Improving Warehouse Efficiencies Using Primarius

Improving Warehouse Efficiencies Using

Primariusby

Nelson Fredrickson

Erie, PA 16505

Primarius User’s Group

September, 2012

Policies and Procedures

A policies and procedures (SOP) manual should be created specific to your food bank – With everyone completing tasks the

same, inventory accuracy will improve– Will help insure necessary paperwork is

properly filled out, filed, and information is sent to the appropriate department(s)

Primarius User's Group - September, 2012

• All workers must be informed of the importance of operating their equipment safely

• Safety should be written into their job descriptions and be included in the policies and procedures manual


Safety

Goals and Tracking

• Management should set goals – Goals should be set (orders/hour,

cases/hour, pounds/hour, etc.)• Tracking

– Inventory adjustments, out-of-stocks, selection errors, etc.


• Standard numbering and naming schemes for branches, locations, and products

• Consistent location numbering schemes– Be consistent with placement of location labels

• Use “user understandable” codes• “Intelligence” is not needed in your numbers

or codes


System Set-Up

Location Numbering

Most distribution centers and food banks have some sort of numbering for their distribution center locations. Are these locations numbered properly? There is a significant opportunity for these companies to improve selection or hilo productivity by properly labeling their distribution center locations. The numbers need to be clearly identified, as efficiencies are directly impacted by workers moving through their assignments in an efficient manner. Workers travelling too far or searching for a location or product is non-productive. As industrial engineering studies have shown, directing workers to an exact location is the most productive. These studies also show that if the worker knows more about the location, they can more quickly move to the location and their equipment can be properly positioned at the location to more efficiently complete the task. Selection locations must be able to be easily reached by selectors. Lower levels are best. If the labels contain a barcode, the placement of the location ID labels is dependent on the range of the scanner within the handheld device. If the device cannot scan more than a few feet, the labels need to be placed on the lower bar. If the device has a longer range scanner, the labels can be placed on each bar for each level. Those that are not planning on using handheld devices, the placement of the labels can be on each bar (level). Label media should withstand the environment where they are used. If used in a freezer, they must have “freezer grade” adhesive. If properly applied, these labels can last for years. Floor locations are the most difficult to identify. Labels on the floor will not work. Painting the location ID on the floor is an option. Sandblasting the location ID on the floor is an option. Hanging signs from the ceiling with the location ID is another option. While most numbers within a facility should not have “intelligence”, location ID’s should have some intelligence. A six digit location number gives the associate a lot of information. To help better understand a six digit slot number, 504013 is like an address. 50 is the “street” (aisle) running one direction. 51 is the “street” running the other direction.40 is the “street address” (bay) on one side of 50 “street”. 41 is on the other side of 50 “street”. 1 is the “suite” (position) number for “street address” 40. There could be 9 “suites”.3 is the “floor” (level) for “suite” number 1. There could be 9 “floors”.


Suggested Naming for ProductsUsing the Feeding America Type (31 food groups), start the product Name with a short description of the group ( i.e., product number - 12345,

product name – BEV/Sports Drink/Lemon Lime).

01/NF - Assorted Non-Foods: Household Goods, Toys, Books, Clothing02/BAB - BABy Food/Formula03/BEV - BEVerage: Coffee, Tea, Soda, Drinks04/BRE - BREad/Bakery: Bread, Biscuits, Rolls, Batter, Tortillas, Pie Crust05/CER - CEReal: Hot & Cold06/ENT - Complete Meal/ENTrée, Soup07/DAI - DAIry: Yogurt, Cheese, Milk, Butter, Sour Cream, Ice Cream08/DES - DESsert: Cakes, Pies, Pudding, Frozen Confections09/DRE - DREssing: Salad Dressing, Mayonnaise10/FRU - FRUit: Canned & Frozen11/GRA - GRAin: Flour, Corn, Meal, Matzo Meal12/HBC - Health/Beauty Care: Shampoo, Conditioner, Soap, Cosmetics, Deodorant, Dental Care13/HCP - Household Cleaning Product: Detergent, Cleanser, Bleach, Fabric Softener14/JUI - JUIce: 100% Fruit or Vegetable15/MFP - Meat/Fish/Poultry16/MAF - Mixed & Assorted Food17/NDS - Non-Dairy Dairy Substitute18/NUT - NUTritional Aid Drinks, Vitamins, Diet Supplements19/PPH - Paper Product Household: Plates, Napkins, Towels, Toilet Paper, Facial Tissue20/PER - Paper Product PERsonal: Diapers, Adult Sanitary Products, Feminine Products21/PAS - PASta: Macaroni, Spaghetti, Noodles22/PET - PET Food/Pet Care23/PRO - PROtein-Non Meat: Peanut Butter, Beans, Eggs, Pork & Beans, Nuts24/RIC – RICe25/SNA - SNAck Food/Cookies: Candy, Crackers, Marshmallows26/CON - Spice/CONdiments/Sauce: Herbs, Salt, Sugar, Mixes, Vinegar, Extracts, Mustard, Syrup, Jelly, Sauces, Salad Oil27/VEG - VEGetables: Canned & Frozen28/PRD - Fresh Fruits/Vegetables (PRoDuce)29/DOU - DOUgh-Uncooked30/SAL - SALvage-Unsorted31/PRE - PREpared & Perishable Food


Clean & Organize the Warehouse

• Show your team that everyone cares– Over time, this will help lead to inventory

accuracy

• A clean and organized warehouse will also help lead to improved inventory accuracy

• Every day, check something • Your fleet should be well maintained and

clean as well


Non-Warehousing Personnel

• Non-warehousing personnel entering the warehouse can often lead to inventory errors

• If non-warehousing personnel are used, they should be advised of the appropriate warehouse procedures


Static Selection Locations

• Assigning products to a static selection (pick) location will help reduce selection errors

• Pick lists, selection labels, or handheld devices will direct the selector to the exact selection location for the item


Receiving Product

• Only food bank staff members should receive inbound product

• Inbound errors can ultimately lead to outbound errors


Inventory Control

• An inventory control position should be created– This person’s primary responsibility

should be to research inventory discrepancies

– Managers don’t normally have the time to research inventory discrepancies


Physical Inventory

• Be well prepared for a physical inventory• Only warehouse staff associates should count • Discuss counting procedures with count teams• Inbound and outbound orders must be

completed• Assign count teams with specific areas to count

– Re-counts are completed by a different count team– Track what team is counting what area


Cycle Counts

• Only complete during a “quite” time • Complete on a regular basis• Perform timely adjustments• Research discrepancies• Most discrepancies will be in the selection

locations


Returns

• Returns can easily disrupt your inventory accuracy

• If returns are made, inventory must be adjusted and a credit may be required


Miscellaneous

• Research and correct inventory variances when they are found

• Use term, codes, instructions, etc. that users, donors, vendors or agencies know and understand


Quotes

• “The Primarius system inventory should be a mirror

image of the physical distribution center inventory”• “Murphy lives in the warehouse”• “Don’t never say never”• “Remember, your process is just boxes in and boxes out”• “Those boxes must have brains… they out-think many

managers”• “Experience is something you don’t get until just after

you need it”


Improving Warehouse Efficiencies Using Primarius

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