Warehouse Management: 10 Tips For Smooth Operations In 2015

cherrymaterial

warehouse managementRunning a manufacturing warehouse and staying on top of every detail requires a great deal of time and effort.

Let’s explore 10 tips to help you improve your management system and keep your warehouse operating smoothly.

1.  Organization is king

If your warehouse is not organized, incoming products will not go to the appropriate locations. Pickers will spend needless hours trying to find products. You must establish a system that organizes your materials in a logical and defined order.

The best organization keeps the fastest moving materials front and center in your warehouse. You can increase your efficiency by grouping products that are normally ordered in groups. Consider how grocery stores stock products — if you are looking for bread, you do not go to the milk aisle.

2.  Start with the right receiving 

When materials come into your warehouse, they should be verified and inspected immediately. Shortages or damages require immediate notation. Getting products put away in the correct location is also very critical. Materials left in receiving may be showing as available in your system, but not actually on the shelves.

3.  Apply logic to pick processes

Whether your warehouse is small or large, the amount of time spent picking orders is a large portion of your costs. If your warehouse is organized efficiently, you can organize pick lists for better time control.

If you normally only ship a small number of orders with large quantities of products, arrange the lists so the picker can work from one material location to the next and avoid the constant back-and-forth process.

If you ship numerous small orders, create pick lists in groups and then divide the materials by customer order when it reaches the verification stage.

4.  Reorganize when needed

What works for your warehouse today may not work six months from now. Reevaluate your inventory and storage methods periodically to make sure that you maintain the right product flow.

For example, a product that took up two full shelves last month may now be obsolete. The product next to it may suddenly be in high demand. Change the space allocated to your materials when supply and demand changes.

5.  Use quality control

When products are sent to your shipping station, the items must be verified before they are actually packed and processed. Packers do not normally have time to double-check each item. When problems are identified, the wrong products should be returned to the appropriate location immediately. Allowing a large section of wrong products to pile up is not only messy; it could create a shortage on the next orders being processed.

6.  Keep your warehouse safe

Maintaining a safe environment is very important to maintaining peace of mind. You have to meet certain requirements, and protecting your employees from injury is a key goal. Accidents can cost you the skilled labor you need to keep your warehouse operating.

One area that frequently requires attention is forklift operations. Make sure your operators are well trained and you have designated traffic lanes to increase efficiency and safety.

7.  Maintain appropriate lighting

A brighter warehouse provides not only a safer work environment but also improves your employees’ ability to do their job. Brighter lights also foster more alertness for what needs to be done.

8.  Train your staff 

Since processes change from time to time training employees (whether seasoned or new) will always be required. Schedule time for training and retraining when needed. Incorporate cross-training so that your employees have the skills to handle more than one type of job. If one employee is unable to work then the other employee or employees will have no problem taking on some of the load.

9.  Use the right software

You have a vast number of choices in software for material handling and warehouse management. Programs can be used for inventory control, labor, equipment maintenance, shipping and more. At first you may not even need a full package — just choose the individual programs that provide the right solution for your company. Many providers offer free trials, so take some time to test out what will work for you.

10.  Ensure prompt delivery and customer service 

Whether you run your own transportation or use an outside carrier, use a shipment-tracking program. You need to know where your products are, and so do your clients. Being able to provide real time information will only enhance the customer service you offer.

Jerry Matos is Product Specialist of the leading material handling e-commerce store, Cherry’s Material Handling.

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How to Take Advantage Of 3D Printing Service Parts In Aerospace

Thomas Pohl

The time of 3D printing being a hobbyist’s plaything is in the past. Not only has additive manufacturing come into its own, but it is rapidly gaining ground as a more sustainable technology than centralized systems that require shipping networks to get goods to market. In the aerospace industry, we’re seeing more use of 3D printing than in the past; for example, GE has produced a 3D-printed 1,300 HP advanced turboprop engine. But one area where 3D printing technology is expected to have the largest impact on the aerospace industry is in parts printing.

The aerospace industry was one of the first adopters of 3D printing technology, beginning in 1988, only four short years from the first patent registration for the technology. At the time, it was only used for modeling and prototypes. A little over a decade later, industry leaders started to explore the full potential of the technology.

Today, it’s clear there are a number of areas where 3D printing of service parts can benefit the aerospace industry.

Increased asset uptime

Because airline fleets are always on the go, it can be difficult to anticipate in what locations and at what times specific parts may be needed. Internet of Things (IoT) technology improves inventory tracking, but that isn’t the solution when you don’t have the right part where it’s needed. Aircraft-on-ground delays can cause serious problems in a number of areas, and 3D-printed parts help avoid this issue and improve overall fleet uptime. Personnel in the hanger can simply print a new part instead of maintaining an exhaustive inventory or hoping the part comes in quickly.

Reduced cost

Beyond the problems of grounded assets, 3D-printed parts also reduce costs. When an asset is grounded, it can quickly become an expensive problem. A typical “B check” maintenance issue that grounds a plane has an average cost of $60,000. The crew must be moved to other aircraft or lodged locally; replacement parts need to be shipped in (if they’re not on location); fleet coordination is impacted; flight schedules are thrown off; and service-level agreement (SLA) compliance becomes an issue. And that’s before you deal with the resulting customer service issues.

Lighter components

In aeronautics, weight is money, and 3D-printed parts could lighten the components used in aircraft. Reducing the weight of your components means using less fuel to get off the ground. A recent contest by GE challenged designers to create an engine bracket designed for production with a 3D printer. The winning entry produced an 83.4% reduction in weight, from 2 kg to a svelte 327 grams. That may not seem like much on a 400-ton aircraft, but it’s just that much less weight to get in the air.

More durability

It’s much easier to design 3D-printed components for strength and durability versus manufacturing ease. “We get five times the durability. We have a lighter-weight fuel nozzle. And we frankly have a fuel nozzle that operates in an environment more effectively and more efficiently than previous fuel nozzles,” Greg Morris, head of GE Aviation’s additive printing division, said in an interview. The ability to design and print parts remotely makes updates to fleet assets much easier to implement.

Improved customer satisfaction

In aeronautics, customer satisfaction has a huge impact on a company’s bottom line. It’s estimated that in 2016, flight delays cost airlines $25 billion in actual expenses, and that figure does not include damage to an airline’s reputation. If an airline becomes known for flight delays and maintenance issues, it’s less likely to be used by consumers. Having 3D printing capabilities for a number of parts helps reduce flight delays and keeps cancellations to a minimum. It also helps improve overall fleet uptime and reputation for excellence.

By adding 3D printing capability, aeronautics companies can enjoy lean operations with better flexibility and resiliency. It provides a range of benefits, including avoiding aircraft-on-ground problems. By placing a 3D printer at the hanger or a nearby distribution warehouse, response time is drastically improved, costs are reduced, and excess inventory is eliminated.

Digitization and disruption require businesses to be lean and agile. This is true of all industries, including aeronautics. While 3D printing was initially used for out-of-production or slow-moving inventory parts, it’s progressing into more complex parts as the technology has improved.

As part of an overall digitization plan, 3D printing allows companies to respond faster to industry changes. Imagine a scenario where sensors in your assets sense a problem in a particular part of your aircraft. Those sensors automatically contact the arrival airport, which 3D-prints the part while the plane is still in the air. Wait time decreases and the plane gets back in the air faster. The future of aeronautics is now. Where does your business stand?

Read this whitepaper to understand how a digital world in aerospace and defense industry can help you to reinvent products, services, and core business processes.

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Thomas Pohl

About Thomas Pohl

Thomas Pohl is a Senior Director Marketing at SAP. He helps global high tech and aerospace companies to simplify their business by taking innovative software solutions to market.

How Blockchain Can Restore Trust In The Wine Industry

Eric Annino

Blockchain is one of those things that everyone talks about but no one (myself included) really understands—like bitcoin or the stock market. I do understand, however, that blockchain is all about trust, and that’s the reason it’s going to revolutionize every industry. It’s also the reason it can revolutionize wine markets.

Fine wine has traditionally been bought and sold based on large measures of trust. A seller offers a bottle for sale, most likely something rare, old, or from an iconic maker; provides a reasonably good story of origin (or provenance) to establish that the wine is authentic and has been stored correctly; and buyers line up to shell out thousands, if not tens of thousands, of dollars.

That has changed in the last decade.

In 2008, Benjamin Wallace’s true crime hit The Billionaire’s Vinegar (soon to be a movie starring Matthew McConaughey) brought to light the story of a German music manager and wine collector who allegedly duped other wealthy collectors into buying counterfeit wine (i.e., wine that has been adulterated in some way, often passed off under a more expensive brand), including several bottles he claimed belonged to Thomas Jefferson.

Wallace’s book became a New York Times bestseller and planted a significant seed of doubt in the minds of collectors everywhere.

Half a decade later, the wine world was again shaken when wine-collector-turned-wine-forger Rudy Kurniawan was sentenced to ten years in prison for defrauding high-end collectors to the tune of at least $20 million. (For the whole story, check out Peter Hellman’s new book In Vino Duplicitas.) In the wake of the “Rudy affair,” auction houses began to withdraw lots of wine of suspicious provenance. Lawsuits followed, and one prominent collector—billionaire Bill Koch, who fell victim to both Rudy and the alleged forger of Wallace’s book, Hardy Rodenstock—even began a crusade against fake wine, hiring a team of experts and spending more than $20 million of his own money to ferret out counterfeiters.

Trust in fine wine markets has never been lower, but blockchain has brought hope.

Meet Everledger, a London-based blockchain technology firm and the first company to secure a wine’s provenance via blockchain. After making its mark fighting counterfeiting in the diamond industry, Everledger made the jump to wine, and has partnered with renowned wine fraud specialist Maureen Downey (who played an important role in the Rudy Kurniawan investigation) to create the Chai Wine Vault.

Using Maureen’s Chai Method, which identifies more than 90 data points on a bottle, along with high-resolution photographs and ownership and storage records, Everledger creates a permanent, digital representation of a bottle on the blockchain. This permanent record acts as a verification point as the bottle changes hands. The blockchain is updated along the way so anyone who buys or sells the bottle can rely on trustworthy provenance.

This level of supply chain security is increasingly vital to every industry. “If you can track and trace diamonds, you can track and trace anything,” says Joe Fox, SAP Ariba’s Senior VP of Business Development and Strategy.

“One of the things blockchain does is facilitate greater visibility and trust. In embedding it across our applications and network, we can enable supply chains that are smarter, faster and more transparent from sourcing all the way through settlement.”

Wine counterfeiting isn’t new—Pliny the Elder lamented the practice in first century Rome—but it’s certainly reaching new heights. Experts, Downey included, have suggested that as much as 20 percent of wine sold globally is fraudulent. An estimated 10,000 “Rudy bottles” are still in circulation, and just last week, police seized 6,000 bottles of counterfeit wine in China.

For wine markets everywhere, blockchain is a timely innovation that underscores the value of trust in any transaction.

For more on blockchain’s potential to impact business processes, see Improve User Experience With Internet Of Things, Blockchain, And Platforms.

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Eric Annino

About Eric Annino

Eric Annino works for Global Corporate Affairs at SAP.

Diving Deep Into Digital Experiences

Kai Goerlich

 

Google Cardboard VR goggles cost US$8
By 2019, immersive solutions
will be adopted in 20% of enterprise businesses
By 2025, the market for immersive hardware and software technology could be $182 billion
In 2017, Lowe’s launched
Holoroom How To VR DIY clinics

From Dipping a Toe to Fully Immersed

The first wave of virtual reality (VR) and augmented reality (AR) is here,

using smartphones, glasses, and goggles to place us in the middle of 360-degree digital environments or overlay digital artifacts on the physical world. Prototypes, pilot projects, and first movers have already emerged:

  • Guiding warehouse pickers, cargo loaders, and truck drivers with AR
  • Overlaying constantly updated blueprints, measurements, and other construction data on building sites in real time with AR
  • Building 3D machine prototypes in VR for virtual testing and maintenance planning
  • Exhibiting new appliances and fixtures in a VR mockup of the customer’s home
  • Teaching medicine with AR tools that overlay diagnostics and instructions on patients’ bodies

A Vast Sea of Possibilities

Immersive technologies leapt forward in spring 2017 with the introduction of three new products:

  • Nvidia’s Project Holodeck, which generates shared photorealistic VR environments
  • A cloud-based platform for industrial AR from Lenovo New Vision AR and Wikitude
  • A workspace and headset from Meta that lets users use their hands to interact with AR artifacts

The Truly Digital Workplace

New immersive experiences won’t simply be new tools for existing tasks. They promise to create entirely new ways of working.

VR avatars that look and sound like their owners will soon be able to meet in realistic virtual meeting spaces without requiring users to leave their desks or even their homes. With enough computing power and a smart-enough AI, we could soon let VR avatars act as our proxies while we’re doing other things—and (theoretically) do it well enough that no one can tell the difference.

We’ll need a way to signal when an avatar is being human driven in real time, when it’s on autopilot, and when it’s owned by a bot.


What Is Immersion?

A completely immersive experience that’s indistinguishable from real life is impossible given the current constraints on power, throughput, and battery life.

To make current digital experiences more convincing, we’ll need interactive sensors in objects and materials, more powerful infrastructure to create realistic images, and smarter interfaces to interpret and interact with data.

When everything around us is intelligent and interactive, every environment could have an AR overlay or VR presence, with use cases ranging from gaming to firefighting.

We could see a backlash touting the superiority of the unmediated physical world—but multisensory immersive experiences that we can navigate in 360-degree space will change what we consider “real.”


Download the executive brief Diving Deep Into Digital Experiences.


Read the full article Swimming in the Immersive Digital Experience.

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Kai Goerlich

About Kai Goerlich

Kai Goerlich is the Chief Futurist at SAP Innovation Center network His specialties include Competitive Intelligence, Market Intelligence, Corporate Foresight, Trends, Futuring and ideation. Share your thoughts with Kai on Twitter @KaiGoe.heif Futu

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Jenny Dearborn: Soft Skills Will Be Essential for Future Careers

Jenny Dearborn

The Japanese culture has always shown a special reverence for its elderly. That’s why, in 1963, the government began a tradition of giving a silver dish, called a sakazuki, to each citizen who reached the age of 100 by Keiro no Hi (Respect for the Elders Day), which is celebrated on the third Monday of each September.

That first year, there were 153 recipients, according to The Japan Times. By 2016, the number had swelled to more than 65,000, and the dishes cost the already cash-strapped government more than US$2 million, Business Insider reports. Despite the country’s continued devotion to its seniors, the article continues, the government felt obliged to downgrade the finish of the dishes to silver plating to save money.

What tends to get lost in discussions about automation taking over jobs and Millennials taking over the workplace is the impact of increased longevity. In the future, people will need to be in the workforce much longer than they are today. Half of the people born in Japan today, for example, are predicted to live to 107, making their ancestors seem fragile, according to Lynda Gratton and Andrew Scott, professors at the London Business School and authors of The 100-Year Life: Living and Working in an Age of Longevity.

The End of the Three-Stage Career

Assuming that advances in healthcare continue, future generations in wealthier societies could be looking at careers lasting 65 or more years, rather than at the roughly 40 years for today’s 70-year-olds, write Gratton and Scott. The three-stage model of employment that dominates the global economy today—education, work, and retirement—will be blown out of the water.

It will be replaced by a new model in which people continually learn new skills and shed old ones. Consider that today’s most in-demand occupations and specialties did not exist 10 years ago, according to The Future of Jobs, a report from the World Economic Forum.

And the pace of change is only going to accelerate. Sixty-five percent of children entering primary school today will ultimately end up working in jobs that don’t yet exist, the report notes.

Our current educational systems are not equipped to cope with this degree of change. For example, roughly half of the subject knowledge acquired during the first year of a four-year technical degree, such as computer science, is outdated by the time students graduate, the report continues.

Skills That Transcend the Job Market

Instead of treating post-secondary education as a jumping-off point for a specific career path, we may see a switch to a shorter school career that focuses more on skills that transcend a constantly shifting job market. Today, some of these skills, such as complex problem solving and critical thinking, are taught mostly in the context of broader disciplines, such as math or the humanities.

Other competencies that will become critically important in the future are currently treated as if they come naturally or over time with maturity or experience. We receive little, if any, formal training, for example, in creativity and innovation, empathy, emotional intelligence, cross-cultural awareness, persuasion, active listening, and acceptance of change. (No wonder the self-help marketplace continues to thrive!)

The three-stage model of employment that dominates the global economy today—education, work, and retirement—will be blown out of the water.

These skills, which today are heaped together under the dismissive “soft” rubric, are going to harden up to become indispensable. They will become more important, thanks to artificial intelligence and machine learning, which will usher in an era of infinite information, rendering the concept of an expert in most of today’s job disciplines a quaint relic. As our ability to know more than those around us decreases, our need to be able to collaborate well (with both humans and machines) will help define our success in the future.

Individuals and organizations alike will have to learn how to become more flexible and ready to give up set-in-stone ideas about how businesses and careers are supposed to operate. Given the rapid advances in knowledge and attendant skills that the future will bring, we must be willing to say, repeatedly, that whatever we’ve learned to that point doesn’t apply anymore.

Careers will become more like life itself: a series of unpredictable, fluid experiences rather than a tightly scripted narrative. We need to think about the way forward and be more willing to accept change at the individual and organizational levels.

Rethink Employee Training

One way that organizations can help employees manage this shift is by rethinking training. Today, overworked and overwhelmed employees devote just 1% of their workweek to learning, according to a study by consultancy Bersin by Deloitte. Meanwhile, top business leaders such as Bill Gates and Nike founder Phil Knight spend about five hours a week reading, thinking, and experimenting, according to an article in Inc. magazine.

If organizations are to avoid high turnover costs in a world where the need for new skills is shifting constantly, they must give employees more time for learning and make training courses more relevant to the future needs of organizations and individuals, not just to their current needs.

The amount of learning required will vary by role. That’s why at SAP we’re creating learning personas for specific roles in the company and determining how many hours will be required for each. We’re also dividing up training hours into distinct topics:

  • Law: 10%. This is training required by law, such as training to prevent sexual harassment in the workplace.

  • Company: 20%. Company training includes internal policies and systems.

  • Business: 30%. Employees learn skills required for their current roles in their business units.

  • Future: 40%. This is internal, external, and employee-driven training to close critical skill gaps for jobs of the future.

In the future, we will always need to learn, grow, read, seek out knowledge and truth, and better ourselves with new skills. With the support of employers and educators, we will transform our hardwired fear of change into excitement for change.

We must be able to say to ourselves, “I’m excited to learn something new that I never thought I could do or that never seemed possible before.” D!

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