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Most companies consider material flow when initially designing their distribution center. Unfortunately, that is also the last time in many companies. Or, re-design is on-the-fly, dealing with issues that affect one area or another, and not the overall facility or operational requirements.
Over time things change. Processes are added and deleted, new material handling equipment is installed. SKU's are added. Layouts are modified ten or twenty times until what was once a smooth material flow has become an inefficient traffic jam.
The transition from efficiency to inefficiency can happen so gradually that it goes unnoticed even by the most astute operations manager, dealing with a daily barrage of fires he's got to put out. That’s why it is important to take a step back now and then and reassess how materials flow through your facility. Three important analyses to be performed when evaluating material flow are:
The inefficient movement of material within a warehouse can add significant labor costs to an operation while adding zero value to the product itself. Excessive path lengths, traffic congestion, blocked access points, or a circuitous route all indicate an opportunity for layout or process improvements. By mapping current flows onto the existing layout, these opportunities for improvement become evident.
Every time a person touches product it adds cost to that product and increases the opportunity for errors. By identifying and eliminating non value-add touches you can reduce labor costs while improving operational efficiency.
By performing a detailed examination of each process, an analyst can identify opportunities to improve material flow through improved logistics. An area rife with opportunities is process dwell time and WIP staging. By streamlining the process, the need to stage product may be eliminated, thereby reducing material handling costs and reclaiming valuable space.
Even if individual processes are world-class, ignoring material flow between the processes can result in a highly inefficient distribution operation. CEI Logistics performs the analyses described above to help clients optimize their entire operation. We give customers an independent perspective.
CEI Logistics creates meaningful material flow solutions. It's hard, factual information designed to help you get the most from your operations. Call us at 800-441-1162, or e-mail 24hours@ceilogistics.com for more information.
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