{"id":5086,"date":"2016-03-05T05:09:25","date_gmt":"2016-03-05T05:09:25","guid":{"rendered":"http:\/\/www.cssgroupsite.com\/lighthouse\/?p=5086"},"modified":"2016-03-05T05:11:37","modified_gmt":"2016-03-05T05:11:37","slug":"walking-a-warehouse-stockroom","status":"publish","type":"post","link":"https:\/\/cssgroupsite.com\/lighthouse\/walking-a-warehouse-stockroom\/","title":{"rendered":"Walking a Warehouse Stockroom"},"content":{"rendered":"
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Rajesh Chakiat<\/strong>
General Manager, Supply Chain
CSS Dubai<\/figcaption><\/figure>\n

H<\/strong>aving run and managed many massive warehouse facilities with some of the most complicated supply chains for leading brands in almost all verticals in the past two and half decades, can summarize some of the main ground rules as below.
<\/br>You\u2019d think that the place that holds (typically) more than 80% of a company\u2019s inventory, and sometimes accounts for more than half of its working capital, would get plenty of attention. But only a few companies seem to really pay attention to their stockroom or warehouse, or the five processes that affect it. (Receiving, put-away, picking, shipping and maintenance, where \u201cmaintenance\u201d represents the combination of cycle counting, consolidation, and other processes that maintain the stockroom in good operating order)
<\/br>In my opinion, this is short-sighted. You can\u2019t create a truly lean manufacturing process if you don\u2019t have effective processes to supply materials to the floor. Time and motion study, six sigma through process re\u2013engineering with mapping and having re layouts done can significantly boost productivity.\u00a0 And if it takes a week or more for inbound shipments to move from the receiving dock to warehouse shelves and then out to the production line, you\u2019re robbing other functions (R&D, marketing, even IT) of capital that could make them more effective.
<\/br>That lack of attention represents an opportunity for individuals, to make a difference at their companies or clients. So\u2026 here\u2019s my New Year\u2019s gift to anyone who wants to help their company\u2019s supply chain become more capable. (Or\u2026 if you are visiting one of your EMS or logistics partners, this might help you to get a better idea of how well they are managing your inventory)
<\/br>These are broad guidelines that are generally valid, in my experience \u2013 but there can be exceptions, especially in operations that are very focused. (A stockroom that only holds materials for New Product Introduction will look very different from a manufacturing warehouse for a television or large appliance factory!) But more frequently I\u2019ve found that the disconnects I\u2019ve observed were due to not making necessary investments. (Focused investments in materials handling operations can have considerable ROI. Improving receiving and warehouse performance can enable you to take multiple days out of inventory.)
<\/br>Whether it\u2019s big or small, whether it handles small parts, large items, or a mix, a well-run warehouse will have the following characteristics:
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