A Presentation by ARIF A. SIDDIQUI Founder & Director Coign Consulting
DISCLAIMER SMART Warehousing should not necessarily mean Heavy Capital Expenditure. CHALLENGE ACCEPTED. - Coign Consulting
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3PL Scenario in India 14.40 % Currently, India spends around 14.4% of its GDP on logistics and transportation as compared to less than 8% spent by the other developing countries. The logistics firms are moving from a traditional setup to the integration of IT and technology to their operations. The industry as a whole is moving to the positon where they (dream to) provide end to end supply chain solutions to their customers. The competition to the organized players is from the unorganized markets. The market, as a whole, is highly fragmented and dominated by local logistics service providers. *Source : http://www.novonous.com/logistics-market-india-2015-2020 http://www.researchandmarkets.com/reports/2887265/third-party-logistics-3pl-market-in-india-2014
3PL Scenario in India 20.00 % Due to Government policies with respect to Infrastructure development, FDI in logistics and the implementation of GST, it is estimated that the Logistics cost will be reduced by 20.0%. The analysts forecast that the Third-party Logistics market in India will grow at a CAGR of 21.16% over the period 2013-2018. Because of the above initiatives, the 3PL logistics market in India is expected to be worth US$ 301.89 billion by 2020. [Estimated market size in 2016 USD 140 Billions] The warehouse market in India is expected to grow at a CAGR of 10% whereas freight forwarding market is expected to grow at a CAGR of 12.0% till 2020. *Source : http://www.novonous.com/logistics-market-india-2015-2020 http://www.researchandmarkets.com/reports/2887265/third-party-logistics-3pl-market-in-india-2014
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Our definition of SMART
SMART Location & Facilities 1. Geographically well positioned 2. A Building with proper Approvals and Certifications 3. An Infrastructure with proper External Accessibility 4. Availability of properly functioning Services 5. A Building with quality Infrastructural element Specifications & Flooring
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SMART Layout Designing the layout of the warehouse in line with the operations to be carried out in the facility (post detailed study of the Operations process) including Warehouse office and support Services. INTERNAL LAYOUT - Maximum capacity utilization Space optimization Throughput & Process integration to Physical layout Lean & Coordinated Man & Material movement Avoidance of Cross-traffic and bottlenecks Provision of Buffer areas between process steps Scalable and Sustainable Layout designing Efficient Scrap management *Image from Coign Consulting s Project Gallery
SMART Layout EXTERNAL LAYOUT BASIS Throughput analysis of vehicles Gate-In Process Estate road widths Pedestrian walkways and car parking facilities Truck terminals Requirements for parking / queuing of executive vehicles Common Facility Centers *Image from Coign Consulting s Project Gallery
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SMART Quantification PRODUCTIVITY RECEIVING PUT AWAY STORING PICKING & PACKING DISPATCHING QUALITY COST CYCLE TIME UTILIZATION
SMART Quantification Output of Work : Input of Resources. - Productivity Indicators of Productivity i. Output (Transactions / Time) ii. Capacity Utilization iii. Supply Chain Profitability Productivity is not about cutting Cost. Productivity is about continual improvement. Productivity = Efficiency + Effectiveness
What does not define Productivity? PERFORMANCE PRODUCTION PRODUCTIVITY ONLY LABOUR PRODUCTIVITY
The Right way + 1. Bought a Reach Truck 2. The Productivity hasn t gone up yet?! 3. What am I missing?! 1. Bought BOPTs to feed the Reach Truck 2. Now the RTs performing at its highest Efficiency
SMART Process is the seamless integration of Man and Material to the Infrastructure such that it fulfills the processes with high efficiency and effectiveness.
SMART Processes 1. Process Analysis & Optimization i. Manual Processing ii. Automated Processing 2. Selection of Storage System or a combination of Storage Systems 3. Selection of Material Handling Equipment or a combination of Equipment 4. Building Intelligence
SMART Attitude Using the Cube efficiently Avoiding One Size Fits All approach Avoiding Non-Value added tasks Inconsistencies Resource Overburdening Doing more in less or same space Having enough Dock doors Providing adequate space for accumulation and storing at the Docks Designing furniture ergonomically for speedy operations & optimal utilization of time Maintaining flexibility in Operations and Layout Minimizing congestion and interference
SMART Process Furniture PACKAGING STATION QUALITY CHECKING STATION *Image from Coign Consulting s Project Gallery
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BEFORE AFTER Turning radii Gates Staging Area 2 Side Docking Vehicle & Human Entries Parking & Docking External connectivity *Image www.coignconsulting.com from Coign Consulting s Project Gallery
SMART Benefits 20.00 % 18.00 % ORDER FULFILMENT RATE DOCK TO STOCK TURN AROUND TIME HUMAN RESOURCE DEPLOYED DOCK OCCUPATION TIME
SMART Benefits INCREASED AVERAGE MHE SPEED 10.00 % USE OF KERB STONES AT DOCKS MINIMAL CRISS-CROSS OF MAN AND MATERIAL SEPARATION OF INWARD AND OUTWARD STAGING AREA
Mechanization VS Automation MECHANISATION Conveying systems which require human intervention and cannot function intelligently on its own. AUTOMATION Mechanization with Intelligence.
SMART Scanners, Sorters & Mergers Packaging Station Conveyors Consolidation Stations Spiral Conveyors for backup Colour based Bin Sorters Consolidation Long Span Shelves QC Stations Consolidation Stations *Image from Coign Consulting s Project Gallery
Telescopic & Spiral Conveyors and Sorters *Source : http://en.xinghi.com http://resource2.ultdb.net http://img.directindustry.com
SUMMARY India is rapidly evolving towards world class infrastructure, in attitude and actions. The ultimate warehousing productivity is also determined by its geographical positioning. The intra-warehouse layout should always be planned keeping current and future expectations from the warehouse in mind. Process flows should be smooth and ergonomic in nature. It is important to continually quantify and enhance the performance standards. Last but not the least, understanding that Automation is not always about heavy expenditure towards complex artificial intelligences.
That some achieve great success, is proof to all that others can achieve it as well. - Abraham Lincoln