Factors to Consider When Implementing RFID

There are several factors to deciding factors for the implementation of RFID:

• To optimise inventory management, preventing out-of-stocks and reducing excess inventory and authentication.

• Phenomenal savings on labour costs delivered through reduced manual supply chain and stock management processes.

• Improve real-time visibility of stock and tracking the information.

• Enhanced responsiveness across the supply chain.

• Reduction of demand-supply cycles.

• Enhanced customer satisfaction.

• Reduction in shrinkage, theft, and counterfeit purchases.

• Increase the reading distance of a product in a large warehouse with RFID.

• Fast information update needed in high throughput warehouse.

• Warehouse that stores variety of odd shapes and different sizes products.

• For warehouse that stores food, they have to consider the ingredients of the products and the environment in which the products are being packaged.

• If the warehouse wishes the track the products and the forklift truck when the products are on their way to the storage area, FRID readers can be placed on the forklift truck to read tags on the pallets of goods.

Order Picking

Order picking requires pickers to travel through the warehouse selecting items which will be consolidated and ship to the customers. Of all warehouse processes, order picking tends to get the most attention. It’s just the nature of distribution and fulfillment that you generally have more outbound transactions than inbound transactions, and the labor associated with the outbound transactions is likely a big piece of the total warehouse labor budget. Another reason for the high level of importance placed on order picking operations is its direct connection to customer satisfaction

Types of order picking


Piece-picking method

Piece picking, also known as broken case picking or pick/pack operations, describes systems where individual items are picked. Piece pick operations usually have a large SKU base in the thousands or tens of thousands of items, small quantities per pick, and short cycle times. Mail order catalog companies and repair parts distributors are good examples of piece pick operations.

Basic order picking

In the most basic order-picking method, product is stored in fixed locations on static shelving or pallet rack. An order picker picks one order at a time following a route up and down each aisle until the entire order is picked.

Batch picking/Multi-order picking

In batch picking, multiple orders are grouped into small batches. An order picker will pick all orders within the batch in one pass using a consolidated pick list. Usually the picker will use a multi-tiered picking cart maintaining a separate tote or carton on the cart for each order. Batch sizes usually run from 4 to 12 orders per batch depending on the average picks per order in that specific operation

Zone picking

Zone picking is the order picking version of the assembly line. In zone picking, the picking area is broken up into individual pick zones. Order pickers are assigned a specific zone, and only pick items within that zone. Orders are moved from one zone to the next as the picking from the previous zone is completed (also known as "pick-and-pass". Usually, conveyor systems are used to move orders from zone to zone

Wave picking

A variation on zone picking and batch picking where rather than orders moving from one zone to the next for picking, all zones are picked at the same time and the items are later sorted and consolidated into individual orders/shipments. Wave picking is the quickest method (shortest cycle time) for picking multi item orders however the sorting and consolidation process can be tricky.

Basic Order Picking
Total Orders: Low
Picks Per Order: Moderate to High

Batch Picking
Total Orders: Low to High
Picks Per Order: Low

Zone Picking
Total Orders: Moderate to High
Picks Per Order: Low to Moderate

Wave Picking
Total Orders: Moderate to High
Picks Per Order: Moderate to High


After knowing the types of order picking we shall look at a video on how order picking is actually being performed.

Now that u have a better idea of how order picking is done, the next video will enhance your learning on order picking and the stages after order picking.

Warehouse Information System

Radio frequency

Radio Frequency (RF) is the use of radio signals
to communicate real-time data from the warehouse floor to the WMS database and back to the floor. This expedites processing in the warehose.

Scanners collect the data and transmit it via radio frequency to antennas located throughout the warehouse.
From the antennas, the signal proceeds to a access point
that communicates with the warehouse management system.

This process reduces paper, data entry time delays, cycle count processing, out of stock quantities,typing errors, and misshipments.

Automatic Data Collection

Automatic identification or "Auto ID” encompasses
the automaticrecognition, decoding, processing,

transmission and recording of data, most commonly

through the printing and reading of information

encoded in bar codes.

Bar codes allow for rapid, simple and accurate reading and transmission of data for items that need to be tracked or managed. Bar codes can be printed directly on mailing tubes, envelopes, boxes, cans, bottles, packages, books, files and other paperwork, furniture, cards and many other items for identification.

Electronic Data interchange

Electronic data interchange process is the
computer-to-computer exchange of business
documents between companies.

EDI replaces the faxing and mailing of paper documents. EDI documents use specific computer record formats that are based on widely accepted standards. However, each company may use the flexibility allowed by the standards in unique way that fits their business needs.

Interfaces with material handling equipment

Automated storage/retrieval systems (AS/RS)

AS/RS, is an automated robotic system that is used within a warehouse for storing, sorting and retrieving items.

AS/RS improves productivity of transporting, buffering and sequencing of standard and non-standard loads. Also, its high-rise storage capabilities make optimal use of available floor space.

Automated storage/retrieval system in Sonama

state University library

Palletizers and de-palletizers

Palletizers and de-palletizers can be computer controlled by having the tier and pallet pattern in memory. This equipment automatically creates unit loads or singularizes unit loads. A palletizer allows these pallets to be stacked quickly and efficiently.

There are many kinds of palletizers such as floor level palletizer, robotic bag palletizer and high level palletizer. From the video below it will show a better idea how a palletizer works.

Forklift truck control

The computer can control the operations of forklift trucks by maintaining a file of work to be accomplished using the location matrix and directing the forklift truck to and from the location by:

• Hard-copy move tickets

• Radio dispatch verbally from a dispatcher to the drivers

• Radio from the computer to a CRT mounted on the lift truck

Automated guided vehicles system

The computer can control the movement of mobile equipment from location to location in the warehouse. Therefore, it increases work efficiency.

What are the Responsibilities of Warehouse Supervisors and Warehouse Operators?

Warehouse Supervisors - produce reports for each operator that now can be generated and used to implement productivity based remuneration schemes or to sack unproductive employees.

Those warehouses that have to cope up with Union problems, these reports can help the company tremendously. Warehouse management system can track warehouses activities efficiently. It provides a comprehensive set of web-enabled reports detailing all the activities happening in the warehouse and their effect on the inventory management. The system also helps to detect bottlenecks in operations, which can increase the overall turn over of the warehouse.

Warehouse Operators have to scan the barcodes which is the graphical user interfaces (GUIs) that the warehouse management systems provide. Thus warehouse management systems had lightened the operator’s tasks and made the data input process fast, increasing the overall efficiency of the operator. Programs like ‘Locating’ and ‘Pulling’ are specially designed to run on hand-held radio frequency terminals. These terminals make the task of pickers and locators easy. Modern warehouse management systems programs have been coded with extra emphasis on scanner based data input to minimize the need for keyboard or mouse input.

What are The Benefits for Using Warehouse Management System?

Warehouse management system can help management to find out:

• The quantity of inventory exists in the warehouse

• The number of orders that are currently being shipped

• The stages of processing of pending orders

• Staff productivity details

• Goods shipped by the warehouse over any given period of time

The warehouse management can determine the quantity of inventory exists in the various stages of processing not like non-automated warehouse management.

Sales people - can determine the quantity of inventory is available and can relate better to the warehouse staff which has level up their Customer Relationship standard.

Customer Managers - can reserve inventory for a customer which will make sure that it will not be shipped to anyone else.

Inventory Managers - can track transactions at a very fine detail to diagnose unexpected sudden changes in inventory.

The Advantages of Warehouse Management System

Faster inventory turns

It can reduce lead times by limiting inventory movement and improving the accuracy of inventory records, thereby supporting a JIT environment. As a result the need for safety stock is reduced, which increases inventory turnover and working capital utilization.

More efficient use of available warehouse space

In order to reduce safety stock requirements, warehouse management system often increase available warehouse space by more efficiently locating items in relation to receiving, assembly, packing, and shipping points. This increases efficiency to help both in improving productivity and lower inventory holding costs significantly.

Reduction in inventory paperwork

Implementation of a real time ware house management system can significantly reduce the paperwork traditionally associated with warehouse operations, as well as ensure timely and accurate flow of inventory and information. Receiving report, pick tickets, move tickets, packing lists, etc., which are typically maintained as hard copies, can all be maintained electronically.

Improved cycle counting

Warehouse management system can be use to capture relevant data to systematically schedule personnel for cycle counts. For example, frequency of movement, specific locations and etc. This cycle counts not only can improve the accuracy of inventory records for planning purposes, it also can eliminate or reduce the need for complete, costly physical inventories.

Reduced dependency on warehouse personnel

Implementing a comprehensive warehouse management system facilitates standardization of inventory movements, picking methods, and inventory locations. This standardization helps to minimize reliance on informal practices, resulting in reduced training costs and lower error rates.

Enhanced customer service

By going through the process from order to delivery, companies can more accurately know the product availability and realistic delivery dates. Warehouse management system can automatically identify and release back-ordered inventory and also can reduce returns as a result of increased shipment accuracy.

Improved labour productivity

Warehouse management system helps optimize material flow, typically by incorporating several inventory picks into one or by “cross docking”. This is a process that routes incoming shipments to the location closest to the outbound shipping dock, which will reduce warehouse handling.

What is Warehouse Management System?

It is the advance technology and operating processes that optimize all warehousing functions. All these functions are begin with receipts from suppliers and end with shipments to customers, and include all inventory movements and information flows. It also had been associated with larger, more complex distribution operations.

Those small, non-complex distribution facilities have historically not been viewed as candidates to significantly streamline operations and reduce costs. Even smaller and mid-size companies are increasingly recognizing the significance of warehouse management systems in today’s environment of integrated logistics, just-in-time delivery, and e-commerce fulfillment.

Practically, the successful warehouse management system are designed to merge computer hardware, software, and peripheral equipment with improved operating practices for managing inventory, space, labor, and capital equipment in warehouses and distribution centers.

This system allows company to increase its competitive advantage by

• reducing labour costs,
• improving customer service,
• increasing inventory accuracy, and improving flexibility and responsiveness.

At the same time it enables company to manage inventory in real time, with information as current as the most recent order, shipment, or receipt and any movement in the process.

Warehousing Layout and Design Strategies

One key to effective design is the relative dominance of picking or storage activity. Techniques that maximize space utilization tend to complicate picking and render it inefficient while large storage areas increase distance and also reduce picking efficiency. Ideal picking requires small stocks in dedicated, close locations. This works against storage efficiency.

Using automated picking, storage, handling and information can compensate for these opposing requirements to a degree. However, automation is always expensive to install and operate.

The figure below shows how different transaction volumes, storage requirements and technologies lead to different design concepts.

High Pick & High Storage This indicates a large and active warehouse such as a Distribution Center (DC). In these situations, high technology automated picking combined with mechanized handling and high density storage justifies itself.	High Pick & Low Storage With high picking activity but low storage, the picking area should be compact and dense and storage is simple. Some automation of picking may be justified.
Low Pick & High Storage Here the requirement is for high density storage with high bays, multi-levels and dense packing. Low turnover means that picking can be manual or semi-manual.	Low Pick & Low Storage A simple, small warehouse requires neither automation or sophisticated storage devices. Stacked pallets, floor storage or simple racks and shelves suffice. Handling is manual.

Wal-Mart Begins Rollout of RFID

RFID Wal-Mart Standards

RFID stickers used by Wal-Mart.

A new technology - passive tag Radio Frequency Identification (RFID) could play a role in helping to save the WMS market.

The first phase of Wal-Mart's implementation of RFID technology at the case and pallet level started today. Wal-Mart and eight product manufacturers begin testing Electronic Product Codes (EPC) at select Supercenters and one regional distribution center in the Dallas/Fort Worth metroplex.

This real-world trial follows extensive testing at the company's RFID lab and months of collaborative preparation by Wal-Mart and its suppliers. Wal-Mart has set a January 2005 target for its top 100 suppliers to be placing RFID tags on cases and pallets destined for Wal-Mart stores and SAM'S CLUB locations in the Dallas/Fort Worth metroplex area.

The eight manufacturers participating in the first phase of the trial include Gillette, HP, Johnson & Johnson, Kimberly-Clark, Kraft Foods, Nestle Purina PetCare Company, Procter & Gamble, and Unilever.