Warehouse Costing: Cleansheet Analysis (PowerPoint PPTX Slide Deck)

This PPT slide outlines the initial phase of the Cleansheet Analysis, focusing on the assessment of critical parameters within warehouse operations. This step is fundamental for understanding the overall efficiency and effectiveness of the warehousing facility. The analysis begins with a thorough evaluation of several key aspects.

First, it emphasizes the workforce, including how accountability is distributed among team members and the workloads they manage. This is crucial for identifying potential inefficiencies or areas for improvement in labor management.

Next, the slide highlights the importance of actual warehouse activity levels. Understanding how the warehouse operates on a day-to-day basis provides insights into operational bottlenecks and resource allocation.

Volumes are another critical factor mentioned. This refers to the total amount of goods processed, which directly impacts storage and handling requirements.

The slide also points out the significance of volume drivers. These include metrics like the number of SKUs, order patterns, and order lines, which can influence both operational complexity and cost structures.

Finally, the analysis encompasses assumptions related to packaging requirements, equipment needs, and handling times for each item. This comprehensive approach ensures that all relevant factors are considered, allowing for a more accurate assessment of the warehouse's operational framework.

Overall, this slide serves as a foundational guide for organizations looking to optimize their warehousing processes, providing a structured methodology to identify and address inefficiencies.

This PPT slide focuses on the role of automation in warehouse operations, particularly in the context of rising labor shortages and increasing demand from e-commerce. It outlines 2 primary categories of automation technologies that can enhance efficiency and reduce costs in warehouse settings.

The first category, "Devices Assisting the Movement of Goods," highlights various technologies designed to streamline the physical movement of products within a warehouse. Automated guided vehicles (AGVs) are mentioned as a key innovation, capable of transporting cases and pallets autonomously. The slide also notes the retrofitting of standard forklifts with equipment and software to enhance their functionality. Other technologies include swarm robots for shelf stocking, advanced conveyors for multidirectional movement, automated storage/retrieval systems (AS/RS), and robotic shuttles that utilize three-dimensional movement on rails.

The second category, "Devices to Improve the Handling of Goods," emphasizes systems that enhance the processes of picking, sorting, and palletizing. Automated picking systems equipped with robotic arms are highlighted, showcasing their ability to grasp and manipulate goods efficiently. The slide discusses the integration of AGVs with fixed devices for optimal goods retrieval and sorting, employing advanced conveyor systems that read barcodes for accurate handling. Autonomous palletizers and drones for inventory management are also mentioned, indicating a trend towards data-driven decision-making in warehouse operations.

This slide serves as a critical resource for organizations considering investments in automation technologies, providing insights into specific devices and their applications in improving operational efficiency. Understanding these innovations can help decision-makers identify opportunities for cost reduction and enhanced productivity in their warehouse operations.

This PPT slide presents 2 primary methods for analyzing warehouse costs: Benchmarking and Cleansheet Analysis. The Benchmarking approach is characterized as a top-down method that relies on industry standards to evaluate costs. However, it highlights several limitations. Access to benchmarks at lower levels is scarce, with most data available only at higher levels, such as total warehouse costs relative to the cost of goods sold. This lack of granularity can lead to misleading comparisons. Additionally, the method does not adequately account for unique product or service characteristics, which can significantly affect warehousing costs. Factors like diverse product offerings, shipment standards, and supply chain obligations can vary widely even among competitors, complicating the benchmarking process.

On the other hand, Cleansheet Analysis is described as a more detailed, bottom-up approach. It provides a numerical framework to determine the specific costs associated with key components of warehouse operations, including facility layout, workforce, and equipment. This method allows organizations to closely examine the 3 critical cost drivers in warehousing. By doing so, it enables a more accurate assessment of where costs may be excessive and identifies opportunities for optimization.

The slide effectively contrasts these 2 methodologies, emphasizing the need for a comprehensive understanding of warehouse costs. For executives considering these approaches, the Cleansheet Analysis may offer a more tailored and precise evaluation, potentially leading to better-informed decisions regarding cost management and operational efficiency.

This PPT slide outlines the final step in the Cleansheet Analysis, focusing on determining the ideal throughput metrics for warehousing operations. It emphasizes the importance of compiling processing times for various activities within the warehouse. This data is then converted into costs by employing a factor cost base, which incorporates location-specific average labor rates and full-time equivalents (FTEs) for different job types.

Key components such as space and equipment are highlighted as critical in assessing ideal operating costs. The analysis indicates that processing times in a warehouse are influenced by factors like the movement within storage aisles and the storage requirements of items that necessitate specific aisle widths. This suggests that operational efficiency can be significantly impacted by how well these elements are managed.

Additionally, the Cleansheet Analysis includes calculations for both Operational Expenditure and Capital Expenditure. This involves determining the financial requirements for specific material-handling equipment and the arrangement of aisles and racks. The slide implies that a thorough understanding of these costs is essential for optimizing warehouse operations and ensuring that service levels are met.

Overall, the content provides a structured approach to analyzing warehousing costs, emphasizing the need for meticulous data collection and analysis to drive operational improvements. Potential customers can glean that this methodology not only aids in cost management, but also enhances overall efficiency in warehouse operations.

This PPT slide outlines the Cleansheet Analysis, a structured approach aimed at identifying cost efficiencies within warehouse operations. The primary objective is to ascertain the lowest possible costs associated with various elements of warehouse management and compare these with the actual costs incurred. This analysis serves as a diagnostic tool to highlight discrepancies and areas requiring attention.

The framework consists of 3 main steps. The first step, "Ascertain Critical Parameters," focuses on identifying volume drivers such as the number of SKUs, orders, and order lines, along with key assumptions related to packaging, handling times, and equipment. This foundational understanding is crucial for accurately assessing cost structures.

The second step, "Perform Bottom-up Calculations," involves creating a detailed model for each significant warehouse process, including receiving, storage, picking, packing, and shipping. This granular approach allows for a comprehensive breakdown of costs associated with each process, facilitating a clearer understanding of where inefficiencies may lie.

The final step, "Determine Ideal Throughput Metrics," emphasizes the establishment of benchmarks for optimal performance. This includes determining ideal operating costs, the number of full-time equivalents (FTEs), space requirements, and capital expenditures (CAPEX). By comparing these metrics against actual performance, organizations can identify gaps and implement targeted strategies for improvement.

Overall, the Cleansheet Analysis provides a systematic methodology for organizations to prioritize their cost management efforts, ultimately leading to enhanced operational efficiency and better resource allocation.