Warehousing Guide

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CONTENTS

PUBLISHED BY CONTENTS
Lane Network Trading INTRODUCTION
[email protected] FOREWORD
Tel | (011) 744 5038 PURPOSE AND IMPORTANCE OF WAREHOUSES
Fax | (+27) 86 260 7077 MAIN WAREHOUSING ACTIVITIES
LOADING AND DISPATCH
GRAPHIC DESIGNER PICKING
Mindcraft Designs STOCK TAKE
[email protected] MATERIAL HANDLING EQUIPMENT
RACKING
DIRECTOR DOCKING
Lelanie Lane WAREHOUSE DESIGN AND OPERATION OPTIMISATION
[email protected] WAREHOUSE MANAGEMENT SYSTEM
Tel | (011) 744 5038 SITE DESIGN
www.supplynetworkafrica.com FLOOR SPECIFICATION
WAREHOUSE SAFETY
MEDIA PARTNERS LOGISTIC MASTER PLAN (LMP)
Africa Energy Indaba INVENTORY OPTIMISATION(LMP)
SCALEX East Africa
Eurasiayan

ENDORSING BODIES
SAPICS - The Association for Operations
Management of Southern Africa
ASCP - Association of Supply Chain
Professionals
SAAFF - South African Association of
Freight Forwarders

ADVERTISERS

CASLAD 2
INTERROLL 5
KEMACH JCB 10
NACE LOGISTICS 13
LOADTECH 15
KEMTEK 19
IFMNOVATION 21
SOLUTIONS4U 23
BIDVEST 25
PROSTORAGE CONCEPTS 26
KROST 29
ACROW STORAGE SOLUTIONS 32
STAB-A-LOAD 36
INVINCIBLE VALVES 39
KNAPP 41
DEXION 43
UNIVERSAL STORAGE 46
ETERNITY TECHNOLOGIES 53
ECONORACK 55
TRACKMATIC 57
CHEP 63
INTERROLL 64

04
06
07
09
11
14
16
20
22
27
34
37
40
42
44
49
52
54

INTRODUCTION

Warehousing is at the heart of manufacturing and distribution operations, impacting customer service, distribution
efficiency and effectiveness and setting the production pace. The warehouse operation and strategy have a major
impact on the cost and value of the Supply Chain.

Supply Network Africa provides an in-depth look at Ido Rieger Andrew Ferret
aspects of warehouse design and operation. The team
at Rieger Industrial Consultants (RIC) provide insights Tafara Chitsiga Hernan Roitman
and direction towards warehousing excellence. RIC is
a professional Industrial and Management Engineering
Firm that provide end to end solutions to an array of
organisations. With offices in South Africa, Argentina
and Israel, RIC has a 30-year history of providing
innovative, tailored solutions in over 20 countries. Our
extensive experience and knowledge across the variety
of industries, complemented by products and tools
developed, enable us to provide innovative solutions
ranging from large-scale strategic enhancements
through to tactical plans and operational improvements.

3 WE FOCUS ON THREE Yehuda Goldberg Priya Veeranna
KEY BUSINESS AREAS:
Kiran Desai Bryce Groenendaal
SUPPLY CHAIN OPTIMISATION
Supply Chain Network Design, Demand Terence Meyer Brandon Schmid
Forecasting, Production Scheduling,
Sales and Operation Planning, Transport Our approach is to get an in-depth understanding of
and Distribution Analysis, Warehouse our client’s operations, getting our hands dirty where
Specification and Design, Labour necessary, influencing strategy where appropriate,
Scheduling and Inventory Optimisation. and all aspects in-between, so that our solutions are
BUSINESS VALUE ENGINEERING practical, implementable, drive results and are in-line
Business Process Optimisation, Data with the business objectives. Entrenching our solutions
Analysis and Analytics, Operational ensures sustainability, delivers productivity and provides
Efficiency Enhancements, Project you the competitive edge!
Management, Safety Assessment,
Ergonomics, Quality Assurance and
Feasibility Studies.
FACILITIES ENGINEERING
Site Master Plan Development Planning,
Capacity Analysis, Process Layout Designs
and Optimisation, Process Dynamics,
Performance Acceptance Testing, Due
Diligence Analysis.
6

FOREWORD

A supply chain is a network of organisations, entities, people, activities, information, technology and resources that
work together in unison to transform resources, build products and add value, with the ultimate goal of providing the
end customer with the desired product, often being consumables. Virtually infinite number of supply chains around
the world are operating 24 hours a day, 7 days a week, with complex dependencies and interactions affecting all of us,
either directly or indirectly. Our society is highly dependent on it and for the most part – take it all for granted. Designing,
deploying and improving the specific business supply chain is a daunting task. Understanding all the elements and how
they interact with one another requires knowledge, insight and experience.
Supply Network Africa and RIC are embarking on a journey of publishing a Warehousing Guide. We envisage several
issues covering different aspects of the supply chain. In this very first issue, we focus our attention on the warehouse.
The guide covers topics ranging from the purpose of a warehouse in a business’s strategy, through to its design,
operations, and factors that need to be taken into consideration to ensure an efficient and safe process.
The content of the guide is written by RIC engineers and is predominantly based on RIC industry experience and
augmented by research. A significant proportion of the research is based on discussions with suppliers, customers,
warehouse operators and management as well the internet. The Warehouse is an important part of the supply chain.
However, it is considered a grudge purchase and almost always not given the attention it deserves and requires. That
attention is required at the conceptual stage, at the design phase and at the operational phase.
The Warehouse Guide is made up of separate articles, each touching on different key topics. Moreover, we are certain
that there are many more relevant topics and dimensions we did not even think about. We certainly hope that the
reader will enjoy and benefit from the different articles presented. Perhaps most value will be gained by studying the
list below. In the chart, we tried to mention the very different topics, dimensions, issues, considerations that need to
be researched, quantified, studied, optimized, integrated on route to ensure an efficient warehousing operation that
supports an effective supply chain.

7

1 23 4 5
Why Receiving Loading and
The function of Warehouse put-away dispatch
warehousing? warehousing in the strategies and
greater supply chain?
6 tactics
Storage
78 9 10
Material handling
Picking Stock take equipment Racking

11 12 13 14 15
Docking WMS Live loading
Big data and business Artificial
intelligence intelligence

16 17 18 19 20

Warehouse network Warehouse design Mezzanines Automated systems Inverters and
optimisation and operation and converters
optimisation
platforms

21 22 23 24 25
Pedestrian Warehouse structure
Wrappers and Site design Truck staging walkways
strappers (roof and column)

26 27 28 29 30

Floor specification Choice of racking type Lighting Doors, walls & Personnel facilities
separation

31 32 33 34 35

Offices and amenities HVAC (heating, Utilities (electricity, Warehouse safety Fire protection and
ventilation and air water and air safety
compression)
conditioning)

36 37 38 39 40

KPI Logistic master plan Standardisation Truck turnaround Inventory
management time optimisation

41 42 43 44 45

Forklift operations ABC stock allocation Optimised stock levels Warehouse Supply chain grid
46 47 location optimization

Cold chain Insurance
requirements

8

PURPOSE AND IMPORTANCE
OF WAREHOUSES

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In a perfect environment with no uncertainty or reliability issues, no storage is needed. In such a utopian world, forecast
will be 100% accurate. Resources will be reliably converted directly into finished products that will be shipped to the
customer, meeting their exact expectations. Unfortunately, we live in a world where supply chains are complex and
susceptible to random and irregular changes and flaws. At times, clear economical motivation for storage exists (e.g.
storing for peak demand with limited expensive production capacity). Perhaps a good example of warehousing and
the different motivations, economic, political, tactical and strategic implications can be found in the record (Genesis

7 TYPICAL MOTIVATIONS 41) relating to Joseph in ancient Egypt “So
FOR A WAREHOUSE: Joseph stored up grain in such abundance,
like the sand of the sea, that he stopped
STORING FOR SEASONAL SUPPLY / DEMAND keeping track of it, for it was beyond
ALLOWING FOR CONTINUOUS MANUFACTURING measure.” Warehousing is required at
IMPORT / EXPORT FACILITATION various stages of the supply chain. Some
RISK MITIGATION IN TERMS OF LOSS examples are storage of natural resources
PRESERVATION AND PROTECTION OF PRODUCTS after harvesting mining or extraction,
CONSOLIDATION OF GOODS staging of efficient transport loads, keeping
REDUCED ORDER LEAD TIMES FOR CONSUMER ORDERS ownership until a favourable market
presents itself, Work In Progress (WIP) in
the value chain, delayed commitment for
mass customisation, engineering spares,
etc. Management likes to focus on plant
and machinery, marketing and strategy,
ignoring warehousing requirements
and underestimating related CAPEX and
OPEX. This is done at their peril and
should therefore be well advised to give
warehousing and its value to the supply
chain its due recognition and attention.

9

RANGE KEMACH JCB

f in

MAIN WAREHOUSING ACTIVITIES

Receving Put-away Storage Picking Dispatching

The main activities in a warehouse can simply be categorized as receiving, put-away, storage, picking & packing
and dispatching. Each of these activities has many tasks and subtasks that need to be performed for the
warehouse to serve its purpose.

Dispatcing 15% Receiving An indication of the
15% warehouse OPEX cost split
5% Put-away is shown in the pie chart.
20% Studies have shown that
picking, and packing is the
Storage highest cost. Costs are,
however, dependent on
45% the type of warehousing
operation. This chapter will
delve into these 5 activities.

Picking & Packing

3.1 RECEIVING AND PUT-AWAY
Receiving and put-away are the first essential functions of a warehouse. Depending on a business’s specific process
controls, these two operations are sometimes combined. Both receiving and put away are therefore covered in this
section.

3.1.1 Receiving
Receiving being the first process in the warehouse activities’ chain, if executed poorly, is
likely to have negative consequences to the rest of the warehouse operations. Developing
a precise regimental receiving process in the warehouse is crucial for warehouse
operations to function effectively. Only when goods are received and entered into the
warehouse management system or manual based system, can the rest of the operational
staff be able to efficiently find out what goods are in the warehouse, in what quantities,
when goods can be picked and where to find them. Therefore, receiving is the foundation
for an efficient warehouse.

11

MAIN WAREHOUSING ACTIVITIES

When receiving goods, the warehouse operator may need to perform the following processes:
• Check the goods against various documentations (purchase orders, advanced shipping notices, goods received notes,

etc.). Check that delivery order number is accurate, the correct stock has been delivered and that the quantities are
correct, etc.
• Pre-inspect the goods for damages while on the truck. There is no point in offloading damaged goods that won’t be
accepted by the warehouse.
• Offload stock into staging bay. This sub-operation is dependent on the type of packaging that the goods are transported
in, but may involve forklift, conveyor or manual handling.
• Do a detailed inspection of the goods, when on the shop floor. This could involve inspecting specific weights,
quantities, assemblies of goods, etc.
• Process goods into the warehousing record systems for traceability. The warehouse system can range from cardex,
basic spreadsheets all the way to fully integrated warehouse management systems.

3.1.2 Put-away C
Once the goods have been received and captured in the warehouse record system, the M
put-away operation can commence. The goods will have to be physically moved from the Y
receiving/staging area to the relevant storage area which may be bulk storage, racking, CM
or picking locations. This handling may vary depending on the type of packaging. Before MY
stowage, the storage destination needs to be known. The storage location will either be CY
fixed or dynamic. A fixed location allocates an SKU to a fixed bin in the warehouse. In CMY
the dynamic scenario, the warehouse management system dictates the storage position K
which changes depending on several variables. Whatever the method, the main concept
is that at any point in time, the warehouse personnel know exactly where received goods
are stored. This has a direct impact on picking efficiencies and stock rotation.

3.1.3 Hybrid Operation
As mentioned, some businesses will overlap these functions for obtaining a more efficient
process. For instance, the business may opt for goods to be offloaded from the truck
and directly stowed in the storage location, thus cutting out the staging and the detailed
inspection. This operation will require the forklift driver to know where to store the goods
before offloading the truck. This will usually occur where the warehouse receives goods
internally from the business (i.e. a depot) and/or has a high reliability that the goods will
pass the detailed inspections.
Accurate and efficient receive and put-away operations will go a long way towards ensuring
effective overall warehouse and, by extension, the overall supply chain performance.

12

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LOADING AND DISPATCH

Loading is the process of moving goods onto a vehicle where a vehicle refers
to something that is used for transporting people and/or goods from one
place to another. Loading is a necessary process in the supply chain as it
enables goods to be moved from one place to another. Loading processes,
however, must always be designed to avoid double handling of goods. The
process of loading can be done by hand or by use of driven mechanical
equipment such as:
• Forklifts
• Pallet jacks
• Cranes
• Lift tailgates
• Automated equipment such as AGVs
The correct means of loading must be used depending on the dimensions, weight, nature of the load and surface
conditions. For example, if the weight is in excess of a ton, typically a forklift or crane must be considered as loading
equipment. If a load is small in size or weight, trolleys and pallet jacks can be used during the loading process.
It is important that when loading is being done, the vehicle being loaded to be stationary for the safety of all personnel
and equipment as well as buildings in the vicinity of the loading operation (i.e. an appropriate lock-up procedure must
be implemented on all vehicles being loaded). The loading area must be in close proximity to the warehouse where the
goods are stored to increase throughput.
Depending on the nature of the goods, it might be important to have protection against weather elements over the
loading area in order to avoid damage or harm to both the goods and personnel performing the loading operation.
Goods can be pre-staged prior to being loaded. This ensures that goods are close to the loading area to minimize
time spent traveling to where the goods might be stored in the warehouse. Pre-staging also often allows for checking
and confirmation of loads before they are loaded. However, pre-staging of goods introduces double handling. Double
handling increases the risk of damage to the goods and occupies space, which comes at a cost.

The loading area must be well marked with signage indicating clearly where the loading activity happens and how
traffic should flow in the area.

LOADING CAN BE DONE IN MULTIPLE WAYS SUCH AS:

• Use of the rear end of the vehicle which is called rear end loading.
• Use of the side of the vehicle which is called side loading.
• Use of the front of the vehicle which is called front loading.
• Use of the top of the vehicle which is called top loading.
The nature of the loading will depend on the type of vehicle being loaded i.e. is it a ship, cargo plane, train or truck,
for example. The type of goods being loaded will also have an impact on the nature of loading i.e., are the goods bulk
grains, shipping containers, pallets or bags for example. With regards to trucks which are the most common means of
transport in South Africa, rear end loading and side loading are most common.
Rear end loading requires the use of docks for the loading of the goods. Generally, with rear end loading, less loading
space is required. In addition, goods that are rear-end loaded first are inaccessible without taking out goods loaded
last. In comparison, side loading requires more space for loading as both sides of the vehicle must be accessed. This
also means that goods that are side loaded onto a truck are accessible individually.
14

LOADING AND DISPATCH

In certain instances where the vehicle being loaded is delivering goods to more than one destination, it may be
worthwhile to consider the sequence followed in loading the vehicle. The process of loading has an impact on vehicle
Turn-Around Time (TAT) and utilization. As such, it should be taken as an important part of the supply chain of all goods.
Dispatch is the process that follows loading. This operation largely affects customer satisfaction and is thus critical to
all organisations. For this reason, there is need for control and planning of the dispatch process. The dispatch process
involves the verification of the quantity of goods against an order or picking slip or invoice, identification of any damage
to goods loaded, revision of orders, invoices or picking slips and all associated documentation.
The verification of the quantity of goods loaded versus the order or picking slip or invoice process is crucial to prevent
losses and to ensure that the customer receives exactly what they ordered. Depending on local culture and environment,
it is advisable that, a third party such as an independent security company, be involved in this verification process. The
dispatch process also serves as an opportunity to inspect the goods loaded, to make sure that they are not damaged.
It is important that all goods being loaded either to a customer who could be an end user or secondary distributor be
free of damage. The dispatch process also serves as an opportunity to revise customer orders. In certain instances, the
orders are confirmed with the customers before payment or collection, and the customer may decide to revise the
order. Lastly, dispatch involves documentation that serves as proof of the transaction. In conclusion, the loading and
dispatch processes are important aspects of the supply chain, and time should be taken designing the appropriate ways
to carry them out.

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PICKING

Picking is the act of selecting products from a warehouse based on customer orders. It is classified as a primary activity
and is important for meeting client requirements. It is a significant step towards OTIF (On Time In Full) family of supply
chain KPIs. Picking is sometimes the most labour-intensive activity in the warehouse and may account for as much as
50% of operational costs in a distribution centre.
3.3.1 Methods
A number of methods are available for order picking. The picking method used within a business is a function of several
variables. The following factors should be considered when selecting a picking method:
• Minimize picker travel distances.
• Optimize pallet / truck loading, reduce delivery costs.
• Maximize accuracy.
• Eliminate paper.
• Encourage high productivity.
• Bring the goods to the picker.
A brief list of methods is described below.

DISCRETE ORDER PICKING
This is the most common method of order picking. It involves one employee or picker picking one order,
one line at a time. The simplistic nature of this type of picking gives it an advantage over other methods.
The disadvantage of this method is the poor efficiency due to the substantial amount of travel distances
and time. With this method, orders are not scheduled and are picked at any time in the shift.
WAVE PICKING
Wave picking is the same as discrete picking except that there is a scheduling window. Orders are scheduled
to be picked during set times during the day.
ZONE PICKING BATCH PICKING
In this method, the pick area has predefined zones, and the pickers are assigned to a specific zone. The
picker is responsible for only picking the SKU’s located in that specific zone, for each order. If an order has
SKU’s located in multiple zones, the order passes through each zone and is filled as it passes. It is also re-
ferred to as the pick and pass method.
Orders must be scheduled and there is a cut-off point in the order queue. All orders after the cut-off point
will only be fulfilled during the next shift.
BATCH PICKING
Batch picking is a method whereby; a picker picks a batch of orders at the same time. The advantage of this
method is the reduction in travel when there are multiple orders with the same SKU’s. This method works
best when there is a low variety of (less than four) SKU’s in an order.
ZONE-BATCH PICKING
As the name suggests, this method is a combination of zone and batch picking. A picker will fulfil multiple
orders at a time within a specific zone. This occurs within a scheduling window.
16

PICKING

LOAD PICKING
Load picking or pick by load is the method of picking orders in a way that ensures the maximum number
of units are loaded onto a truck. While optimizing truck volume utilization, this method results in double
handling. Staff are required to re-pick and assemble an order at the customer’s location. This method
should typically be employed when “stem” distance is very significant compared to “branch” distances.
ROUTE PICKING
Route picking or pick by route is a method whereby orders are picked as a function of the truck delivery
route. In this method, multiple orders are grouped according to the geographical location of the customer.
Orders that will be delivered to customers who are near each other will share a storage space on the
delivery truck.
3.3.2 Picking Technology
There are various technologies that may be utilized for order picking industries. The type of technology used is
dependent on, amongst others, the type of items, the volume of items and variety of items picked.
PAPER BASED
Orders are printed on a picking slip and given to the order picker who picks the required quantity from the
storage location and ticks the stock keeping unit off the list. Once all the orders have been picked, the data
is uploaded to the stock management system. The long processing time as well as the high probability of
errors is one of the disadvantages of paper-based picking. A Warehouse Management System (WMS) with
automated identification may curb these issues.

HANDHELD ORDER PICKING
In this instance, a picking list is displayed on a hand-held device which is connected to a ware-
house management system. The information is transferred to the WMS either in batch or contin-
uously in real time. The device allows the picker to enter SKU’s and quantities picked as well as
items not in stock at the storage location. The hand-held device may have an integrated scanner,
which allows the picker to scan the barcode of an item. The information related to that item is
then displayed on the display of the hand-held device.

PICK-BY-VOICE
The picking list is replaced by headset with voice recognition that is in continuous communications
with the WMS. The system will communicate the picking instructions to the order picker. The
voice recognition allows the picker to confirm the process by voice. The hands-free operation as
well as the absence of a screen display of this system results in a high picking performance. The
advantages of the pick by voice system is higher productivity, high flexibility and low error rates.
PICK-BY-LIGHT
Pick-to-light technology has a light signaling system on every single storage location. It also has
an interface port where a picker updates his picks. An order is associated with a unique barcode
label. The picker scans the label and warehouse management system activates the lights at the
relevant storage location. The digital display at the storage location also shows the picker the
quantity that is needed to be picked. Once the stock keeping unit is picked the light is deacti-
vated by the picker, and the WMS is updated. Pick to light has a higher productivity than pick
to voice because the picker can see all the items that need to be picked instead of receiving
sequential voice instructions.

17

PICKING

PICK BY AUGMENTED REALITY (AR)
Picking by AR is the latest picking method where the picker makes use of smart glasses that dis-
plays the product, the storage position and the quantity that is required for an order. The glasses
connect to the WMS and have an integrated scanner, which allows the picker to scan the bar-
code of an order as well as the barcodes of the storage location and item. As soon as the picker
scans the correct location, the glasses display the number of items to be picked. Once the order
is complete, the picker touches the glasses, and a new order is shown.
AUTOMATED PICKING
Automated picking occurs when a robotic or semi-robotic technology is implemented on a site. This type
of technology is an expansive topic, and the detail is not discussed in this guide.
3.3.3 Replenishment Process
Any warehouse that performs picking will require a replenishment process. There are three types of replenishment
methodologies namely:
• Demand
• Triggered
• Opportunity
Demand trends are used when there are limited number of picking locations. Only the stock that is required to fulfil the
orders are moved to the picking location. Triggered replenishment occurs when the stock reaches a minimum (trigger)
amount. This type of replenishment ensures that the picker always has stock to pick from. Opportunity replenishment
takes place when activity levels in the picking are low.
3.3.4 Safe Picking Practices
The picking area should be organised such that the picker can get as close as possible to the SKU. If lifting an SKU at
or near floor level is unavoidable, handling techniques, which allow the use of the relatively strong leg muscles rather
than those of the back is preferable. This technique should be used only if the load is small enough to be held close
to the trunk of the pickers’ body. The picker should also be able to address the load squarely; preferably facing in the
direction of intended movement.

18

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STOCK TAKE

Stock take is the process of counting, weighing or
calculating all items stored and recording the results. Items
stored includes work in progress, raw materials, support
materials and finished goods.

TYPICAL PURPOSES OF STOCK TAKE ARE:

• Accuracy check and update of stock records.
• Confirmation of organisation’s balance sheet stock

values
• Early detection of wastage or theft
• Identification of any weakness of supervision and

control of stock
• Identification of damaged goods
• Training in product knowledge
• Source of information to eliminate over- stocking or under-stocking
The information documented in stock take over time gives a good indication of the efficiency of the store keeping,
control and procedures in general. Strictly speaking, stock take is a non-value adding activity. Business processes should
be developed to reduce or eliminate the need for physical stock take. Successful implementation of a Warehouse
Management System (WMS) could eliminate the need for stock take. A successful WMS ensures that each item’s
location and movement is known and recorded as it happens. As such, the system can be described as a live stock
taking system. Assuming a physical stock take is required (as is typically the case) it needs to be done efficiently,
and it must be well prepared for. Clear procedures, time schedules, accountabilities, proper briefing and real time
management should be ensured. Concerned parties such as warehouse personnel, auditors, internal accountants and
management should typically be involved.

OFTEN, IN INDUSTRY ALL PRODUCTION AND LOGISTICS ACTIVITIES SEIZE DURING STOCK
TAKE SO THAT STOCK TAKE INTEGRITY IS NOT COMPROMISED. THIS OF COURSE HINDERS
PRODUCTION, DELIVERY AND OPERATIONAL EFFICIENCIES. PROCEDURES MUST BE
DEVELOPED TO MINIMIZE AND IF POSSIBLE, ELIMINATE SUCH INTERRUPTIONS. THESE
PROCEDURES MAY INCLUDE:

Standardization of pallet/ Labeling of storage rows/ Use of digital scanners (If possible)
shelf configuration bins that can be connected real time to

business system/data

It is important to develop a storage layout that enables minimum time to be spent on stock take. The labels of storage
rows/bins must be easily visible. An example of this would be having numbers positioned such that the exposed label
informs you of the number of pallets in a bin (the actual stock covers the labels, so the first uncovered label denotes
available stock).
20

STOCK TAKE

It must be noted that if stock take is required, it could be required on a variety of different goods or materials. Examples
include heaps of sand, bulk liquids, mined rocks, gas among other things. Different methods of taking stock outside
of counting will be required to take stock of such bulk materials. Methods such as working out the radius of a heap
of sand, weighing of the material, and use of calibrated equipment might need to be employed to quantify these
materials.
On completion of the stock take process, the recorded counts must be submitted and verified on the spot. This will
prevent loss or tempering of any count information. A verification process can be done by sending different teams to
areas where they did not count and compare the two counts. Counts can then be corroborated and compared to what
is on the stock management system.
With the advancement of technology, some companies now make use of drones with cameras mounted on them to
perform stock take. It is important that before any new technology is implemented, an investigation takes place into
whether the technology is appropriate for the organisation’s needs and type of stock. In closing, if a suitable WMS can
be implemented, it should be implemented, and time spent; production and operations’ disruptions during stock take
can be saved.

2019ifmnovation
Lets make automation smart & simple!
EMB2019 STAND C02 10 - 12 Sept 2019

MATERIAL HANDLING EQUIPMENT

The success of any storage installation will be dependent upon the compatibility of the interface between the storage
equipment and the vehicles handling the loads to be stored and retrieved. There are many different forms of material
handling equipment such as conveyors, monorails, forklifts, trailers, trucks, boats, planes, trains, etc. Each type of
material handling equipment will be used for a specific requirement. These requirements include the type of loads to
be moved, the rates of each movement and the travel distance for each load. This article will, however, only focus on
the different types of forklifts used to handle products stored on pallets within a warehouse.

Pallets are an integrated part of the warehouse and supply chain. Pallet designs have changed significantly over the
years and there are currently a variety of options available. Pallets differ in aspects such as forklift entry ways, sizes
and materials of construction. Typically, pallets are classified as either a 2-way or 4-way entry pallet. 2-way pallets
are pallets that can be accessed by a forklift on two sides of the pallet. 4-way pallets are pallets that can be accessed
by a forklift on four sides of the pallet. The 2-way entry pallet is typically stronger. However, the 4-way entry pallets
provides more flexibility and productivity in operations. Pallets are also classified according to its dimensions. The
two most common dimensions are the Euro pallet - 1200mm x 800mm and the standard pallet - 1200mm x 1000mm.
The pallet material of construction is selected as a function of the nature of the operations and goods that are to be
transported. The typical varieties include wood, plastic, metal and corrugated paper. Wooden pallets are by far the
most common, being the cheapest and most easily customisable option. Other things to consider regarding pallets are
height clearances, overhangs and instability.
4.1.1 General MHE
4.1.1.1 ELECTRICAL VS LPG VS DIESEL

Electrical Forklifts

Advantages Disadvantages

Environmentally friendly Lead Acid Battery system

Suitable for narrow aisles and confined spaces Longer charge
(Increased manoeuvrability)

Longer lifespan compared to other forklift types Quicker depletion times

Cheaper hourly running cost Battery charging station in a well ventilated, dry, and
temperature-controlled environment.

Quieter operation Not appropriate for outdoor use, especially in wet
weather.

Low centre of gravity, leading to better stability Generally, higher initial cost compared to the other
types of forklifts

Mechanically simpler to maintain (Cheaper service) Additional battery costs once the batteries have
exceeded their lifespan.

Lithium Ion batteries have quick charge function

Used as Automated guided vehicles

22



MATERIAL HANDLING EQUIPMENT

LPG Forklifts

Advantages Disadvantages

Low Carbon Emissions - LP Gas burns cleanly Lower energy density per volume vs petrol

Widely available whether new or used. The LPG Fuel is heavier than air, causing potential safety
hazards if it is mishandled.

Cheaper option between electrical Forklifts and Classified as a "Dangerous good" due to its potentially
Diesel-powered forklifts destructive nature.

Very quick to refuel, taking around five minutes to swap LP Gas tank must be stored safely onsite.
over a gas tank.

Noncorrosive, nontoxic and free from additives.

Diesel Forklifts

Advantages Disadvantages

Running costs are usually lower when compared to LPG Can be more expensive than the other Forklift Fuel
forklifts Types.

Diesel forklifts tend to have more torque as opposed to Increased servicing costs
other fuel types.

The mechanics of a diesel engine are simpler than Heavier in weight and louder compared to other forklift
others, which can lead to more reliability. types

Quick refuelling - less than five minutes Requires a storage area for a fuel reserve

Suitable for outside use due to exhaust gas.

4.1.1.2 PALLET JACKS
A Pallet Jack is essentially a manual “forklift.” The pallet jack can move one pallet at a time. Pallet
jacks generally have a lower load capacity compared to a mechanical forklift truck. The pallet jacks
are cheap and offer a high manoeuverability. It forms part of a manual operation and is often used
for moving a small quantity of pallets over a short distance. No additional operators or licensing is
required to operate this type of machinery.

4.1.1.3 REACH TRUCKS
A reach truck, unlike a counterbalance truck, can ‘reach’ points beyond that of a counterbalance
truck. They use counter stabilising legs rather than a counterbalance weight. These reach trucks
can reach a height of up to 12 meters to retrieve pallets in a racking warehouse. This type of forklift
is usually used indoors on even surfaces where their low undercarriages don’t need to deal with
potentially damaging and bumpy surfaces. Rough surfaces are a great concern as slightly uneven
ground floor level can result in a significant effect when lifting.

4.1.1.4 DOUBLE DEEP REACH TRUCKS
Double deep racking simply means storing pallets two rows deep instead of one. This type of racking requires a
specialized reach forklift or a normal reach forklift with a specialized double deep handling attachment. The double
deep racking uses the Last In First Out principle (LIFO). This reduces the number of accessible SKUs. Double-deep is
better suited to stock that has a medium to long term shelf life. Highly perishable goods aren’t recommended for this
style of racking due to LIFO racking type.
4.1.1.5 ARTICULATED FORKLIFTS
Articulated forklifts are also known as Very Narrow Aisle (VNA) forklifts. It can reach up to 12m in height within an aisle
width of 1.2 meters. It is similar to reach trucks but require much less space between aisles to reach pallets high up due
to the flexible design and 180° fork rotation. It is also available in electric or LPG type forklifts.
24

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Pomona, Kempton Park F: +27 (21) 945 3022 F: +27 (31) 700 1688
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MATERIAL HANDLING EQUIPMENT

4.1.1.6 VNA MAN DOWN TRUCKS
A man down turret truck, sometimes known as a VNA (Very Narrow Aisle) forklift, is specifically
designed for operating in small, narrow aisle spaces. It allows the operator to be lifted to get a
clear view of the handling process. This increases accuracy and handling times per task. A turret
forklift is ideal for an industry with high-volume handling applications. It is the fastest option
when it comes to load handling per hour. Man down turret trucks allow for 180° fork rotation.
This is perfect as the operator can access both sides of the aisle without having to move the
turret forklift from side to side. Man-down turret forklifts can save up to 50% more space than a
standard reach forklift, and 25% more than an articulated forklift.
4.1.1.6 VNA MAN DOWN TRUCKS
A man down turret truck, sometimes known as a VNA (Very Narrow Aisle) forklift, is specifically
designed for operating in small, narrow aisle spaces. It allows the operator to be lifted to get a
clear view of the handling process. This increases accuracy and handling times per task. A turret
forklift is ideal for an industry with high-volume handling applications. It is the fastest option
when it comes to load handling per hour. Man down turret trucks allow for 180° fork rotation.
This is perfect as the operator can access both sides of the aisle without having to move the
turret forklift from side to side. Man-down turret forklifts can save up to 50% more space than a
standard reach forklift, and 25% more than an articulated forklift.
4.1.1.8 POWER OPERATED STACKER
An electric stacker is sometimes called
a walkie stacker. It is a power propelled
device that has a mast and forks that
lift loads and place it on shelves or
racking. It is stabilized by its outrigger
legs. The legs must be considered when
planning the rack and shelf layout. Fully
powered electric stacker transport
loads throughout warehouse facilities
quickly with less effort.
4.1.1.8 POWER OPERATED STACKER
An order picker is defined as a person or
a piece of equipment used to pick and
deliver material needed for filling orders
from storage. The machine known as
an order picker is an electric lift truck
specifically designed for filling individual
customer orders, which require piece-
part or case picking, rather than full
pallets or unit loads. Order pickers
are used at elevations higher than the
second level of racking in a warehouse
or distribution centre. As seen from
the image alongside, the operator is
safely strapped to the platform of the
vehicle. This allows the operator to pick
customer specific orders.
26

RACKING

After the warehouse space has been analysed, and a decision has been made to use racking for storage, the next decision
is to determine what type of racking will best fit the solution. For the purpose of this document, the assumption is that
palletised storage will be used. In general, bigger companies use a standard-size pallet that can be, for example, 1.2m x
1m. If the stock/material is from different suppliers, then different sizes of pallets can be received. If a high percentage
of the stock received arrived in different pallet sizes, it is important to ensure that the racking can accommodate these
sizes. Alternatively, companies can put the “foreign” pallet on their pallets or repack the material onto their pallets to
ensure that the racking can accommodate incoming stock.

SOME COMMON TYPES OF RACKING WITH THEIR ADVANTAGES AND DISADVANTAGES ARE AS
FOLLOWS:

4.2.1 STATIC / SELECTIVE RACKING
Static or selective racking is probably the most common type of racking that will be
found in a warehouse. It supports First in First Out (FIFO), and is one of the cheapest
options of racking (cost per pallet spot). Aisle widths typically vary from 6m where a
standard forklift can be used for the storage and retrieval of pallets to 3m where a
reach truck or narrow isle forklift is used. The wider the forklift aisle, the lower the
space utilisation. This racking is generally used when there is a low number of SKUs
and direct access to all the pallets is required. The structural integrity of the pallet
should be sound, and the quality is important, but it is not as critical as in some other
racking systems.

4.2.2 DOUBLE DEEP RACKING
Double deep racking is generally not that common. Strictly speaking it is FILO (First In
Last Out), but it could be seen as FIFO if it is a fast-moving SKU. It is one of the cheaper
options of racking. Aisle width typically vary from 6m to 3m. A forklift with telescopic
forks or an extendable reach is required to reach the second pallet spot. The benefit
is, however, that warehouse space utilisation is higher than that of selective racking.
This racking is typically used when a higher number of pallets per SKU exist. Similar to
static racking, the structural integrity of the pallet should be sound, and the quality is
important, but it is not as critical as in some other racking systems.

4.2.3 VERY - NARROW AISLE RACKING
Very narrow aisle racking is not that common. It supports First in First Out (FIFO) and
is on the cheaper side of racking. Aisle widths typically vary from 1.6m to 2.2m. Due
to the very narrow aisles, specialised material handling equipment (MHE) is required,
which typically is either a very narrow aisle (VNA) forklift or an articulated forklift. These
types of forklifts are expensive and often 2-3 times the cost of standard counterbalance
forklifts. The main benefit of this type of racking is the high space utilisation obtained in
the warehouse footprint. This kind of racking is normally used when space is a constraint,
and you can have different models of forklifts in your fleet. Structural integrity of the
pallet should be sound, and the quality is important, but it is not as critical as in some
other racking systems. It is, however, more important than selective racking as racking
can easily go up to 12-15 m high. This racking is typically not used when you have a high
/ fast movement of SKUs.
27

RACKING

4.2.4 DRIVE-IN RACKING

After selective racking, drive-in racking is one of the most popular types of racking that
will be found in a warehouse. It supports First in Last Out (FILO) and is also one of the
cheaper options of racking. Aisle widths typically vary from 6m where a standard forklift
can operate, to 3m where a reach truck is required. Space utilisation of warehouses is
often very high. This racking is normally used when it is required to keep one type of SKU
in specific area and using FILO is not a constraint. A major disadvantage is the honeycomb
effect (poor bin utilisation) as well as damage to the racking structure from forklifts driving
in and reversing out of the racking. As mentioned with the previous racking types the
structural integrity of the pallet should be sound, and the quality is important, but it is not
as critical as in some other racking systems.

4.2.5 PALLET FLOW / GRAVITY FEED RACKING

Pallet flow racking is not a very common type of racking found in warehouses. It
supports First in First Out (FIFO), and is one of the most expensive types of racking.
Aisle widths typically vary from 6m where a standard forklift can operate to 3m where
a reach truck is required. A major advantage of this type of racking is that warehouse
space utilisation is very high. Pallet quality is critical, and it must be in a very good
condition. This racking is typically used when you have a high number of SKUs and a
requirement for a high space utilisation

4.2.6 PUSH-BACK RACKING

Push-back racking is not very common in warehouses. Strictly speaking it is FILO (First
In Last Out), but it could be seen as FIFO if it is a fast-moving SKU. It falls in the medium
range of racking in terms of cost, as it is more expensive than selective racking, but not
as expensive as pallet flow racking. The depth of push-back racking is generally two to
three pallets deep but can go as deep as four pallets. Aisle widths typically varying from
6m to 3m. Standard counter-balance forklifts or reach trucks can be used, but when it
gets too high, reach trucks can struggle to push back the pallets. Space utilisation of the
warehouse is typically higher than selective racking. This racking is generally used when
there is a greater number of pallets per SKU, but it is limited to pallet types that do not
cause damage due to pallet-to-pallet contact. Structural integrity of the pallet should be
sound, and the quality is important and essential.

28

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design: [email protected] Racking – Conventional, VNA, Drive-in,
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RACKING

4.2.7 MOBILE RACKING

Mobile racking is typically seen in cold storage environments, as cold storage is usually
expensive, and it is thus important to maximise the utilisation of the total volume of the
warehouse. It supports First in First Out (FIFO) and is in the medium range of expenditure
as it is more costly than selective racking but not as expensive as pallet flow racking.
Aisle widths normally vary from 6m where a standard forklift can operate through to
3m where a reach truck is required. One of the great advantages of mobile racking is
that warehouse utilisation is typically very high while being able to access all pallets. The
serious disadvantage is that it should not be used when you have an elevated turnover of
stock and frequent picking at different pallet positions is required. Structural integrity of
the pallet should be sound, and the quality is important, but it is not as critical as in some
other racking systems.

4.2.8 ORIBITER / PALLET MOLE / SATELLITE / SHUTTLE RACKING
This is not a very common type of racking that is found in warehouses. It supports FIFO
and FILO and is in the medium cost range. Aisle widths typically vary from 6m where a
standard forklift can operate, through to 3m where a reach truck is required. One of the
great advantages of this type of racking is that warehouse utilisation is normally extremely
high, while one of the major disadvantages is that pallet quality is very important, as
pallets need to be in very good condition. Some of the earlier installations had issues
with charging, but it has been resolved. One of the biggest risks of this type of racking
is potential damage to the orbiter/mole/satellite/shuttle when forklift operators move it
from one row to another. This racking is generally used when you have a requirement for
a large number of SKUs and space utilisation.

4.2.9 AUTOMATIC STORAGE AND RETRIEVAL SYSTEM (AS/RS)
This is not a very common type of racking that is found in warehouses. It supports FIFO and is one pallet deep, but it can also
be two pallets deep, which strictly speaking then changes to FILO, but it could be seen as FIFO if it is a fast-moving SKU. It is
probably the most expensive type of racking. Aisle widths typically vary between 1.8m – 2.5m where cranes are used to store
and retrieve pallets. The warehouse is high-rise and can go as high as 40m. Due to the system being automated, a Warehouse
Management System (WMS) is critical, and it cannot operate without it. The space utilisation is medium to very high (the
higher the building, the higher the space utilisation). This type of racking is usually installed where land is very expensive or
limited expansion possibilities are available. The pallet condition is critical and very important. The major downside of this
type of racking is the cost.

THERE ARE NUMEROUS DIFFERENT TYPES OF RACKING THAT ARE USED FOR NON-
PALLETISED STORAGE. SOME EXAMPLES OF THESE WOULD BE AS FOLLOWS:

•,Cantilever – this is typically for long items, like steel or wood
• Cradle – Barrel storage for wines or spirits
• Oxoline – Barrel storage, but more stable and suitable for the specific industry.
The following table lists some different racking types and compares them at a high level based on specified metrics.
30

RACKING

Description Cost/Pallet Utilisation FIFO/ LIFO Pallet Storage Space Throughput
Condition Utilisation

1. Static / Selective R750 per pallet 90% FIFO Average Low Medium
position 85-90%

2. Double Deep R1,150 per pallet 90% FILO Average Medium Medium
position

3. Very Narrow R50-60 FIFO Average Medium Low
Aisle Racking

4. Drive in Racking R2,100 per pallet 50-60% FILO Good High Low

5. Pallet flow / R4,300 per pallet 85-90% FIFO Very Good High High
Gravity flow position

6. Push back racking R3,900 per pallet 85-90% FILO Good Medium Medium
position

7. Mobile Racking R1,850 per pallet 90% FIFO Good High Low
position 90-95%
90-95%
8. Oribiter / Pallet R2,200 per pallet FIFO/ FILO Very Good High Medium
mole / Satellite / position and +-
R800,00per orbiter/
Shuttle
mole

9. Automatic R11,000 per pallet FIFO Very Good Medium Medium -
Storage and position High
retrieval system

There are numerous different aspects to consider when choosing the correct racking for your operation, with the above
only highlighting a few of these. Without proper consideration to these aspects, total installation costs can soar all the
while significantly affecting warehouse operability.

31

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Library | Office Shelving
Standard Pallet Racking
Industrial Shelving
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DOCKING

As the link between manufacturing and transportation, and between transportation and storage functions, loading
docks perform a crucial function in most warehouses. Although there are several different types of loading docks, all
mark the beginning and end of material flow through a facility. To maintain productivity, loading docks must be as
efficient as the facility they serve. There are various types of docking depending on the material handling vehicle and
type of material that requires handling. There are various advantages and disadvantages associated with each type of
docking strategy. This article focuses solely on truck docking and its various forms. The reader should be aware that
there are also various forms of docking associated with Electrical Forklifts, Trains, Boats Planes etc.
4.3.1 Read End Loading
Rear end loading requires the truck to reverse into an allocated and marked area. The truck will then be loaded through
the back of the vehicle. In all rear end loading operation there is a need to “bridge” a small distance between a fixed
location and height of the platform (warehouse side) and the variable location and height of the truck end (exact
location depends on exact stopping point of the truck, height lower/higher with increased/decreased load). This
“bridging” challenge is answered by various types and providers of dock levellers and is not covered in this article.

THE VARIOUS FORMS/CONFIGURATIONS OF REAR-END LOADING INCLUDE:

4.1.1.2 PALLET JACKS
Flush docks are the most commonly used dock design today. In this instance, the
face of the dock (foundation) is flush with the outside wall of the building. To
prevent wall damage, often the foundation/dock bumper extends slightly from
the building wall.
ENCLOSED DOCK
Enclosed docks are not overly common but are used when climate control,
product protection, security and overhead lift capabilities are required. This
dock design allows the truck to park inside the building or sheltered area during
loading. This design lacks in occurrence due to high construction costs as well
as large space requirements. A ventilation system is also required, and vehicle
exhaust pollution needs consideration.
OPEN DOCK
Although required in certain situations, open docks are generally not
recommended. They are subject to weather exposure and susceptible to
pilferage. Ideally, these docks should encompass a canopy to limit weather
exposure.

34

DOCKING

DEPRESSED DOCK
Depressed docks have a sloped driveway. Caution must be taken in planning the
gradient of the driveway, for heavy loaded vehicles this slope should not exceed
5%. This is so the top of the truck will not hit the wall of the building, as this
can lead to the toppling of cargo. If the slope exceeds 5%, there is an increased
risk of the cargo falling out. Pull away problems may also arise in harsh weather
conditions if the gradient of the driveway is too high. Various safety concerns of
this docking type include driver skill, truck brake failure as well as the required
drainage when exposed to wet weather conditions.
SAW TOOTH DOCK
Saw tooth line-ups are used when there is limited manoeuvring space. However,
the oncoming roads must be designed in such a way, that the trucks can leave
in the direction of the angle of the dock. The trucks require less manoeuvring
space because they are already lined up in the “driveway” direction. However,
extra building space is required when using saw tooth dock designs. The ease
of driving is decreased as trucks will need to reverse at an angle and therefore
require guidance lines across the floor.
4.3.2 Rear End Loading vs Side Loading
Side loading is another form of loading material onto a truck. The previous examples of docking are only
applicable to rear end loaded trucks. The side loaded truck will be positioned within a loading bay (marked
along the ground), with a forklift traveling around the truck in order to load. The loading bays can be situated
within the warehouse (loading tunnel) or alongside the warehouse. Safety considerations and regulations may
limit the use of loading tunnels especially when side loaded trucks are loaded from both sides. Positioning the
loading bay alongside the warehouse can result in increased loading times as a result of further travel distance
to and from the warehouse. This can result in an increased turnaround time of each truck.
Generally, the rear end loaded trucks adds a degree of difficulty due the reversing that is required. This can
slightly increase the turnaround time of the truck. Side loading trucks will not need to reverse. The safety of
the driver is also a concern that cannot be neglected. Side loading trucks will have forklifts moving around the
vehicle including the cabin. This poses a risk for the driver exiting the vehicle to a designated driver safe zone.

35

DOCKING

Rear-end loading trucks have another benefit that allows them to be loaded through mechanical conveyors
or automated guided vehicles. (Laser guided, driverless forklifts). Loading the truck, mechanically or using
AGV’s limit the man machine interaction, therefore reducing the risk of an accident occurring. This type of
loading is also beneficial as the loading times are greatly reduced compared to manual loading. Rear-end
loading trucks are typically used when maintaining the cold chain is required (for refrigerated products).
The trailer of the truck will be refrigerated and docked against a warehouse that will have an insulated
doorway in order to minimize the loss of refrigeration when loading. Side loaded trucks are not used for cold
chain applications as it is almost impossible to maintain the cold chain during the loading and in the truck.
Another challenge associated with rear end loaders is the order of loading and offloading that follows a LIFO
sequence (Last In First Out). This becomes an issue when multiple drops are planned for a single truck load.
Docking technology and practices are an important section within the entire supply chain industry and need
to be considered, planned, designed and implemented in the most suitable way depending on the type of
application. In this article, a small subsection of this field is covered to hopefully make the reader aware of
the different types of docking and serve as an appetizer for further research.

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WAREHOUSE DESIGN AND
OPERATION OPTIMISATION

Analytic tools can significantly improve warehouse
design and operation. Below are three application
descriptions:
• Workforce shift optimization
• Storage assignment strategy
• Simulation
4.4.1 Workforce Shift Optimization
The following are some examples of variables, dimensions and considerations that should be taken into account when
optimising the workforce shift configuration and deployment: Ideal workforce size, start and finish times for each role
and employee with specific skill sets, employee’s individual preferences with respect of working times, shifts rotation
and weekly overtime hours, personnel deployment to meet seasonal and weekly demand peeks, etc. The integration
of all or, alternatively a subset of such constraints and objectives is a difficult task. An optimisation model and tool that
is developed and used successfully may result in cost savings coupled with increased satisfaction and a sense of well-
being among employees.
4.4.2 Storage Assignment Strategy
Storage assignment strategy defines at which locations each SKU is stored in a warehouse. Its objective is to minimise
travel distance within the warehouse and increase labour productivity. The main storage assignment strategies are
described below.

4.4.2.1 FIXED LOCATION PER SKU
In this strategy, SKUs are stored in fixed predefined locations with SKUs of the same family stored next
to each other. This is the more common strategy and is easy to manage. Employees know where to find
the different SKUs which avoids time being wasted searching. On the other hand, the strategy causes
poor storage space utilization and results in longer internal travel distances than other strategies.
4.4.2.2 CLASS-BASED STRATEGY
Items are divided into A-B-C categories based on requesting frequency. Fast moving products, called
category A, are stored closest to the pick location and at the optimal height. Category B products are
stored in the next closest location. Category C products are stored in farthest location.
This strategy is not easy to manage. A warehouse management system is often utilised when dealing
with a high number of SKUs or product seasonality that changes throughout the year. This strategy
can result in a high volume of traffic and congestion at certain areas within the warehouse. Although
the strategy is more efficient in terms of internal travel distances compared to the Fixed location
strategy, it is not optimal because it does not consider a pair of products that could be usually ordered
together.
4.4.2.3 RANDOM STRATEGY
Each SKU is randomly assigned to an empty location. In practice, this strategy usually means that
when an item arrives at the warehouse, it is stored at the nearest appropriate warehouse location.
With this strategy, warehouse storage space is highly utilized. Furthermore, if there is a very large
range of products with similar probability of being included in an order, the strategy results in lower
travel distance than the previous two strategies. A warehouse management system is required for
this strategy to report the location of each item.

37

WAREHOUSE DESIGN AND
OPERATION OPTIMISATION

4.4.2.4 OPTIMISED STORAGE ALLOCATION
This is a system where a mathematical model selects where to store each SKU, so the warehouse
operation is optimised. The system considers the warehouse status, production plans, current and
future sales orders (i.e. pair of products that are usually sold together) to provide a warehouse operating
plan that minimises its operating costs. This strategy makes smart use of the warehouse space capacity
and reduces the internal travel distances. The system requires a warehouse management system.

The type of strategy to be selected depends on the number of SKUs to be stored as well as the operations' complexity.
For a relatively low number of SKUs with similar volume demand and when warehouse capacity is not an issue, the
company may use a Fix location per SKU strategy.
However, even for a relatively low number of SKUs stored, there are usually significant difference in order frequency
between products (i.e. 20% of products appear in 80% of orders). In this situation, a class-based strategy would provide
a better warehouse performance. In more complex warehouses with a large number of SKUs and limited storage
capacity, an Optimised storage allocation system can provide significant savings in operating costs and result in an
improved warehouse space utilization.
A random strategy is recommended when the number of SKUs is extremely large and of different configurations.
Alternatively, when SKUs have similar probability of being included in an order and there are no clear pairs of products
frequently ordered together (a situation observed in e-commerce warehouses).
38

Invincible Valves (Pty) Ltd was established in 1982 and since has If it's not INVAL®, it's not Invincible
grown to a medium sized enterprise located in Knights, Germiston
Invincible Valves prides itself on service excellent and flexibility by striving
to enhance our customer’s bottom line.

Our 6,500m² facility in Knights is made up of 4,500m² under roof being
our stores and workshop. The facility is fully equipped to offer a one-stop
resource for valves and ancillary equipment which we transport globally.

As an approved BBBEE Level 2 supplier to all major industries within
South Africa, we maintain expertise and experience across a
broad spectrum of industries and applications with a wide range of
products. We offer a comprehensive range of local and imported valves
and accessories for the mining, petro-chemical, power generation,
water, sewerage and general industries. We have agents in all major
centres around the country and service all four corners of the globe.

We offer an in-house rubber lining service for valves, pipes, fittings
and vessels which is utilized by many of the country’s major valve
manufacturers. In addition we offer complete service, repair and valve
reconditioning services for all types of valves.

Our Core Values:
We believe in treating our customers with respect. We grow through
creativity, invention and innovation. We integrate honesty, integrity
and business ethics into all aspects of our business functioning.

Our Mission Statement:
Build long term relationships with our customers and clients, to provide
exceptional customer services by pursuing business through innovation
and advanced technology.

Our Purpose:
To be a leader in the Valve Industry by providing enhanced services,
customer service and profitability.

Our Vision:
To provide a quality service that exceeds the expectations of our
esteemed customers.

Invincible Valves is a proud supplier of quality valve products and
ancillary equipment backed by service excellence around the globe. It is
the combination of these values that allows us to form lasting business
relationships.

Invincible Valves (Pty) Ltd 33 Shaft Road, Knights, Germiston
TEL: +27 (0) 11 822 1777 | FAX: +27 (0) 11 822 3666
EMAIL: [email protected] | WEB: www.invalve.co.za

WAREHOUSE MANAGEMENT SYSTEM

Storage systems are one of the fundamental elements of modern production processes. Depending on the complexity
of the work environment, or the level of business advancement, these systems could be manual or fully automated.
Automated software applications that aid in the control and management of warehouses are called Warehouse
Management Systems (WMS).

These modern WMS manage day-to-day operations using real-time data. The WMS will, in effect, control all decisions that
need to be made to manage the warehouse efficiently and, in some cases, optimally. Examples of this would be telling
warehouse operators (or AGV’s) the precise location to drop off or pick up product, the route to take to get there, and the
required quantities; how much inventory to keep; the exact quantities and age of all SKUs in the warehouse; which AGV’s
need their batteries charged and at which charging point; etc. Broadly speaking there are three different types of WMS
for businesses; Standalone WMS, Supply Chain Modules and ERP Integrations.
The decision on which one to use depends on your price tag, and the size and goals of the business. A standalone WMS
is the most basic of these with its features solely being for warehouse management. Supply Chain Modules and ERP
Integrations have the typical WMS features; however, these form a component or sub-category of the overall system.
As a result of this, these two systems are often more powerful as they connect various areas of the business. Care,
nevertheless, must be taken as sometimes the WMS component is not a core competence or function of the system.
WMS features and complexity can vary drastically based on business requirements, the required level of automation
and defined process interactions (for example, example barcodes, RFID tags, AGV’s, etc.). Typical WMS features could
include: Inventory control and location management; tracking and managing product movements; put-away and retrieval
(& picking) management; KPI tracking; yard and dock management; etc. More advanced features could include: Storage
optimisation and ABC analysis; support for complex picking operations and loading configurations; control of automated
material handling equipment such as AGVs; etc.
Choosing the incorrect WMS has derailed many mature businesses in the past. RIC can help in making the right decision
and ensure that all elements are considered. Typical elements to consider when choosing a WMS is obviously the
required functional and cost, however, there is a lot more to consider than this, such as: required flexibility; ease of use
and workforce quality; return on investment; customer support; current systems on site and interfacing capabilities;
deployment and implementation options; scalability of the system; modification potential; accessibility of data; etc.
An additional very important aspect to take note of when choosing a WMS is the level of customisation, as this typically
negatively affect: The implementation timeline (typically 6 to 18 months); The ability to upgrade the system (and how this
affects interfacing with other site systems); Future service costs, etc.
To conclude, time, money and resources will be required to ensure the correct WMS is chosen. However, this should
not deter any business from choosing to implement one as, in the right environment, the benefits are enormous. Some
benefits include lower operating costs; reduced labour requirements; reduced turn-around times; increased capacity and
space utilisation; more accurate and reliable stock control, better quality, enhanced customer service and productivity;
and the elimination of paperwork.
40

The new work experience. KNAPP Logistic South Africa (PTY) Ltd
Longpoint Building, 2nd Floor
Digitization is changing the world of work in logistics and
production. Digital work stations and assistants already have Crn Montecasino Blvd & Witkoppen Rd
a permanent role in the warehouse, providing the link between 2191 Sandton | South Africa
the person and the warehouse technology. With KNAPP’s
[email protected] | knapp.com
Pick-it-Easy Evo, it’s not just a work station, it’s an
experience.

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SITE DESIGN

Site design is the engineering science of conceiving,
developing, visualising and drafting a layout that will enable
efficient throughput of goods in and around the site. In this
context, a site can be a manufacturing facility or a distribution
centre or a combination of both. A layout in this context is
an engineering drawing, (with various degrees of detail, 2D
and/or 3D) drawn to scale, depicting relative location of site
facilities, how the site will look at a point of completion of
construction and the different flows through the site. A layout
gives a bird’s eye view of the site.
Site design is fundamental to supply chains because it affects the entire logistics and throughput of goods “on route”
to the customer. As such, site design must be done meticulously, with true insight and understanding of the processes
that will take place on and around the site. Additional consideration is required to account for the different functions
and facilities on site, their interaction as well as the impact on site operations. The focus of this article is distribution
centres where road transport is used. It must be noted that most principles will apply to manufacturing sites as well as
sites that are a combination of manufacturing and distribution.
A site should have a distinct perimeter. The perimeter should typically be secured to prevent unwanted persons,
vehicles and animals from entering the site. The site should have designated access and egress points where personnel
and visitors access are controlled for security reasons. These access points must clearly be marked and arranged so
incoming personnel are aware of procedures, safety standards and code of conduct expected on site.
The access points must be easily accessible from the outside, preferably not directly onto a major busy road but with
easy access to major roads (direction to and from the site as well as the required turning logistics to be considered).
This will minimize routing through traffic in the supply chain. In addition, allowance must be made for vehicles to be
able to queue off public roads. This could be done by use of slip lanes that should be designed in as part of the site.
At large distribution centres, the warehouse usually occupies a third to a half of the available land. The remaining
land is typically allocated to roadways, maneuvering (logistics) areas, facilities (water reservoir, for example) offices
and parking (management, admin, site control, for example) gate area, etc. Another significant consumer of space,
depending on the specific industry, may be truck staging and parking area. At times, stock is kept in the yard not under
a roof (pallets, building materials, for example). Roadways on site must be wide enough to allow overtaking and, where
required, sufficient turning areas.
When designing a site, it is often advantageous to define two (or more) security zones. Employee parking, change
rooms, offices and canteen may be in a soft security area while warehouse, stocks and truck operational area will likely
be in a “harder“ security area (with access control between the areas)
In general, it is a good practice to separate distribution traffic and employee traffic. This reduces risks of accidents and
incidents. Traffic plans must be defined for all vehicles and pedestrians on site. A traffic plan shows what path or route
specific vehicles and pedestrians must take to navigate around the site. As part of the site design, pedestrian routes
must be safe, well-defined and protected. One-way traffic on site, if feasible, is recommended for both vehicles, trucks,
forklifts and, in extreme cases, personnel.
When designing a site, consideration should be given to the different processes that take place on site. The resulting
layout arrangement must be such that process flow is optimized with minimal return and cross flow traffic. The same
applies to pedestrian / employees’ movement.
42

SITE DESIGN

THE FOLLOWING IS A SOMEWHAT RANDOM LIST OF ADDITIONAL CONSIDERATIONS THAT MAY
OR MAY NOT BE RELEVANT TO A SPECIFIC SITE DESIGN:

Waste area Recycling area North / South direction (sun
and light exposure, heat
control, natural lighting)

Pallet storage and Hardstand area Expansion potential (for
repair area a specific industry and in
general)

Fire tank’s area Substation location Natural slopes on site and
Returns area Typical wind direction (to in the area
prevent exposure to unwanted Flood lines
odors, internal or external)

Storm water drainage Vehicle staging Emergency evacuation
requirements

In summary, care must be taken when doing a site design. A capacity model and simulation can be developed prior to
carrying out the design process. The information obtained from capacity modeling and simulations can be used to aid the
design process as area, volume and any physical requirements of the design will be quantified.

Lack of storage space

think up

DEXION (HEAD OFFICE BASED IN CAPE TOWN.)

WAREHOUSE SOLUTIONS AND SHELVING AND RACKING SUPPLIERS TO SOUTH AFRICA AND AFRICA. MANY WAREHOUSE
AND STORAGE FACILITIES IN SOUTH AFRICA UTILISE THE GROUND LEVEL BUT FAIL TO RECOGNISE THE FREE SPACE
ABOVE IT. WE AT DEXION PROVIDE A NUMBER OF SOLUTIONS TO IMPROVE ON UTILISING THE CUBE EFFICIENT-
LY, ONE BEING OUR RACK SUPPORTED STRUCTURE WITH INTERLINKING WALKWAYS TO CREATE MULTI-LEVEL
PICKING

Contact Us:
Tel : +27 (0) 21 552-0220

[email protected]

FLOOR SPECIFICATION

The design of warehouse and distribution centre flooring
is imperative to the effective and efficient operation of
the site. There are two key elements that need to be
understood to achieve this:
• Structural design: Ability to withstand loads
• Geometric features: Joint design and levelness &

flatness considerations
5.2.1 STRUCTURAL DESIGN
Structural design has to do with the ability of the floor to handle the weight of loads, and the impact caused from
transmitting loads. The factors relevant to structural design are the ground conditions, strength and thickness of the
concrete, method of reinforcement, load transfer capability of joints, loading specifications and load patterns. The
surface layer of the floor also needs to have porosity and roughness characteristics that allow the floor to be cleaned
easily (by removing debris and oily liquids) and increase the longevity of Material Handling Equipment (MHE) tyres and
the safe transfer of their loads.

THE FOLLOWING FIGURE IS AN EXAMPLE OF THE DIFFERENT PHYSICAL LEVELS TYPICAL
TO A WAREHOUSE FLOOR:

5.2.1.1 SUB-GRADE
This forms the lower foundation of the floor. This supports the slab and avoids cracking development in the slab, due
to bending.
5.2.1.2 SUB-BASE
This is often a layer of gravel and is sometimes optional in nature. However, it serves as a work platform for construction
of the slab and provides a more uniform and level support for the slab. As the thickness of the sub-base increases, the
ultimate load carrying capacity of slab increases.
5.2.1.3 SLIP MEMBRANE
Slip membranes are used to reduce friction between the slab and the sub-base, to reduce the impact of drying
shrinkage, thus reducing the risk of unplanned cracking. A 300μm plastic sheeting is often recommended.
44

FLOOR SPECIFICATION

5.2.1.4 CONCRETE
There are comprehensive standards for the specification and testing of concrete. High-strength concrete is not required
and should often be avoided as it tends to have higher cement content and is therefore, more likely to shrink than
when compared to lower strength concrete. It can also be difficult to finish. Concrete shrinks as it dries out over the
first 12-18 months of its life. Therefore, the ratio of cement to water in the concrete should not be excessive as this will
impact the way in which the slab shrinks. Consistency of the material properties and its delivery to a site is the key to
the longevity of a well finished floor slab.
It is also due to this shrinkage, that floors must also be isolated from fixed elements of the building to allow the floor
to contract without cracking. This is achieved by surrounding columns with compressible materials. These are known
as the isolation details.
5.2.1.5 REINFORCEMENT
Although reinforcement will give some enhancement to the structural load capacity of the floor slab, the primary
function is to restrain the opening of sawn induced joints and maintain good load transfer properties. The traditional
method of reinforcement in jointed slabs is with steel mesh. These jointed floors typically have construction joints at
6mx6m intervals, with the reinforcement continuous across the sawn joints. Although in Australia, the position of the
mesh is usually specified 50mm from the top of the slab, it is generally recommended that it is placed 50mm from
the bottom of the slab. Alternatively, floors can be reinforced with steel fibre or post-tensioned. Steel fibre floors are
classified as joint-less slabs (with minimal joints and spans of up to 50m wide). The principle is that the steel fibres limit
the crack widths of shrinkage cracking.
5.2.2 GEOMETRIC FEATURES
5.2.2.1 JOINTS
Joints are one of the most critical elements in a floor and are required to reduce the risk of cracking as the floor shrinks
(contraction and isolation joints) and to form the boundaries of each day’s concrete pour (construction joints).
The unintended side effect of joints is that due to the discontinuity in the flooring, unavoidable maintenance often
must occur due to the traversing of MHE. The size of the joints also limits the type of MHE that can be used. This is
especially important when using Automated Guided Vehicles (AGV’s) as there are often maximum allowed dimensions
of joints (e.g. 2 mm height and 8 mm width). Additional discontinuities that need to be addressed are manholes,
grates, embedded plates and draining ducts.

45





FLOOR SPECIFICATION

5.2.2.2 FLATNESS AND LEVELNESS (SURFACE REGULARITY)
The floor should have an appropriate levelness and an appropriate flatness in order to provide a suitable surface for
the operation of MHE and the storage of materials.

Two typical classification categories for surface regularity are Free Movement (FM) or Defined Movement (DM).
FM criteria are usually where MHE operates at low vertical levels and where aisles between racking or bins are greater
than 2.8m wide.
The TR34 specification is the most comprehensive method of specifying the surface regularity of FM floors. It measures
the levelness (difference in millimetres checked directly between fixed points 3m apart on a grid over the entire
floor area) and flatness (the change in elevational difference between two consecutive measurements of elevational
difference each measured over 300mm)
DM criteria usually refer to systems where MHE is constrained to define, fixed paths such as Very Narrow Aisles (VNA)
or AGV’s. For DM Floors, there are three standards to consider: TR34 Edition 3 2003 Table C1; ACI Fmin; EN 15620.
These three specifications measure the floor’s profile using a profileograph rig, which replicates the footprint of the
material handling equipment. The rig measures the elevation across the load wheels (transverse) and the elevation
between the front and rear axles of the rig (longitudinal). The rate of change in elevation across the transverse and
longitudinal directions is also measured for every 300 mm of travel down the defined path.
5.2.3 MAINTENANCE
Floors require maintenance from the day the concrete
is cast. New floors should be cleaned and kept free of
debris as fit-out takes place. Joints should initially be
filled with a semi-hard sealant. This should take place
as late as possible after construction but before the
commencement of regular use.
During the first 18 months, the floor will shrink as drying
shrinkage takes place. Joints will open gradually and
should be monitored on a monthly basis, and then filled
with progressively harder sealants.
To have an efficient operation it is therefore, imperative
that the floor is properly maintained, and that the
correct floor is used for the site’s specific characteristics
and the businesses’ future flexibility requirements.
48

WAREHOUSE SAFETY

Occupational safety is the science of anticipation,
recognition, evaluation and control of hazards arising
in or from the workplace that could impair the health
and well-being of personnel, including all visitors and
any third-party personnel. The possible impact on the
surrounding communities and the general environment
of hazards arising in the workplace is also usually
considered a part of occupational safety.
Safety is generally thought of in massive industries where there are reactors, flammable chemicals and heavy machinery
in comparison to quiet environments like warehouses. Contrary to common thinking, it is important that safety
consciousness be instilled in all environments, including in the home, in the office, and in the warehouse. There may
be several reasons (causes) for personnel to take risks in the workplace. These reasons may include being unable to
identify a risk, believing in good luck every time, taking the risk may be convenient or deep-rooted incorrect practices.
It is important that employees be conscientiae to these and other reasons with the aim to change their way of thinking
regarding safety in the workplace. It is a matter of work/life ethics and culture as well as to, continuously strive for zero
incidents.

WORK-RELATED ACCIDENTS WITHIN THE STORAGE AND WAREHOUSING INDUSTRY RE-
MAIN A MAJOR CONCERN, WITH THOUSANDS OF OCCURRENCES REPORTED EVERY YEAR.
EVERY ORGANIZATION SHOULD HAVE A SAFETY POLICY THAT MUST INCLUDE SOME OR
ALL THE FOLLOWING:

Safety policy statement Person(aPlPPEr)orteeqcutiivreemEqeunitpment Safety responsibilities

Safety risk assessment Employee consultation Saifnesstutyrpuinecfrtoviorismnioaanntidon, eInmceidregennt,caycpcridoecendt uarneds

Above all, a culture and practice of continuous improvement towards a safe and healthy environment, at work and at
home and everywhere in between should be developed.
There are several decent practices that can be implemented to reduce risks in warehouses. One of them is good
housekeeping. In warehouses, disorder and untidiness cause incidents, accidents, stock damages, fires, and they make
the place less pleasant to work in. Good housekeeping means that there is an allocated place for everything. Good
housekeeping means that items are not left in aisles, litter is discarded appropriately; spills are cleaned promptly;
access to exits must be clear of obstacles, etc., In summary; good housekeeping means that slips, trips, confusion and
collisions are avoided.
Many of the warehouse accidents occur when handling stock. This handling of stock could be moving, lifting, unloading
or loading. In general, the heavier items must be placed at the bottom during handling or storage. Consideration must
also be placed on the packing material, i.e. boxes or crates. It is important that stock be handled correctly to avoid
accidents. Where manual handling and lifting are concerned, personnel must not be expected nor allowed to carry
items beyond certain weight / dimension combinations.

49

WAREHOUSE SAFETY

Manual carrying weight limits are normally stipulated by the law in the region/area. It is also important that specific
workstation configuration, load dimension, and movement required should be considered above and beyond the
article weight. Where possible, well designed mechanical aids must be used as this results in a reduction in injury.
Where manual handling and lifting are done, a wide base of support must be maintained.
A good posture must always be maintained to protect one’s back during
lifting. During lifting, one must squat down, bending at the hips and knees.
The leg muscles rather than the back muscles must be used for lifting. The
lifting process must be done slowly to, further reduce a risk of an injury. If
pain is felt, the process must be abandoned to be resumed with assistance.
General guidelines stipulate that no man should lift a load heavier than
25 Kilograms, and no woman should attempt to lift a load heavier than 16
kilograms. There will be exceptions depending on, as explained, the load
configuration (weight, shape) and the movement required (whether the
load is being lifted up to the shoulders or just above floor level, direction of
movement, reach distance, etc.).
To enhance safety in warehouses, it is important to separate personnel
and machinery wherever possible. One might ask why separate personnel and machinery. The reason is to minimise
incidents and accidents in warehouses. It is amazing and alarming how many organizations fail to, even consider that
question when it comes to the warehouse. Everyone knows that we need to separate pedestrians from vehicles on the
road, to keep a safe distance from a moving train and to swim in an area designated for swimming and not for boats.
The same logic should be applied in the warehouse – separate personnel from moving machinery, forklifts, cranes,
moving loads, etc. so that the risk of physical accidental contact with its potentially severe consequences is minimized.
The separation must be done through demarcation, procedure and use of physical barriers. Separation by demarcation
means making use of markings on the warehouse floor. An example would be marking walkways showing where
pedestrians must walk. This could be tied to a procedure that forklifts are not allowed to drive on certain markings
painted. This way, pedestrians and forklifts are separated and as such the risk of a collision happening is minimised.

Separation by procedure means that procedures are developed and
maintained to regulate processes in warehouses to achieve separation. The
physical/geographical separation required is between moving machines,
whether automated (AGVs for example) or driven (operator controlled) and
personnel working or passing through the area. An example would be in
the picking area where personnel manually pick stock while on foot but
at the same time a forklift may need to replenish stock or pick up picked
stock. Procedure could state that no forklifts are allowed in this area while
personnel are working. Prepared picked stock or replenishment stock can
be moved by use of pallet jacks to interaction zones where they can be
collected by forklifts at separate times. Layout and procedures can be
such that stock replenishment can take place on the other side of racking
system. Again, in this way, pedestrian personnel and moving machinery are
50