Most warehouse professionals understand how to calculate required labor hours but few do it while taking quality rates into account. Let’s look at an example. Picking Labor Example A typical calculation for required headcount for picking looks at the direct picker rates against the volume, then lays on an indirect labor percentage and an absenteeism … Read more
Let’s explore a warehouse improvement case study employing lean concepts and a holistic overview approach. The results speak for themselves – 30%+ improvement in cycle times, 30% reduction in labor, improve quality by 10x. How did it happen? Situation The company, “RailCo”, shipped produce and wine by rail from the west coast to the east … Read more
One standard practice to improve warehouse efficiency and productivity is to use performance standards for non-exempt employees. Performance standards management will help ensure that the employees are productive. But you can’t just “turn the knob to 11.” The standards have to be reasonable and attainable. This implies a trade-off: higher standards mean more turnover, which … Read more
When you’re designing and starting a warehouse, you want it to be as efficient as possible. At the same time, it may not be possible to have full knowledge of how the equipment and systems will interact. You can mitigate this warehouse design risk by testing prototypes of the warehouse equipment before you buy and … Read more
After the warehouse picks the order, it has to pack and ship the order. These are the rest of the “outbound processes” and are typically where the operation ‘rings the register’ as it sends inventory to a customer. Let’s explore further. Automation Many of the steps in the processes of packing and shipping can be … Read more
Part of warehouse efficiency is effective supervision. Most warehouse and distribution center shift work is defined by fixed periods of work for their teams. These periods of work – the shifts – are the basic unit of supervisor output. So supervisor management of the shifts is very important to managing labor cost. The setup of … Read more