Eight 3PL Warehouse Optimization Best Practices

Progress OpenEdge partner Principal Logistics Technologies, an Aptean company, offers eight third-party logistics tips to help their users reduce operating expenses and streamline operations to help increase revenue.

Principal Logistics Technologies is a longtime partner of Progress OpenEdge. They have over 30 years of experience designing and deploying Warehouse Management Software (WMS) and Supply Chain Solutions for third-party logistics (3PL), supply chain and manufacturing operations. Their specialty is understanding operational needs and delivering solutions to help businesses extract value from technology.

As many OpenEdge customers rely on WMS systems and supply chain solutions from them and others, we are republishing a slightly modified version of a recent article from Principal Logistics that shares real-world operational improvement tips.

1: Warehouse WMS Business Intelligence & Analytics

Real-time business discovery – see, then act, fast

Capture live operational data via voice, barcode scanning, RFID-based technology or other integrated technology to review real-time pick status and picker performance.

Review activities via live user-definable dashboards, even before incidents occur. Then, apply “What-if” scenarios to deliver fast actionable insights that, when implemented, will adjust operator performance in line with your planned operational output.

Remember, measurement and action should always be real-time to reflect the constant changes across your business.

2: Logistics Warehouse Dynamic Cycle Counting

Boost stock accuracy and reduce mistakes

Count part of your inventory in a continuous cycle. The count can be done daily, weekly or monthly as there is no disruption to your business.

ProWMS allows you to set the stock cycle count at either the product record level or the product class level. This enables you to count your higher-value stock more frequently.

At set intervals, the operative receives an instruction to pick the required quantity from the pick face. Before receiving their next pick instruction, they will be asked to blind count the balance in the pick face.

While you can set the rules, most operations will allow the operator to continue when the quantity entered matches the system quantity. However, where there is a discrepancy, a recount will be requested. If incorrect the second time, an automated email message can be sent to the stock office, or an automated task sent to Quality Control to strip and recount marshaled pallets where they have not yet left the building.

3: Logistics Warehouse Robotics and Automation

But only if forecasted to improve ROI

Affordable robotics technologies have become familiar in 3PL distribution for, among other things, stock movement, picking and packing. But before you deploy robotics technologies in your warehouse, compare the long-term cost of ownership and operation to that of your manual process, considering your staff costs and planned output over the same period.

Or, how about considering RaaS (Robotics as a Service)? The top five segments for robotics as a service are said to include factory and warehouse robots.

4: Logistics Warehouse Zone Planning

Improve efficiency, keeping it safe for staff

Grouping and locating similar items with similar storage needs and picking methods together aids operational efficiency. Good zone planning considers the types of material (bulk or rack storage, hazardous material, etc.) or the division of equipment and personnel used to put away, move and pick.

Zone and by Shift & Zone pattern techniques enable management to shift operatives from zone-to-zone across the warehouse. So, for example, if replenishment volumes are heavy in one zone, an operator can be locked to that zone until all work completes (as case pick). And, if there are multiple orders in a zone where no replenishment is required, then those orders can be released first, reducing picker wait times and improving operational efficiency.

On a recent implementation of a Distribution Centre (DC) for a chain of retail stores, we put product away by Department and Sub Department to manage the picking. This resulted in picked pallets entering at the store level having the correct goods for each department and sub-department.

5: 3PL Warehouse Stock Replenishment

Optimize your putaway process

Aligning with slotting frequency, this is just as important as your picking methods. Is inventory as easy to replenish as it is to pick? Putaway logic can help you define both the receiving process and stock locations.

ProWMS can manage a range of stock replenishment methods:

• Wave or demand replenishment: Only the stock needed for the day (or wave) is moved to forward pick locations. This can be a useful option for warehouses with small pick faces or slow-moving SKUs.
• Opportunistic replenishment: Only the amount of inventory needed for the demand forecast is moved to picking locations. The goal of opportunistic replenishment is to increase productivity by minimizing the number of trips to the bulk areas.
• Top-up replenishment: Each fixed location is filled to capacity during downtime.
• Real-time replenishment (pick-to-zero): Manages traceability through the pick-faces. Operators trigger the replenishment in real-time once the quantity in the pick-face reaches zero.

6: 3PL Warehouse Stock Picking

Consider your order plan and pick processes first

Split case (or broken case) picking, where individual items are picked from bins or open cartons, usually involves very high SKU quantities but low pick volumes. Unlike full pallet or full case picking, split case picking requires individual units to be picked from individual locations and placed into a container, like a tote. This requires more stock handling and more totes to process, increasing labor costs.

7: Warehouse Product Slotting / Re-Slotting and Remapping

Optimize Stock Volumes Through the Pick Face

A major part of a picker’s daily activity includes travel time (on foot, by forklift or pallet trucks, etc.) so reducing walk time can deliver considerable business benefits.

Warehouse managers must regularly look at the volumes through the pick faces and continually ensure that these are optimized. There is little point in having a high-pick volume product at a distant location.

Consideration needs also to be given to pallet building logic (e.g., crushability, possible congestion on aisles, etc.). ProWMS can provide a visual map where the high volumes of picks are represented by the darker colors in this dashboard display.

8: 3PL Warehouse Staff Training

Improve operational processes and enforce a robust and continuous training program

Your warehouse operations team constantly changes and evolves. Staff should always be up-to-speed on all aspects of warehouse layout, stock types, packaging, equipment (including voice and handheld device operation), machinery, robotics equipment and software systems. Last but not least, processes—all of these must be robustly documented and audited.

We hope these eight tips from our partner, Principal Logistics Technologies, help you consider new ways to manage your warehouse and its inventory.

To find out why over 1,700 companies and over six million end users choose Progress OpenEdge as their business application partner, visit our webpage.