Practical Handbook of Warehousing

Practical Handbook of Warehousing

by Kenneth B. Ackerman

Paperback(Softcover reprint of the original 4th ed. 1997)

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Practical Handbook of Warehousing by Kenneth B. Ackerman

This is the third edition of a book first published in 1983. It con­ tains two new chapters. One of these deals with the growing use of "just-in-time" techniques and their effect on warehousing. A second new chapter covers specialized warehousing and three types of special storage - temperature control, protection of hazardous materials and "fulfillment" warehousing. Major changes in both materials handling and information processing and transmitting have caused appropriate changes in the contents of this book. For over two decades, the author has been involved in writing about the warehousing industry. Earlier writings were oriented to­ ward users and operators of public warehouses. The goal of this early writing was to develop a better understanding between the third party warehouse operator and his consumer, through a common apprecia­ tion of technical problems. Since that time, the number of information sources on warehous­ ing has increased. A professional society, the Warehousing Education and Research Council did not even exist when we first started writing about the industry. Today it provides an important source of informa­ tion in the field. Both private and third-party warehousing have grown in vol­ ume. More importantly, public awareness of warehousing as an in­ dustry in itself has increased.

Product Details

ISBN-13: 9781461377559
Publisher: Springer US
Publication date: 11/09/2012
Edition description: Softcover reprint of the original 4th ed. 1997
Pages: 572
Product dimensions: 5.98(w) x 9.02(h) x 0.05(d)

Table of Contents

Background of the Warehouse Industry.- 1 Warehousing: Origins, History and Development.- History.- Warehousing in America.- Role of the Independent Warehouseman.- Financial Security Aspects.- Role in Mass Production.- From Terminal to Distribution Center.- The Emergence of Business Logistics.- The Rise of Professional Associations.- Trade Associations.- 2 Warehousing in Today’s Economy.- The Business Environment.- Freight Consolidation.- Real Estate as an Investment.- Warehouse Locations Shift.- 3 The Functions of Warehousing.- Six Functions of Warehousing.- Three Warehousing Alternatives.- Cost Structure.- A Contract to Control Risks and Costs.- Changing Values of Warehousing.- Space.- Equipment.- People.- 4 Warehousing Alternatives the Make or Buy Decision.- Corporate Financial Policy.- Labor Relations Policies.- Strategic Decisions.- The Final Decision.- Public vs. Contract.- The Economics of Third Party Warehousing.- Bonus Incentives.- Other Factors.- The Elements of Warehouse Management.- 5 Communications.- Hard Copy Versus Voice.- Public Warehousing Forms.- Damages.- Real-Time Inventory Control.- Circulation of Sk Status Information.- Effective Order Picking.- Faulty Communications Equal Wasted Effort.- Complaints.- Standard Procedures.- Uniform Communications—A New Development.- Uniformity for Warehousing.- System Priorities.- 6 Packaging and Identification.- Functions of a Package.- How the Package Affects Warehousing.- Effect on Stacking.- Packaging for Unitization.- Identification.- Container Handling.- Package Design.- Efficient Packaging—A Joint Responsibility.- A Series of Compromises.- 7 Transportation.- Location.- Effects of Transport Modes.- Freight Rates.- Transit Time.- Private Fleets.- Warehouse Freight Consolidation.- Reducing Transport Costs in the Deregulation Era.- Reducing Freight Costs.- Transportation Brokerage—A Useful Tool.- The Second Industrial Revolution and Its Effect on Transportation.- 8 Accountability.- Title.- Inventory Responsibility.- Product Liability.- Insurance.- Summary of Claims Procedures.- 9 Starting-Up or Moving a Warehouse Operation.- Initial Planning.- Cost Considerations.- Transportation.- Taxation.- Insurance on Goods in Storage.- To Move or Not to Move.- Timing Can Be Critical.- Estimating the Cost of Moving.- How to Load the Trucks.- Cost of Transferring the Load.- How Long Will It Take?.- Deciding to Continue Services or Suspend Operations for the Move.- What to Move.- Customer Communications.- Other Communications.- Opening the Relocated Warehouse.- Planning the Opening of the Distribution Center.- Writing a Warehouse Operating Manual.- 10 Warehouse Performance Audits.- Tracking Accuracy.- Account Profitability.- Qualitative Performance Ratings.- Other Performance Guides.- Real Estate Aspects of Warehousing.- 11 Finding the Right Location.- Reasons for Site Seeking.- Location Theories.- Outside Advisers.- Requirements Definition.- Comparisons From Published Sources.- The Final Selection Process.- 12 Building, Buying, Leasing, or Rehabilitating?.- Acquisition.- A Worksheet for the Buy/Lease Decision.- Assumptions.- The Rehabilitation Alternative.- Rejuvenating Warehouse Roofs.- Rejuvenating Warehouse Floors.- 13 Construction.- Test Borings.- Government.- Storm Water Management.- Utilities.- Layout Design.- The Contract.- Risk Management.- Roofs.- Fire Protection Systems.- Heating.- Roads.- Docks.- Wear and Tear.- Floors.- Rails.- Illumination.- Walls.- Landscape.- 14 Planning for Future Uses.- Design Structure for Versatility.- Changes in Basic Function.- Internal and External Changes.- Planning Warehouse Operations.- 15 Space Planning.- Sizing the Warehouse.- Storage Requirements.- Interaction of Storage and Handling Systems.- Sk Location Systems—Fixed versus Floating Slots.- Family Groupings.- A Locator Address System.- Cube Utilization.- Lot Size.- Reducing Aisle Losses.- Reducing Number of Aisles.- Managing Your Space.- 16 Planning for People and Equipment.- The Process of Making Flow Charts.- The Best Sequence?.- ‘What If’ Questions.- Personnel.- The Critical Role of the Supervisor.- Planning for Equipment Use.- 17 Contingency Planning.- Strategies.- Trigger Points.- Planning for the Impact of Strikes.- —Your Own Firm’ s as Well as Others’.- Strike Against Suppliers.- Strikes Against Customers.- Trucking Strikes.- Charting the Planning Process.- Planning Steps.- 18 Postponement.- Background of Postponement.- Types of Postponement.- Postponement of Commitment.- Postponement of Title Passage.- Postponement of Branding.- Postponement of Consumer Packaging.- Postponement of Final Assembly.- Postponement of Blending.- Increased Warehouse Efficiency.- Potential Challenges.- Postponement in the Warehouse.- 19 Strategic Planning.- What Is It?.- How to Start.- Corporate Strategy as a Morale Builder.- Production Changes.- Strategic Thinking in the Public Warehouse.- Financial Changes.- Planning Warehouse Networks.- 20 Selecting a Public Warehouse.- The Preparatory Phase.- The Investigative Phase.- Evaluating Quality.- The Decision.- Protecting the Warehouse Operation.- 21 Preventing Casualty Losses.- Types of Casualty Losses.- Controlling Fire Risks.- Hazard Ratings for Stored Merchandise.- Wind Storm Losses.- Flood and Leakage.- Mass Theft.- Vandalism.- Plant-Emergency Organizations.- New Developments in Fire Protection.- The Importance of Management.- 22 ‘Mysterious Disappearance’.- Electronic Detectors and Alarms.- What About False Alarms?.- Door Protection Alarms.- Grounds Security.- Seals.- Storage Rack.- Restricted Access.- Marketability of Product.- Hiring Honest People.- Using Supervision for Security.- Procedures to Promote Security.- Customer Pick-ups and Returns.- Security Audits.- 23 Safety, Sanitation and Housekeeping.- Improving Safety in Lift Truck Operations.- Action Steps to Improve Safety.- Sanitation.- Housekeeping.- Damage Spreads.- Personal Appearance—Part of Good Housekeeping.- Effect on Employee Morale.- Effects on Customer Service.- A Source of Shame.- Impact on Safety.- A Housekeeping Checklist.- 24 Contracts and Liability.- The Changing Role of the Warehouseman.- The Insurance Problem.- Customer’s Contracts.- Liability Limitation.- A Meeting of the Minds.- 25 Verification of Inventories and Cycle Counting.- Purpose of Inventories.- Inventory Carrying Cost.- Benefits of Improvement.- Problem Areas.- How Can a ‘Physical’ Be Improved?.- Incentives.- Managing the Job.- Involve the Whole Team.- Getting Organized.- Advance Preparation.- The Importance of Cutoff.- Zones.- Arithmetic Aids.- Controlling the Count.- Reconciliation.- Eliminating Inventory Errors by Cycle Counting.- What Does the Future Hold?.- The Human Element.- 26 Orientation and Training.- Training.- Some Training Examples.- Retraining for New Equipment.- Films and Video Tape.- Operator’s Guide.- Mentoring.- Record Keeping.- Goals of Training.- 27 Labor Relations.- Creating a Union-Free Environment in the Warehouse.- An Example.- Public Warehousing Alternative.- Public Warehouse Strikes.- Using Subcontractor Warehouse Services.- Transportation Strikes.- Inventory Hedging.- Turning from Union to Union-Free.- Pre-Employment Screening.- Employee Complaints.- The Role of the Supervisor.- Arbitration Standards Pertaining to Discharge.- The Essence of Union-Free Management.- Summary.- 28 Motivation.- Output Criteria.- Feedback.- Skills.- Balance of Consequences.- Participatory Circles.- Developing a High-Performance Work Culture.- A Case Example of Participative Management.- Warehouse Incentives.- The Importance of Listening.- 29 Maintaining and Improving Performance.- Development.- Discipline.- Peer Review—A New Approach to Discipline.- New Personnel.- Pre-Employment Investigation.- The Interview.- Drug and Substance Abuse in the Warehouse.- Probation.- Personnel Management.- The Labor Contract.- Wage Reviews.- Job-Performance Appraisal.- Attitude Surveys.- Promotion From Within.- Pride in the Company.- Productivity and Quality Control.- 30 Making Warehousing More Efficient.- 1. Improve Forecasting Accuracy.- 2. Free Labor Bottlenecks.- 3. Reduce Item Handling.- 4. Improve the Packaging.- 5. Smooth the Flow Variation.- 6. Set Improvement Targets.- High-Priority Goals.- 7. Reduce Distances Traveled.- 8. Increase the Size of Units Handled.- 9. Seek Round-Trip Opportunities.- 10. Improve Cube Utilization.- Technology to Achieve Increased Efficiency.- 31 Measuring Productivity.- What to Measure?.- Historical Standards.- Predetermined Standards.- Observation Techniques.- Stopwatch Standards.- Multiple Regression Analysis.- Uses of Regression Analysis.- Quality Measurements.- Common Methods of Measuring Productivity.- Guidelines for Measurement Systems.- 32 Scheduling Warehouse Operations.- Eliminating Delay.- Truck Dock Schedules.- Backlog.- Scheduling for Peak Demand.- Real Time Information and Scheduling.- Sk Locations and Scheduling.- Aids to Scheduling.- 33 Customer Service—Its Role in Warehousing.- 1. Is This Warehouse Necessary?.- 2. Phone Orders and Toll-free Numbers.- 3. Consolidations.- 4. Free Shipping.- 5. Classify Orders by Size.- 6. Backhaul.- 7. Accuracy in the Warehouse.- 8. Keep Communications Channels Open.- 9. Seasonality and Sales Contests.- The Customers Pay the Bills.- Summary.- 34 Improving Asset Utilization.- Space Utilization.- Energy Utilization.- Equipment Utilization.- The Equipment Utilization Ratio.- Improving Performance.- Lift Truck Rebuild Program.- Key Points of the Rebuild Program.- The Value of the Program.- Inventory Performance.- The Management Factor.- Why Measure?.- Danger Signals.- Inventory Turnover and Distribution Analysis.- Case History.- An Action Plan—And Potential Benefits.- Summary.- 35 ‘Just-in-Time’.- JIT in Manufacturing.- JIT in Service Support.- JIT As a Merchandising Strategy.- JIT in Warehousing.- 36 Identifying and Controlling Costs.- Three Cost Centers.- Space Utilization.- The Effect of Product Turns.- Other Performance Specifications.- Measuring Productivity.- A Cost Calculation Example.- The Throughput Rate Concept.- Adjustments.- Summary.- 37 Management Productivity.- Defining Management.- Why Warehousing Is Different.- The Effective Manager.- Measurement Tools for the Manager.- The Critical Tasks of a Manager.- The Manager’s Hardest Job.- The Buck Stops Here.- How Good Are Your Warehouse Supervisors?.- The Supervisor Promoted from Within.- The Importance of Clarifying Expectations.- Putting It All Together.- 38 Reducing Errors.- The Value of Order Checking.- Order Picking Errors.- Order Taking Errors.- A Good Item Location System.- Clear Item Identification.- Clear Description of Quantity Required.- ‘Good’ Order Picking Document.- Order ldentification.- The Order-Filling Form.- Other Factors to Consider.- Multi-Line Order Filling.- Personnel Factors.- Identification With Work.- Posting Error Rates.- Using Case Labels.- ‘Picking Rhythm’.- Summary.- Handling of Materials.- 39 Receiving and Shipping.- Receiving.- Shipping.- Dealing with Shippers Load and Count (SL&C).- Controlling Damage Claims.- 40 Specialized Warehousing.- Temperature Controlled Warehousing:.- The Essential Differences.- Hazardous Materials Warehousing.- State and Local Building Inspectors.- Fulfillment Warehousing.- Summary.- 41 Order Picking.- Quality in Order Picking.- Order-Picking Forms.- Inventory Relationship to Order Picking.- Order Picking Systems.- Fixed Versus Floating Slots.- Order Picking Methods.- Discrete Versus Batch Picking.- Zone System of Picking.- Designing Your Order Picking System.- Modeling Order Picking.- Safety.- Hardware.- Summary.- 42 Equipment: Storage and Live Storage.- Defining the Job.- Improving Storage with Racks.- Reducing Number of Aisles.- Other Types of Pallet Rack.- Live Storage—Gravity Flow Rack.- When to Use Flow Racks.- What Flow Racks Will Not Do for You.- Using the Carousel.- Sk Layout in a Carousel.- Justifying the Carousel.- Conveyor Systems.- Types of Conveyors.- The AGVS Alternative.- Summary.- 43 Forklifts and Other Mobile Equipment.- Choosing a Lift Truck.- Lift Truck Attachments.- Order Picking Trucks.- Justifying Narrow-Aisle Equipment.- Strategic Considerations.- Automatic Guided Vehicle Systems.- System Integrators.- What to Look For in Mobile Equipment.- 44 Approaching Automated Handling.- Strategic Planning.- Ergonomics.- Robotics.- Conventional Warehouse System Vs. High Rise.- The Building.- Storage Equipment.- Materials Handling Equipment.- Back-up Systems and Maintenance.- Security.- Computer Requirements.- Coping with Change.- The Future of Automated Systems.- Conclusions.- 45 Unit Loads.- Pallets.- Parts.- Types of Pallets.- Types of Wood Employed.- Performance Specifications.- Box Pallets or Pallet Containers.- Slip Sheets.- Performance Specifications.- Building and Handling Unit Loads.- Loading Unit Loads on Trailer or Rail Cars.- Equipment to Handle Unit Loads.- A Case Example of Slip-sheet Handling.- The Potential Is Great.- 46 Dealing With Damage.- Causes of Damage in Physical Distribution.- Causes of External Damage.- Disposal of Carrier Damage.- Concealed Damage.- Warehouse Damage.- Reducing Warehouse Damage.- Recooperage and Repair.- Protecting Damaged Merchandise.- Storage of Damaged Products.- Loss and Damage Guidelines.- Damage Control Ratios.- Damaged Loads Ratio.- Inventory Shrinkage Ratio.- A Management Checklist for Damage Control.- Handling of Information.- 47 Clerical Procedures.- Customer Service Standards.- Location of Clerical Center.- Office Environment.- Organizing the Clerical Function.- Interaction with Marketing.- Manual and Electronic Data Processing.- Control of Automation.- Measuring Clerical Costs.- Management Information.- 48 Computer Hardware.- Micro, Mini, Mainframe.- Computer Jargon.- Portable Data Collection Terminals.- Purchasing Hardware.- Hardware Development.- Applications in Public Warehousing.- 49 Software for Warehousing Operations.- Warehouse Floor.- Customer Service.- Management Information.- Transportation.- Electronic Data Interchange (EDI).- Cost Analysis Programs.- Program Costs.- The Requirements Definition.- The Role of the User.- Finding Software Sources.- Evaluation.- Demonstration.- Flexibility and Control.- The Vendor.- Training.- 50 Electronic Identification.- Bar Codes—What They Are and How They Work.- Scanners.- Contact and Non-Contact Readers.- Printing Bar Codes.- Using Bar Coding in a Warehouse.- Benefits.- Using the System.- The Future of Electronic Identification.- Appendices.- Appendix 1.- Uniform Commercial Code.- Appendix 2.- Awa Booklet of Depositor-Warehouseman Agreements.- About the Author.

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