Improving Warehouse Efficiencies Using Primarius

1. Improving Warehouse Efficiencies Using Primarius by Nelson Fredrickson Erie, PA 16505 Primarius User’s Group September, 2012

2. Policies and Procedures A policies and procedures (SOP) manual should be created specific to your food bank • With everyone completing tasks the same, inventory accuracy will improve • Will help insure necessary paperwork is properly filled out, filed, and information is sent to the appropriate department(s) Primarius User's Group - September, 2012

3. Safety • All workers must be informed of the importance of operating their equipment safely • Safety should be written into their job descriptions and be included in the policies and procedures manual Primarius User's Group - September, 2012

4. Goals and Tracking • Management should set goals • Goals should be set (orders/hour, cases/hour, pounds/hour, etc.) • Tracking • Inventory adjustments, out-of-stocks, selection errors, etc. Primarius User's Group - September, 2012

5. System Set-Up • Standard numbering and naming schemes for branches, locations, and products • Consistent location numbering schemes • Be consistent with placement of location labels • Use “user understandable” codes • “Intelligence” is not needed in your numbers or codes Primarius User's Group - September, 2012

6. Location Numbering Most distribution centers and food banks have some sort of numbering for their distribution center locations. Are these locations numbered properly? There is a significant opportunity for these companies to improve selection or hilo productivity by properly labeling their distribution center locations. The numbers need to be clearly identified, as efficiencies are directly impacted by workers moving through their assignments in an efficient manner. Workers travelling too far or searching for a location or product is non-productive. As industrial engineering studies have shown, directing workers to an exact location is the most productive. These studies also show that if the worker knows more about the location, they can more quickly move to the location and their equipment can be properly positioned at the location to more efficiently complete the task. Selection locations must be able to be easily reached by selectors. Lower levels are best. If the labels contain a barcode, the placement of the location ID labels is dependent on the range of the scanner within the handheld device. If the device cannot scan more than a few feet, the labels need to be placed on the lower bar. If the device has a longer range scanner, the labels can be placed on each bar for each level. Those that are not planning on using handheld devices, the placement of the labels can be on each bar (level). Label media should withstand the environment where they are used. If used in a freezer, they must have “freezer grade” adhesive. If properly applied, these labels can last for years. Floor locations are the most difficult to identify. Labels on the floor will not work. Painting the location ID on the floor is an option. Sandblasting the location ID on the floor is an option. Hanging signs from the ceiling with the location ID is another option. While most numbers within a facility should not have “intelligence”, location ID’s should have some intelligence. A six digit location number gives the associate a lot of information. To help better understand a six digit slot number, 504013 is like an address. 50 is the “street” (aisle) running one direction. 51 is the “street” running the other direction. 40 is the “street address” (bay) on one side of 50 “street”. 41 is on the other side of 50 “street”. 1 is the “suite” (position) number for “street address” 40. There could be 9 “suites”. 3 is the “floor” (level) for “suite” number 1. There could be 9 “floors”. Primarius User's Group - September, 2012

7. Suggested Naming for Products Using the Feeding America Type (31 food groups), start the product Name with a short description of the group (i.e., product number - 12345, product name – BEV/Sports Drink/Lemon Lime). 01/NF - Assorted Non-Foods: Household Goods, Toys, Books, Clothing 02/BAB - BABy Food/Formula 03/BEV - BEVerage: Coffee, Tea, Soda, Drinks 04/BRE - BREad/Bakery: Bread, Biscuits, Rolls, Batter, Tortillas, Pie Crust 05/CER - CEReal: Hot & Cold 06/ENT - Complete Meal/ENTrée, Soup 07/DAI - DAIry: Yogurt, Cheese, Milk, Butter, Sour Cream, Ice Cream 08/DES - DESsert: Cakes, Pies, Pudding, Frozen Confections 09/DRE - DREssing: Salad Dressing, Mayonnaise 10/FRU - FRUit: Canned & Frozen 11/GRA - GRAin: Flour, Corn, Meal, Matzo Meal 12/HBC - Health/Beauty Care: Shampoo, Conditioner, Soap, Cosmetics, Deodorant, Dental Care 13/HCP - Household Cleaning Product: Detergent, Cleanser, Bleach, Fabric Softener 14/JUI - JUIce: 100% Fruit or Vegetable 15/MFP - Meat/Fish/Poultry 16/MAF - Mixed & Assorted Food 17/NDS - Non-Dairy Dairy Substitute 18/NUT - NUTritional Aid Drinks, Vitamins, Diet Supplements 19/PPH - Paper Product Household: Plates, Napkins, Towels, Toilet Paper, Facial Tissue 20/PER - Paper Product PERsonal: Diapers, Adult Sanitary Products, Feminine Products 21/PAS - PASta: Macaroni, Spaghetti, Noodles 22/PET - PET Food/Pet Care 23/PRO - PROtein-Non Meat: Peanut Butter, Beans, Eggs, Pork & Beans, Nuts 24/RIC – RICe 25/SNA - SNAck Food/Cookies: Candy, Crackers, Marshmallows 26/CON - Spice/CONdiments/Sauce: Herbs, Salt, Sugar, Mixes, Vinegar, Extracts, Mustard, Syrup, Jelly, Sauces, Salad Oil 27/VEG - VEGetables: Canned & Frozen 28/PRD - Fresh Fruits/Vegetables (PRoDuce) 29/DOU - DOUgh-Uncooked 30/SAL - SALvage-Unsorted 31/PRE - PREpared & Perishable Food Primarius User's Group - September, 2012

8. Clean & Organize the Warehouse • Show your team that everyone cares • Over time, this will help lead to inventory accuracy • A clean and organized warehouse will also help lead to improved inventory accuracy • Every day, check something • Your fleet should be well maintained and clean as well Primarius User's Group - September, 2012

9. Non-Warehousing Personnel • Non-warehousing personnel entering the warehouse can often lead to inventory errors • If non-warehousing personnel are used, they should be advised of the appropriate warehouse procedures Primarius User's Group - September, 2012

10. Static Selection Locations • Assigning products to a static selection (pick) location will help reduce selection errors • Pick lists, selection labels, or handheld devices will direct the selector to the exact selection location for the item Primarius User's Group - September, 2012

11. Receiving Product • Only food bank staff members should receive inbound product • Inbound errors can ultimately lead to outbound errors Primarius User's Group - September, 2012

12. Inventory Control • An inventory control position should be created • This person’s primary responsibility should be to research inventory discrepancies • Managers don’t normally have the time to research inventory discrepancies Primarius User's Group - September, 2012

13. Physical Inventory • Be well prepared for a physical inventory • Only warehouse staff associates should count • Discuss counting procedures with count teams • Inbound and outbound orders must be completed • Assign count teams with specific areas to count • Re-counts are completed by a different count team • Track what team is counting what area Primarius User's Group - September, 2012

14. Cycle Counts • Only complete during a “quite” time • Complete on a regular basis • Perform timely adjustments • Research discrepancies • Most discrepancies will be in the selection locations Primarius User's Group - September, 2012

15. Returns • Returns can easily disrupt your inventory accuracy • If returns are made, inventory must be adjusted and a credit may be required Primarius User's Group - September, 2012

16. Miscellaneous • Research and correct inventory variances when they are found • Use term, codes, instructions, etc. that users, donors, vendors or agencies know and understand Primarius User's Group - September, 2012

17. Quotes • “The Primarius system inventory should be a mirror image of the physical distribution center inventory” • “Murphy lives in the warehouse” • “Don’t never say never” • “Remember, your process is just boxes in and boxes out” • “Those boxes must have brains… they out-think many managers” • “Experience is something you don’t get until just after you need it” Primarius User's Group - September, 2012