OVERVIEW:
Throughout the 1970s and 1980s, companies focused on production efficiencies and quality. Over the past few years, the focus has shifted to the storage and distribution process. In the haste to speed information across the supply chain, too little attention has been paid to assuring that the basic order fulfillment process is in place to back it up. With increasing demands for just-in-time (JIT) delivery and rapid response programs, "logistics" is the buzzword. Immediate access to information about product movement, and the ability to control it throughout the "food chain" is the key to success.

Today, warehouses need to be customer driven; focused on pulling product based on customer demands. These demands require new abilities to support cross-docking, postponement strategies, and other value added services like light assembly and kitting. Warehouse management systems are transforming static warehouses into a nimble just-in-time fulfillment centers capable of meeting evolving customer requirements. They are becoming smaller and more dynamic facilities. Products received can be identified, sorted, routed, and shipped in an uninterrupted flow. The irony is that companies now recognize that this process is not only attainable, but offers processing efficiencies that make it a compelling decision to implement.

Based upon industry standards, companies typically spend 7 to 10 percent of their operations budgets on distribution. Using bar codes for automatic sorting or shipment validation can increase through put by up to 40% and reduce labor costs by 25 to 60%, representing thousands of dollars in annual savings.

DECISION FACTORS:
There are a number of factors involved in the decision to implement an automated warehouse management system. They include:

• JIT & RAPID RESPONSE CAPABILITY:
  In order to respond to customer demand for these services, businesses are finding that they in turn need to implement such programs with their suppliers.
  
  
• CUSTOMER SERVICE:
  Customers won't wait for back-ordered items if a competitive product is available. As a result, many companies have cited service as the primary motivation for automating warehouse management systems. This includes improving shipping accuracy.
  
  
• COST SAVINGS:
  It is much less expensive to automate warehouse management systems than it is to simply build out more warehouse space. Reducing inventory, ensuring proper LIFO/FIFO stock rotation, optimizing picking, and cross-docking are all enabled by automatic identification technologies.

GOALS:

1. Increase productivity of warehouse employees by improving the speed and accuracy of put away and picking operations.
   
   
2. Have every location uniquely identified Minimize data collection time, Minimize travel distance to scan the bar code.

WAREHOUSE SYSTEMS:
There are four basic functions of warehousing: receiving, storage, picking, and shipping. Typical automated warehouse management systems (WMS) have four separate but inter-related systems to process product from the receiving door to the shipping door. These systems include RECEIVING, INTERNAL MOVEMENT, PICKING, and SHIPPING. Every warehouse has variations based upon the products they distribute and the customers they serve. The differences include handling and picking full pallets, full cartons, repack of individual items or a combination of these. In each of these systems, the specific product must be identified to assure positive control.

The following describes the basic processing systems within an automated warehouse system. These needs are simple but are critical as a complete system to effectively and accurately identify and track products. Each time a process occurs, the product must be identified to track its movement and location.

RECEIVING:
When a truck with an incoming shipment arrives at the dock the RECEIVING PERSON secures the packing slip and inputs the purchase order number into the radio frequency portable terminal (RFPT). The use of handheld computers and laser scanners instantly verify that what was ordered is what was shipped to you. The quantity received is verified against the quantity ordered. Missing items are instantly identified. Incorrect items or deliveries, which could occupy valuable space costing processing time and money, can be rejected, thus never making it into the system. Once all items are identified, requested items are received, with any discrepancies being noted and entered via the RFPT.
See More on Receiving Labels.

Shipments lost in the warehouse are often the result of incorrect labeling and hence, misplaced. To prevent this, the received units of product (pallet, cartons, etc.) are identified with a unique numbered label or tag providing tracking within the warehouse system. There are two basic options:

• Printing and affixing receiving labels for each unit of product. These would include specific data as to the product, data, unit identification number, etc. including a bar coded identification number, or
• Affixing a "license plate" receiving label with bar code which is scanned into the receiving record. The specific data is entered into the database and linked to the "license plate" number. The exact location of each item can always be identified in real time.

PUT-AWAY:
The PUT-AWAY PERSON moves the units of product to the correct area (i.e. primary pick, regular inventory, or backup inventory). With the aid of portable scanners, the put-away function can be manual or automatic. Specialized material handling equipment, like forklifts, can be easily integrated. The put-away person can be directed by an RFPT to a specific location or choose the location, then scan the unit identification number and the location bar codes. If they are directed to put the product in a specific location and the wrong location is scanned, the system will direct the put-away person to the correct location.

INTERNAL MOVEMENT:
The internal movement of inventory takes place if there are multiple inventory areas. Computerized control systems measure and identify when items are needed in a primary pick area for repack, or a full case area. A move label will be generated identifying the "from" and "to" areas that are scanned including the item identification number on the pallet. In paperless warehouses the information is sent via a RFPT. The location identification number and the item identification number are both scanned for verification.

PICKING:
The picking process can be simple to complex depending on the options below. There are many picking process variations depending on the: products being handled, method of moving product s (conveyor, cart, forklift), unit of measure (full case, repack), picking method (zone, field, parallel zone, single thread, or continuous), shipping recepient (own store or customer), shipping method (truck, parcel, or NDA), and level of automation. The two processes are 1) pick products from a picking document, with or without shipping labels, place items into a tote or on a pallet or 2) pick items using labels identifying the items to pick and the customer. See More on Picking Labels.

SHIPPING:
Shipping is the final step that completes the transaction. Shipments can be consolidated to optimize trailer capacity and weight factors. For easy offloading, they can be organized automatically. At some point in the picking/shipping process, the packing slip, bill of lading, shipping labels, and/or NDA shipping labels/documents need to be generated and placed in the shipment. See More on Shipping Labels.

IDENTIFICATION NEEDS WITHIN THE WAREHOUSE OR DISTRIBUTION CENTER:
In addition to processing and tracking needs, there is a wide array of identification requirements within a warehouse and/or distribution center that are significantly more complicated than appear initially. Warehouse and distribution centers have a wide array of employee, product, and location identification needs that enable them to improve the efficiency of the processing and tracking functions.

There are three permanent identification components within a tracking system. These components identify who handles products and where the products are located at any given time. By measuring who and how the product was handled as well as where it was located and where it was moved, it is possible to gauge the efficiency of the system. The components are:

1. Employee identification (via bar code badge) to track productivity and responsibility for each activity.
2. Identification of storage locations (aisle, rack, cage, vault, etc.) with human readable and bar code identification.
3. Bar code identification of picking totes or pallets if they are used in the picking process.

NEW INSTALLATION CONSIDERATIONS:
Successfully implementing an identification system in a warehouse or DC requires preventing project stopping issues. These issues are largely underestimated. Such an underestimated, key project stopping issue is the compatibility of scanning equipment, bar code dimensions, label size, and material handling equipment across various applications within the warehouse.

The goal of a new WMS installation is automatic data collection and verification via successful bar code scanning. However, with many different bar code applications occurring simultaneously within the facility, it is necessary to understand how scanning works. The critical elements to a successful scan include the combination of the type of scanner, the "x" dimension of the bar code, the label stock, and the scanner's scanning range (minimum and maximum). It is critical that the warehouse staff understand this distinction so that the proper equipment, label, and bar code design be acquired and used. Unless this combination of elements is compatible, scanning results will be inconsistent.

Scanners scan within a specific distance or "depth of field." This "depth of field" is the range from the minimum distance to the maximum distance for which the scanner can read the size of bar code being used. Bar codes can be printed to be readable by a specific type scanner within a specified distance (depth of field). Bar codes can be printed with wider (longer distance) or narrower (shorter distance) bar widths to accommodate a depth of field requirement. For example, a 30mil bar code on standard white material is scannable by a standard scanner from 4-6 feet. Neither the scanner nor the bar code can be used for greater distances. With each scanner there is a minimum and maximum scan range for each size of "x dimension". There are different types of scanners which will scan different bar code "x dimensions" and scan from different distance ranges. To achieve a "long distance" scan, different scanners, different bar code x dimensions, and/or different label materials are required. The label size is a consideration of the bar code size requirement and the physical location where the label is to be placed.

CONDITIONS:
These issues affect the design criteria of the labels:

1. The physical characteristics of the facility.
   1. Of particular interest are the height of the racks and the width of the aisles. This will determine the distance and angle at which the bar codes will be scanned. This in turn shapes the label/bar code considerations.
   2. The types of storage units (i.e. racks, shelves, bins, totes, vaults, cages, floor areas, etc) can vary by size (very small to ultra large), shape, materials (i.e. plastic, metal, wood, concrete, corrugate, glass, etc), and surfaces (i.e. painted or unpainted, rough or smooth, flat or sharply curved, etc).
   3. The distance to be scanned (i.e. 1" up to 35+ feet).
   4. Poor location database information.
   5. Inaccurate facility location maps. No bar code labeling of the warehouse can begin until a complete and accurate map is available.
      
      
2. Environment
   1. Temperature: hot and/or cold
   2. Humidity: damp and/or dry
   3. Lighting: dark and/or light areas, the type of light source (direct sunlight, UV lighting, etc.).
   4. Cleanliness: dirt and/or dust
      
      
3. Chemical contact
   1. Cleaner and/or solvent exposure
   2. Oil and/or grease exposure
      
      
4. The type of equipment being used or contemplated.
   1. Multiple types of scanners ranging from short range to long range, as well as hand held versus mounted.
   2. Material handling Equipment. Product picking requirements (i.e. UOM, full case, repack, full pallet) will largely dictate material handling equipment (i.e. totes, man up pick lifts, fork lifts, etc.).
      
      
5. The numbering format desired by the facility staff. Any special numbering sequence, bar code symbology desired, bar code symbology required, human readable features including numbers, a prefix, designators, etc. or the use of license plate location labels.

ISSUES TO BE RESOLVED / DESIGN CRITERIA:

1. Depth of field
   1. What is the range of distance (horizontally and vertically) from which the bar code will be scanned?
   2. What type of scanning equipment is involved?
      
      
2. Bar code size and symbology
   1. The bar code size will be a function of the symbology chosen, the depth of field, the "x" dimension of the bar code, the number of digits/characters to be imaged, and the label material selected.
      
      
3. Facilitating location identification
   1. Use color (functional) or design codes (i.e. arrows) to improve location identification. Aisles and tiers can be designated with a prefix (i.e. a location within a rack slot may be identified as either L-M-R). Tiers may be color coded for different levels of the racks.
      
      
4. Label size
   1. The label size will be a function of the bar code size, other graphics required on the label, and the label material selected.
      
      
5. Substrate Materials
   1. Facestock selection. The type of label stock can impact the depth of field by 300%.
   2. Adhesives. This selection is based on environmental conditions and surface characteristics.
   3. Laminating labels. Permanent label applications within a warehouse are subjected to a variety of conditions that can affect bar code scan performance. Totes are nested, resulting in label scuffing; location labels need to be cleaned to provide a clear scan surface, washing can result in potential bar code damage; daily handling of employee badges can wear the badge quickly. Laminating protects against these issues.
      
      
6. Sequencing labels for easy installation
   1. Number sequencing, roll quantity, etc. can have a big impact on how quickly and easily it is to label aisle and rack locations.
      
      
7. A complete file of warehouse locations to be identified
   1. A) The proper location labels cannot be manufactured without a complete file of locations.

LABEL APPLICATIONS:
There are seven (7) separate identification needs requiring bar coding and numbering:

1. Employee badges (Permanent application)
2. Location (bin-rack-shelf-area) identification (Permanent application)
3. Receiving identification (Variable application)
4. Internal move identification (Variable application)
5. Order picking identification (Variable application)
6. Tote identification (Permanent application)
7. Shipping identification (Variable application)

The material used for these applications vary widely depending on the physical and environmental conditions of the facility. Many are pre-printed and laminated for durability using an aggressive permanent adhesive for long-term adherence. Some use removable adhesive. Some are put on tags and are inserted into pockets and others are put on placards for hanging in open areas. Still others are put on magnets for movement in flexible warehouses. Most of the time the material used is synthetic for strength and durability. Standard material, paper or synthetic, can only be scanned at up to about eighteen (18) feet without requiring special material used for scanning at up to thirty five (35) plus feet depending on the scanner used and the lighting in the environment.

These products are normally preprinted so that the product can be laminated. Replacement labels are being printed onsite using Thermal Transfer printers.

EMPLOYEE BADGES:
Employee activity and productivity can be tracked via employee identification numbers. Employee badges with bar codes enable employees to scan in as they begin and end activities, thereby enabling the organization to track the productivity of receiving, put-away, picking, and shipping processes.

SUMMARY:
The key to a smooth running operation is a smooth installation. Having a complete location map, a thorough understanding of the surfaces to which the labels are applied, depth of field issues, and the handling and processing systems will contribute to the proper choice of products.

Two recommendations:

1. Make sure that the installation process of labeling is thought through. Many times dozens of temporary staff are brought in to apply the racking and tote labels. The method in which these labels will be applied should dictate how they are packaged (rolls of 1000 are not appropriate if each person is to be issued 50 labels at a time.
2. Test and test again before actual installation

©Pointil Systems 12807 NE Airport Way Portland, Or 97230 503.257.5097