Monday, January 14, 2008

Answers to Facilitator's Question

The common operation requirements for both receiving and shipping dock are based on these few areas :


(1)Dock Safety Equipments:

Dock safety equipments are necessary as they would provide safety to the warehouse personnel and the vehicles. For example , the ICC bar lock device ensures that the vehicle is restrain to the unloading/loading dock. Once the operations had finished , the warehouse personnel will release the lock. Hence this will assure that operation will be done smoothly without any interference and danger.


(2)Dock Equipment:

Dock Equipment provides a bridge for the unloading/loading vehicle to the dock, so that product could be transfered using MHE to facilitate movement.


(3)Scheduling of Vehicle at the Dock:

Scheduling of vehicle is necessary for both at receiving and shipping dock. This is to avoid the possibilities of time wasted when other full load vehicle were in the line waiting to be unload. Hence it is also to curb material flow delay.


(4)Scheduling of Manpower:

If scheduling of manpower is not optimal at receiving/shipping area, there will be a bottleneck as there will be insufficient personnel to carry out a task. Hence, they will then need to process their operations faster which may lead to high errors . eg. indicating wrong location or dispatching wrong product to customers.


(5)Quality Assurance:

During receiving, the product quality must be check before storing them so that there are not any defects and further actions could be taken. For shipping, the quality of packaging materials, such as cartons, pallets that are shrink wrapped must be taken into consideration so that the products will reach customer in good condition.


(6)Updating of inventory:

For receiving, the updated information is to show the type and quantity of the products that has been transfered into the warehouse. Where as for shipping, the updated information is to show what products had transferred out of the warehouse. Inventory could be updated using Bar code scanning, RFID scanning or data entry.

Facilitator's Question

What are the common operational requirements for both receiving dock and shipping dock (as shown in your Blog)? Explain.

Saturday, January 12, 2008

Introduction

The primary responsibility of Shipping and Receiving functions is to establish and implement procedures for the receipt, shipment, documentation and distribution of official company’s goods, materials, equipment and supplies in support of the company’s daily functions.

This guide will look into the primary warehouse functions of receiving and shipping activities.

Receiving

- Scheduling of delivery vehicle at the dock
- Unloading of product from delivery vehicle
- Accurately count the product
- Verify the product quality
- Dealing with Quality Related Items
- Inventory Update
- Identify the product SKU
- Product transferred to storage area.

Shipping

-Scheduling of delivery vehicle at the dock
-Sorting, accumulating packing, verifying and labelling
-Manifesting the package
-Loading of package onto delivery vehicle

Dock Design

Dock Design Factors:

Factors effecting the dock type and location design of the warehouse.
- Climate
- Weather conditions
- Land availability
- Security
- Delivery truck traffic flow
- Safety
- Available funds
- Type of delivery vehicle
- Type of Load


Dock Design Concepts

These concepts could be take consideration after analysing of your warehouse/distribution centre needs.

Flush Dock Design

There are two designs for Flush Dock, the Cantilever and vestibule.


  • Cantilever Flush Dock

This type of flush dock is actually creating a hole in the building wall together with a dock door and seal along the outside of the door frame. Cantilever flush dock requires a dock leveler with a truck ICC bar-restraining device.

For the unloading process, the vehicle is backed up to the building wall and secured against the dock seal. However the trailer remains outside the building, the driver will have to enter the building through an entrance. Within the facility, the dock staging area is open to the warehouse storage area.

When the warehouse/distribution centre is on grade level (the ground floor is level to the land), then a flush dock with a depressed driveway is used to provide the optimal dock position. The loading area is depressed to create the proper height between the edge of the dock and the rear of the truck load.




  • Vestibule Flush Dock

The vestibule dock has an open area between the exterior of the facility wall and a second interior wall (storage area wall). From the storage area there is a door for pedestrian and traffic doors for forklift to enter and exit. This type of design requires a large square foot area.


Open Dock Design

The open dock design can be considered the cheapest design for the warehouse. It consists of a concrete platform that extends outwards from the exterior building wall.


Semi-closed Dock design

Dock curtains/ sliding panels are fixed on dock perimeter to create a solid barrier between the dock area and the truck well.

When required for unloading/loading, the dock curtains/ sliding panels will open to allow the activities to be performed.


Enclosed Dock Design

For this design, the loading area (the combined length of tractor and trailer) is inside the building. On the exterior, it consist a set of doors that controls the entry to the dock which is inside.


  • Side-Entrance Enclosed Dock

There are two sets of doors (one at each side of the building ) the truck loading/unloading, maneuvering activities are inside the building. There is only one way delivery traffic flow within the building (“in one door from the right and out through the second door on the left. This design accommodates the staggered dock design but he cost of establishing this design is relatively high.




  • Straight-in-Entrance Enclosed Dock

There is one exterior door for each dock position/ one extra large wide exterior door for two truck dock positions. This design provides shorter truck loading lane that permits the trailer to be dropped inside the enclosed area.




  • Side loading/ Finger Dock

This design is used mainly for flatbed truck or open-sided van. This design is a cutout from the building interior floor. The cutout in created inwards from building exterior to the dock staging area.




  • Drive-through Facility Design

The drive through design is used for flatbed truck/ opened sided vans. Lift trucks/ over head cranes are needed to unload/load products from and onto the flatbed trailer. This design requires a one-way flow through the facility.




  • Staggered ( saw tooth) Dock Design

This design is preferred when there is limited maneuvering area. It requires a one-way flow the matches the angle of the staggered dock positions. The staggered dock requires either a clockwise or anti clock wise flow pattern.

In addition, the loading area must be level as the dock, or the trailer will not be able to line up with the edge of the dock. However, the disadvantages is that it need roughly twice the building dock space for fewer docks and an increase in the construction requirements and costs.


Pier Dock Design

This design is adopted when the dock side of the building has insufficient wall space, or the interior layout does not allow construction of a dock area.

For this design, a section of the building extends outward from the building. Dock positions are located on each side of the extension. The width allows a lift truck turning aisle to the dock levelers and two-way lift truck traffic on the dock. Using this design, there is a tractor-trailer maneuvering area on both sides of the dock.




Free Standing Dock (Dock House) Design

To increase dock positions in a low-or small volume operation with limited interior space inside the building, a freestanding dock extension is constructed on the building wall. The Dock house is a platform with a dock leveler that extends outwards from the building and is enclosed with metal/ plastic panels.

Dock Layout

Location of warehouse and distribution facility or terminal receiving and shipping dock locations directly affects product flow and employee productivity.

Main objective is to reduce the in-house transportation distance between the dock area and the storage-pick area.

Best dock location is determined by the product storage aisle or position in the storage area.

3 BASIC TRUCK RECIVING AND SHIPPING DOCK CONCEPTS:

Combination receiving and shipping docks




Shipping and receiving docks are combined, activities performed in one building area. Few dock positions are used and both shipping and receiving activities utilizes the same building area, equipment, and employees.

Best results – requires effective truck dock schedule with inbound product delivered in the morning and outbound product loaded in the afternoon.

This concept is best used on small facility that handles a low volume, small quantity of SKUs, and product characteristics that are small or large.

Receiving and shipping docks on the same wall, product flows are either in a horseshoe/U pattern.




Separate receiving and shipping docks



Shipping and Receiving docks are separated, activities held in separated building areas, using separate equipments, employees and supervision.

Reduces in-house transportation requirements and activities.

This concept is best used for large operation that handles a high volume, has large number of SKUs [inventory], and has a large product mix.

This concept allows dock operations handle any product flow patterns.






Scattered receiving and shipping docks – Variation of the separated dock concept




Receiving docks located along one entire building wall which is assigned as the inbound side of the building.

Each dock is located directly across from the product storage area/processing area.

In this dock arrangement, the product to flow directly at the shortest distance in a straight line from the delivery truck dock area to the assigned storage area or production line.

Shipping docks are located along the opposite building wall, allowing the product to flow from the storage areas or production lines into the shopping dock area.

Best suited for a company with JIT implementation or across-the-dock product flow concept. The concept dictates a one-way straight product flow pattern.


Types of Dock Equipment

These equipments are the generally used kinds that facilitate unloading and loading operations.

Portable Walk Ramp

The Portable Walk Ramp is from aluminum material with a skid-resistant deck and can be used as a truck dock. The ramp handles a low volume, has a low capital investment, permits side delivery truck door loading and unloading.



Portable Dock Plate

The dock plate has a diamond-pat-tern surface to reduce mobile warehouse pallet handling equipment skis. To secure the plate position in the gap the dock plate has a locking leg ( T- Bar) that is attached to the underside and fits the gap. The dock plate has sufficient structural and width to handle a low-lift pallet jack.

Disadvantages of the dock plate are mobile equipment can slide off the plate and can cause damage to the delivery truck sides.

Advantages are the low cost of dock plate, mobility between dock positions and capacity to handle a low volume.


Portable Dock Board


The dock board is an aluminum device that allows an electric pallet jack or a fork-lift to unload and load trailers. The dock board also has a diamond-pat-tern surface to prevent skid and locking leg( T bar) to secure the dock board in the gap



Hydraulic Recessed Dock Leveler

The Hydraulic Recessed Dock Leveler has a hydraulic pump and motor that moves the dock plate to the desired elevation. It is controlled by push buttons that are located inside the building wall that is adjacent to the dock position.

The Hydraulic Recessed Dock Leveler has few mechanical parts and structural member in the pit, so it is very reliable, requires little maintenance and permits cleaning of the pit. But it requires a higher capital investment.




Mechanical Recessed Dock Leveler

The Mechanical Recessed Dock Leveler has a diamond- pattern surface and upwardly biased ramp with spring mechanism that is held down by a releasable rachet device.

To operate, the employee will pull the release chain which causes the ramp rises to its maximum position. Then the employee will stand on the ramp on forced it down onto the trailer bed, and the dock leveler is ready for operations.

The Mechanical Recessed Dock Leveler costs less that the Hydraulic model. However there are more components in the pit, hence there will be an increase in maintenance expense.




Vertically Storing Dock Leveler

The Vertically Storing Dock Leveler consists of a ramp that is withdrawn in a vertical position inside the building. Its is available in both Hydraulic and mechanical models.

For the hydraulic model, the employee will push the button to activate it. For the mechanical model, the employee will manually lower the ramp onto the trailer bed, there are counterbalanced springs that assist in lowering.



Edge of Dock leveler

The Edge of Dock leveler is a short ramp mounted with a lip that is mounted to a steel channel that is embedded to the front of the dock. It is also available on both hydraulic and mechanical models.

Lift and Bridge Devices


(1) In-Floor Hydraulic Lift

In-Floor Hydraulic Lift is an outdoor device that has an elevating platform. The elevating platform is pit-installed in the delivery truck-loading area and is operated using a hydraulic system. To operate the lift, the employee plugs in the controls and raises or lowers the platform to the desired transaction level. At the desired level, transaction is done and then raises or lowers the platform to the next required level.

(2) Scissors Lift

The Scissors lift is a outdoor bridge device that is an elevating or declining platform. To operate, the employee aligns the platform elevation to the rear of the trailer and transfers a manually operated pallet jack with a pallet load from the trailer to the platform. Next, the platform is lowered to a level corresponds with the warehouse dock. At this elevation, the pallet load and vehicle are moved to the warehouse.


(3) Tailgate Truck

Tailgate delivery trailer. To operate, the tailgate is raised to the rear of the trailers and the cart or pallet is placed on the tailgate. After the employee lowers the tailgate to the ground or dock, the unit load is transferred to the warehouse.

Options to Improve Dock Safety

Dock safety includes the safety of warehouse personnel and prevention of damaged to vehicles.

These are the commonly used features/equipments that could be found in a distribution centre.



Dock Seals and Shelters

Dock seal consists of two pads/ air pad on the two side frames of the door and one head curtain along the top of the door jam.











Dock shelter is a fixed-frame structure/ flexible-frame structure with a head curtain that extends outward from the building.








Stop and Go lights

The lights consists of red and green lights on the inside and out side of each dock door location. When the delivery vehicle is at the location location, the light is red and signals to both the lift truck operator and delivery driver that it is not ready for departure. When the delivery truck is clear to leave, the green light will signal to both the lift truck operator and the delivery driver that the truck is departing and it is not safe to enter with the delivery truck/ trailer.










ICC Bar Lock (Hook) Device

The Hook device is a device in the leveler pit area and is controlled from the dock to extend forward, upward, and beyond the dock leveler lip.








Wheel Chocks

Wheel chocks are used to prevent a trailer or vehicle from rolling out of a stationary position.




Receiving Operations

The receiving function is to ensure that the supplier has delivered the right product, in the right quantities, in good condition and on schedule.

The activities for the various receiving dock in a warehouse or distribution operation includes:

Scheduling

Scheduling will take place once the pre-alerts for shipment had been received. Things to take note will be when and what time will the vehicle arrives, allocation of an empty bay for unloading, what material handling equipment to be used, the documents needed for receiving and the number of warehouse personnel to perform the operations.

Unloading

Various delivery truck-unloading methods are:

- Manual,
-Using conveyor equipment,
-Using manual or powered mobile pallet equipment,
-Using automatic trailer unloading-loading equipment.

Counting

Quantity Count Methods
-Manual Count Methods

Workers are needed to physically count every individual item.

Advantages

-Low capital investment
-Low handling of all types of SKUs

Disadvantages

-Require greatest number of employees which may lead to the possibilities of human error.
-Handles at a low volume
-Requires larger area for conducting the activity

-Mechanized Count Method

It is a scale count method, whereby the quantity of the items, cartons and truckload could be computed by using the scale.
When small items are counted, the receiving employee registers the weight of an individual item or several items onto the scale. They then allow for a container weight and place the entire carton quantity on to the scale. The scale indicates the carton count on the display screen.

Advantages

-Ability to handle high volume
-High counting accuracy
-Require small space area
-Lower number of receiving employees

Disadvantages

-Only handle a specific SKU types
-Requires higher capital investment

When cartons are counted, there are two alternatives, the pallet load scale and the truck sale.

Pallet load scale

Steps:
(1) the receiving employee are needed to weigh an individual carton
(2) weighs the pallet load
(3) reduces the pallet board weight from the pallet load weight
(4) performs maths calculation that provides the carton quantity per pallet load
(5) to verify, match the weight with the previous pallet board weight

Truck scale count

Steps:
(1) weighing the delivery vehicle prior to unloading
(2) unload the delivery vehicle
(3) weigh the empty delivery vehicle
(4) determine the weight difference between the two computed delivery vehicle weightings
(5) compare the truck weight difference to the purchase weight

Advantages

-The method could be use for all types of SKUs.
-Provide an accurate count
-Requires small staging area
-Handles a high volume
-Requires few employees

Disadvantages

-Requires additional capital investment
-Requires vendor’s cooperative in indicating the weight of the truckload or carton for each delivery.

Quality Check

Verifying the product quality and quantity as specified in the company’s purchase order.
Quality and quantity check methods

100 percent accept method

This method does not require quality and quantity check of the vendor’s product. This practice is based on the vendor’s excellent on its past performance. This means that the vendor had continuously met and outstandingly complies with the specifications agreed. This method is time and cost saving.
The excellent vendors are placed in the Approved Vendor List (AVL) and the receiving company would accept the vendor’s quality and quantity count.
This method is used for any type of product and allows for a high volume of product handled in a small warehouse square-foot space. However it requires periodic random checks on the vendor’s deliveries to ensure continuous vendor’s performance complying with the company’s standards and specifications.

Random Sample (7 to 10 percent) Method

In this method, only random samples were taken from the vendor’s deliveries for quality and quantity check. The random samples are about 7 to 10 percent of the vendor’s deliveries. If the checks on samples satisfy the standards and specification, then the whole inbound is accepted by the company.
This method is used for any type of SKU and handles a medium volume in a medium-sized warehouse.

100 Percent Verification Method

This method requires each and every inbound item to be inspected and count. This method applies especially to vendors who has previously supplied poor quality items or had shortages in their deliveries.
It is costly and time consuming and may prone to a delay in production, however it ensures every item meets the specified condition. This method is used for any type of SKU and allows a low volume to flow across the dock.

Verifying Of Damaged Products

When receiving employee discovers product damaged on a delivery vehicle, then the procedure is to verify the damaged.

(1) Written Document ( Report)

-Employee's description of the vehicle interior condition and the number of damaged cartons in the vehicle, and co-signed by the truck driver.

(2) Combination of written document with illustrations

-In addition to the report, photographs of the vehicle interior condition and damaged cartons need to be submitted together.

Dealing with Quality Related Items

As receiving department discovers product that does not meet your company's specifications or standards, then by company's policy, the product is held for the purchasing department to make decision.

-Temporarily hold the item and return it to vendor or wait for vendor to pick up.

-Perform 100% inspection of the product and separates the good quality from poor quality. The good quality is sent for storing. But the poor quality product will be held is separate holding area and wait for vendor pickup or authorization for shipment to vendor. Normally, temporary storage is required for 2 weeks.

Inventory Update

Inventory needs to be updated so that the information will be accurate in real time.

There are basically two methods:

(1) On-line Entry method

-The inventory is updated as the product moves from the receiving to storage area.

(2) Delayed-entry method

-Inventory is updated at a later time when the products moves from the receiving to storage area.

Product identification

Require employees to apply alphabetic or numeric markings to the product exterior. These markings serve as an instruction to the warehouse employee who handles the products.
Various product identification methods

-No identification method; relies only the vendor markings on the product exterior.

-Manual handwritten label method; receiving employee handwrites the product number on a self-adhesive label that is placed onto the product exterior.

-Machine printed human-readable label method; in which a computer-controlled machine-printed label is placed onto the product exterior.

-Machine-printed human- and machine-readable label method in which alphanumeric characters and a bar code appear on the surface.

Storage

After product identification, the product is packed into the SKU quantity in terms of a container, carton or even a pallet load, then they are put away to the main storage area or the picking area before it is picked for the next destination.

Shipping Operations

Shipping function objective is to ensure that the warehouse's order-picking activity has provided the correct SKU, in the right quantity in good condition and on schedule to our customers.

The activities for the various shipping dock in a warehouse or distribution operation includes:

Checking

The checking activity ensures that the correct product, in the right quantity and in the right condition is delivered to the right place. The checking activity is performed either manually or using the bar code method. In the manual method, the employee visually verifies that the product appearing in the customer order form matches with that on the package.

With the bar code method, the checking employee directs a hand held scanning device light beam onto each product bar code label.

On a conveyorized sortation system, a fixed position scanning device reads the product bar code and the information triggers the sortation device to divert the product onto the appropriate shipping line. The bar code info is held in memory and is transmitted on-line to the computer. Some hand held device also indicates which customer the product belongs to.


Packing, Sealing & Securing

Packing is a more extensive activity which is done after picking. Packing ensures that products are according to customers requirements and protected against damage. Packing may done in several ways, such as; in cartons or pallets.The customer’s address and details of the products will be allocatted on the exterior package.

Manifest

Manifest ensures that the customer order was handled and processed by the distribution facility. This activity is a manual data entry , Bar-code scanning or even using (RFID) to process the operations.


Loading

Loading refers to how the products in the shipping area will be transferred to the outgoing delivery vehicle.

The loading methods have been covered in our Receiving post earlier.

But factors to take into considerations are:What type of delivery vehicle,What time the vehicle will be arriving ,allocation of empty dock for loading and allocation of manpower. These factors will determine how fast the loading process will be.

Recent Trends

Over the past few years many trends have emarged, we are focusing on a few trends ( listed trends) that are used widely in the industry.

Cross Docking

Cross Docking is a practice where products bypass the storage activity by transferring products directly from the inbound receiving dock to the outbound or shipping dock.

Benefits of cross docking can reduce costs (Handling and holding costs) and to improve customer service by reducing lead time.

Cross docking should be considered as an option when meeting two or more of the following criteria:
- Inventory destination is know when received
- Customer is ready to receive inventory immediately
- Inventory arrives pre-labelled
- Some inventory is time sensitive


Just in Time (JIT)

JIT is a replenishment system of scheduling inbound deliveries to arrive just in time to replenish the work stations.

This philosophy has an impact on reducing to on hand inventory but focus on receiving and shipping operations rather than the traditional picking methods that will take up time.


New Technology

The various technology used in shipping and receiving operations are computer technology, Bar-Code scanning, Radio Frequency Identification (RFID). The using of computer will increase speed in processing documents, improve product flow information, accurate transaction and accurate customer and product identification.

In addition, the use of Bar-Code scanning ensures that the date and information of the items are transfer automatically, but the use of (RFID) will faster as it could read multiple products at a time compare to the Bar-Code scanning.

Case Study

Article : American Egales Reinvents Retail
Retrieved : Modern Materials Handling (mmh.com)
Dated : September 2007

We have decided to use the Distriution Centre flow of American Egale Outfitters as our case study to elobroate on the concepts that we have discuss earlier on in our blog.

Analysis:


American Egale Outfitters is is an American clothing and accessories retailer based in the South Side neighborhood of Pittsburgh, Pennsylvania. n addition to its namesake brand, American Eagle, the company has developed and announced plans for several new brand and concept initiatives poised to drive new growth as the American Eagle brand nears saturation in current markets. One already launched brand being Aerie.

The company's second stand-alone lifestyle concept, Martin + Osa, launched in the fall of 2006, targets men and women 25 to 40 years of age.

The company had just taken back of the controlling of the distribution center from it's 3PL, so that they could have faster through put and enhanced customer satisfaction.

Firstly, American egale will receives an advance shipping notice (ASN) from the suppliers so that they planned what to do when the goods arrive.Then the materials are unloaded using conveyor and sorted automatically via Bar coding system.

Cross docking is supported as the distribution centre uses a U flow pattern as the reveving and shipping docks are adjacent to each other. Then the rest are sent to the pallet build area, where items are sorted according to different brands and palletized, after which they are sent to the reserve storage and picking areas.Next, picking will be execuited using multiple picking methodologies such as RF-directed, voice-directed and pick-to-light picking technologies , are used in pick modules.

After picking, employees will place individual item on the belt, where bar code scanning will induct the items onto tilt tray sortation system that delivers them to a packing station.

There, they are prepared for delivery to the customer. Packaged orders are placed on a conveyor that delivers them to the shipping sorter. The shipping sorter includes a combination of cross-belt, shoe and tilt tray sorters. Packages are sorted to theright chute,where the product is collected in large Gaylord boxes for shipment.

Below layout dipicts the operation flow of American Egale Outfitters:






Successfully managing multiple brands and multiple processes under one roof begins before inventory even arrives at the distribution center.

American Eagle receives an advanced shipping notice (ASN) from its suppliers detailing all of the cases in a shipment before any product is received. That allows the system to pre-allocate how the inventory will be handled and stored prior to arrival.

Merchandise for all three store brands (American Eagle, Martin + Osa, Aerie) arrives at a common receiving area 1.

Operators place floor-loaded cases onto a receiving conveyor 2 that then travels overhead to the receiving sorter 3 . Bar codes are automatically scanned to determine how the cartons will be sorted.

Crossdock and putaway Approximately 70% of the product received at the DC goes directly to a store. Depending on the store location, those cartons are crossdocked to a shipping area 4 shared by all three brands; cartons destined for stores in Kansas travel across the bridge conveyor 5 into the adjacent building where they are combined with other orders.

Crossdocked material can be shipped out in as little as an hour. The remaining cartons are sorted to a pallet-build area 6. There, operators scan carton labels and build palletsby brand for putaway in reserve storage 7 and in the high-bay active picking areas 8. Pallets are delivered to.

Picking

Once an operator scans a storage location, the inventory is available for picking, which is directed by the warehouse control system. Each business unit has a 600-foot multi-level, rack-supported pick module 8 for its products. Depending on the business unit, orders are delivered to the operator on an RF scanning device; over a voice headset; or via digital displays in front of picking bins in the pick-to-light areas.

Totes are delivered to the picking modules by an empty tote sortation system 9. In the pick-to-light area, the operator scans a bar-coded address label attached to a product, carton or tote box. Digital displays in front of each pick bin tell the operator what to pick and in what quantity. Operators using voice-directed terminals receive instructions via their headset on what to pick.

Operators using handheld or ringscan RF devices are directed to a location via their terminal where they scan a bar code to confirm the location and then again to confirm the pick. In all cases, items are picked to totes. The totes travel down the center conveyor to the next zone where an item will be picked. In total, there are 13 pick zones in the DC.

Packing and shipping

Once a tote is full, it is routed by conveyor to one of several induction areas for the tilt tray sortation system 10. There, operators manually unload the totes and position items on a belt so the bar code can be automatically read in a scan tunnel. Items are then inducted onto a tilt tray sortation system that delivers them to a packing station 11 . There, they are prepared for delivery to the customer.

Packaged orders are placed on a conveyor that delivers them to the shipping sorter. The shipping sorter includes a combination of cross-belt, shoe and tilt tray sorters. Packages are sorted to the right chute, where the product is collected in large Gaylord boxes for shipment 5 .