Did you know that the UPC bars turned 35 this year?

The U.P.C (Universal Product Code) was originally designed in 1974 to speed up grocery checkouts. The first live scan actually took place at a Marsh Supermarket in Troy, Ohio, when a cashier scanned a 10-pack of Wrigley's chewing gum at checkout.

The now ubiquitous black and white bars celebrated their 35 anniversary this past June. GS1 US, developer and administrator of the U.P.C. in the USA, celebrated this milestone with a huge UPC bar code decorated cake.

Since that first scan in June of 1974, the UPC changed the world of commerce forever. Nowadays the code consists of 59 machine readable bars and 12 digits that identify the item and it's manufacturer. Over 25 industries have adopted the code as a standard and According to GS1 US there are about 5 billion scans a day.

How to improve warehouse productivity?

Do you measure your warehouse productivity? We find that companies often don't know how good or bad the performance of their operations really is and don't measure individual employee productivity or warehouse productivity in general. Before we explain how to measure your productivity, first we would like to stress why every company should do it.

The advantages of measuring warehouse productivity are huge. We have implemented the mesuring of warehouse productivity with almost all of our clients (it can be done within days!) and the changes were dramatic. Not only is the warehouse manager able to use the information to identify bottlenecks, it changes the mindset of the warehouse workers immediately.

People are much more aware of their actions and how they can improve their own performance. It works on both the good workers, who can finally show what they're worth and the bad ones, who are now forced to either comply with new targets or face the consequences. It also creates a healthy competition which adds to the increase in productivity. The implementation of a system that measures warehouse productivity can lead to savings of 25% or even higher on personnel costs.

Productivity can be measured for any process or person. So how is warehouse productivity measured?

First of all one should look at the characteristics of their "warehouse production". The production can be measured in pallets, boxes or pick lines but also in individual items (e.g. books, sandwiches, lamps, etc.). Then it needs to be determined at what level you want to measure productivity: top level, process level or individual level. The productivity is measured as Production divided by Hours, and expressed in a production per person per hour. For example: A person receives 100 pallets in an 8-hour day. His/her individual productivity is 12.5 pallets per hour.

Once data is being collected it is easy to identify bottle necks, eliminate those and measure the effects in your warehouse performance (productivity). This is an ongoing effort leading to a more efficient and cost effective operation.

Every company requires a different way of measuring productivity depending on process, goods, level of automation, etc. In our opinion it is one of the most important tools a company should implement because it can truly cut costs significantly and make the operation perform better. In addition, it does not have to cost anything to start measuring your warehouse productivity.

If you need assistance setting up a system to measure your warehouse productivity, feel free to contact us.

WMS Directory

Last week Logistics Advice, Inc. introduced its new Warehouse Management System Directory or WMS Directory on their website. It is a quick reference guide that provides an overview of the available options for warehouse automation. The Warehouse Management System Directory is meant as a source of information for those who are looking to implement a new system and want to compare their options.

A related topic came up during a recent discussion, namely: Before deciding to implement a WMS you should first determine if you need one. Often ERP systems already provide basic warehouse management modules that can work as well for your specific company as a full blown WMS. That way you would not have to invest in a separate WMS.

Making a description of operations as a blueprint for further development of the system, as described in the article "Important tips for purchasing a WMS", is also extremely valuable when determining what system the company needs if any at all. That is why this step should be finalized before the purchase of a specific system.

The main purpose of installing a new WMS should be to improve productivity and quality levels throughout the operation and beyond. In addition it will give management and staff more visibility when implemented correctly and will make customer deliveries more accurate and timely.

We have started the WMS directory because there are many Warehouse Management Systems on the market, especially for small to midsized companies. Besides the directory we provide additional information and tips on WMS selection and implementations right here on our blog. We hope that the information will help our readers in their search for warehouse automation and improvement.

If you need assistance with your search for the right WMS, with creating a process description or with the implementation process, feel free to contact us.

Important tips for purchasing a WMS

It's no surprise that so many companies struggle to successfully implement a new WMS. One mistake many companies make is to underestimate the level of detail that goes into selecting the right software and adjusting this software to their needs. Logistics Advice, Inc. is an expert in managing Warehouse Management Systems implementations and has done many over the years. Here we offer some tips to take into consideration before purchasing a WMS.

The most important tip we can give someone who is about to upgrade to a new WMS is a simple one: before purchasing the software, create a process description of your current warehouse process and how you want it to be. This process description describes every step of your operation and becomes your starting point in discussions with the software company who you are purchasing the WMS from. This sounds easy but the process description is only valuable if it describes the operation accurately and if changes to the document are made every time you and your WMS supplier agree to a different process.

In addition to creating the process description, we also recommend not to sign the WMS purchase agreement until the process is outlined and both you and your WMS supplier can sign off on it. Software companies often include the cost for this process (system design or configuration) in their implementation cost and start the process after you signed the purchase agreement. However it is better to work with your supplier on this process before you commit to a system of which you don't know what it is capable of. If your supplier is not willing to invest the time before the contract is signed you can offer to pay him an hourly rate for the work until the process description is finalized. In the end you will save (potentially lots of) money!

There is an endless number of details like the ones above that will make the difference between a successful WMS implementation or a failed and very costly one. Make sure your project manager has the knowledge and time to successfully implement a new warehouse management system.

But before anything starts you have to select the software company you want to work with...and there are many. Work with a dedicated company that is motivated to deliver a good end product, not just motivated to make the sale.

And make sure that the WMS supplier's project manager (the one you will be working with on the project) has a good understanding of warehouse operations because this will make the discussion so much easier.

If you need assistance with your search for the right WMS, with creating a process description or with the implementation process, feel free to contact us.