In a competitive omnichannel fulfillment era where retailers are constantly trying to meet rising customer service levels, flexibility in order fulfillment processes and distribution operations is mandatory for survival. It means having the ability to continuously adapt to a dynamic mix of order profiles and proliferating SKU counts, while always maintaining a keen awareness of their impacts on fulfillment processes and inventory consumption. It means effectively balancing retail, wholesale and direct-to-consumer requirements. And it means being nimble enough to adapt and respond in real time to spikes in demand.
If you think this all sounds difficult to achieve, you're right. But to successfully navigate these omnichannel requirements, retailers need real strategies to enable this degree of flexibility. This was the focus of a recent On The Move webinar I moderated, titled "Addressing the needs for flexibility in current distribution operations." It's a holistic approach that encompasses facility design, picking and putting processes, and the importance of effective labor management. Following is a summary of the webinar's high-level points:
Profiling, slotting and facility design. It's important to design your distribution facility to not only meet today's demands, but also have the flexibility to adapt to future requirements. Warehouse profiling, which seeks to maximize space utilization by determining which types of slotting options are best-suited for particular products, is vital to fully utilizing available facility space and reducing replenishment costs. Well-profiled items make the most efficient use of shelf and rack space.
Picking technologies. The selection of picking technologies and methods, or some combination thereof, is an important operational decision that helps enable flexibility in the warehouse. While some technologies may provide increased flexibility, there may be trade-offs in productivity and costs. Retailers must weigh the pros and cons of these methodologies and select options that meet their operational objectives and order and inventory profiles.
Putting strategies. Putting refers to the processes that support order consolidation through the gathering of multiple, independent storage or picking areas into a single, shippable container. Minimizing worker travel and touches, and "golden zone" allocations to increase accuracy and throughput are all part of an effective putting strategy necessary for adapting to e-commerce and store replenishment requirements.
Labor management software. LMS helps retailers match resources to the day's expected demands while maximizing the efficiency of all tasks throughout the warehouse. Demand planning, execution monitoring, resource allocation and continuous performance improvements can be achieved with LMS - establishing both process predictability and the flexibility to move resources to adapt to variations in a given plan.
In short, DCs need not only to become more flexible in their slotting, picking and putting operations, but also in allocating labor resources to meet the demands of the day. For a more detailed explanation of each of these strategies, please visit our On The Move webinar archives and view my presentation in its entirety.