Warehouse logistics

On the page the main are provided "problem places" of many companies, offers on their solution and also bright examples of efficiency of implementation are given.

The warehouse does not cope with the volume of shipment of goods

What the client is interested in?

Timely acceptance, shipment, presence of all groups of goods, lack of a resort, the optimized charges of warehouse logistics.

How can we help?

Increase efficiency of a warehouse. Find "bottleneck" using a business intelligence.

What does it give? (qualitative indexes)

Increase in level of service. Timely and qualitative goods delivery, optimal charges of warehouse logistics.

Economic benefit

Increase in profit due to increase in a goods turnover and reduction of costs.

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There is not enough place for goods in the storage area

What the client is interested in?

• Additional warehouse spaces. Emergence of an empty seat;
• In a warehouse necessary goods in the necessary quantity;
• Always there are goods of group A and B;
• The client received what is necessary in the expected terms, with proper quality.

p> How can we help?</p>

• Calculate the optimal area of the storage area and dimension of cells;
• Create a key indicator of optimality of the storage area and dimension of cells and to provide its tracking (at change of the nomenclature, goods volume - interested persons are informed on expediency of review of the area of the storage area and dimension of cells, or increase in warehouse spaces).

What does it give? (qualitative indexes)

• Increase in turnover of goods, there is a place in a warehouse;
• The necessary goods in the necessary quantity are in a warehouse;
• Always there are goods of group A and B;
• The client receives what is necessary in the expected terms, with proper quality;
• Increase in speed of a complete set of goods (due to high-quality warehousing, reduction of "run" of people, quick search of goods (all all goods on cells)).

Economic benefit

• Existence of additional warehouse spaces.
• Increase in sales volume in communication by a sufficient trade inventory in a warehouse, the speed and quality of a complete set of goods.
• Cost reduction due to minimization of idle time of transport, the optimal number of the equipment and personnel in a warehouse.

Example: At the area of the storage area - 1500 sq.m and 6 level racks. Neobkhodimaya Square after optimization made 1100 sq.m. Optimized for 35% (400 sq.m.). At the cost of sq.m. - 700 rubles, economy made 280,000 rubles a month or 3,360,000 in a year. At the cost of solution of 2,000,000 rubles, it pays off within seven months.

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There is not enough place in a selection zone

What the client is interested in?

• Existence of additional warehouse spaces, emergence of an empty seat;
• The necessary goods in the necessary quantity are in a warehouse;
• Always there are goods of group A and B;
• The client received what is necessary in the expected terms, with proper quality;
• Optimize warehouse spaces. Optimize costs for a warehouse.

How can we help?

• Calculate the optimal area of the storage area and the sizes of cells;
• Create a key indicator of optimality (KPI) of the storage area and the size of cells and to provide tracking of KPI (at change of the nomenclature, goods volume - interested persons are informed on expediency of review of the area of the storage area and dimension of cells, or increase in warehouse spaces).

What does it give? (qualitative indexes)

• Increase in turnover of goods, necessary goods in the necessary quantity is in a warehouse, there are always goods of group A and B in the necessary quantity;
• The client receives that he ordered in the expected terms, with proper quality. increase in speed of a complete set of goods (due to high-quality warehousing, reduction of "run" of people, quick search of goods (all goods on cells).

Economic benefit

• Increase in sales volume in communication by a sufficient trade inventory in a warehouse, the speed and quality of a complete set of goods;
• Cost reduction due to minimization of idle time of transport, the optimal number of the equipment and personnel in a warehouse.

Example: The area of the storage area - 1500 sq.m. For selection of goods we needed 20 employees (Monthly ZP on each 20 thousand rubles, i.e. FOT of 400 thousand rubles), at the same time the speed of an obor of goods made 1000 boxes/day. After calculation of the optimal area of a zone of selection and the size of cells the speed of selection of goods increased by 30% and was 1300 boxes/day. For it e work volume we needed 30% less employees, i.e. 14 people. Thus their FOT made 280 thousand rubles. Economy made 120 000r in a month or 1,440,000 in a year.

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Machines are long unloaded. In certain working hours there are not enough gate. There is not enough goods acceptance zone

What the client is interested in?

• Increase in speed of acceptance of goods;
• Increase in satisfaction of suppliers;
• Emergence of an empty seat in an acceptance zone.

How can we help?

• Calculate the optimal area of a zone of acceptance;
• Calculate necessary quantity of gate on acceptance;
• Define capacity of a warehouse on acceptance;
• Make the optimal working schedule of a warehouse on acceptance;

What does it give? (qualitative indexes)

• Increase in speed of acceptance of goods, respectively opportunity to accept bigger goods quantity;
• Satisfaction of suppliers with timely goods acceptance.

Economic benefit

Reduction of idle times of transport that involves reducing costs of transport.

Example: The average number of idle times of transport in a day was 6 hours/day. After drawing up the optimal diagram of acceptance of goods, the number of idle times was reduced by 85% and was 1 hour/day. Idle time of transport costs 1000 r / hour. Thus economy made 5000r/put, 110 000r/month, 1,320 000r/year.

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Machines are long loaded. The client receives goods out of time

What the client is interested in?

• Timely shipment and goods delivery to the client;
• Increase in level of service;
• The optimal number of the equipment and personnel in a warehouse;
• Optimal costs for logistics;
• The optimal number of transport for delivery.

How can we help?

• Calculate the optimal area of a zone of shipment of goods (complete sets, checks);
• Calculate necessary quantity of gate;
• Define capacity of a warehouse on shipment;
• Make the optimal diagram of shipment of goods;
• Separation of a zone of shipment into subbands: complete sets, selection, check, expedition;
• Calculate the necessary number of the equipment and employees.

What does it give? (qualitative indexes)

• Shipment of goods according to the diagram;
• Increase in level of the service rendered to clients;
• Timely delivery to clients;
• Increase in efficiency of use of transport.

Economic benefit

• Reduction of idle times of transport on shipment that involves reducing costs of transport;
• Reduction of number of transport.

Example: Costs for payment of idle times averaged 123,000 rubles. After calculation of the optimal area of a zone of shipment, quantity of gate and scheduling of shipment, costs for idle time were reduced by 89% and made 13,530 rubles. Thus economy in a month made 109,470 r / month and 1,313,640 r / year

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The goods are not built. Slowly collect

What the client is interested in?

• The goods are timely built;
• The goods to the client are timely delivered;
• Increase in level of service.

How can we help?

• Create a system online of monitoring of work of a warehouse (what had to is collected and collected upon);
• Calculate the necessary number of employees and the equipment;
• Estimate labor productivity of employees of a warehouse;
• Implement motivation of employees of a warehouse;
• Develop KPI: employees productivity, development, capacity of a warehouse.

What does it give? (qualitative indexes)

• Timely response to failures of work of a warehouse;
• Increase in level of service;
• The optimal number of employees and the equipment in a warehouse.

Economic benefit

Reduction of a lost profit, due to increase in volume of shipment of goods.

Example: The average amount of orders in a month from clients is 50 million rubles. According to the statistics, from them only 87% are delivered to the client that makes 43.5 million rubles. After system implementation of monitoring and a set of optimal number of employees and the equipment the amount of the shipped goods increased by 5% and was 92.5%. Thus increased goods turnover by 2,750,000 rubles. At average profitability in the amount of 10% it turns out that economy made 275 000r/month, 3,300,000 r / year.

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There are not enough warehouse capacities

What the client is interested in?

Optimize warehouse spaces, increase in speed of selection of goods, increase in level of service, the optimal number of employees in a warehouse.

How can we help?

Calculate the necessary number of employees and the equipment, to estimate labor productivity of employees of a warehouse, to develop KPI: warehouse performance, capacity to develop motivation of employees.

What does it give? (qualitative indexes)

Increase in level of service, the optimal number of employees in a warehouse.

Economic benefit

The optimized costs.

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It is difficult to predict warehouse parameters at changes (the new supplier, increase in sales volume, seasonality - peaks)

What the client is interested in?

In advance to prepare work of a warehouse under necessary tasks.

How can we help?

Create model for forecasting and modeling of situations.

What does it give? (qualitative indexes)

Stable level of service, there is no decrease because of increase in load of a warehouse.

Economic benefit

Reduction of a lost profit, due to increase in volume of shipment of goods.

Example: After the analysis of sales for the last periods, it became clear that every year in December the peak of sales is observed and makes 200 million rubles, after drawing up forecasts for shipments and carrying out calculations for employees and to the equipment, it became clear that there are not enough capacities. In advance hired temporarily additional employees and leased the equipment. Thanks to what shipments managed to be increased to 270 million rubles. If to consider that the average marginality is 10%, then the additional profit for December made 7 million rubles.

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There is no clear vision how to motivate employees

What the client is interested in?

• Increase the level of service;
• Increase efficiency of a warehouse;
• Create motivation of employees on assembly of bigger goods quantity;
• Reduce personnel turnover;
• Define normative values of the employee;
• Increase employees productivity;
• Estimate individual efficiency of each employee - selection of the best/worst employees;
• Make the transparent system of charge of ZP, dependent from intensity of work of the employee;
• Normalize the number of employees depending on assembly volumes;
• Structure motivation on all company, pay for a single system of parameters.

How can we help?

Develop the system of motivation on the basis of analytics for the last periods, and also through QlikView to trace performance indicators of employees in real time.

What does it give? (qualitative indexes)

Only effective employees, strong team, motivated employees work at a warehouse.

Economic benefit

Performance improvement of employees for 40% that involves reduction of costs for FOT.

Example: In a warehouse 17 people, ZP work for each 20 thousand rubles, after motivation system implementation based on KPI, employees productivity increased by 40%, respectively there was an opportunity to cut down staff to 11 people. As a result we receive economy 120,000 r / month or 1,440,000 r / year

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Idle time of a warehouse. It purchased or leased excess number of warehouse spaces

What the client is interested in?

• Optimize warehouse spaces;
• Lower charges of the areas;
• Increase use of the areas (for own needs, leasing).

How can we help?

• Calculate the optimal areas of all warehouse zones;
• Analyze sales and prepare forecasts (early purchases, large volume of purchases (discount), additional purchases of group A, purchase of goods before rise in price).

What does it give? (qualitative indexes)

• Optimization of warehouse spaces;
• Cutting of costs for the maintenance of the areas;
• Increase in use of the areas (for own needs, leasing).

Economic benefit

Increase in profit due to increase in a goods turnover and reduction of costs.

Example: At the area of the storage area - 1500 sq.m and 6 level racks. Neobkhodimaya Square after optimization made 1100 sq.m. Optimized for 35% (400 sq.m.). At the cost of sq.m. - 700 rubles, economy made 280,000 rubles a month or 3,360,000 in a year. At the cost of solution of 2,000,000 rubles, it pays off within seven months.

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Existence of errors in the accounting system

What the client is interested in?

Lack of errors in the accounting system.

How can we help?

By means of an analytical system to reveal errors, to correct them. Further by means of the instrument of monitoring to monitor emergence of new errors (for example, incorrectly got a description of goods), it is possible to compare what was ordered by department of purchase with the fact that credited on a warehouse.

What does it give? (qualitative indexes)

Increase in efficiency of work in all departments, reduction of probability to ship not those goods, etc.

Economic benefit

Reduction of a lost profit, due to reduction of incorrectly shipped goods that in turn can turn back return of goods.

Example: The client ordered monthly goods for the amount of 1,000,000 rubles of Software to one of the next orders everything shipped truly, but when receiving by the client it becomes clear that the goods in the document are written one, and upon another. In that case, the client or returns not the necessary positions, or completely refuses all delivery and further interactions (then already lost profit will make 100 000r/month, 1,200 000r/year if to take average marginality of 10%) Also incurred expenses on transport and a warehouse.

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Shortage of goods in a warehouse

What the client is interested in?

Loss minimization of the company.

How can we help?

Carry out the deep analysis of write-offs and inventory of goods.

What does it give? (qualitative indexes)

Warning of plunders.

Economic benefit

Reduction of losses of the company.

Example: The shortage averaged 130 thousand rubles/month. After system implementation of analytics, shortage were reduced by 60%. Total losses of the company were reduced by 52 thousand rubles/month, or 624,000 thousand rubles/year.

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Inconsistency of information in different information systems

What the client is interested in?

The uniform truth in all company (In all departments and all systems).

How can we help?

Through QlikView to consolidate data from all systems in the uniform tool.

What does it give? (qualitative indexes)

All employees use uniform information. The amount of time is reduced by verification of information.