softline services, which is the processing of garments prior to delivery to a retail outlet. Therefore, whether they are sent by ship or air, each garment is put through a preparatory process.

  • Pick and pack service
  • Label the garment
  • Repair defects on the garment by either machine or hand sewing
  • They run the garments through a steam tunnel which takes out all the creases or hand iron when necessary
  • They hang the garments
  • They are run through metal detectors to make sure that they do not have pins
  • Tag them with price tags
  • They are put through quality inspection
  • They are put in bags and packed in the appropriate size boxes
  • You also have the option to vacuum pack items to reduce metric volume
There is definite value in using an apparel logistics company to deal with the products. The products are presented to the retail outlet in the best presentation. There is less delay in getting them to the store in saleable condition, and the processing cost is lower because the warehouse is equipped to handle the volume of garments.


Sources:
Sekosynergy.com
advancedsupplychaim.com

Tuesday, November 11, 2008

Keeping Track of Picking and Packing

So what is the big deal about picking and packing? It is a bunch of people pulling stuff off a shelf and sending it to a customer. Well, it is not that simple. A warehouse company offers you picking and packing services. Although, this may sound simple, logistically it is quite complicated.

The warehouse worker picks the products for destination, repacks it with the appropriate labels, and inserts the invoice. Once completed, they will process the boxes or pallets for transport on train, truck, or ship.

A warehouse management system helps control the storage and movement of materials from receiving, stocking, picking, packing, and shipping. In order for the warehouse to keep the process moving accurately and smoothly, they must have a good understanding of how orders are received, processed, and what is expected from the client. Fast accurate turnaround is important to a successful operation.


How Does the Warehouse Do This?

  • Warehouse companies use various methods to keep track of inventory and shipping by the use of a barcode scanner, wireless computers, or wireless LAN to monitor transactions. We will go in depth about this later.
  • They keep the process seamless by following best practice processes: such as the 80/20 rules which follows the premise that 20% of most products account for 80% of the orders. By understanding this premise, they strategically place the products in the warehouse so the workers can pull the product and pack them for shipping most efficiently.
  • They check orders for accuracy, verify packing, and monitor serial and lot numbers.

Source
MultiChannel Merchant

Monday, November 10, 2008

What Happens to Your Cargo After it Leaves the Warehouse?

How would you like to deal with the logistical nightmare of planning, transporting, and completing the required documents to allow you to ship your goods to a foreign country? Warehouse services provide the logistical knowledge and service that will allow you to ship your product globally and efficiently without dealing with the painful process yourself.
Once your product leaves the warehouse, it is out of your hands, so it would be a good idea to have a basic knowledge of what international container shipping involves.

First and Foremost Container Safety and Security
For many years, the International Convention for Safety of Life at Sea (SOLAS) has regulated the shipping industry. The shipping industry works closely with ports, terminals, and customs authorities to keep the shipment and crew safe. They are required to record everything, every container has a unique identification, the cargo is checked, and the cargo owner declares the content within the manifest.

Because of 9/11, the International Ship and Port Facility Code (ISPS), which was enacted in 2004, have regulated the shipping industry. This code requires 1) The ship to have a security plan and monitors who has access to the ship and 2) the crew and staff must be trained in security procedures.

Benefits For You
The ultimate benefit to the cargo owner and to the public is that the warehouse company deals with the logistics of getting your merchandise shipped, and the products is kept secure, water tight, and refrigerated when needed. The security issues are in the hands of someone who has the expertise to handle them.

Sources
Container Shipping
Worldmapper

Sunday, November 9, 2008

Warehouses Use Bar Coding to Track Inventory Movement

The benefits of a bar coding system is far reaching. It tracks storage and retrieval, picking and packing, increases productivity, and reduces inventory costs. It also helps to reduce lost items. Because the process is fully automated, you won't deal with human error.

What Does A Bar Code System Involve?
Basically, each item is assigned its own symbology. These are the lines that you see on packages that are scanned through a reader. Those lines are encoded with data about the product. Think about it in terms of when you go to the grocery store and the checker scans the products through the machine. We usually know them as UPC codes: Universal Product Code. Oddly enough this product code is also the most limited and most suited for the grocery industry. If you deal with a multitude of products you will want to check into the bar coding system that utilizes the 128 alphanumeric symbols called ASCII. Because of greater flexibility in ASCII coding, there are fewer readability issues.

A committee reviews and assigns codes for millions of product, so there are typically no problems with duplication. You will want to mitigate issues within your organization though by deleting obsolete products that are no longer in your inventory.

How to Collect Data?
There are several methods used for collecting and manipulating the data: scanning, touch screen, keypad, and voice input. The coding is tested for readability, so whether it is printed or badly deteriorated, you should still be able to scan and translate the information via the software provided.

Many companies will typically recoup the cost of installation within the first year of use, because it will mitigate loss and decrease inventory cost.

Source
Bar coding Symbologies
ATI

Saturday, November 1, 2008

Warehousing Accommodates E-commerce Sales

A growing area for years has been e-commerce. It has become obvious that with the increase in gas prices, Americans want to travel less, so shopping from home via the internet is becoming quite popular. Many individuals are willing to wait for their items if it means that they do not have to drive somewhere to purchase it. To accommodate the growth in e-commerce, businesses are turning to warehousing distribution services to get their product to the consumer as quickly and efficiently as possible.

Businesses that specialize in e-commerce turn to warehousing because they have a commodity but do not have the facilities available to accommodate order fulfillment. Warehouses provide the storage space, the picking and packing services, prepare the items for shipping, then sends the items to the appropriate location. The positive aspect is that clients are able to take advantage of the vendor relationships that have been established, so they are effectively distribute the product at a reduced cost, because it can be shipped in conjunction with products from other businesses. They also do not have to worry about finding a place to store their product.

The warehouse distribution facility is a good way for businesses to take advantage of the already established storage and distribution without forking out the funds for the initial set up. Businesses have found that warehouse distribution may be the right method of expanding their business.

Source
E-Commerce Development
Rush Order

Friday, October 31, 2008

Warehouse Call Center Operations

Warehousing companies offer more services than just storing product. An extension of the warehouse service for many companies is the customer service center. The warehouse service will hire and train the personnel to handle your product line. The training typically includes product knowledge, up selling related products, answering questions, taking orders, and handling returns or issues.

Questions to ask when interviewing a warehouse about their customer service center:

  • What is the turnover rate of their call center personnel? High turnover is usually indicative of some issue in being able to provide a high standard of service to the company, because of staffing issues.
  • What does the training involve? Do they offer classroom instruction as well as a shadowing program?
  • How long is the individual observed, before they are left on his or her own?

One of the best ways to find out how the call center operates is to observe the call center in action. Visit the facility and listen to the staff while they are handling phone calls.

What to observe:

  • Are the calls answered in a positive and timely manner?
  • Do the employees have good product knowledge?
  • How well do they up sell related products?
This service can be a great way to gain the call center staffing needed without forking out the expense of purchasing computer equipment, location, and hiring staff. The nice thing for you is that you do not have to deal with the capital expenditure or training.

Sources
International Warehouse Logistics Association
Warehouse Education and Research Council

Temperature Controlled Warehousing Is Important to Product Integrity

Consumers do not typically purchase overly ripe or moldy fruit and vegetables, so choosing a warehouse that can accommodate the storage needs of your products is invaluable. A few degrees off and you are stuck with a bunch of produce that is most suitable for a compost heap.

A good warehousing center is aware and takes proactive measure to maintain the integrity of the products by maintaining the proper ambient temperature. This will include humidity, air circulation, as well as temperature for each individual product.

To prevent mold, the warehouse must have a good system that will circulate the air to avoid spoilage. Many warehouses will have individual climate controlled coolers, so they can maintain the proper climate to extend the life of the product.

Make sure to speak to the service about whether they partake in the practice of alternative cooling. This is the practice of lowering temperatures during peak power pricing then increasing the temperatures when electrical power prices are lower during the day. Although, this may be fine for some products, you will want to make sure that this practice does not have any adverse affect on your product line.

Just as important is the proper refrigeration during transportation. Make sure not to break the cold chain, so that the produce does not lose its integrity and shelf life is not shortened. Check out the Global Cold Chain Directory for some good sources.

Sources
Cold Chain
Refrigerated Freight

Monday, October 20, 2008

Keeping Accurate Warehouse Inventory

- Ideals of an organization must start at the top. Make accuracy one of the ideal attributes for the company. Maintaining accurate records is mandatory in order to run a successful warehouse.

- There are many areas in the warehouse to improve efficiency. Establish checklists for integral processes. In addition, have employees and managers work together to double check that procedures are done properly.

- Employee training is extremely important. Even seasoned employees need additional training or refresher courses to keep their minds sharp. New employees should be paired with those with experience for a few months. This will expedite the a new employee's learning of their job and strengthen potential managerial skills of older employees.

- Establish standards for your warehouse. Standards set the pace for production and let employees know what is expected from their performance.

- Each employee needs to be accountable for their work. Many warehouses have checklists that must be signed by employees ensuring that work and proper safety precautions was performed. Documentation makes it easier to track employee progress and to use as a basis for promotions or terminations.

- All decisions and procedures should be reevaluated on a monthly basis. Some theories do not materialize well. It is necessary to examine what systems work best in each particular warehouse.

Sources
Inventory Management Talk
US Small Business Administration

Starting a product-based business

- Analyze the market. A good idea may not always materialize well once it hits the market. A company needs to look at direct and indirect competitors. It is not enough to have a great product, the product needs to be able to impact the market and influence consumers to buy.

- Study your target market. Each product should have a target market. A company needs to study the buying behaviors of their targets. The behaviors of consumers can impact decisions regarding packaging, price, availability, marketing, etc.

- An intended business needs to survey its circumstances before deciding how to establish itself. A one person business can begin as a sole proprietorship. A business with a few people can become a partnership, LLC, or corporation. The structure of the business can determine other decisions.

- Many businesses underestimate the amount of capital needed to begin. There are sources to acquire additional funding, but a business needs to decide what source is best. Recruiting investors may mean executive decisions be shared with them. Funding from other sources may mean high interest rates regardless of the initial success of the business.

- Consider outsourcing for many duties in the beginning. Outsourcing to professionals enables a business to run smoothly (especially in the beginning stages), while initial executive decisions are being made and modified.

- Marketing is very important in the beginning of a product's life cycle. A new product has a great chance of making an impact, but can be overlooked by consumers unless an efficient marketing campaign is established. Consider using a marketing company that has experience in the product's particular industry.

- Writing a business plan serves several functions. It helps the executives see the objectives and goals of the business in black and white. In addition, potential investors may want to see an established plan before considering spending their money.

- A business needs to become acquainted with rules and regulations regarding their practice. Depending on the business and its location, laws pertaining to zoning, licenses, practices, etc. may apply.

- A business needs to be insured. Consult a lawyer in regards to the level of insurance needed for the practice. Also, be aware of the tendency of some businesses paying too much for insurance. Know how much insurance is needed and what is covered under your specific account.

- Begin to establish literature about your company and product. Contact papers and magazines in your industry in order to make an impact on the press. Get business cards, brochures, and other marketing materials produced and dispersed.

Sources

IRS
US Small Business Administration

Reduce Warehouse Costs

- Some costs are only estimated. Get a better idea of how much money is spent by closely analyzing the cost of freight, duty, brokerage, and carrying. Finding an approximate price can help a business determine if it is worth trading overseas or to think about using domestic resources.

- Some businesses attempt to time their received shipments in order to save money. This can lead to other issues such as making customers wait for their shipment, a lack or surplus of product, and inconsistent records. Determine whether it is worth receiving shipments at consistent intervals regardless of the cost. It may help a business save money overall.

- Watch out for shipments that contain less than a full load. Some suppliers may charge per container. If the supply chain involves several stops before its final destination to a business' warehouse, check to see if consolidating loads from different locations is a possibility in order to save more money.

- Keep excellent records on a daily basis. Inform decision makers of the daily costs regarding shipping and warehouse costs. Letting people know about the data can improve the choices being made on a daily to weekly basis.

- Many businesses get charged carrier's insurance. Most businesses are self-insured, so it is beneficial to see if goods are covered under their own insurance in order to avoid paying the extra carrier cost.

- Express shipping is expensive. This level of shipping is employed when a warehouse is in immediate need of goods. This extra cost can be avoided by closely analyzing company data. A business needs to know how much product is needed on site on a daily basis. Few businesses should be in need of express shipping on a regular basis.

- A warehouse needs to compare the costs of shipping and receiving by land, air, and sea. Depending on times and the bulk of shipment, a business can save money by employing all three modes of transportation.

Monday, October 13, 2008

Saving on Shipping

Rising fuel costs has become a major business issue. For those using warehouses as part of their business plan, fuel costs cannot be avoided, but shipping costs can. The following post provides information and suggestions for saving on shipping.

- Use a business credit card for shipping costs. Many carriers and credit card companies offer discounts for usage. Some credit companies have deals established with carriers; discounts are available when particular carrier companies are used. In addition, using a business credit card can help in acquiring points that can be used towards equipment, traveling, other services, etc.

- Consider using electronic postage. Considerable price reductions are available for individual and bulk shipping.

- Use multiple, smaller warehouses to store goods. Some businesses may have a high concentration of customers in particular locations. Storing goods close to the customer can save a company money on shipping costs.

- Receive quotes from several sources. Get prices from at least three separate warehouses. Different warehouses may offer more services. A discount in shipping may apply to a company that gives a warehouse a good deal of business.

- Consider joining a business or trade organization. Some organizations offer shipping discounts to members.

- Plan your business carefully. Last-minute shipping costs can be drastically higher when compared to those with a two to three day time cushion.

- Get the most out of every shipment. Some suggest that you should not send out a shipment unless the truck is more than eighty-five percent full. This can be helped by making customers pay more for overnight shipping or pay less if they can wait up to five business days for their goods.

- Negotiate with suppliers and middlemen. Sometimes other business entities could share the costs with you or help save money.

Advantages of using Refrigerated Warehouses

Many industries have a need for low-temperature warehouses. As outsourcing becomes more popular in business-to-business commerce, companies have found using public refrigerated warehousing advantageous. Consider the following benefits.

- Outsourcing saves resources and enables a business to devote money and manpower to other areas such as marketing, research, and development.

- Public refrigerated warehouses employ professionals with specialized training. They are learned about proper freezing, thawing, and tempering techniques in regards to all foods and commodities.

- Refrigerated warehouses supplement the knowledge of their workers with advanced computer technology. Telecommunication capabilities make it easy to exchange data with customer computers. Transaction and analysis data is provided to ensure a more beneficial relationship.

- Refrigerated warehouses use advanced methods of transportation. This makes it more economical and convenient for customers to transfer food on a smaller and regular basis. Flexibility makes it easier for clients to compete with their competitors.

- Refrigerated warehouses do not segment their business structure. They concentrate on one area of service. Facilities are perfected, costs are monitored and controlled, and avenues to augment their services further are explored.

World Food Logistics Organization

Warehouse Machine Operating Tips

Many tasks are performed in a busy warehouse. Workers use machinery to complement their capabilities. This improves the efficiency of a warehouse, yet also increases the likelihood of mishaps. The number of accidents can be greatly reduced by instituting safety standards and making staff more aware of their surroundings. Consider the following operating tips.


- Proper training is essential. Training needs to be site and machine-specific. Regardless of a worker's prior experience at other sites and in working with other machinery, it is imperative a worker undergoes training before each new job.

- Warehouse machine workers need to get in the habit of checking the machinery before each task. Devising a pre-operational checklist is advised. Components such as wheels, tires, controls, and the pedals need critical attention.

- Each machine has a capacity that should not be exceeded. Operators need to know the limits of their machinery and not exceed them for any reason.

- Proper lighting can be underestimated. A warehouse needs to be well lit from ceiling to floor in order for workers to make efficient and safe decisions.

- Moving machinery should be affixed with audible alarms that alert others of forwards and backward motion. Mirrors are also encouraged, so machine workers can see what is behind them before moving machinery.

Monday, October 6, 2008

Safety Tips for Warehouse Workers

Your workers are important to you in many ways. During the hustle and bustle of business days, and through the worry of making extra dollars, we sometimes lose sight of important issues such as safety.

OSHA has suggested a number of safety tips for you to make workers aware of in order to keep them in good health. Consider the following tips.

- Be careful and think before acting at all times. If you are under a tight time schedule, then be especially careful. An employee is more prone to carelessness when they are rushing to get a job done.

- Treat your body right. Get plenty of rest, eat well, and drink fluids during working hours. Fatigue is not good for your workers or for your business.

- There is nothing macho about getting hurt. Warehouse workers may sometimes neglect to use equipment and resources that can help them do their job. Hoists, pulleys, dollies, and other helpful items should be readily available.

- Wear hardhats, gloves, belts, steel-tipped boots and other clothing that is relevant to warehouse work.

- Make sure all workers are properly trained in using all equipment. Let workers know that it is okay to ask questions. Training should be mandatory and workers should work with an experienced partner before using equipment alone.

- Hold fire and other emergency evacuation drills. The safety of personnel greatly increases during an accident when drills are regularly performed.

- Make sure workers take precautionary measures when working in extreme temperatures. Hot conditions call for clothing that allows the body to breathe and ingestion of a lot of liquids. Cold temperatures call for proper clothing and stretching of muscles to promote proper circulation.

- Make warehouse workers aware of the dangers of carbon monoxide. Install a detector, and let all personnel know of its odorless and colorless presence.

- Any worker that is working with or around hazardous chemicals needs to be well trained before performing any duties.

Sources

OSHA

Warehouse Packaging Information

Companies can sometimes lose sight of small matters. Usually, if products are produced on time and housed in the warehouse ready for shipping, things seem to be going according to plan; yet, this may not always be the case.

Efficient packaging of a product is an important process in regards to making sales. Consider the following information:

- Sometimes companies modify their products to make it better, or to give it a fresh look. It is important to test the effectiveness of packaging after a transformation has taken place. Even the most minute change can jeopardize the packaging.

- Damaged products affect personnel at many stages of the sales cycle. Customers may be dissatisfied, retail store owners have to question the efficiency of the warehouse and/or shippers, and the integrity of all the workers involved becomes questionable. Not to mention customers may expect a refund, and their level of commitment to your brand may be lowered.

- Companies need to seriously consider precautionary matters taken in regards to packing and shipping. Depending on particular products, their packages need to be structured for their individual shipping. Bigger products, such as TVs shipped across the nation, may require different packaging in comparison to shampoo bottles being shipped locally. Consider each product separately.

- "Void fill" is a term referring to materials used to fill spaces between products and their packaging. Using these materials is important in maintaining the integrity of the product and its packaging. Ask your warehousing service about the best void fill material for individual products.

Sources:

MultiChannel Merchant

Friday, October 3, 2008

Handling Heat Effectively in the Warehouse

Your warehouses may be in different geographic locations throughout the world. Depending on that region's climate, the conditions may lower employee productivity.

The following post provides some suggestions in regards to lowering the effects of heat and raising the production output of your warehouse.

- Installing air conditioning in your warehouse is optimal, but not always practical. Floor and ceiling fans can help combat the humidity in the air and the fatigue of workers.

- Any warehouse area with machinery or mechanisms that cause friction can be hotter than other areas. Focus on installing fans or vents in these concentrated areas.

- It is extremely important for workers to stay hydrated. It is suggested to keep water bottles available for workers or to give them access to multiple water coolers. The chance of heat stroke or exhaustion rises when water is not ingested frequently during hot weather and/or working conditions involving manual labor.

- Vinyl strip doors and curtains may not appear to be effective in climate control, but they are indeed. Install vinyl strips along dock doors and other partitions throughout your warehouse. The strips are great in keeping hot air outside while maintaining a cool climate inside of the warehouse.

Sources

Cisco-Eagle

Thursday, August 21, 2008

Warehousing News - Week of 8/17

On-board weighing system
RDS technology has invented a solution to increase efficiency and ameliorate safety. The digital Liftalert system alarms workers when load capacities are nearing overload status. A hydraulic load sensor sends visual and audible signals when maximum capacity is approached.

Read the full article at Warehouse and Logistics News.



Keeping Safe from the Ground Up
According to the Bureau of Labor Statistics, one-fourth of all occupational fatalities result from transportation and material moving occupations. This warrants heavy safety precautions to be present in warehouse facilities. In addition, OSHA has recently delivered some hefty fines in an attempt to curb violations and to place more emphasis on safety.

Read the full article at MMH Magazine

Tuesday, August 19, 2008

Warehousing Q&A

How quickly can my warehouse process an order?

Warehouses are usually quick. It is likely that a morning order can be shipped that day and an afternoon can be shipped early the next.


Will I have to communicate with my warehouse vendor each time I want to know the status of my account?

Most vendors have a computer system established. At any time you can view the history of orders, leave messages, see numbers relating to stock, etc.


Do I have to use their account for shipping?

You will have the freedom to use your own trucking company, your own Federal Express or UPS account, or use the one owned by the warehouse service.


What if my products arrive from production not completely assembled?

Most warehouse have added services that handle such things. There are even processes that involve partial assembly or combining several idle components. The process is called 'pick packing' or 'kitting.'


Does my company need to be a certain size in order to acquire the services of a warehouse provider?

No. Warehouses charge in relation to the amount of space you use. You do not need to have a big business in order to use their services.

Thursday, August 14, 2008

Find a Warehouse Near Your Hot Spot

Warehouse services are helpful to small to mid-size businesses that do not own a housing unit of their own. Along with other factors to consider in outsourcing, a business must think about the location of the warehouse.

Many warehouses exist in the middle of the country. The rationale behind this geographic decision is that the warehouse is equidistant to all borders, thus theoretically making shipping costs the lowest.

Do research and find out where your company's 'hot spots' reside. This way, you can choose a warehouse that is closest to the highest number of customers.

Warehouse news:

How to Work the Warehouse - WashingtonPost.com

Warehouse Management Systems - A Top-Shelf Solution - DC Velocity

Tuesday, August 12, 2008

Work with Your Warehouse Vendor

Outsourcing is a popular convention in the business-to-business world. Companies choose to outsource because it provides them the opportunity to focus on their business rather than engage in peripheral tasks to keep it running.

Though the outsourced provider handles your needs, it can still be advantageous to learn about their services, keep contact, and offer suggestions.

Warehousing is used by many companies without a place to store their goods after production. Warehouse services usually charge based on the amount of space used. Playing a part in how your goods are stored in your warehouse is a good decision.

Software is available to help you visualize optimal arrangements for your goods in order to save money on storage expenses.

Learn more about warehousing services:

Know the Advantage of Warehousing Facilities

What You Need to Know About Warehouses

Warehouse Services FAQ
 
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