There are five essential steps to creating a world-class warehouse, according to Dr. Edward Frazelle, founder of The Logistics Institute at Georgia Tech and director of the school’s Logistics Management Series. A pioneer in modern logistics, Frazelle is an industry legend who has trained more than 50,000 logistics professionals and coached countless companies and government agencies in achieving logistics excellence.
- Profile. Frazelle believes in creating profiles of every element of a warehousing operation. Profiling order, activity and planning activities makes it possible to identify the causes of problems as well as pinpoint opportunities for improvement.
- Benchmark. It is necessary to determine a benchmark for warehouse performance, practices and infrastructure against which comparisons can be made to worldwide standards or future achievements. Benchmark comparisons allow you to determine the need for improvement or new technology.
- Innovate. Based on the information obtained during phases 1 and 2, warehouse processes are streamlined and made as efficient as possible.
- Automate. Computerize where possible to increase efficiency and productivity. Computerization should focus on simplifying tasks, increase performance and maximize resource use. Mechanize where justified to maximize production and storage density and to assist operators in performing complex tasks.
- Humanize. Involve warehouse operators in the redesign process. Recognize individual performance, promote team goals and implement ergonomic improvements in every possible warehouse activity to safeguard your workforce.
The order in which the above 5 elements are applied to warehouse design and redesign is important, warns Frazelle. Keep in mind that:
- Design adjustments are much easier and cheaper to make in the early profile and benchmark phases.
- Mechanization investments are less flexible and more expensive than computerization.
- Protect your workforce. Ultimately your most valuable resource is your workforce. They are your last element of consideration only because your workforce requirements will be dictated by the preceding elements.
Frazelle’s five elements of warehouse development can be successfully utilized to design a warehouse master plan, redesign existing operations, develop requirements for management systems and guide improvement projects.