Harrison's Logistics Warehouse Logistics Avenue Any Town QWERTY. Auditor Name Mark Phillips Audit Date 21/01/2016 Reference

Transcription

1 Harrison's Logistics Warehouse Logistics Avenue Any Town QWERTY Auditor Name Mark Phillips Audit Date 21/01/2016 Reference

2 Site Details Site Footprint sq ft Usable Height (Meters) 8.0 Sector 3PL Contact Name Paul Miller Contact Position Operations Manager Contact Phone Contact Mobile Contact Page 2 of 29

3 Contents Audit Information Utilisation of warehouse capacity Control of warehouse processes Storage equipment Handling equipment Inventory management General warehouse Cost and operational control Summary Page 3 of 29

4 Audit Information What s in the report: The audit provides a comprehensive assessment of your facility, along with date/time stamped photographic evidence. Comments/Recommendations and Corrective actions can be noted to show where improvements can be made. Key Performance Indicators: The audit template has a built-in scoring matrix, when each question has been answered a colour coded bar appears. This gives a KPI score for each of the 8 categories of questions. Based on the KPI % score, this will show where improvements can be made, when corrective actions have been addressed, KPIs will increase to the level required for H/S and compliance. Attached to each question we have added Guidance Notes to help your auditor follow set procedures. Management reports: This is a separate report that shows the previous audits KPI scores and compares these to the current KPI score. This clearly shows the increase or decrease KPI score, when issues have been addressed. Colour coded corrective actions show which have been completed and which are still outstanding. Along with the previous and latest date/time stamped photos. The management report can be Referenced to historical reports, to show previous data, so you can measure improvements over a long period. What will you achieve: Using the app and audit template on a regular basis, will help you establish and continually monitor the effectiveness of your infrastructure, assets and processes. By identifying issues, implementing changes within your operation. The Warehouse Auditor app has been awarded UKWA technical innovation of the year Contact Sales: enquiries@warehouseauditor.com Support: support@warehouseauditor.com Page 4 of 29

5 Utilisation of warehouse capacity Ref Question Answer Comment 1.1 Does the layout make effective use of floor space? Satisfactory Restrictions in-racking aisles Restrictions in-bound marshalling areas Restrictions in-despatch areas 1.2 Does the layout make effective use of available height? Satisfactory Height restriction due to lighting positions. 1.3 Are the bulk storage locations well utilised? Good Effectively used. - Improvement possible 1.4 Are the pick locations well utilised? Good Capacity of pick faces should be reviewed based on the range of products Review of pick faces required to maximise capacity and improve picking operations 1.5 Are pick faces appropriate for nature of product? Good Review of primary pick faces required to maximise capacity 1.6 Are bulk locations appropriate for nature of product? Good Effectively used. - Improvement possible Review of bulk locations required to maximise capacity 1.7 Does overall layout support good flow of product? Satisfactory Effectively used. - Improvement possible Replenishment stock to be positioned above or as close to primary picklocations as possible 1.8 Are working patterns appropriate for use of capacity? Mixed Consider alternative work patterns for replenishment operations Page 5 of 29

6 REF: 1.1 REF: 1.1 REF: 1.1 REF: 1.1 REF: 1.1 REF: 1.1 Page 6 of 29

7 REF: 1.3 REF: 1.4 REF: 1.4 REF: 1.4 REF: 1.5 REF: 1.6 Page 7 of 29

8 REF: 1.6 REF: 1.6 REF: 1.6 Page 8 of 29

9 Summary Utilisation of warehouse capacity audit score 62.5% Corrective Action Ref Action Priority 1.1 Stock and items stored at ends of racking aisles needs to be removed and stored in appropriate location 1.2 Lights above racking need to be relocated 1.3 Review of locations required to accommodate over-sized pallets Page 9 of 29

10 Control of warehouse processes Ref Question Answer Comment 2.1 Is there a Warehouse Management System (WMS)? Yes Partial R/F & paper based operation Is functionality used appropriate for operation? Appropriate Ref Question Answer Comment 2.2 Are staff adequately trained? Adequate SOP's for all processes, however operatives not trained. 2.3 Is management structure appropriate? Good Management structure supports operations 2.4 Is flow of work vs. resources managed effectively? Satisfactory System provides limited support in some areas. Basic awareness of workload. System to provide resource management information to plan workforce needs, order priorities and management What are the key processes? Ref Question Answer Comment 2.5 Goods In Yes Is the process effective? Mixed Items are stowed as soon as receipt is confirmed onto WMS. Improved work flows would assist process and improve marshalling operations. 2.6 Receiving Yes Is the process effective? Mixed Items are stowed as soon as receipt is confirmed onto WMS 2.7 Put away Yes Is the process effective? Mixed Items are stowed as soon as receipt is confirmed onto WMS 2.8 Replenishment Yes Is the process effective? Mixed Bulk and replenishment stock stored above or as close to primary pick location as advised by WMS 2.9 Picking Yes Is the process effective? Mixed Use of WMS functionality for larger orders will reduce picking and despatch times Packing Yes Is the process effective? Mixed SOP's cover this aspect of operations 2.11 Marshalling Yes Page 10 of 29

11 Ref Question Answer Comment Is the process effective? Mixed SOP's cover this aspect of operations Despatch Yes Is the process effective? Effective 2.13 Returns (RMA) Yes Is the process effective? Mixed Further improvement required. Returns management needs to be completed daily to ensue that any damages are managed accordingly Value Added Services Yes Is the process effective? Mixed Rate cards used to cover individual customer requirments. Re-labelling operations are provided as required Other (describe) Yes Iso 9001/2008 and Iso14001 compliant Is the process effective? Effective REF: 2.8 REF: 2.8 REF: 2.11 Page 11 of 29

12 REF: 2.12 REF: 2.13 REF: Ref Question Answer Comment 2.16 Are Standard Operating Procedures appropriate (SOPs)? Appropriate SOP's cover all aspects of warehouse operations and activities 2.17 Are storage locations zoned for fast movers? Some Items for main customers zoned 2.18 Is there a continual process improvement strategy? No Continual improvement policy is being considered 2.19 Is there an effective S&OP activity in place? Some Planning for certain customers in operation and co-ordinated Page 12 of 29

13 REF: 2.16 Page 13 of 29

14 Summary Control of warehouse processes audit score 59.4% Corrective Action Ref Action Priority 2.1 Consider rolling out WMS for all warehouse operations Appropriate for main client with use of RF technology. 2.2 Training matrix for each operative. Review process every six months 2.3 Consideration should be given for further management training of team leaders 2.4 Staffing levels to be managed based on delivery schedule for main customer 2.5 Creation of a deliveries due report, will assist in daily capacity requirements 2.7 Used system in place, recommend locations for put away operation 2.8 Use information from WMS to optimise replenishing 2.9 Allocation of customer batch requirements 2.11 Good utilisation of outbound marshalling area 2.12 Out-bound marshalling area for courier despatch 2.13 RMA placed into cages for final sortation to stock or disposal Returned items should be managed on a daily basis as opposed to the current process Mixed services repackaging labelling and kitting Page 14 of 29

15 Storage equipment What storage equipment is used? Ref Question Answer Comment 3.1 Wide aisle pallet racking No Not applicable for this facility 3.2 Narrow aisle pallet racking Yes Is storage media appropriate? Appropriate 3.3 VNA pallet racking No Not applicable for this facility 3.4 Drive in racking No Not applicable for this facility 3.5 Push back racking No Not applicable for this facility 3.6 Shuttle system No Not applicable for this facility 3.7 Pallet Live system No Not applicable for this facility 3.8 Auto storage & retrieval system No Not applicable for this facility 3.9 Carousels No Not applicable for this facility 3.10 Shelving Yes Is storage media appropriate? Appropriate 3.11 Carton (Live) flow rack No Not applicable for this facility 3.12 Other (describe) Yes ISO sea containers in main yard area Is storage media appropriate? Mixed Main pallet racking is appropriate for operation. Re-configuration to reduce height for beams from 1600mm to 1200mm would increase capacity. Ref Question Answer Comment 3.13 Are correct certifications visible? Some Missing No SEMA inspection certificates available. All racking needs to have capacity plates attached to end of each Aisle What is the level of damaged equipment? Limited Minor damage in a few areas - show examples 3.15 Is equipment inspected? Limited Annual SEMA inspection should be organised and reports retained for inspection and auditing 3.16 Is there damage reporting with corrective actions? None Damage reporting procedures to be written & all operatives trained on their use. Annual SEMA inspection should be organised and reports retained for inspection and auditing Page 15 of 29

16 REF: 3.14 REF: 3.13 Page 16 of 29

17 Summary Storage equipment audit score 36.7% Corrective Action Ref Action Priority 3.13 Annual SEMA inspection to be arranged Programme of regular inspection required for reporting and corrective actions for any damaged storage equipment Please refer to comment in section 3.15 Page 17 of 29

18 Handling equipment What handling equipment is used? Ref Question Answer Comment 4.1 Counter Balance Truck Yes Is handling equipment appropriate? Appropriate Equipment is appropriate for operation Are numbers of units and utilisation appropriate? Appropriate Equipment is appropriate for operation 4.2 Turret Truck No Not applicable for this facility 4.3 Reach Truck No Not applicable for this facility 4.4 Very Narrow Aisle No Not applicable for this facility 4.5 Narrow Aisle No Not applicable for this facility 4.6 Flexi/Bendi Truck Yes Is handling equipment appropriate? Appropriate Equipment is appropriate for operation Are numbers of units and utilisation appropriate? Appropriate Equipment is appropriate for operation 4.7 High Bay Cranes No Not applicable for this facility 4.8 Man up Picking Truck No Not applicable for this facility 4.9 Wave Picker No Not applicable for this facility 4.10 Conveyor No Not applicable for this facility 4.11 Sorter No Not applicable for this facility 4.12 Powered Pallet Truck No Not applicable for this facility 4.13 Pallet Wrapper No Not applicable for this facility 4.14 Automated Packing No Not applicable for this facility 4.15 Other (describe) No Not applicable for this facility Ref Question Answer Comment 4.16 Is level of automation used appropriate? Yes 4.17 Is equipment maintained appropriately? Appropriate Page 18 of 29

19 Summary Handling equipment audit score 100% Corrective Action Ref Action Priority Operating hours need to be recorded against actual work hours to ensure correct maintenance and support are provided. Page 19 of 29

20 Inventory management Ref Question Answer Comment 5.1 Are appropriate cycle counts undertaken? Good Stock takes performed at scheduled intervals. Annual stock takes for main customers 5.2 Are ABC classification used? Some Use ABC categories used for specific customers 5.3 Are level of stock adjustments minimised? Acceptable Consideration being given to setting stock accuracy and to maintain at agreed levels of 98% Are target stock levels set? Acceptable Stock levels are controlled by customer ordering and sales requirements Page 20 of 29

21 Summary Inventory management audit score 68.8% Corrective Action Ref Action Priority 5.1 Operational programme required for PI using WMS 5.2 Observation: Classification used for 70% of operations 5.4 Observation: Target levels are Customer driven. Page 21 of 29

22 General warehouse Ref Question Answer Comment 6.1 What are the condition of the floors? Good Noticeable damage, but acceptable 6.2 What are the condition of the FLT traffic routes? Satisfactory Significant gaps in markings and some debris on floor. Cardboard, shrink wrap, plastic strapping 6.3 What are the procedures for FLT battery charging? Satisfactory Documented procedures, but not all operatives trained 6.4 What are the condition of pedestrian routes? Satisfactory Significant gaps in markings and some debris Debris on floor. Cardboard, shring wrap, plastic strapping 6.5 What are the procedures for segregation of FLT and operators? Satisfactory Operatives move unrestricted in areas of FLT operations - risk of collision. Safe working policy and procedures required to define the responsibilities of all operatives 6.6 What are the definitions of marshalling areas? Satisfactory No clear definiton for marshalling areas 6.7 What are the definitions of loading/unloading areas? Satisfactory No clear definiton for marshalling areas - products placed close to outloading area 6.8 What are the general levels of housekeeping? Satisfactory Acceptable but some evidence of bad practises Debris on floor - i.e cardboard, shrink wrap, plastic strapping. Policy for handling of knives required and training for all operatives to be completed. 6.9 What is the quality of the business continuity plan? Satisfactory No formal process in place. Use of alternative facilities available What are the processes for safe working and incident reporting? Satisfactory Limited documentation of processes and effective reporting. Compile internal reporting document, agree reporting structure and action plan 6.11 Is it a safe working environment? Satisfactory Operatives use horns, FLT's fitted with beacons. Pallets are secure both in racking locations and floor level storage 6.12 What is the level of IT robustness? Good Third party service provided with remote support and continual back-up 6.13 Are there effective security controls? Satisfactory Minimal security measures in place. Company policy in place for random security searches 6.14 Is there effective yard management? Satisfactory Not compliant with current SOPs. Limited yard management 6.15 Are storage locations safe for storage media? Satisfactory All storage media is fit for purpose Page 22 of 29

23 REF: 6.5 REF: 6.8 REF: 6.8 REF: 6.14 REF: 6.15 Page 23 of 29

24 Summary General warehouse audit score 55% Corrective Action Ref Action Priority 6.2 Floor markings need to be re-established for marshalling areas and main pedestrian routes. 6.3 Refresher training required for all operatives 6.4 Warehouse audits carried out internally. Part of SOPs will assist with housekeeping 6.5 Review SOP's covering this operational aspect 6.6 Consideration to be given for areas to be clearly defined and marked 6.7 Consideration to be given for areas to be clearly defined and marked 6.8 Use housekeeping audit documents provided with SOP's Knife policy to be compiled and all operatives trained on safe use. 6.9 Consideration needs to be given for a strategy document 6.10 Evidence to be provided 6.12 Third party service provider with continual backup 6.13 Restricted access via keypad. Warehouse doors opened during operating hours 6.14 Training of operatives using SOP's for vehicle marshalling. Page 24 of 29

25 Cost and operational control Ref Question Answer Comment 7.1 Is there an effective pick rate? Good KPI's in place to record operator picking rates 7.2 FLT movement rate? Satisfactory Not recorded against actual hours worked 7.3 What are the packing rates? Satisfactory Not recorded against actual hours worked 7.4 What are the returns level? Satisfactory CRM used to record all RMA 7.5 What are the service levels - OTIF? Good Information from courier system used for OTIF. Haulier or 3PL data used for recording OTIF 7.6 Are there effective KPIs in place? Yes KPI's used from WMS for all main customers. Ref Question Answer Comment 7.7 Is the operation managed in-house? Yes Effective budgeting process in place? Yes Budget rate cards used for individual customers Effective allocation of overhead costs? Some Overhead costs are allocated to individual customers Effective costing of Value Added services? Yes Budget rate cards used for individual customers Page 25 of 29

26 Summary Cost and operational control audit score 76.2% Corrective Action Ref Action Priority 7.1 Effective for 90% of customer base. Use KPI information for individual customers. 7.2 Operational hours to be compared to contract hours. Review service contract to ensure correct service support levels and breakdown cover for extended work periods. 7.3 Consider using information from WMS system to record packing rates for operation for each customer. 7.4 Optima used for main customers. CRM for all other customers. Returns need to managed on a daily basis. 7.5 Optima system to be used for reporting for main customer. Account managers control all other service reporting and this needs to reported at weekly service level meetings. 7.6 KPI,s need to established for all customers not covered by current WMS reports Budgeting of historical information and fore-casting from customer needs to be reported Costs for remaining customers need to be reported to provide full reporting costs to ensure effective budgeting Activity based costing Page 26 of 29

27 Audit Summary Utilisation of warehouse capacity audit score 62.5% Control of warehouse processes audit score 59.4% Storage equipment audit score 36.7% Handling equipment audit score 100% Inventory management audit score 68.8% General warehouse audit score 55% Cost and operational control audit score 76.2% Overall audit score 66.1% Overall Observations The warehouse has an extensive and varied range of products and stock profiles which require a diverse number of stock location sizes including pallet racking, block storage and shelving. General condition of the warehouse is satisfactory but attention needs to be given to floor markings to assist in segregation of stock, pedestrians and FLT s. Storage for bulk and replenishment stocks are located randomly throughout the warehouse and should be located as close to pick faces as possible. Operational staff have varying levels of awareness of the processes and procedures required to effectively manage the daily tasks. All staff need to adhere to the procedures for safe movement throughout the warehouse and external yard areas. Access to the main building is well controlled but external areas of the facility are not effectively secured or managed. Control of key information is effectively managed using an effective IT and Warehouse Management system providing effective process control and accurate information. Page 27 of 29

28 Overall Recommendations Attention needs to be given to implementing refresher training to ensure all staff are aware of the Standard Operating Procedures to optimise the processes and procedures. Stock stored on the floor and at end of racking aisle needs to be removed and stored in a suitable racking location to improve product integrity and security. Pallet racking aisles and marshalling areas need to be kept free of debris to improve clear access to all locations and to prevent slips, trips and falls. Procedures for recording damaged storage equipment required and effective corrective actions need to be put in place and records retained for future audits. Implementation of annual SEMA storage equipment inspection required to ensure all racking and shelving is secure and Fit for Purpose. Continuity policy & planning strategy needs to be put in place to highlight areas of service improvement. Perpetual Inventory checks should be implemented to address stock queries and increase the accuracy of stock to circa 98%+ on an ongoing basis. WMS storage parameters need to be amended to ensure the stock put-away, replenishment and location management process is optimised. The Work Flow/Work Load information from the WMS needs to be used to provide detailed information for each operator and activity and to optimise all resources. A schedule of regular audits needs to be implemented to ensure that the recommendations and corrective actions contained in this audit report are implemented and maintained. Page 28 of 29

29 Signatures Auditor Name: Date: Mark Phillips 15/01/2018 Page 29 of 29