Strengthening your supply chain one link at a time.
Have you ever thought about warehousing storage as you were putting away your kitchen dishes, utensils, and appliances? Neither have I until this year’s 4th of July party cleanup.
Warehousing at its core is structured around very simple concepts, yet they become complex very quickly. In order to simplify warehouse storage concepts, lets stick to a topic we are all familiar with (whether you like it or not) cleaning and putting away the dishes at home!
Storage Space is Expensive!
If we are willing to spend thousands of dollars on kitchen cabinetry to store our dishes and utensils, I am assuming you don’t like to keep things laying around the countertop which make a mess. You probably want to maximize the available space in your cabinets by storing everything as efficiently as possible. You may even use different storage types within the cabinets themselves (a shelf, bin, rotating tray, moveable units, etc.) depending on what you are trying to store (spices, appliances, bowls, plates, utensils, etc.). Warehousing is no different. We use the available storage footprint and efficiently utilize all horizontal and vertical space – all while selecting the appropriate storage media (single deep rack, deep lane storage, vertical carousels, floor storage, etc.). This is not a one solution fits all answer – you must understand the fine details at the SKU level.
Who Put the Cups Behind the Bowls?!
I would be willing to bet that when you place your cups and plates into your cabinets, you do your best to not bury one behind the other. Why? Because they are different items designed for different purposes. Why would you want to have to dig out a cup from behind the plates when you want a drink of water? Warehousing is no different. Each unique SKU or item requires its own storage lane to avoid digging and double handling materials to fulfill orders. The depth of these storage lanes depends on various factors, with the largest factor being quantity on hand for each item.
I Think We Need Some More Shelves…
If you have a ton of 6” tall cups, but only one shelf in a 36” tall cabinet, what do you do to be able to store more 6” cups in that same 36” cabinet? That’s right, you nest the cups into each other and/or add more shelves in the cabinet to be able to accommodate more cups. This is a similar concept to how large bowls use larger cabinet openings, smaller plates use smaller cabinet openings, while knives & spoons may use a drawer or bin type system. Warehousing is no different. We take advantage of as much vertical space as possible (while being safe) in order to store as much product in the smallest footprint possible – all while right sizing the storage media based on SKU dimensions (pallet heights, weights, etc.). and storage requirements (Days of Supply, quantity on hand, etc.).
Keep it Clean!
Not only do we clean the dishes to avoid making a mess, but we generally like to keep the cabinets neat with everything in its place. When you get hungry, you want to be able to access the dishes and cups quickly and efficiently. Warehousing is no different. When your production line has an immediate need for a raw material, we must quickly know where it is stored and hope that it is easily accessible to feed your production line. With the help of efficient systems and data collection in place, this is absolutely achievable.
Bowls Belong with Spoons!
Someone who eats cereal every morning is not going to store the bowls (and spoons) out of reach or down in the basement. It just wouldn’t make sense to spend time every morning walking to grab your bowl and spoon from the basement. Warehousing is no different. Depending on the order mix and velocity of each SKU, it may make sense to keep fast movers (items shipped very frequently) close to your loading areas and store similar ordered items together (order commonality). Travel distance in a warehouse is a huge driver in the amount of labor required to operate your business.
Honey, the Dishes are Done!
I bet at least once in your life you have proudly told your significant other that the dishes are now clean (thanks to your help) and placed into the cabinets where they belong. Warehousing is no different. We must notify the WMS and all other relevant systems when and where inventory is moving around for transparency. The last thing we want to do is lose sight of critical operational data.
Should We Buy 5 Cabinets for Our New Kitchen, or 10?
Why would you want to spend an extra $5,000 on 10 cabinets, when you only need 5 for the amount of dishes, utensils, appliances, etc. you need to store? You wouldn’t do that because it isn’t necessary and it’s a waste of time, space, and money. Warehousing is no different. Why buy more land, expand a facility, or pay for excess warehouse space and/or storage media that is not required? Inventory storage analysis, network analysis, and right sizing your storage is key.
Cabinet Space Grows with the Family
As your family grows, it is very likely you will need more dishes and appliances, which means more space. In order to accommodate this need, you may have to buy larger cabinets, reconfigure the existing cabinets, or build a pantry. Warehousing is no different. As your business continues to grow and develop, or sites expand or consolidate, the mix of what is being stored and how much is being stored fluctuates. This fundamentally requires a re-evaluation of how you are storing product and with what means.
I Like My Dishwasher More than My Sponge
If you are fortunate enough to have a dishwasher, I would bet that you enjoy loading it more than hand washing all of your dishes with a sponge. Why? Because the dishwasher automatically washes your dishes, allowing you to focus your time on other chores such as mopping the floor. Even though it costs money up front, it made sense to buy because of the amount of time you save yourself in the long run. Warehousing is no different. Automation may be an appropriate answer to some of your storage and picking needs. The capital investment may prove to have a favorable ROI, all while saving you on labor and allowing your operation to become more efficient with storage and picking.
As you can see, cabinetry in your home is very similar to how we approach warehousing storage. So next time you are doing the dishes, be sure to ask yourself if you are keeping your warehouse as neat and efficient as your kitchen. If not, we like to get our hands dirty and dig deep into the sink, so be sure to give us a call at St Onge so we can help you with your dishes. We take pride in doing our clients chores!
—Carter Luckenbaugh, St. Onge Company
