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Warehousing Profitably:
An Update


(Table of Contents)

Part 1: Understanding Today's Warehouse

1 An industry in transition

The ancient history of logistics

The U.S. and the deregulation experiment

A critical labor dispute

Globalization

The information revolution

Third-party growth

Cycle time

2 Improving warehouse productivity

Reducing the order cycle time

Emphasis on quality

Asset productivity

A new workforce

3 Supply chain, JIT, and benchmarking

Supply chain management, "a rose by any other name ..."

Just-in-time and its variants

JIT is a product of both fact and myth

JIT vs. congestion -- a collision course

Using JIT for service and repairs

The role of warehousing

Benchmarking and the Holy Grail

Internal benchmarking

4 Adapting to the information age

Technology and forecasting

Information technology and control

EDI and the warehouse

The impact of electronic commerce

Evaluating system options

What to look for in warehouse management software

5 Avoiding labor pains

Creating a participatory environment

The crucial role of the supervisor

The fine line of delegating properly

Logistics outsourcing

Labor disputes

6 Reverse logistics management

Environmental returns

Marketing returns

Organizing for reverse logistics

The role of the warehouse manager

A retail example

Should you outsource reverse logistics?


Part 2: Warehouse Control

7 Quality and productivity

The growth of quality awareness

Quality metrics in the distribution center

TQM within the warehouse

Success factors for TQM

Quantity vs. quality

Increasing warehouse productivity

Establish improvement targets

Reduce distances traveled

Increase unit load size

Round trips

Improve cube utilization

Free labor bottlenecks

Reduce item handling

Improve the container

A different way to look at productivity

8 Third-party or do-it-yourself?

Outsourcing logistics services

Core competency and outsourcing

The preparatory steps

How to select a third-party operator

Fourteen criteria to consider

1. Multiple warehouse facilities nationwide

2. Inventory management and control

3. Order acceptance and processing

4. Pick-and-pack operations

5. Order fulfilment

6. Assembly/packaging/value-added activities

7. Credit card verification

8. Invoicing, credit, and collection

9. Pre-sort capabilities

10. Returns handling

11. Manifesting

12. Operational management structure

13. Organizational strategic direction

14. Financial stability

Evaluation

The contract

The pricing challenge

9 Planning and scheduling

Corporate strategy and warehousing

Data drives decisions in warehousing

Short-interval scheduling

The importance of proper sequence

Planning for equipment use

Shift scheduling

Contingency planning

10 Understanding warehousing costs

Measuring storage costs

A unit storage cost calculation

The influence of inventory turns

Measuring handling costs

Appendix A

11 Asset accountability and utilization

Cargo liability vs. warehouse liability

Managing inventory

Controlling space utilization

The typical storage space calculation

Controlling the lift truck fleet

12 Reducing errors

The cost of an error

Preventing warehouse errors

A locator system prevents errors

Markings as a source of errors

Dyslexia and inventory errors

Picking documents

Use of bar coding

Receiving -- locking the barn door

To check or not to check?

Physical factors in the warehouse

Personnel factors

Identification with work

Pareto analysis and errors

Rewards for the stars

13 Measuring performance

The unique factors

Measuring effectiveness

How efficient is your warehouse?

Quantifying space utilization

Improving storage productivity

Calculating a storage payback

Quantifying handling productivity

Justifying handling improvements

Simulation in the warehouse

Measuring performance by account

Monitoring several warehouse locations

A sixty-minute warehouse evaluation


Part 3: Warehouse Management

14 Finding the right people

Finding people in a scarce labor market

Nontraditional employees

Retaining good people

The interview process

Evaluation

Reference checks

Probation

Proficiency tests

15 Management productivity

Success factors

Motivation

People development

Management's ethical responsibility

Generation management in warehousing

Maintaining service expectations

Improving your managerial skills

The importance of communication

Running effective meetings

Transition from worker to manager

Developing future managers

16 Training for excellence

Managers as teachers

Training goals

Orientation

Mentoring

The transition from worker to manager

The fine art of delegating

Leadership by example

Training lift truck operators

Training for superior performance

17 Motivation, discipline, and continuous improvement

Motivation and retention programs

Flexible work schedules

New approaches to work

Six ways to motivate warehouse workers

Managing performance

Maintaining warehouse discipline

Discipline by peer review

Continuous improvement


Part 4: Security

18 Controlling the inventory

Physical inventories

Preparing for the physical count

Anticipating problems

Cycle counting

Acceptance of cycle counting

19 Theft and mysterious disappearance

Responsibilities of the warehouse operator

Two kinds of losses

Controlling collusion theft

Confirming employee honesty

The handling of references

Other collusion theft controls

Undercover investigations

Security audits

Physical deterrents

Restricted access

Customer pickups and returns

Security procedures

20 Protecting your people

Personal appearance and housekeeping

Safety

Federally mandated training

Ergonomics and safety

Reducing manual handling risks

Substance abuse in the warehouse

Warehousing ethics -- a matter of trust

21 Protecting the property

Power failure

Casualty losses

Fire

Sprinkler systems

Dry-pipe systems

Wet-pipe systems

Other protection against fire

A new type of sprinkler system

Windstorm losses

Causes of cargo damage

Flood and leakage

Mass theft

Vandalism

Surviving an insurance inspection

Plant emergency organizations

Reviewing protection


Part 5: Handling of Cargo

22 Receiving, put-away, and storage

Physical aspects of receiving

Receiving as a process

Put-away

Stock locator systems

Installing and maintaining a locator system

Your warehouse layout

The affinity factor

Load characteristics

Special operations

Planning for changes

23 Order selection and cross docking

The influence of velocity

Order picking in your warehouse

Varieties of order picking

The bucket brigade

Cross docking

Success factors in cross docking

Reverse order picking

Planning for improvements

24 Unitized loads

The standard pallet

Unitizing without pallets

Mandated slipsheets

The search for a better pallet

Plastic pallets grow in acceptance

Understanding pallet costs

Store-ready pallets for retailers

25 Specialized storage

Temperature-controlled warehousing

Hazardous materials warehousing

What is a hazardous chemical?

Regulations and training

Reliable hazardous-materials information

Fulfillment warehousing

Household goods storage

26 Warehouse technology

Tools or toys?

Understanding space economies

How pallet racks improve space utilization

Other storage rack options

Live storage

Other order-picking tools

Carousel systems

Conveyor systems

Automatic guided-vehicle systems

Choosing a lift truck

Operator location

Lift attachments

Narrow-aisle vehicles

Brand selection


Part 6: Information Systems

27 Computers and customer service

Hardware vs. software

Choosing warehousing software

Finding a warehouse management system

Choosing a WMS

A WMS meltdown

Other WMS pitfalls

Implementing a WMS

Training

Systems and service

28 Electronic identification

Bar codes

A user's view of bar coding

The myth of bar coding expense

What will bar coding do for you?

The radio frequency epidemic

Bar coding and Luddites

Pitfalls of automatic identification

2-D bar codes

To check or not to check?

29 Approaching warehouse automation

How technology fits in

The benefits of mechanization

The risks

Mechanization in the 21st century


Part 7: Starting a New Warehouse Operation

30 Finding the right location

Developing a requirements definition

Speed limits and warehousing

Access

Attitudes

Utilities

Climate

Flexibility and financing

The selection process

Outside advice

A checklist to locate your next warehouse

Governmental restrictions

Geographic restrictions

Transportation

Utilities

Security considerations

Labor market

Community attitudes

Taxation

New construction considerations

31 Warehousing is real estate

A case example

Getting around accounting standards

Flexibility vs. control

Real estate as a corporate investment

The decline of cookie cutters

Third-party operators as investors

The make-or-buy question

Understanding real estate costs

When should you build?

The rehabilitation alternative

Repairing warehouse roofs

Rejuvenating warehouse floors

32 Warehouse construction

Understanding total development costs

Better ideas for construction

Parking lots

Foundations and floors

Docks and drive areas

Structural system and roof

Illumination and heating

Fire protection systems

Walls and interior finish

Exterior finish

Layout design

Economies of scale

Wear and tear

33 Warehouse start-ups

The importance of a smooth start

Building the project team

Charting the process

Ongoing communication

Resources

How much can your warehouse hold?

Developing a procedures manual

Building on successful experience

Opening the warehouse

A warehouse start-up checklist

Receiving

Shipping

Materials handling operations

Use of space

Sanitation, security, and safety

34 Moving a warehouse

Establishing a target move date

Estimating moving costs

An example

How long will it take?

Volume Assumptions:

Time Assumptions:

Calculations

Continue services or suspend operations?

Communications


Part 8: The Future

35 Warehousing in a world economy

Meeting customer demands

Re-engineering the warehouse

Postponement

Expanding into developing nations

The future of world logistics technology

36 Staying current in the new century

The facets of change

Electronic commerce

Information sources

Publications and research

Seminars

A developing professionalism

Upgrading the tools

Putting it all together


Index

K. B. Ackerman Company
2041 Riverside Drive
Suite 204
Columbus, Ohio 43221
Phone 614-488-3165
Fax 614-488-9243

 home | e-mail Contents ©2006 K. B. Ackerman Company
Design ©2003 William Blinn Communications
Banner photo provided by Crown Equipment Corporation