Anyone who knows my approach to supply chain logistics understands that I like to dive deep into the detail while trying to simplify the bigger picture at the same time. I tend to get quite detailed and technical very quickly and am constantly working to put process flow maps together which connect the myriad of touches, travels and transactions which need to occur along the client fulfilment process. It’s like a huge jigsaw puzzle which gets put together in so many different ways. But something is common in all of these logistics jigsaw puzzles and that is the concept of the movement (or non-movement AKA Storage) of a load. Put very simply, logistics is all about the movement of a unit load and every process in the supply chain has its own unique optimal unit load.
Carrying a load
Talking about carrying loads, I just thought it would also be a great opportunity in the current circumstances to remind ourselves that we’re also all carrying our own loads and in recent times, these loads and the way we carry them has changed and I’m sure has not felt optimal at times. Just like most of the warehouses we walk into, we’re all doing the best we can with what we have. Now I’m not going to get too soft & fuzzy here, but I do want to remind you that we are all in this together. If you see something, say something. It can make a huge difference to someone else. I’m making a conscious effort to just double check that everyone’s keeping well during these unprecedented times (especially those clients in VIC). I know I’m learning so much about myself and those around me during these times and I’m learning that although there are many times we should be biting our tongue and thinking about what others may be going through, we should also not sweep things under the rug for too long expecting things to be the same as they used to be, because things have changed. The time to manage your personal load and load carrying strategy is now.
Unit Load Analysis
So back to your distribution network. How do you determine the best unit load for each process? For example, if you’re receiving indent container volumes the optimal unit load for the container would be based on getting the most into it as possible, hence why loose loading is so common. You can optimally fill a container if you engineer your cartons to maximise the cube utilisation. Look at the great work Ikea do. They’re the best in the business at optimising the unit load. Unit load design even drives their assembly and manufacturing design, which is the best-case scenario. That’s one of the benefits of vertical integration. But this is not always within our sphere of control.
In warehousing and distribution, we don’t usually have control over the inbound unit load and we usually end up focusing on how we handle it coming into our warehouse rather than optimising it’s size (we’ll discuss this in the next section). Within the intralogistics operation, there are many natural Unit Loads which can be engineered. Your putaway, replenishment, picking and shipping processes all have volumetric unit load which provides the minimum handling cost for that distinct function within the warehouse. The art of the Unit Load is taking a wholistic approach across these functions to see if it is possible to find a Unit Load which works across multiple operations maintaining accuracy, selectivity and cube utilisation across all processes. And as always, it comes down to good data.
My background in Automation, usually means that the base unit loads I usually work with are Storage Totes about 600mmx400mmx400mm (In case you didn’t know, the main driving factor for the storage tote dimensions of 600x400x400mm was the dimensions of the Euro pallet (1,200 x 800mm) – which perfectly fits 4 of the standard totes per layer). For this reason, I find myself usually looking to segment flows and movements into tote-sized chunks of movement which can be grouped to gain efficiencies. When we conduct our data analysis, I’m always looking to identify ‘buckets’ of transactional volume that are able to be handled in different size unit loads. If you’re able to design your operation to find synergies in the movement of similarly sized product, there is usually efficiency gains to be had there as you can then design your handling loads to be multiples of your base unit loads and all of a sudden the jigsaw puzzle makes a bit more sense (and it’s much more efficiently put together!).
The Handling Load
One of my first projects as a consultant was for a client who was not vertically integrated (i.e. could not change the shape and size of their inbound unit loads) but we were still able to find huge optimisations with their container and inbound handling costs by looking for the optimised handling load for the unit loads to be grouped onto for efficient devanning and putaway operations. The wholistic approach we took there included using slip sheets and high-cube containers to uncover 7 figure savings in a client’s indent supply chain by applying some simple analytical logic. The key here was to work on finding the best palletised unit-load configuration which could simultaneously optimise the cube during sea freight and also be received directly into the warehouse racking with minimal transformation (in this case, avoid shipping pallet skids by using slip sheets) all that the unitised handling load required during receiving was transfer onto an Australian Pallet.
The handling load is once again optimised by understanding the MHE handling load for each process and seeing if there is a shared format which can be engineered to enable efficient handling into and through a distribution network. Here you’ll need to look at your Forklift types, racking types, SKU size and storage requirements and find an optimal solution. The holy grail of this exercise is the Universal Load Device.
Universal Load Device
More commonly known as the ULD, this concept has been around since the invention of the Barrel, the first optimised ULD. A uniform shape that could hold a wide variety of materials. A single handling unit which you could then design your complete Supply Chain around. If you look into the Barrel, it was engineered very well and it’s manual handling abilities are quite incredible. Now I’m not saying the Barrel is the best ULD, but it changed the game and so can you if you can find a ULD which can be used across multiple processes within your logistics chain. For a more contemporary example, we are seeing great uses of Steel Cages across freight networks as well as returnable shipping totes within medical supply chains – both of which require return logistics to be managed closely, but we won’t be able to go into those in today’s article as the possibilities here are endless and all about what’s best for you.
Jeffrey Triantafilo is the Director of Systems & DC Design in Intralogistics for Fuzzy LogX, an Australian boutique consulting firm, based in Inner-Western Sydney, focused on helping Warehousing and Distribution Operations improve and stay competitive in today’s ever-changing supply chain environment. If you’d like to have a chat with jT or one of his colleagues about improvements in your operation, click here.