Supply Network Africa Warehousing Guide 2021 - 2020

2021SUPPLY NETWORK AFRICA’S

WAREHOUSING GUIDE

Developed in partnership with RIC

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WAREHOUSING GUIDE 2021

CONTENTS CONTENTS

INTRODUCTION 06
07
FOREWORD 10
14
01 WTHAEREDHIFOFUESREESNT 16
02 OPUF RWPAORSEEHAONUSDEISMPORTANCE 19
03 DOCKING 22
26
04 ICMOPNRTOIVNEUMOEUNST 28
05 ETQYPUEIPSMOEFNMT APOTEWREIAR LSOHUARNCDELSING
06 SWYASTREEMHO(WUSMESM) ANAGEMENT
07 RACKING

4 SUPPLY NETWORK AFRICA

2021 WAREHOUSING GUIDE

08 FWLOAORERHOUSE 36 PUBLISHED BY CONTENTS
09 MKPAINAGEMENT 44
10 PACKAGING 49 Lane Network Trading
[email protected]
Tel | (011) 744 5038

DIRECTOR

Lelanie Lane
[email protected]
www.supplynetworkafrica.com

MEDIA PARTNERS

RIC
Africa Energy Indaba
SCALEX East Africa
Eurasiayan

11 ILNOTGEIGSRTAICTAIOLNSYSTEMS ENDORSING BODIES

51 SAPICS- The Association for
Operations
5512 ODAPESRHABTOIOANRADLSVISUALISATION Management of Southern
Africa
ASCP- Association of Supply
Chain Professionals
SAAFF- South African
Association of Freight
Forwarders

13 SWAAFERTEYHOUSE 59 ADVERTISERS

INTERROLL 02
RIC 08
ZEBRA 13
SCHAFER 15
14 TTURURNCAKROUND TIMES 63 STAB-A-LOAD 18
KNAPP 21
STOREQUIP GROUP 24
MAXI-FLEX 27
UNIVERSAL STORAGE 30
15 DSIETSEIGN 67 JUNGHEINRICH 34
SOLUTIONS 4U 37
PARKER 48
DEXION 50
ROSS 54
LISTING 72 ORIZEN 58

TRACKMATIC 62
METPRO SA 66
CASLAD 70
KEMACH 75

SUPPLY NETWORK AFRICA 5

WAREHOUSING GUIDE 2021

INTRODUCTION INTRODUCTION

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

This magazine presents an in-depth look at Ido Rieger Tafara Chitsiga
aspects of warehouse design and operation. Kiran Desai Terence Meyer
The team at Rieger Industrial Consultants
(RIC) provides insight and direction towards
warehousing excellence. RIC is a professional
Industrial and Management Engineering
Firm that provides end to end solutions to an
array of organisations. With offices in South
Africa and Israel, RIC has a 30+ years history
and experience providing innovative, tailored
solutions in over 30 countries. Our extensive
experience, insight 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.

WE FOCUS ON THREE KEY
BUSINESS AREAS:

SUPPLY CHAIN OPTIMISATION Brandon Schmid Bryce Groenendaal
Supply Chain Optimisation –Supply
Chain Network Design, Demand Louw Venter David Smith
Forecasting, Production Scheduling,
Sales and Operation Planning, Transport Our approach is to get an in-depth understanding
and Distribution Analysis, Warehouse of our client’s operations, getting our hands dirty
Specification and Design, Labour where necessary, influencing strategy where
Scheduling and Inventory Optimisation. appropriate, and all aspects in-between, so that
our solutions are practical, implementable, drive
BUSINESS VALUE ENGINEERING results and are in-line with business objectives.
Business Value Engineering –Business Entrenching our solutions ensure sustainability,
Process Optimisation, Data Analysis delivers productivity and provides you with the
and Analytics, Operational Efficiency competitive edge!
Enhancements, Project Management,
Safety Assessment, Ergonomics, Quality
Assurance and Feasibility Studies.

FACILITIES ENGINEERING
Facilities Engineering – Site Master
Development Planning, Capacity
Analysis, Process Layout Designs and
Optimisation, Process Dynamics,
Performance Acceptance Testing, Due
Diligence Analysis.

6 SUPPLY NETWORK AFRICA

2021 WAREHOUSING GUIDE

FOREWORD 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.

SUPPLY NETWORK AFRICA 7

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Business Value Engineering

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 Manufacturing & Operational

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2021 WAREHOUSING GUIDE

1 3 4 5
Why
warehousing in the Warehouse Receiving Loading and
warehousing? greater supply strategies and put-away dispatch
chain?
6 8
Storage 9 10
Picking Stock take Racking
Material handling
equipment

11 WMS 13 14 15
Live loading intelligence
16 business
Warehouse 18 intelligence Inverters and
network Warehouse design 19 converters

and Automated
systems

Wrappers and Site design Truck staging Pedestrian Warehouse
strappers walkways structure (roof

31 and column)

36 30
management
Choice of racking
41 type

33 35

water and air Warehouse safety safety
compression) 39 40

38

Truck turnaround Inventory

44 Supply chain grid
Warehouse

Cold chain Insurance
requirements

SUPPLY NETWORK AFRICA 9

WAREHOUSING GUIDE 2021

THE DIFFERENT WAREHOUSES01 01 WTHAREEDHOIFUFSEERS ENT

An enormous amount of products, a distribution exclusively by the companies
pressure exists in a supply centre is focused entirely on that make use of them. They
chain to move goods, meeting customer needs. provide an intangible benefit
between suppliers and in the form of an increased
customers, efficiently and Distribution centres are sense of continuity and
effectively. Sometimes, customer-centric and tend dependability in the eyes of
warehouses offer a form of to store large volumes of the customer.
relief from this pressure, by highly varied (Stock Keeping
allowing goods to be stored, Units) SKU’s. The distribution Often this type of warehouse
managed, and manipulated centres role is to be the is less cost-effective in the
before the supply chain bridge between the supplier short to medium term unless
journey continues. and the customer. Often, there is a large presence or
multiple manufacturers make commitment to a particular
Supply chains differ in use of the same distribution geographical location.
objectives, the products centre to then sell on to The significant advantage
that are handled, retailers. Traditionally, of private warehousing is
the speed and agility distribution centres focus the high level of control
requirements, volumes, on the de-aggregation of imposed on the facility. This
environment conditions, shipments and the assembly results in fewer errors, more
and requirements. This of customised orders. The specific space catered to the
vast range of conditions inventory turnover time is companies’ exact needs, and
and requirements gives rise typically low as goods come marked increases in overall
to a spectrum of different in, get sorted, and make performance. The main risk
warehouse types, designs, their way to the correct encountered with private
and features. Having the customers on the retail end warehouses is the increase in
correct type of warehouse of the supply chain. To help unit warehousing cost when
can dramatically increase a minimise transportation there is a utilisation drop for
supply chain’s ability to fulfil time, these facilities are often an extended period
orders on time, every time. found near transportation
The more common types of hubs, such as airports. PUBLIC WAREHOUSES
warehouses are elaborated
below. Recently, supply chains have Public warehouses are
started focusing more on the businesses, sometimes
DISTRIBUTION flow of goods, rather than government-sponsored,
CENTRES storage. Distribution centres facilities that are made
are essential pieces in this available to the public,
The original warehouse was puzzle, as they significantly individuals, or organisations.
born out of a need to store increase the flow of goods by Short or long-term storage
massive amounts of stock creating transhipment nodes and logistics are provided
for when it was needed. (places in the supply chain to companies on a month-
Over the last few decades, that facilitate the speedy to-month basis. Fees can
supply chains have evolved exchange of goods between be a function of the storage
to decrease inventory costs two vehicles). This further quantities, the inbound,
drastically. The need for lowers the requirement for and outbound handling
lower costs has made it these facilities to store goods performed or typically a
essential that the correct for extended periods. combination of the above.
amount of goods are stored, Smaller businesses can take
for the proper amount of PRIVATE WAREHOUSES advantage of this, as the
time, and in the correct initial financial outlay needed
location. While the role Private warehouses are is substantially smaller than
of a warehouse is to store owned and operated that for a private warehouse.

10 SUPPLY NETWORK AFRICA

2021 WAREHOUSING GUIDE

Companies of all sizes can without having the innate an increase in the relative 01
humidity levels inside the
benefit by using a public scale required to bring about warehouse, leading to THE DIFFERENT WAREHOUSES
ice formation which can
warehouse when there is a such cost advantages. cause malfunctions in the
warehousing facility.
short term opportunity or CLIMATE CONTROLLED
volatile need to store and WAREHOUSES Risk mitigation is, therefore,
handle products. one of the most critical
aspects of the design
Public warehousing offers Climate controlled of a climate-controlled
companies venturing into warehouses are specialised warehouse. The impact of
new markets easy, low facilities dedicated to the malfunctions is high, as drops
CAPEX, and low-risk supply storage of perishable goods. in temperature could lead to
chain logistics solutions. This Different types of climate- spoilage on a mass scale.
allows the organisation to controlled warehouses
focus and develop its core exist for different types of CONSOLIDATED
business. products. Some warehouses WAREHOUSES
offer sustained temperatures
CO-OPERATIVE below 0ºC for frozen foods Consolidated warehouses
WAREHOUSES or humidity-controlled take individual shipments
environments for goods such from multiple suppliers
Co-operative warehouses are as wood or leather. and combine them into
owned and run by organised consolidated shipments
destined for the same
groups of companies, often Warehouses, where the customer. A typical case of
a consolidated warehouse
operating in a similar sector, temperatures are sustained that is used effectively is the
warehouse that receives
such as winery co-ops. at below freezing, have bulk food and beverage
shipments that are ultimately
These facilities are aimed special safety considerations destined for supermarkets
downstream in the supply
predominantly at helping out that should be considered. chain.

the members of the co-op, Equipment and materials The warehouses often have
by offering reduced rates to used in these warehouses the effect of lowering the
financial barrier to entry for
members. These facilities should be carefully smaller producers of goods.

are generally open to usage selected according to their Consolidated warehouses are
typically used in cross border
by anyone, but the reduced resistance to extremely cold shipping. Multi-company
shipments destined for the
rates apply specifically to temperatures. A warehouses’ same country are often
placed together in containers
the companies that form firefighting protocol and to lower the total cost per
item. This is prevalent in
part of the co-op. There are equipment, for example, consumer importing, where
freight forwarders are
many benefits to using this need to take cognisance responsible for combining
shipments from multiple
type of arrangement if the of the cold. Pure water sources to be shipped to
opportunity arises. sprinklers would result in common destinations, either
country or city.
Extensive warehouse rapid freezing of the water,
upgrades that could increase thereby making it ineffective
efficiency and effectiveness towards fighting a fire. Anti-
tend to be costly. Co- freeze needs to be added to
operative warehouses allow these systems, or separate
members of the co-op to systems relying on oxygen
invest in such upgrades elimination need to be
together, lowering the cost considered.
dramatically to the individual
In the warehouse planning

company to attain these stage, revisions need to
benefits. Members of the be made for the insulation

co-op can also share running of the walls and floors.

costs, such as security and Freezing in utility pipes can

labour, as well as share cause significant structural

resources such as trained damage to load-bearing

personnel. Co-op warehouses structures. Thermal bridges

also allow companies to (in the form of offices, gates,
access economies of scale and windows) can cause

SUPPLY NETWORK AFRICA 11

WAREHOUSING GUIDE 2021

01 BONDED WAREHOUSES long as the goods never leave to the challenges faced in

THE DIFFERENT WAREHOUSES A bonded warehouse stores the free trade zones. traditional warehousing. Data
imported goods before
customs duties are imposed DATA WAREHOUSES warehouses face the problem
on them. The facilities give of finding the correct
companies the time to
complete paperwork on The focus of this article is piece of data at the proper
restricted goods and allow on physical warehouses and time. Similarly, traditional
the storage of goods for more not data warehousing. It is warehouses are faced with
extended periods. Companies however interesting to note finding the right product at
operating in the eCommerce that many requirements and the correct time. Further
sector can take advantage of principles are identical or at comparisons can be drawn
this by delaying payment of least similar. Storage space, between the two in terms of
duties until customers pay for ease of retrieving, resource security, secrecy, efficiency,
their goods. The maximum requirements and limitations, and effectiveness.
time that a product may be
stored without paying duties initial and operational costs, SUMMARY
is dependent on the country security, even location,
where the warehouse is
located, in South Africa, the physical or virtual, are Warehousing can take on
maximum time is two years.
The benefit of a bonded examples of dimensions many forms, each of which
warehouse is that the delay
in duty payments allows relevant to both data is best suited to a particular
producers, importers, or
exporters time to find buyers, warehousing and “physical” purpose or business type.
or export items without
having to pay duties. warehousing. Accurately assessing the type

Exporters make use of Data is everywhere around us of warehouse that offers the
bonded warehouses when and is a vital part of how the most strategic advantages
multi-national shipments world functions. It recently and allows the supply chain
arrive and are destined to became the most valuable to run more smoothly is
be amended and exported commodity on earth. It would highly beneficial to the
again. All of this can take make sense that a company efficiency and effectiveness
place without paying customs should take every measure of the supply chain and
and export duties. within their means to keep business as a whole.
Free Port Warehouses
Free trade zones are areas their data accurate and
situated within a country’s
physical borders but legally secure.
lie outside the country’s
customs jurisdiction. These Data warehouses are mainly AUTHORS:
zones often contain free concerned with the storage
port warehouses that and analysis of large amounts DAVID SMITH
have become well known of data. Organisations [email protected]
for storing goods of an use data warehouses to
exceptionally high value store their data so future KIRAN DESAI
such as gold, diamonds, and analysis can take place. Data [email protected]
artwork. These warehouses warehouses use a different
have notably high levels design from standard
of security and secrecy. operational databases.
Ownership of goods can Databases are primarily
legally be traded freely as concerned with maintaining
strict accuracy in any given
moment by updating real-
time data. Data warehouses
are concerned more with the
aggregation and analysis of
data over a more extended
period.

Some of the challenges
associated with data
warehouses are very similar

12 SUPPLY NETWORK AFRICA

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PURPOSE AND IMPORTANCE OF WAREHOUSES WAREHOUSING GUIDE 2021

02 02 OPFUWRAPROESHEOUASNESD IMPORTANCE

In an environment that is combination of economic, • Staging of efficient
perfect with no uncertainty political, tactical, and strategic transport loads
or consistency issues, there is drivers. This was evident
no need for storage or extra in the port city of Ostia • Keeping ownership until
capacity. In such a utopian where the storage complex a favourable market
world, a forecast would be contained 140 rooms with a presents itself
100% accurate, resources floor area of 21,000m2.
would be consistently • Work In Progress (WIP) in
converted directly into Typical motivations for a the value chain
finished products that would warehouse:
be shipped to the customer, • Delayed commitment for
meeting their particular • Storing for seasonal mass customisation, such
expectations. Unfortunately, supply/demand as engineering spares
we live in a world where
supply chains are complex and • Allowing for continuous Management prefers
prone to random and irregular manufacturing to focus on plant and
changes and flaws. At times, machinery, marketing, and
clear economic motivation for • Import / export facilitation strategy while ignoring
storage exist (e.g. storing for warehousing requirements
peak demand with limited, • Risk mitigation in terms of and underestimating related
extra production capacity). loss CAPEX and OPEX. This is done
The need for warehouses, at their peril and they should,
developed in societies in • Preservation and therefore be cognisant of the
which trade reached a critical protection of products importance of warehousing
mass, requiring storage at and its value to the supply
some point in the supply • Consolidation of goods chain and giving it due
chain. An excellent example of recognition and attention.
an implemented warehouse • Reduced-order lead times
can be found in ancient for consumer orders AUTHORS:
Rome, the requirement
for warehousing was a Various stages of the supply IDO RIEGER
chain require warehousing. [email protected]
Some examples of storage
solutions are: DAVID SMITH
[email protected]
• Storage of natural
resources after harvesting
mining or extraction

14 SUPPLY NETWORK AFRICA

2021 WAREHOUSING GUIDE

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cartons and trays. Use the miniload crane to create a safe
environment for small parts storage of sensitive or valuable
goods, the machine is also suitable for small warehouses with
limited space area. Due to the diverse range of load handling
devices, there are almost no limits to the forms and surface of the
goods to be stored or buffered. Furthermore, the system can be
used for deep-freeze applications.

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SUPPLY NETWORK AFRICA 15

WAREHOUSING GUIDE 2021

DOCKING03 03 DOCKING

Docking is the link between manufacturing and transportation, and between transportation
and storage functions, loading docks perform a crucial function in 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 the type of material that requires handling. There are multiple 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 multiple
forms of docking associated with Electrical Forklifts, Trains, Boats, and Planes.

REAR-END LOADING outside wall of the building. generally not recommended.
To prevent wall damage, often They are subject to weather
Rear-end loading requires the foundation/dock bumper exposure and susceptible to
the truck to reverse into an extends slightly from the pilferage. Ideally, these docks
allocated and marked area. building wall. should encompass a canopy to
The truck will then be loaded ENCLOSED DOCK limit weather exposure.
through the back of the
vehicle. In all rear-end loading Enclosed docks are not overly DEPRESSED DOCK/
operations there is a need common but are used when SLOPING DOCK
to “bridge” a small distance climate control, product
between a fixed location protection, security, and Depressed docks have a
and height of the platform overhead lift capabilities are sloped driveway. Caution
(warehouse side) and the required. This dock design must be taken in planning
variable location and height allows the truck to park inside the gradient of the driveway,
of the truck end (the exact the building or sheltered area for heavy-loaded vehicles,
location depends on exact during docking. This design this slope should not exceed
stopping point of the truck, lacks in occurrence due to 5% so that the top of the
height lower/higher with high construction costs as well truck will not hit the wall of
increased/decreased load). as large space requirements. the building, as this can lead
This “bridging” challenge is A ventilation system is also to the toppling of cargo. If
answered by various types required, and vehicle exhaust the slope exceeds 5%, there
and providers of dock levellers pollution needs consideration. is an increased risk of the
and is not covered in this OPEN DOCK cargo falling out. Pull away
article. problems may also arise in
Although required in certain harsh weather conditions if
The various forms/ situations, open docks are the gradient of the driveway
configurations of rear-end is too high. Various safety
loading include: concerns of this docking
FLUSH DOCK type include driver skill,
truck brake failure as well as
Flush docks are the most used the required drainage when
dock design today. In this exposed to wet weather
instance, the face of the dock conditions.
(foundation) is flush with the

16 SUPPLY NETWORK AFRICA

2021 WAREHOUSING GUIDE

SAWTOOTH DOCK the warehouse. This can result products). The trailer of the 03

in an increased turnaround truck will be refrigerated and DOCKING
docked against a warehouse
time of each truck. that will have an insulated
doorway to minimize the
Sawtooth line-ups are Generally, the rear end loss of refrigeration when
used when there is limited loaded trucks add a degree loading. Side loaded trucks
manoeuvring space. However, of difficulty due to the need are not used for cold chain
the oncoming roads must be to reverse into position. This applications as it is almost
designed in such a way that can slightly increase the impossible to maintain the
the trucks can leave in the turnaround time of the truck. cold chain during the loading
direction of the angle of the Side loading trucks will not and in the truck. Another
dock. The trucks require less need to reverse. The safety challenge associated with
manoeuvring space because of the driver is also a concern rear end loaders is the order
they are already lined up in that cannot be neglected. of loading and offloading that
the “driveway” direction. Sideloading trucks will have follows a LIFO sequence (Last
However, extra building forklifts moving around the In First Out). This becomes an
space is needed when using vehicle, including the cabin. issue when multiple drops are
sawtooth dock designs. The This poses a risk for the planned for a single truckload.
ease of driving is decreased driver exiting the vehicle to a Docking technology and
as trucks will need to reverse designated driver safe zone. practices are an essential
at an angle and therefore Rear end loading-trucks has section within the entire
require guidance lines across another benefit that allows supply chain industry and
the floor. them to be loaded through need to be considered,
mechanical conveyors planned, designed and
REAR END LOADING VS or automated guided implemented most suitably
SIDELOADING vehicles. (Laser guided, depending on the type of
driverless forklifts). Loading application. In this article,
Sideloading is another form the truck, mechanically a small subsection of this
of loading material onto a or using AGV’s limit the field is covered to hopefully
truck. The previous examples man-machine interaction, make the reader aware of
of docking are only applicable therefore reducing the risk the different types of docking
to rear end loaded trucks. of an accident occurring. and serve as an appetizer for
The sideloaded truck will This type of loading is also further research.
be positioned within a beneficial as the loading times
loading bay (marked along AUTHORS:
the ground), with a forklift are significantly reduced
travelling around the truck compared to manual loading. TERENCE MEYER
to load. The loading bays Rear end loading trucks [email protected]
can be situated within the are typically used when
warehouse (loading tunnel) maintaining the cold chain KIRAN DESAI
or alongside the warehouse. is required (for refrigerated [email protected]
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

SUPPLY NETWORK AFRICA 17



2021 WAREHOUSING GUIDE 04

04 ICMOPNROTVINEMUEONUT S CONTINUOUS IMPROVEMENT

GENERAL The “bottom-up” makes it a lot easier
improvement method to see at-a-glance if
Continuous Improvement is thus more effective progress has been made.
(CI), also sometimes called due to employees being
Continual Improvement, is closer to the problem. 6. Improvement is
the ongoing improvement measurable and
of products, services, 3. Incremental potentially repeatable.
or processes through improvements are It is not enough to just
incremental and breakthrough typically inexpensive make a change and call
improvements. It is the never- to implement. When it an improvement. It
ending strive for perfection. employees propose must be measurable and
Six Sigma, Kaizen, Lean and changes, they generally proving a positive Return
Toyota Production System are are in their specific on Investment (ROI)
all different methodologies area. Usually, they keeps a business-aligned
that companies use for will eliminate certain around improvement. CI
revision. Even though they processes, which will must become part of the
are all different, Continuous make their work simpler. culture of the business to
Improvement is at the core This is an excellent be successful.
of all these methodologies. way to reduce waste in
Continuous improvement has operations. CONTINUOUS
six central/core principles: IMPROVEMENT IN LEAN
4. Employees take
1. Improvements are based ownership and GENERAL
on small changes and are involved in
not only major paradigm improvement. Change In lean management, CI is also
shifts or new inventions. management is known as Kaizen. In the context
Many times, significant complicated and getting of the lean methodology, CI
changes in a company people to change the seeks to improve every process
can potentially destabilise way they do things are in the business by focusing on
the organisation and hard. The best way to get enhancing the activities that
employees can act results is when proposed generate the most value for
“hostile” towards the changes come from your customer while removing
proposed change. By employees themselves as many waste activities as
making smaller changes, or from their peers. Be possible. Muda consists of 7
employees are less engaging employees, you major process wastes:
fearful and feel that they empower them to take
can adjust and manage charge of their own work • Transport
the differences better. while being supported by
management. • Inventory
2. Employees ideas are
valuable. This relies 5. Improvement is • Motion
significantly on inputs reflective. Constant
from employees and not feedback is essential in • Waiting
just top management. CI. It is critical to track
Due to employees progress to ensure that • Overproduction
working in a specific the correct changes were
condition or scenario made. It is, however, • Over-processing
continuously, they sometimes tricky if many
typically know better different employees • Defects
what can be done to are working on making
make improvements. changes. Using software Mura is caused by
or a dashboard, however, inconsistencies in the
processes, and it is responsible
for Muda (seven wastes). It
prevents tasks from flowing
smoothly. Muri (overburden)
is typically a problem in
companies that apply a “push

SUPPLY NETWORK AFRICA 19

CONTINUOUS IMPROVEMENT04 GENERAL WAREHOUSING GUIDE 2021

Continuous Improvement Continuous Improvement Tool 2 - Rout Cause Analysis Example
(CI), also sometimes called
Continual Improvement, is significantly on inputs from employees and not just top
the ongoing improvement management. Due to employees working in a specific
of products, services, condition or scenario continuously, they typically know
or processes through better what can be done to make improvements. The
incremental and breakthrough “bottom-up” improvement method is thus more effective
improvements. It is the never- due to employees being closer to the problem.
ending strive for perfection. 3. Incremental improvements are typically inexpensive
Six Sigma, Kaizen, Lean and to implement. When employees propose changes, they
Toyota Production System are generally are in their specific area. Usually, they will
all different methodologies eliminate certain processes, which will make their work
that companies use for
revision. Even though they
are all different, Continuous
Improvement is at the core
of all these methodologies.
Continuous improvement has
six central/core principles:

Continuous Improvement Tool 1 - Continuous Improvement Tool 3 - Kanban System
Plan Do Check Act
simpler. This is an AUTHORS:
1. Improvements are based excellent way to reduce
on small changes and waste in operations. DAVID SMITH
not only major paradigm [email protected]
shifts or new inventions. 4. Employees take
Many times, significant ownership and LOUW VENTER
changes in a company are involved in [email protected]
can potentially destabilise improvement. Change
the organisation and management is
employees can act complicated and getting
“hostile” towards the people to change the
proposed change. By way they do things are
making smaller changes, hard. The best way to get
employees are less results is when proposed
fearful and feel that they changes come from
can adjust and manage
the differences better. SUPPLY NETWORK AFRICA

2. Employees ideas are
valuable. This relies

20

2021 WAREHOUSING GUIDE

WAREHOUSING GUIDE

healthcare
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As the inventor of the autopicker, KNAPP has over 30 years’ 2191 Sandton | South Africa
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SUPPLY NETWORK AFRICA

4x_Suply_Network_Africa_A4.indd 3

TYPES OF MATERIAL HANDLING EQUIPMENT POWER SOURCES05 05 WAREHOUSING GUIDE 2021

TYPES OEFQMUIPAMTEENRTIAPOLWHEARNSODULRINCEGS

Many warehouse businesses environment which limits its reliable over more extended
utilise Material Handling suitability to outdoor usage. usage.
Equipment (MHE) to Forklift catalytic converter
efficiently transfer stock may be installed. The diesel Diesel forklifts will require
throughout the warehouse forklift is louder than other a refuelling station on-site
operations. The machines forklift types. This could be outside the warehouse, where
allow for more stock to be an operational safety issue, as the most common option is
handled and transferred at a the sound will drown out the to have a large storage tank
quicker rate than otherwise operator ability to listen out at the edge of the site and a
would be possible by for any dangers, i.e. trucks, pump station. With trucks also
human handling. There are other forklifts, or calls for running on diesel, the diesel
many types of MHEs, with safety. The diesel forklifts storage and pump station can
most common being the tend to be heavier than their be used for both forklifts and
counterbalance forklifts. The counterparts, which decrease trucks, should the site require
choice of MHE will depend its suitability for indoor use truck refilling on site. The
on the business operational where the floor surfacing forklift will have to drive out
criteria. The next option that will be more delicate. to the pump station to refuel,
may be required is to choose Purchasing diesel forklifts which takes a longer time to
the type of power source for can be more expensive than do when the storage tank and
the MHE. There are three LPG forklifts, but they usually pump station is further away.
main types of power sources have lower running costs Refuelling of diesel forklifts is
for MHE: Diesel, Liquefied than LPG forklifts. Diesel is quick, compared to electric
Petroleum Gas (LPG) and more expensive than LPG; forklift recharging. Diesel is
Electric. Each power source however, Diesel engines tend hazardous as it is toxic and
is discussed below to help to be more efficient than flammable, however less
facilitate the choice as to LPG engines. The mechanics flammable than LPG. Thus,
which power type will suit of a diesel engine are more care must be taken when
warehouse operations. straightforward than in other refuelling. Diesel is more likely
forklift types, which leads to to be stolen than other fuels
DIESEL the diesel forklift being more as they are used in trucks and
other vehicles.
Diesel-powered MHEs
are common in the Example of Diesel Forklift
counterbalance forklift
range (1 to 25 ton) and are
recognisable by their size and
exhaust on the back of the
MHE, as seen in Figure 1. The
diesel engine provides more
torque as opposed to the
other fuels, which results in
that the larger forklift sizes
with larger carrying capacity
(10 to 25 ton) are only
powered by diesel engines.
The diesel engine produces
thick, black exhaust fumes
that reduce air quality and
can stain and contaminate
stock stored in a closed

22 SUPPLY NETWORK AFRICA

2021 WAREHOUSING GUIDE

LIQUID PETROLEUM large gas tank is considered ELECTRICAL MHEs 05
GAS (LPG) more dangerous. Therefore
the station is required to All electrical MHEs are TYPES OF MATERIAL HANDLING EQUIPMENT POWER SOURCES
Liquid Petroleum Gas (LPG) have a larger fenced off considered environmentally
forklifts are the most common demarcated area (compared friendly inside the warehouse,
type of forklift, as it is the to diesel tanks). The bulk as the forklifts do not give off
cheapest option of forklift storage tank option requires emissions, unlike diesel and, to
types, whether bought new more capital investment a lesser extent, LPG MHEs. The
or rented. However, the LPG but has a cheaper operating electric power option is only
fuel option is only available cost. This option allows for available to the small to mid-
to the small to mid-size buying in bulk which is more size counterbalance MHEs, and
counterbalance forklift affordable, and there will be are recognisable by the lack
options, and are recognisable fewer deliveries of LPG via of an LPG bottle or exhaust on
by the LPG bottle on the trucks. This will help with site the back of the electric MHE.
back of the forklift, as seen in overall congestion. The motorised pallet jackets,
Figure 2. The liquid petroleum order pickers, pallet stackers,
is non-corrosive, non-toxic, The individual canisters can reach trucks and VNAs are only
and free from additives which be stored in cages, as long as available in the electric option.
allows it to burn cleaner than they are out of direct sunlight Due to the smaller design
diesel, to the extent that it is and protected from rain, availability of the forklifts,
used inside the warehouse. frost, and other corrosive electric forklifts are more
This also results in the conditions. They should also suitable for narrow aisles and
cheaper maintenance and be kept away from nearby confined spaces. Electric MHEs
servicing cost of LPG forklifts buildings. Depending on are not suited for outdoor
compared to diesel forklifts. the number of cages, more use, especially in wet weather
LPG forklifts run quieter than deliveries are required to regions, due to their electrical
their diesel counterparts but replace empty canisters. components. Hence, forklifts
not quite enough that it is This option allows for more intended for indoor operations
hard to detect, which aids in flexibility when space planning tend to be electric forklifts.
safety when operating with and expansions, whereby the
and around forklifts. cages can be easily relocated. Electric MHEs are the quietest
This option requires a lower of all forklift types, to the
LPG forklifts also require a capital investment (cages point where one cannot hear
refuelling station, placed and canisters) but will have a them approaching at slow
outside the warehouse and higher operating cost. speeds. Electric MHEs are
somewhere safely on site. cheaper to run and cheaper
There are two standard The refuel of the LPG is quick to service and maintain
practices for storing LPG: regardless of the options compared to diesel and LPG
in a large bulk tank or in (same as the diesel option). options. Electric forklifts do
individual canisters. The large However, the swapping of not require the disposal of
bulk tank option requires a individual canisters is slightly toxic waste like engine and
pump system to dispense the faster. transmission fluid, and a high
percentage of battery lead can
gas into the canisters. It is a LPG is hazardous as it is highly be recycled. The upfront cost
more permanent option, as flammable (more so than of an electric forklift is more
the tank and pump require diesel), and care must be expensive than diesel or LPG.
foundational work. Having a taken when being handled. However, they have longer
lifespans when excluding
LPG is denser than air which battery replacement. The
batteries have a life span
can lead to the gas flowing of approximately 5 years.
Although the upfront costs
down drains, gutters, and for batteries and chargers
can be high, the return on
sinkholes to form pockets of investment over time is

accumulated gas, where an

ignition source could be found

at a later stage leading to a

Example of LPG Forklift disaster.

SUPPLY NETWORK AFRICA 23

WAREHOUSING GUIDE 2021

TYPES OF MATERIAL HANDLING EQUIPMENT POWER SOURCES05 foundational work. Having a ELECTRICAL MHEs
large gas tank is considered
Example of Electric Forklift more dangerous. Therefore All electrical MHEs are
the station is required to considered environmentally
LIQUID PETROLEUM have a larger fenced off friendly inside the warehouse,
GAS (LPG) demarcated area (compared as the forklifts do not give off
to diesel tanks). The bulk emissions, unlike diesel and, to
Liquid Petroleum Gas (LPG) storage tank option requires a lesser extent, LPG MHEs. The
forklifts are the most common more capital investment electric power option is only
type of forklift, as it is the but has a cheaper operating available to the small to mid-
cheapest option of forklift cost. This option allows for size counterbalance MHEs, and
types, whether bought new buying in bulk which is more are recognisable by the lack
or rented. However, the LPG affordable, and there will be of an LPG bottle or exhaust on
fuel option is only available fewer deliveries of LPG via the back of the electric MHE.
to the small to mid-size trucks. This will help with site The motorised pallet jackets,
counterbalance forklift overall congestion. order pickers, pallet stackers,
options, and are recognisable reach trucks and VNAs are only
by the LPG bottle on the The individual canisters can available in the electric option.
back of the forklift, as seen in be stored in cages, as long as Due to the smaller design
Figure 2. The liquid petroleum they are out of direct sunlight availability of the forklifts,
is non-corrosive, non-toxic, and protected from rain, electric forklifts are more
and free from additives which frost, and other corrosive suitable for narrow aisles and
allows it to burn cleaner than conditions. They should also confined spaces. Electric MHEs
diesel, to the extent that it is be kept away from nearby are not suited for outdoor
used inside the warehouse. buildings. Depending on use, especially in wet weather
This also results in the the number of cages, more regions, due to their electrical
cheaper maintenance and deliveries are required to components. Hence, forklifts
servicing cost of LPG forklifts replace empty canisters. intended for indoor operations
compared to diesel forklifts. This option allows for more tend to be electric forklifts.
LPG forklifts run quieter than flexibility when space planning
their diesel counterparts but and expansions, whereby the Electric MHEs are the quietest
not quite enough that it is cages can be easily relocated. of all forklift types, to the
hard to detect, which aids in This option requires a lower point where one cannot hear
safety when operating with capital investment (cages them approaching at slow
and around forklifts. and canisters) but will have a speeds. Electric MHEs are
higher operating cost. cheaper to run and cheaper
LPG forklifts also require a to service and maintain
refuelling station, placed The refuel of the LPG is quick compared to diesel and LPG
outside the warehouse and regardless of the options options. Electric forklifts do
somewhere safely on site. (same as the diesel option). not require the disposal of
There are two standard However, the swapping of toxic waste like engine and
practices for storing LPG: individual canisters is slightly transmission fluid, and a high
in a large bulk tank or in faster. percentage of battery lead can
individual canisters. The large
bulk tank option requires a LPG is hazardous as it is highly be recycled. The upfront cost
pump system to dispense the
gas into the canisters. It is a flammable (more so than
more permanent option, as
the tank and pump require diesel), and care must be

taken when being handled.

LPG is denser than air which

can lead to the gas flowing AUTHORS:
down drains, gutters, and

sinkholes to form pockets of BRYCE GROENENDAAL
accumulated gas, where an [email protected]
ignition source could be found
at a later stage leading to a TERENCE MEYER
disaster. [email protected]

24 SUPPLY NETWORK AFRICA

Storequip KK Full Page Ad.pdf 1 2020/09/30 10:36:37

2021 WAREHOUSING GUIDE

WAREHOUSING GUIDE

C 25
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CM
MY
CY
CMY
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SUPPLY NETWORK AFRICA

WAREHOUSE MANAGEMENT SYSTEM (WMS) WAREHOUSING GUIDE 2021

06 06 WSYASTREEMHO(WUMSES)MANAGEMENT

A WMS is a software WHAT CAN A WMS DO? flexibility, disaster recovery,
application that helps control scalability, and security.
and manage the day-to-day The figure below indicates Automatic updates can also be
operations in a warehouse. some of the main processes done. Internet connectivity is,
WMS software guides and functions that a WMS can however, essential for systems
inventory receiving and put- do. It typically guides inventory like these.
away optimises picking and receiving and put-away,
shipping of orders and advises optimise the picking process ERP Modules -
on inventory replenishment. and advises on inventory Some ERP systems have a
A WMS can be a standalone replenishment. WMS module that can be
application or part of an added or is integrated. There
Enterprise resource planning TYPES OF WAREHOUSE are many advantages of
(ERP). A WMS facilitate MANAGEMENT having an integrated WMS
management in their daily SYSTEMS to the ERP. The disadvantage
planning, organisation, is that in most cases these
staffing, directing and Standalone system - WMS add-ons do not have all
controlling the utilisation of A standalone WMS is a typical the functionality of the more
available resources to move on-premises type system specified systems even though
and store materials into, which is deployed on the the gap has closed over the
within and out of a warehouse native hardware system and past few years.
while supporting staff in the network of the business. The
performance of material majority of WMS are third- CONSIDERATIONS
movement and storage in and party, standalone packages
around the warehouse. that must be integrated with The following considerations
the ERP of the company. should be considered when
Businesses that have Integration with the ERP is choosing a WMS:
warehouses, but no WMS typically challenging, and there
system installed, employees is a duplication of information • Software fit and
typically store certain products as the systems work in silos. functionality
in specific bins or areas of Any customisation is tedious
a warehouse. It generally is and costly. • Purchase agreement
also only the employees that
work in the warehouse area Cloud-based warehouse • Implementation and
that know where the stock is. management system - training
One of the biggest problems, It is a web-based software
however, is that the overall as a service (SaaS) model. • Backup and redundancy
storage utilisation of the The benefits include better
warehouse is reduced due to • Customisation
certain areas being allocated
for certain stock items. If there • Business philosophy on IT
is no stock in the warehouse and internal IT footprint
for the specific SKU, but the
place is assigned to it, then
space is unnecessarily wasted,
and the overall warehouse
storage capacity will reduce.

26 SUPPLY NETWORK AFRICA

2021 WAREHOUSING GUIDE

• Software update control • Improved customer service key considerations are taken 06
into account when planning/
• Data access and ownership • Improved space utilisation operating a WMS, then the WAREHOUSE MANAGEMENT SYSTEM (WMS)
system will likely be a success,
• The total cost of ownership • Increased warehouse and there will be numerous
advantages.
ADVANTAGES productivity

Effective warehouse • Optimised processes
management is more than just
simple data. The best system • Efficient labour allocation
is not, however, the right
solution for the business. It is • Reduced labour cost
thus essential to do a thorough
investigation of the business’ • Reduced operational
expenses

• First in First Out
implementation

needs to determine the best • Reduction in stock losses AUTHORS:
solution for the requirement. due to no expiry
The main advantages of a LOUW VENTER
WMS are as follow: • Enhance safety and [email protected]
security
• Reduced fulfilment time BRYCE GROENENDAAL
A WMS is crucial for a [email protected]
• Increased inventory warehouse to run efficiently
accuracy and to maximise the capacity
of the facility. If the various
• Improved stock visibility

SUPPLY NETWORK AFRICA 27

WAREHOUSING GUIDE 2021

RACKING07 07 RACKING

After the warehouse space Example of Static Racking of the cheaper options for
has been analysed, and a racking. Aisle width typically
decision has been made to the forklift aisle, the lower the varies from 6m to 3m. A
use racking for storage, the space utilisation. This racking forklift with telescopic forks
next decision is to determine is generally used when there or an extendable reach is
what type of racking will is a low number of SKUs and required to reach the second
best fit the solution. For the direct access to all the pallets pallet spot. The benefit is,
purpose of this article, the is required. The structural however, that warehouse
assumption is that palletised integrity of the pallet should space utilisation is higher
storage will be used. In be sound, and the quality than that of selective racking.
general, larger companies is essential, but it is not as This racking is typically used
use a standard size pallet that critical as in some other when a higher number of
can be, for example, 1.2m racking systems. pallets per SKU exist. Similar
x 1m. If the stock/material to static racking, the structural
is from different suppliers, DOUBLE DEEP RACKING integrity of the pallet should
then different sizes of pallets be sound, and the quality
can be received. If a high Double deep racking is is essential, but it is not as
percentage of the stock generally not that common. critical as in some other
received arrived in different Strictly speaking, it is FILO racking systems.
pallet sizes, it is essential to (First In Last Out), but it
ensure that the racking can could be seen as FIFO if it is
accommodate these sizes. a fast-moving SKU. It is one
Alternatively, companies can
put the “foreign” pallet on Example Double Deep Racking
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:

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
aisle forklift is used. The wider

28 SUPPLY NETWORK AFRICA

2021 WAREHOUSING GUIDE well as damage to the racking 07
11 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 essential, but it is
not as critical as in some other
racking systems.
RACKING
RACKING

Example of Very Narrow Aisle Racking PALLET FLOW / GRAVITY
FEED / DYNAMIC / LIVE
VERY – NARROW AISLE SKUs. RACKING
RACKING
DRIVE-IN RACKING Pallet flow racking is not a very
Very narrow aisle racking is common type of stretching
not that common. It supports After selective racking, drive- found in warehouses. It
First in First Out (FIFO) and in racking is one of the most supports First in First Out
is on the cheaper side of popular types of racking that (FIFO) and is one of the most
racking. Aisle widths typically will be found in a warehouse. It expensive types of racking.
vary from 1.6m to 2.2m. Due supports First in Last Out (FILO) Aisle widths typically vary from
to the very narrow aisles, and is also one of the cheaper 6m where a standard forklift
specialised material handling options of racking. Aisle widths can operate to 3m where
equipment (MHE) is required, typically vary from 6m where a reach truck is required.
which typically is either a very a standard forklift can operate A significant advantage of
narrow aisle (VNA) forklift or to 3m where a reach truck is this type of racking is that
an articulated forklift. These required. Space utilisation of warehouse space utilisation
types of forklifts are expensive warehouses is often remarkably is very high. Pallet quality
and often 2-3 times the cost high. This racking is typically is critical, and it must be
of standard counterbalance used when it is necessary to in excellent condition. This
forklifts. The main benefit of keep one type of SKU in a racking is typically used when
this type of racking is the high specific area, and using FILO is you have a large number of
space utilisation obtained in not a constraint. A significant SKUs and a requirement for
the warehouse footprint. This disadvantage is the honeycomb high space utilisation.
type of racking is typically used effect (low bin utilisation) as
when space is a constraint, PUSH-BACK RACKING
and you can have different Example of Drive-in Racking
types of forklifts in your fleet. Push-back racking is not very
The structural integrity of common in warehouses.
the pallet should be sound, Strictly speaking, it is FILO
and the quality is essential,
but it is not as critical as in
some other racking systems.
It is, however, more vital than
selective racking as racking
can straightforwardly go up to
12-15 m high. This racking is
typically not used when you
have a high/fast movement of

2SUPPLY NETWORK AFRICA SUPPLY NETWORK AFRIC2A9





WAREHOUSING GUIDE 2021

07 at different pallet positions 11

is required. The structural
RACKING
RACKING
integrity of the pallet should
be sound, and the quality

is important, but it is not
as critical as in some other

racking systems.

Example of Pallet Flow or Gravity Fed MOBILE RACKING ORBITER / PALLET MOLE
Racking / SATELLITE / SHUTTLE
Mobile racking is typically seen RACKING
(First In Last Out), but it could in cold storage environments,
be seen as FIFO if it is a fast- as cold storage is usually Orbiter racking is not a very
moving SKU. It falls in the expensive, and it is thus common type of racking that
medium range of racking in essential to maximise the is found in warehouses. It
terms of cost, as it is more utilisation of the total volume supports FIFO and FILO and
expensive than selective of the warehouse. It supports is in the medium-cost range.
racking, but not as expensive First in First Out (FIFO) and Aisle widths typically vary
as pallet flow racking. The is in the medium range of from 6m where a standard
depth of push-back racking is cost, as it is more expensive forklift can operate, through
generally two to three pallets than selective racking but not to 3m where a reach truck is
deep but can go as deep as as expensive as pallet flow required. One of the significant
four pallets. Aisle widths are racking. Aisle widths typically advantages of this type of
typically varying from 6m to vary from 6m where a standard racking is that warehouse
3m. Standard counterbalance forklift can operate through utilisation is typically very
forklifts or reach trucks can to 3m where a reach truck is high, while one on the
be used, but when it gets too required. One of the significant significant disadvantages is
high, reach trucks can struggle advantages of mobile racking that pallet quality is crucial,
to push back the pallets. Space is that warehouse utilisation is as pallets need to be in very
utilisation of the warehouse typically very high while being condition. Some of the earlier
is typically higher than able to access all pallets. The installations had issues with
selective racking. This racking major disadvantage is that charging, but it has been
is generally used when there it should not be used when resolved. One of the most
is a greater number of pallets you have a high turnover of significant risks with this type
per SKU, but it is limited to stock and frequent picking of racking is potential damage
pallet types that do not cause to the orbiter/mole/satellite/
damage due to pallet-to-pallet shuttle when forklift operators
contact. The structural integrity move it from one row to
of the pallet should be sound,
and the quality is essential.

Example of Push Back Racking Example of Mobile Racking

3W2AREHOUSING GUIDE 2021 SUPPLY NETWORK AFRICA3

2021 WAREHOUSING GUIDE 07
11 another. This racking is generally used when you require

many SKUs and space utilisation.
RACKING
RACKING
AUTOMATIC STORAGE AND RETRIEVAL
SYSTEM (AS/RS)

Automatic Storage and Retrieval System is not a

very common type of racking system 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 Example of Orbiter / Pallet Mole / Satellite /
FIFO if it is a fast-moving SKU. It is probably the most Shuttle Racking
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

cldiomonwidtneitsdiiodenexpiosoTaffhcntethrsrheieitsioiasecnraetwylpnopauuoemlndsdesobrieobfvuaierslsairtdcyfioiekflfileisomnrweagpsnr:toiestyrapttaehvsnaeoitlcf.aroTabschltkee.in. gmTthhaaejtoparraelulesetd for non-palletised storage. Some examples Retrieval

Example of Automatic Storage and
System

• Cantilever – This is typically for long items, like steel or wood

There are num• erCoruasdledi–ffBearrerenl tstotyrapgeesfoor wf irnaecskoirnsgpirtihtsat are used for non-palletised storage. Some
examples of these would be as follows:
• Cantileve•r –OTxholiisneis–tByaprrieclasltloyrafgoer, bloutnmgoirteesmtabsl,elaikned ssutietaeblleofrorwthoeospdecific industry.

• CradleTh–e Bfoallrorweinlgsttaobrlaegliestsfosromweindeiffseroenrtsrpacirkiintsg types and compares them at a high level based on
• Oxolinsepe–cifBieadrmreetlrisctso. rage, 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
Table *1: Summary of Racking Options
specified metrics.

DESCRIPTION COST/ UTIL. FIFO / LIFO PALLET STORAGE SPACE THROUGHPUT
PALLET 90% FIFO CONDITION UTILISATION Medium
Static / Selective $50-100 85-90% FILO Low Medium
Double Deep $60-72 90% FIFO Average Medium Low
Very Narrow 50-60% FILO Average Medium Low
Aisle Racking $55-65 85-90% FIFO Average High High
Drive in Racking High
Pallet flow / $180-200 85-90% FILO Good Medium
Gravity flow 90% Very Good Medium Low
Push back $440-460 FIFO High
racking 90-95% Good Medium
Mobile Racking $300-330 FIFO/ Good High
Orbiter / Pallet FILO Medium - High
mole / Satellite / $750-850 Very Good Medium
Shuttle $200-275 90-95% FIFO
& $55,000 Very Good
Automatic per orbiter
Storage and $380-420 &
retrieval system Building
$1,000/sqm

There are numerous different aspects to consider when choosing AUTHORS:
htthhigeehsceliogarhrstepicnetgwiTcnrhtisatasehtac,rfeltklehtaaoeiwtniroteaganbonlocfufioovmntesrhestsoryteonacosulalyueslnah.rdstiiWgifoofoheaplrrniiegteahnhcrllttoaoitnahtusgsieptotaswenpchfcet,risalwoewtnopsoiitcefsghoontrhniafetcsichrsiodaeeeann.rtlsWallwyibdtihathhoeeffoenevruaccewtthtipnioohorgooninswplleienyafrgroectrhhooenuscsiodereroreapctetiorranabcfkioliirtnygt.lhofeousrewyoa.usvrpeoenpcettsreL,arttOoi@otnUa,lrWicgVroEuNpT.nEeRt
BRYCE GROENENDAAL
significantly affecting warehouse operability. [email protected]

Author Louw Venter Email – [email protected]

Coauthor Bryce Groenendaal Email [email protected] SUPPLY NETWORK AFRIC3A3

4SUPPLY NETWORK AFRICA

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www.jungheinrich.co.za

WAREHOUSING GUIDE 2021

08 08 FWLOAORREHOUWSAEREHOUSE FLOOR 09 09
WAREHOUSE FLOOR
WAREHOUSE FLOOR
The design of warehouse and
distribution centre flooring transmitting loads. The factors relevant to structural design
is imperative to the effective are the ground conditions, strength and thickness of the
and efficient operation of the concrete, method of reinforcement, load transfer capability of
site. The following are typical joints, loading specifications, and load patterns. The surface
floor slab requirements for a layer of the floor also needs to have porosity and roughness
warehouse and distribution characteristics that allow the floor to be cleaned easily (by
centre: removing debris and oily liquids) and increase the longevity of
MHE tyres and the safe transfer of their loads.
• Support operational and
stationary loads without The following figure is an example of the different physical
cracking and deforming levels typical to a warehouse floor:

• Provide a durable Typical warehouse floor physical levels
abrasion-resistant and
dust-free surface SUB-GRADE for the slab. As the thickness
of the subbase increases,
• Appropriate levelness This forms part of the lower the ultimate load-carrying
and flatness tolerances foundations of the floor and capacity of the slab increases.
to support MHE for lifting supports the slab. It avoids
height requirements crack development in the slab SLIP MEMBRANE
due to bending.
• Balance surface traction Slip membranes are used
with cleanability SUB-BASE to reduce friction between
the slab and the subbase, to
• Reduce the number of This is often a layer of gravel reduce the impact of drying
exposed joints and is sometimes optional.. shrinkage, thus reducing the
It serves, however as a work risk of random cracking. A
• Utilise maintenance platform for construction of 300μm plastic sheeting is
isolation joints that do not the slab and provides more often recommended.
impede MHE operating uniform and level support
speed

• Safe working environment

The above points can,
however, be grouped into
two key elements that will
be explained in more detail
below. It is typically the civil
engineer that will provide the
exact specifications based on
the requirements that the
Industrial engineer provide.
They are:

• Structural design: Ability
to withstand loads

• Geometric features: Joint
design and levelness &
flatness considerations

STRUCTURAL DESIGN

Structural design has to do
with the ability of the floor
to handle the weight of loads
and the impact caused by

3W6AREHOUSING GUIDE 2021 SUPPLY NETWORK AFRICA1

2021 WAREHOUSING GUIDE

08

Automated Storage and Material Handling Experts WAREHOUSE FLOOR

HOME | OUR EQUIPMENT | CONTACT US

Automated Storage Systems Material Handling Equipment

• Kardex Storage Systems • CombiLift Equipment
• Conveyor Systems • JLG Lifts
• Software Integration
• Rental Equipment
• Pallet Racking & Shelving • Battery bay set ups
• Intralogistics
• Picking trolleys

CCOOMMBBIILLIIFFTTEEQQUUIIPPMMEENNTT STSOTORRAAGEG/EK/KAARRDDEEXX NICJLHGIYU
AACCCCEESSSSOORRIIEES COCNOTNATIANIENRERHAHNADNLDILNINGG FOORRKKLLIIFFTTEEQQUUIIPPMMEENT

About us
With an extensive 20 years of experience in the materials handling field, from product solutions to

the best practice guide, Solutions 4u is a group of companies that offers to solve a number of
challenges with one solution.

We supply racking order picking trolleys, cages, battery bay set up and material handling
equipment including forklifts, reach trucks, power pallet trucks, dock levellers, high speed

doors, industrial batteries and chargers.
We have had experience with supplying companies such as Unilever, Nampak, Ford, Astra
Pak, Consol, Illovo, DHL, BMG, AMROD, Baron clothing, Vodacom and Cell C to name a few.
We are an exclusive dealer for Kardex Remstar products, allowing organisations to streamline
processes, save space, increase productivity and minimise labour costs. Automated storage and
retrieval systems are designed to respond quickly to daily order demands by being able to

dynamically adjust labour levels fast and effectively.
Combilift is a specialist forklift & straddle carrier manufacturer producing a wide range of
customised handling solutions, all of which are designed for safety, space saving and productive
handling of long and bulky loads.4-way Combilifts work as counterbalance, side-loader and
narrow-aisle forklifts. The Combi-SC (Straddle Carrier) is a cost effective solution for the

handling of containers and oversized loads.
Solutions 4u is the company that provides a total solution.

SUPPLY NETWORK AFRICA 37

WAREHOUSE EQUIPMENT

Warehouse Equipment
from pallet jacks to Turret truck solutions , reach trucks ,order pickers ,tow tractors all offered in our total Solution
with strong partnerships we offer OEM solutions from a number of suppliers. Giving you one solution from multiple
options.

CONTAINER HANDLING

CONTAINER HANDLING
Launched in 2010, the Combilift Straddle Carrier (Combi-SC) range was developed as a more
cost effective and flexible solution for distribution, shipping and haulage companies, with
relatively low throughput levels.
The Combi-SC is a much more economical option compared to heavy handling forklifts,
reach stackers or mobile cranes and offers complete independence when moving very large
fully laden containers and other oversized loads around sites.
Lifting Capacity:
20,000kg – 80,000kg

ACCESSORIES

ACCESSORIES
Solutions-4u provide a number of accessories to ensure that client’s can have a full solution
for materials handling storage, movements, lifting,picking, transfering etc.
Our projects include racking, order picking trolleys, manual pallet jacks, tow tractors,
scales,packaging, pallets, fleet management systesm, load testing, driver training, on site
battery baymanagement, battery bay set up ,space savingand efficiency increase.

LIFTING EQUIPMENT

LIFTING EQUIPMENT
Our product range assists companies to achieve safer space saving and more productive
materials handling. We believe in providing the very best handling solutions available.
Our passionate and innovative personnel work closely with customers to solve their
handling requirements.
Whether you handle long and awkward loads, pallets, containers, extremely oversized
products or a combination of these, there is a lift to fit the bill.

DESCRIPTION ADDITIONAL INFORMATION REVIEWS (4)
Available in capacities from 10 to 15 tons, heavy duty diesel counterbalanced Mitsubishi forklift trucks are as
strong as they are reliable and built to deliver high performance in every kind of environment.

COMBILIFT

COMBILIFT
Combilift is a specialist forklift & straddle carrier manufacturer producing a wide range of
customised handling solutions, all of which are designed for the safety, space saving and
productive handling of long and bulky loads.
4-way Combilifts work as counterbalance, sideloaders, and narrow-aisle forklifts. The Combi-SC
(Straddle Carrier) is the most cost effective solution for the handling of containers and oversized
loads.
With the ability to operate in very narrow aisles, VNA, in the warehouse – as narrow as
1.6m – the Aisle-Master articulated forklift increases and maximises storage capacity.
What’s more, by using the one truck, users can increase productivity and eliminate time-con-
sumption, double handling as well as speed up “truck to rack” operations.

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If you want to store any kind of physical item,a space
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Unit 6, New Market Commercial Park, 39 Heidelberg Ave, New Market, Alberton

2021 WAREHOUSING GUIDE 08

09 CONCRETE WAREHOUSE FLOOR
WAREHOUSE FLOOR
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 challenging 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 how the slab shrinks.
Consistency of the material
properties and its delivery to
site is the key to the longevity
of a well-finished floor slab.

It is also due to this shrinkage Reinforcing
that floors must also be
isolated from fixed elements picture on the left in Figure 8 in flatness when lifting at
of the building to allow the below indicates a typical steel height. For a mechanised
floor to contract without mesh for a concrete floor. warehouse, it will, however,
cracking. This is achieved by not make a difference as
surrounding columns with Alternatively, floors can be there are no forklifts that
compressible materials. These reinforced with steel fibre travel in the warehouse
are known as isolation details. or post-tensioned. Steel area. The staging area of a
fibre floors are classified as mechanised warehouse will,
REINFORCEMENTS jointless slabs (with minimal however, have MHE, so it can
joints and spans of up to 50m be considered as a possible
Although reinforcement will wide). The principle is that solution.
give some enhancement to the steel fibres limit the crack
the structural load capacity widths of shrinkage cracking. A bulk warehouse will,
of the floor slab, the primary The picture on the right in however, have a large
function is to restrain the Figure 8 below indicates what footprint where multiple
opening of sawn induced concrete with steel fibre in it forklifts are being operated.
joints and maintain good looks like. It will thus be advisable
load transfer properties. to reduce the number of
The traditional method of The most common joints and associate friction
reinforcement in jointed occurrence of reinforcement to the forklift wheels. It is,
slabs is with steel mesh. for concrete floors in South however essential to do a cost
These jointed floors typically Africa is a steel mesh. In comparison to determine the
have construction joints at general, it will be better to best option.
6mx6m intervals, with the have fewer joints to reduce
reinforcement continuous friction to forklift tyres
across the sawn joints. It and ensure and increase
is generally recommended
that it is placed 50mm from
the bottom of the slab. The

2SUPPLY NETWORK AFRICA SUPPLY NETWORK AFRIC4A1 W

08 GEOMETRIC FEATURES WAREHOUSING GUIDE 2021
09

JOINTS
WAREHOUSE FLOOR
WAREHOUSE FLOOR
Joints are one of the most Levelness and flatness
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. Uneven floor
This is especially important

when using Automated Two specific classification of specifying the surface
Guided Vehicles (AGV’s) as categories for surface regularity of FM floors. It
there are often maximum regularity are Free Movement measures the levelness
allowed dimensions of (FM) or Defined Movement (difference in millimetres
joints (e.g. 2 mm height and
(DM). checked directly between
8 mm width). Additional fixed points 3m apart on a
discontinuities that need to FM criteria are usually where grid over the entire floor area)
be addressed are manholes, MHE operate at low vertical and flatness (the change in
grates, embedded plates, and levels and where aisles the elevational difference
draining ducts. between racking or bins are between two consecutive
greater than 2.8m wide. measurements of elevational
FLATNESS AND LEVELNESS difference each measured
(SURFACE REGULARITY) The TR34 specification is the

The floor should have an most comprehensive method over 300mm).

appropriate levelness and Table 1 - Extract from TR34 with the Permissible 95 percentile
an appropriate flatness to values on Properties E & F
provide a suitable surface

for the operation of MHE

and the storage of materials.

Figure 9 indicates the

difference between a floor

that is leveled, but not flat

and a floor that is flat, but

not leveled. The implications

of uneven and floors that are

not flat can be seen in Figure

10.

t

A 4W2AREHOUSING GUIDE 2021 SUPPLY NETWORK AFRICA3

2021 WAREHOUSING GUIDE 08

09 DM criteria usually refer to systems where MHE are constrained to defined, fixed paths such as

Very Narrow Aisles (VNA) or AGV’s. For DM Floors there are three standards to consider: TR34
Edition 4 Table 3.2; ACI Fmin; EN 15620.
WAREHOUSE FLOOR
WAREHOUSE FLOOR
Table 2 - Extraction from TR34 indicating the permissible limits on These three specifications
properties dZ, dX, dZ, and dX in defined movement areas 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.

Profileograph

CONCLUSION to consider both bulk and warehouse, a team that
racking storage methods. consists of civil, structural,
The integrity and longevity Steel fibre floors are not and industrial engineers are
of a warehouse floor are typical in South Africa. If key role players to determine
imperative to the successful these types of floors are the requirements and
and efficient operation of considered, specialists specifications.
a warehouse. The purpose must be used to cast these
of a warehouse is thus a floors. Specifically, if there AUTHORS:
critical component when is a consideration to move
determining whether the to AGVs, reducing the LOUW VENTER
floor should comply with number of joints is a crucial [email protected]
FM or DM specifications. consideration in the floor
The purpose of a warehouse specification. Throughout DAVID SMITH
might change over time, but the design phase of a [email protected]
it is highly recommended
SUPPLY NETWORK AFRIC4A3
4SUPPLY NETWORK AFRICA

KPI MANAGEMENT090190 MKPAINAGEMENT WAREHOUSING GUIDE 2021

MANAGEMKENPTI 10

KPI MANAGEMENT For example when the The primary goal of KPI
objective is to reduce truck management is to improve
Key Performance Indicators Turn Around Times (TATs), current operations by doing
(KPIs) are quantifiable a visible clock that starts things cheaper, better,
measures to evaluate and measuring time as soon as a and faster with the same
support the management truck stops at the dock will or fewer resources and at
of an operation. KPIs can likely be more useful than a the same or better quality.
be macro-strategic (such weekly report. Therefore, the KPI scope in
as profitability and market The following is a general warehousing should typically
share) or more micro- discussion covering typical include measures of Cost,
operational (such as yield on KPIs used in the warehouse Productivity, Utilisation,
a specific product and live line environment. Quality, and Time.
efficiency). It is important to
note that KPIs, on their own, If implemented correctly, But how would one determine
do not drive performance. If warehouse performance is specific KPIs for a warehouse?
anything, the activity around driven through a set of KPIs One should consider its daily
KPIs – being the collection, (formal or not). By setting activities. These can generally
analysis, and presentation targets based on industry be classified as receiving,
of KPI data – is not a core standards and best practices, put-way, storage, picking,
business activity nor does it management can benchmark and dispatching, as discussed
add value directly. It may be a performance against previously. The table provides
necessary activity, but it does competitors and its historical the relevant KPIs that should
not add value to the product. performance. Management be considered as part of any
Keeping that in mind – it is and team will then engage warehouse operation.
crucial to select which KPIs in and track continuous
to manage and to indeed improvement activities. As COST
manage those selected KPIs. Peter Drucker said, “You can’t
manage or improve what you It is vital to track all activities
The KPIs used should be don’t measure.” at a cost per line item or
those that will help the family level up to the point
organisation to achieve
specific results and should
be focused on core business
processes. For example,
if a warehouse is typically
empty and the organisation
is faced with reduced sales
and declining market share –
a KPI measuring warehouse
stock holding capacity and
utilisation is not of much
value. A KPI indicating product
availability and service level,
such as On Time In Full (OTIF)
is likely to be much more
relevant and useful.

Concerning how to generate
KPIs, simplicity, and accuracy
should guide the organisation.

44 SUPPLY NETWORK AFRICA

2021 WAREHOUSING GUIDE

0190

KPI MANAGEMENT

It should be noted that the word “items” can be replaced with “kilograms”, “litres”, “units”, “pallets”, value
etc. For example: “pallets received per man-hour” or “kilograms stored per m²” or “R-value picked per hour.”

when an order is consolidated the inputs (resources), i.e. docking levellers), Material
for a customer. pallets/hour or orders/hour Handling Equipment (MHE)
or pallets/sqm. In the event that are used for movement
Up to this point, items in the of storage, which is one of of items, storage systems,
warehouse are managed by the two primary activities of and picking systems. When
stock-keeping unit (SKU). a warehouse, productivity is it comes to utilisation KPIs,
As soon as orders are instead measured as volume the objective is not always
consolidated for dispatch, stored per m² or m³, i.e. to maximize utilisation. At
multiple SKUs exist within pallets/m² or litres/ m² or times, one would like to have
an order, and as a result, units/m³. as high utilisation as possible
“orders” become the common to maximise the return on
denominator. This indicates how efficient investment (ROI) of the
the storage area or volume assets. This should preferably
This gives a sense of the cost- is used and is highly be achieved by increasing
effectiveness of each activity. dependent on the storage business volume. Alternatively
It helps to ascertain the cost systems implemented in the reduction of working capital/
sensitivity in the event of warehouse. assets should be considered.
changes and fluctuations
that might occur to products, UTILISATION Very often, however, the
processes, capacity or business will do better by
demand. Utilisation has to do with keeping low stock levels
the degree of which assets and not using all trucking
PRODUCTIVITY are being utilised. In other capacities if all demand is met
words, it gives a ratio of and is met cost-effectively. It
Productivity is more than just how much an asset is being is essential to internalise the
a measure of how efficiently utilised versus its theoretical difference between efficiency
resources are used to or practical, working or rated and utilisation.
provide throughput. Not to capacity. In a warehouse,
work harder, but somewhat these assets typically include Practical utilisation of
smarter. The measure itself receiving and dispatch bays torage systems depends on
is calculated by dividing (including equipment like specific characteristics of the
the outputs (volume) by

SUPPLY NETWORK AFRICA 45

WAREHOUSING GUIDE 2021

093 operation, such as number replacement decisions. iinn tteerrmmss ooff tthhee nnuummbbeerr ooff

KPI MANAGEMENT of SKUs, size of items, the QUALITY ttiimmeess aann oorrddeerr wwaass pprroocceesssseedd
volume of objects, storage ccoorrrreeccttllyy.. IInn ttooddaayy’’ss ddeemmaanndd--
method and methodology,
inbound order features, Quality in a warehouse is ddrriivveenn eeccoonnoommyy,, cclliieennttss
picking requirements, and often overlooked by top hhaavvee vveerryy lliittttllee ttoolleerraannccee ffoorr
outbound order features. management and does not rreecceeiivviinngg tthhee wwrroonngg ssttoocckk oorr
always get the attention it tthhee rriigghhtt ssttoocckk iinn tthhee iinnccoorrrreecctt
For example, in a warehouse deserves. Typically, volume qquuaannttiittiieess oorr aatt tthhee wwrroonngg
operation that receives bulk throughput is prioritised ttiimmee.. AAnn oorrddeerr iiss oonnllyy 110000%%
pallets in and dispatches above quality in the mentality ccoorrrreecctt iiff iitt iiss tthhee rriigghhtt SSKKUUss
bulk pallets out with 10 of “getting things done.” This aanndd tthhee rriigghhtt qquuaannttiittiieess oonn
SKUs and storage of pallets creates issues down the line ttiimmee aanndd ccoorrrreeccttllyy iinnvvooiicceedd..
on single pallet racking, it is in terms of stock inaccuracies, TThheerreeffoorree,, tthhee aaiimm iiss ttoo hhaavvee
possible to get a pallet bay stock-outs and stock loss. This 110000%% aaccccuurraaccyy iinn ppiicckkiinngg,,
utilisation of 90% and more. often also has the unintended ppaacckkiinngg aanndd llooaaddiinngg oorrddeerrss,,
The accessibility to each pallet consequence of reducing 110000%% ooff tthhee ttiimmee..
location is straightforward,
and the operational throughput, and in effect, TIME
complexity is low. On the causing Failure Demand. A
other hand, in a warehouse
that dispatches 5000 different typical example is having to TTiimmee iiss ggiivveenn ttoo uuss ffrreeeellyy,, aanndd
SKUs individually, in cases
and uses a bulk floor stack place an additional delivery yyeett wwee aallll ccoommppllaaiinn aanndd oofftteenn
method with six pallet-deep
lanes stored three pallets when the first one has not ssaayy,, ““iiff oonnllyy tthheerree wwaass mmoorree
high, will probably max at
50% utilisation of pallet spots. been completed or operators ttiimmee”” oorr ““wwee ddiidd nnoott hhaavvee
In this case, a lane needs
to be emptied before items looking for stock that was eennoouugghh ttiimmee..”” TThhee oobbjjeeccttiivvee
can be stored there, and the
operational complexity is misplaced. iiss ttoo uussee tthhee ttiimmee wwee aarree
relatively high and increasing
further the fuller the In an unsophisticated ggiivveenn mmoosstt eeffffiicciieennttllyy aanndd
warehouse is. warehouse with manual eeffffeeccttiivveellyy.. IInn aallll nnoonn--ssttoorraaggee--
systems, it is crucial to keep rreellaatteedd aaccttiivviittiieess,, tthhiiss ccaann
Practical, working or rated a record of what comes bbee aacchhiieevveedd bbyy ttrraacckkiinngg tthhee
utilisation needs to be into and what leaves the ccyyccllee ttiimmeess ppeerr aaccttiioonn ((ssuucchh aass
identified for all assets to warehouse daily. It is also oorrddeerrss pprroocceesssseedd)) aanndd ttrryyiinngg
ensure optimal usage in the vitally important to have ttoo iimmpprroovvee oonn iitt wwiitthh eevveerryy
long-term. dedicated storage locations nneeww ssiimmiillaarr aaccttiivviittyy.. OOfftteenn,,
When considering machine for specific SKUs to increase tthhiiss ddooeess nnoott rreeqquuiirree ccaappiittaall
and equipment asset the productivity of picking iinnvveessttmmeenntt ttoo aacchhiieevvee.. OOfftteenn
utilisation and efficiency KPIs, the stock for orders. ccyyccllee ttiimmeess ccaann bbee iimmpprroovveedd
one should be cognizant of Implementing a warehouse bbyy eelliimmiinnaattiinngg tthhoossee rreeppeettiittiivvee
the equipment becoming management system (WMS) aaccttiioonnss tthhaatt ddoo nnoott aadddd vvaalluuee
less productive with time. allows for dynamic stock- aanndd wwaassttee ttiimmee.. EEvveenn wwiitthh
KPIs that measure that placing, thus increasing the vvaalluuee--aaddddiinngg aaccttiioonnss,, tthheerree
productivity, against, for effective storage capacity. aarree ffrreeqquueennttllyy wwaayyss ooff ddooiinngg
example, CAPEX, fuel If correctly used, WMS tthhiinnggss ssmmaarrtteerr ttoo rreedduuccee ccyyccllee
consumption or maintenance will significantly improve ttiimmeess aanndd iinnccrreeaassee eeffffiicciieennccyy..
requirements will support stock visibility and accuracy TThhee TThheeoorryy ooff CCoonnssttrraaiinnttss
management in making throughout a warehouse ssuuggggeessttss tthhaatt nnoo eeffffoorrtt sshhoouulldd
operation. Being able to track bbee ssppeenntt oonn rreedduucciinngg ccyyccllee
stock from one activity to ttiimmeess ooff aaccttiivviittiieess tthhaatt aarree nnoott
another throughout the entire bboottttlleenneecckk aaccttiivviittiieess..

warehouse always increases TThhee aauutthhoorrss ooff tthhiiss aarrttiiccllee

productivity and allows for aarrgguuee aanndd bbeelliieevvee tthhaatt iiff tthheerree

better service quality. iiss aann ooppppoorrttuunniittyy ttoo rreedduuccee

At the point where orders are ccyyccllee ttiimmeess aanndd iimmpprroovvee
picked, packed and loaded, it eeffffiicciieenncciieess,, bboottttlleenneecckk oorr nnoott,,
is crucial to measure accuracy tthhiiss sshhoouulldd bbee ccoonnssiiddeerreedd iiff

46 SUPPLY NETWORK AFRICA

2021 WAREHOUSING GUIDE

tthhee ccoosstt aanndd eeffffoorrtt rreeqquuiirreedd organisations can take to KPIs rather than analysing 093
aarree sseennssiibbllee.. and using the KPIs for their
improve processes, save costs KPI MANAGEMENT

IInn ssttoorraaggee aaccttiivviittiieess,, ddiiffffeerreenntt and work more efficiently. intended purpose.
ssttoocckk ttrraacckkiinngg KKPPIIss aarree uusseedd.. KPIs are an ideal tool to
TTyyppiiccaall eexxaammpplleess aarree ddaayyss ooff kickstart business change. We • Watch out for the
ccoovveerr ((DDOOCC,, ootthheerr iinndduussttrriieess recommend the following tips unintended consequences
wwiillll uussee ddiiffffeerreenntt ttiimmee ssccaalleess around KPI management: of KPIs. Ensure that all KPIs
work towards shared and
lliikkee hhoouurrss,, ddaayyss,, wweeeekkss)),, ssttoocckk agreed goals.

aaggee ((ffoorr FFIIFFOO mmaannaaggeemmeenntt)) • Evaluate your KPIs the • If KPIs are directly
SMART way: KPIs should impacting performance
aanndd ssttoocckk oonn oorrddeerr.. TThhiiss iiss incentives of employees,
be Specific, Measurable, be aware that employees
iimmppoorrttaanntt ffoorr tthhee eeffffeeccttiivvee will do what management
Achievable, Relevant, and inspects, not necessarily
mmaannaaggeemmeenntt ooff oorrddeerrss,, what management
Time-based. expects.
ddeelliivveerriieess,, pprroodduuccttiioonn ppllaannss

aanndd ccuussttoommeerr ccoommmmiittmmeennttss.. • The KPI measure is
TThhee oobbjjeeccttiivvee iiss ttyyppiiccaallllyy ttoo
only as accurate as the
kkeeeepp ccoovveerraaggee ttoo aa mmiinniimmuumm
information that was used
aanndd ttoo rroottaattee ssttoocckk aass oofftteenn
to calculate it. Remember • The way management
aass ppoossssiibbllee.. FFiirrsstt IInn FFiirrsstt OOuutt approach KPIs will
garbage in, garbage out. determine the behaviour
((FFIIFFOO)) pprraaccttiicceess aarree aaddvviissaabbllee,, they drive for their
eessppeecciiaallllyy wwhheenn ddeeaalliinngg wwiitthh • Make sure you don’t work employees.
pprroodduuccttss wwiitthh aa ddeeffiinneedd,, for your KPI system, but
ppeerrhhaappss sshhoorrtt,, sshheellff lliiffee.. that it works for you. It • Don’t make things too
would be best if you did complicated; keep it
simple.
TThheerree aarree aallwwaayyss mmeeaassuurreess not spend more time

updating and calculating

SUPPLY NETWORK AFRICA AUTHORS:

IDO RIEGER
[email protected]

DAVID SMITH
[email protected]

47

WAREHOUSING GUIDE 2021

www.parkerstoreaeroport.co.za
Tel: +27 11 392 8060
[email protected]

Parker Transair is the original fast, flexible and easy-to-modify
aluminium pipe system for compressed air, vacuum and inert gas
applications.
Transair's engineered polymer fittings are reusable and
interchangeable and enable manufacturing plant personnel to
implement many layout changes within minutes, instead of hours.
The ability to reconfigure production layouts or implement process
changes quickly is one of the key differentials when compared to
traditional compressed air piping systems. This ease of use
minimizes downtime and increases plant productivity and efficiency.
Transair fittings are simply pushed or bolted together, which enables
disassembly when required unlike other connection technologies that
are permanently crimped or welded.

48 SUPPLY NETWORK AFRICA

2021 WAREHOUSING GUIDE 108

10 PACKAGING PACKAGING

As a consumer or business, on a pallet, this will not can negatively affect the
when we purchase a product, only increase the costs in product. How the product is
nearly all of them come the warehouse but also distributed also impact the
packaged. Initially, packaging in the entire supply chain. type of packaging (sea, air,
was intended to provide Optimised packaging will also road or rail).
protection for the item as benefit customers who are
it was being transported purchasing in bulk due to the TYPES OF PACKAGING
through the entire supply reduced handling costs.
chain or moved in a During the supply chain,
warehouse. As a business, MINIMISING DAMAGE there are various types of
the main goal of packaging packaging that are used
is to ensure that items are A primary goal of packaging depending on where the
not damaged when they are is to protect the product item is in the process or its
on the way to the customer. from damage that could end customer. Examples
A secondary objective of occur after the product has could include a combination
packaging is that if it is left the production line, and of both external and
done correctly, it can entice travels through the supply internal packaging, where
a possible consumer to chain. Although warehouses external packaging would for
purchase your product over a are designed with the safety industrial or bulk use, and
fellow competitor. of the product in mind, there internal packaging would be
are many possible scenarios on an item level designed
PALLETS AND where a product could be with the retail customer
PACKAGING damaged. A product could in mind. With the internal
fall from a broken pallet or packaging designed to appeal
For a company, effective off a conveyor belt. It is also to the customer with all
and efficient movement of possible that a forklift could the necessary information
products within a warehouse drop something onto the required by law.
is vital for its operations. product or for product to get
To maximises the storage damaged within distribution The external packaging
capacity of a warehouse, from various road conditions. needs to protect the product
the company’s products as well as the internal
should be designed to fit There are many scenarios packaging. The external
together efficiently and where an item could be packaging needs to have
take up minimal space. In damaged, and the packaging sufficient information so
some cases, this needs to needs to be designed to that the products contained
be developed to be packed optimise a function that within can be identified and
on standard-sized pallets includes the cost of replacing tracked. This information is
to help with transportation the product versus the conveyed using barcodes,
(both internal and external additional weight, handling text, RFID tags, etc. Once
to the warehouse). The and cost of the packaging. again, the external packaging
cost of material handling Each item’s packaging also needs to be designed in
will be minimised if the needs to be specifically a way to maximises the
developed packaging allows designed to suit that items number of products that
the products to be safely needs such as protecting it can be stored on a pallet,
and effectively stored on from extreme weather, water taking volumetric and weight
pallets if the product can damage or contamination constraints into mind.
be stored on a pallet. If the with other goods. Electronic
packaging does not maximise items’ packaging needs to
the number of items stored be able to protect the item
from static electricity which

SUPPLY NETWORK AFRICA 49

WAREHOUSING GUIDE 2021

10 PACKAGING plastic are very light and can To summarise, in the modern
EFFICIENTLY
PACKAGING protect finished items well. world where every cost can

A logistics managers two Additionally, cardboard, make or break a business,
primary concerns are objects
volumetric size and weight, paper and some plastics are it has never been more
this is why it is essential to
develop light and compact recyclable, which reduces the important to focus on every
packaging that can still
protect the product. When total waste. small detail. That is why no
a business is creating a
packaging solution, often Another type of material that business can neglect the
lightweight materials are is very popular for external type of packaging that they
initially chosen such as packaging is corrugated use, not only does it need to
aluminium, paperboard and cardboard. It is popular protect the product, while
plastic. The cost, returnability because as mentioned above, being as minimalistic and
and environmental impact it is lightweight strong and light as possible, but it should
of these need to however be easily recyclable, but another also be environmentally
measured against the value benefit to using corrugated friendly.
fo the item being protected.
cardboard is that it can be

printed on very quickly. This

makes applying information

or barcodes very simple, and

RFID tags can also be stuck

Aluminium packaging is on effectively. The corrugated AUTHORS:
an excellent container for cardboard container is
food/beverage products
because the material is usually manufactured from DAVID SMITH
lightweight, strong and mostly organic material – [email protected]
recyclable. Paperboard and paper and starch glue.
KIRAN DESAI
[email protected]

DEXION | National call centre | CPT Tel: 021 552 0220 | Fax: 086 517 2949 | [email protected]

Need a storage solution?
With more than 55 years international experience in materials handling and
storage systems, Southern Storage Solutions – Dexion has the expertise to
solve any storage requirement.

Dexion’s specialist racking and shelving is • Racking
designed and manufactured in compliance • Shelving
with the SEMA code of practice, providing • Mezzanine fl oors
you with a top quality, fully adjustable and • Retail/gondola shelving
cost-e ective storage solution. • Small parts storage – bins
• Staff Lockers
• Work benches

50 SUPPLY NETWORK AFRICA