Order-Fulfillment and Across-the-Dock Concepts, Design, and Operations Handbook

742 Pages·2003·14.46 MB·English

by  David E. Mulcahy

Order-Fulfillment
and Across-the-Dock
Concepts, Design, and
Operations Handbook
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Order-Fulfillment
and Across-the-Dock
Concepts, Design, and
Operations Handbook
David E. Mulcahy and John Dieltz
ST. LUCIE PRESS
A CRC Press Company
Boca Raton London New York Washington, D.C.
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Library of Congress Cataloging-in-Publication Data
Mulcahy, David E.
Order fulfillment and across the dock concepts, design, and operations handbook / David
E. Mulcahy, John Dieltz.
p. cm.
Includes index.
ISBN 1-57444-044-6
1. Physical distribution of goods—Management—Handbooks, manuals, etc. 2.
Warehouses—Management—Handbooks, manuals, etc. 3. Business
logistics—Management—Handbooks, manuals, etc. I. Dieltz, John. II. Title.
HF5415.7.M85 2003
658.7¢88—dc22 2003066730
This book contains information obtained from authentic and highly regarded sources. Reprinted material
is quoted with permission, and sources are indicated. A wide variety of references are listed. Reasonable
efforts have been made to publish reliable data and information, but the author and the publisher cannot
assume responsibility for the validity of all materials or for the consequences of their use.
Neither this book nor any part may be reproduced or transmitted in any form or by any means, electronic
or mechanical, including photocopying, microfilming, and recording, or by any information storage or
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The consent of CRC Press LLC does not extend to copying for general distribution, for promotion, for
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Trademark Notice: Product or corporate names may be trademarks or registered trademarks, and are
used only for identification and explanation, without intent to infringe.
Visit the CRC Press Web site at www.crcpress.com
© 2004 by CRC Press LLC
St. Lucie Press is an imprint of CRC Press LLC
No claim to original U.S. Government works
International Standard Book Number 1-57444-044-6
Library of Congress Card Number 2003066730
Printed in the United States of America 1 2 3 4 5 6 7 8 9 0
Printed on acid-free paper
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Preface
The objective for writing this practitioner (practical how-to-do-it) book is to provide
warehouse and distribution professionals with a handbook that contains insights and
tips to make their order-fulfillment or across-the-dock operation more efficient and
cost effective. The chapters focus on a specific order-fulfillment classification or
across-the-dock operation. The arrangement or focus of each chapter on a particular
topic provides a reader with a quick and easy reference. These chapters cover
equipment applications, concepts, and practices that are considered for implemen-
tation whether your operation is a large-, medium- or small-size business. The book
contains illustrations, forms, and tables that assist in developing your order-fulfill-
ment or across-the-dock operation to (1) reduce product damage, (2) enhance product
flow, (3) increase employee productivity, (4) improve customer service, (5) reduce
operating costs and improve profits, (6) maintain on-schedule deliveries, and (7)
assure asset protection.
It is necessary to understand that the purpose of the book is to help develop
the skill and knowledge of its readers to design, organize, and operate a material
handling or product transportation concept. Since the profession of order-fulfillment
operations and across-the-dock operations management, material handling concept
design and logistics is constantly changing, the book may not include the latest
changes in the state-of-the-art references to new technologies, the various equipment
applications, or material handling concepts.
It is also necessary to recognize that this book cannot cover all the available
equipment applications, technologies, and material handling concepts in the field of
warehouse distribution, order-fulfillment, and across-the-dock operations. The book
does assist in the training and obtaining of practical experience which has no
substitute. To assist in this objective, line art illustrations and sketches are used to
visually present a piece of equipment or material handling concept.
It is important for the reader to use the collection of data, concepts, and forms
as a guide. Prior to the purchase and installation of your new order-fulfillment or
across-the-dock concept or equipment, it is essential that you develop and project
correct, accurate, and adequate facility, inventory, stock-keeping units (SKUs), trans-
actions data, and design factors. Because these are the design bases for your proposed
order-fulfillment or across-the-dock equipment application or facility, it is prudent
for you to gather and review vendor literature and to visit existing facilities that
utilize the order-fulfillment or across-the-dock concept or equipment application.
These activities permit you to become familiar with the operational characteristics
of the order-fulfillment or across-the-dock concept or equipment application that is
under consideration for implementation in your facility. The concept and perfor-
mance specifications, physical design, and installation characteristics are subject to
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redesign, improvement, and modification. They are also required to meet vendor,
local, and governmental standards and specifications.
Each chapter of this book deals with key aspects and issues of planning and
managing an order-fulfillment or across-the-dock operation. Some of these issues
are: how your facility layout and product location affects employee productivity;
when to use the 80/20 rule and where to locate your power SKUs; how to route
your order pickers and organize their work for the best productivity; how to deter-
mine the best small-item, hanging garment, carton, and pallet load pick concept;
how to control the batch release; how to determine what is required for an across-
the-dock operation; how to choose the most efficient and cost effective small-item,
hanging garment, carton and pallet load pick concept for business; how to the identify
the pick position; how to control pick position replenishment; how to choose the
best sortation concept for your business.
Most logistics professionals have learned from their experience with a pre-
planned and organized order-fulfillment or across-the-dock operation so that they
have increased accurate and on-time deliveries, reduced costs, and improved profits.
By getting and maintaining an order-fulfillment or across-the-dock concept as out-
lined in the book, it will improve your existing order-fulfillment or across-the-dock
operation and provide future strategies for your next warehouse or plant facility.
The authors would like to express their thanks to all material handling, ware-
house and distribution, and logistics professionals with whom they have had an
association at various companies, as fellow managers, as clients, as speakers at
seminars, and as publishers.
David E. Mulcahy
John P. Dieltz
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Authors
David E. Mulcahy has been with QVC Corporation since 1999. He earned a B.S.
degree in business administration from Salem (Massachusetts) State College and an
M.B.A. degree from the University of Dallas. He has more than 30 years of increas-
ingly responsible experience in all aspects of order-fulfillment and across-the-dock
operations and international supply chain management. A prolific author and speaker,
this is his third book.
John P. Dieltz is currently employed as an application engineer for the Kingway
Inca Clymer Material Handling Company. He earned an undergraduate degree in
engineering from South Dakota State University and a Master’s degree in industrial
engineering from Iowa State University. He has more than 10 years of experience
in distribution working on order-fulfillment solutions for companies shipping dif-
ferent types of products.
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Contents
Chapter 1 Order-Fulfillment and Across-the-Dock Strategic Considerations......1
Introduction......................................................................................................1
Piece and Information Flows...........................................................................2
Economic Value................................................................................................3
Order-Fulfillment or Across-the-Dock Operation Serves Your Company......3
Order-Fulfillment or Across-the-Dock Operation Resources..........................3
Company Order-Fulfillment or Across-the-Dock Operational Objectives......4
Important Order-Fulfillment or Across-the-Dock Trends and Issues.............4
E-Commerce and the Internet..........................................................................4
Overview..........................................................................................................5
Chapter 2 Order-Fulfillment and Across-the-Dock Objectives and Their
Impact on Your Company’s Profit and Customer Service..................7
Introduction......................................................................................................7
Order-Fulfillment Activities.............................................................................7
Across-the-Dock Activities..............................................................................7
Piece-Handling Characteristics.......................................................................8
Order-Fulfillment Operation Objective............................................................9
Across-the-Dock Operation Objective.............................................................9
Order-Fulfillment and Across-the-Dock Operation Activities........................9
Yard Control.........................................................................................10
Unloading.............................................................................................11
Verifying Piece Quality and Quantity..................................................11
Receiving..............................................................................................11
Piece Identification...............................................................................12
Packaging..............................................................................................12
Horizontal or Vertical Transportation...................................................13
Storage..................................................................................................13
Deposit..................................................................................................13
Inventory Control..................................................................................13
IMS Customer-Order Download..........................................................13
Carton or Shipping Container Makeup................................................14
Customer-Order Pick............................................................................14
Sorting...................................................................................................15
Replenishment......................................................................................15
Packaging..............................................................................................16
Package Sealing....................................................................................16
Package Weighing and Manifest..........................................................17