John Deere Grovetown Warehousing Analysis
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RightChain™ Warehousing Warehouse Optimization as a Service™ powered by rightchain.ai The World’s Most Advanced Warehouse Optimization and Planning Platform and Process John Deere, Grovetown Operations Update 1 July 10, 2023
Strategic and Tactical AI-based Warehouse Optimization and Analytics At Scale and Speed
RightChain.ai/warehousing
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Warehouse Activity Insights Storage Mode Optimization Warehouse Layout Analysis Warehouse Scoreboard Warehouse Contract Assessment
Contents CONTENTS
Contents Warehouse Activity Insights
SKU ABCDs Transaction Profiles
A Day in the Life Weekday Profile Activity and Labor Forecastability Move Type Profile Inventory Opportunities
SKU ABCDs | SKU ACTIVITY PARETO There is a super majority of activity concentrated in a small minority of SKUs, specifically, 50% of all warehouse transactions are executed against on 202 SKUs (4.2%). Also, a majority of the SKUs, specifically 2,600, have almost no transactional activity against them (5%). The concentrations and dilutions of activity across the distinct A, B, C, and D SKUs suggest the creation of A, B, C, and D “warehouses within the warehouse”.
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TRANSACTION PROFILE | Lines and Eaches Warehouse transactions are almost completely comprised of a single SKU with quantities ranging from 10 (first quartile) to 25 (median) to 75 (3 rd quartile).
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A DAY IN THE LIFE | Lines and Cube Activity days can be roughly characterized as VERY HEAVY (more than 8,400 lines and 28,000 cubic inches), HEAVY (between 6,800 and 8,400 lines and between 20,000 and 28,000 cubic inches), MEDIUM (between 2,200 and 6,800 lines and between 6,400 and 20,000 cubic inches), and LIGHT (less than 2,200 lines and less than 6,400 cubic inches). Staffing should reflect these distinctions.
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WEEKDAY PROFILE | Lines and Cube In rank order the transactional activity and related cube takes place on Tuesdays, Wednesdays, Thursdays, Mondays, and Fridays. The peak day’s activity is 17% higher than the valley day’s activity, again suggesting that staffing should be adjusted accordingly; and/or order shaping should be employed to balance activity across the weekdays.
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ACTIVITY and LABOR FORECASTABILITY TO activity is readily forecastable utilizing the forecasting engine in RightChain Forecasting. As a result, more sophisticated and optimized labor planning can be implemented to reduce overall staffing requirements.
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MOVE TYPE PROFILE The large majority of warehousing transactions and cube are executed on 350 and 101 move types. A small minority of moves and cube are executed on 998, 312, 417, 999, and 250 move types. The remainder of move types are inconsequential.
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INVENTORY OPPORTUNITIES SKUs are classified based upon three inventory dimensions – days on hand, dollars on hand, and cube on hand. Those SKUs with high days, dollars, and cube on hand are candidates for inventory interventions.
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Contents Storage Mode Optimization
Small Parts Storage Mode Alternatives Small Parts Storage Mode Optimization
STORAGE MODE OPTIMIZATION | Small Parts RightChain.ai simulates the productivity, storage density, accuracy, picking labor cost, restocking labor cost, occupancy cost, equipment cost, and error cost in each small parts picking storage mode including bin shelving, storage drawers, flow rack, carousels, and automated storage and retrieval systems (e.g. OPEX Perfect Pick, AutoStore, and KARDEX VBM).
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STORAGE MODE OPTIMIZATION | Small Parts Considering from among bin shelving, storage drawers, carousels, lift modules, and ASRS machines (Perfect Pick, AutoStore, and Miniload); overall small parts picking costs are minimized by the OPEX Perfect Pick solution.
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Contents Warehouse Layout Analysis
Warehouse Activities and Flows Warehouse Footprint Analysis
Waste & Trash
INVENTORY CONTROL
OUTBOUND (25,000 sf)
JDSC
Repack
P F C T P I C K
Floor Bulk Storage 5K 85,000 sf
SMF Rack
Rack Storage (176,000 sf)
Floor Bulk Storage 4K 37,000 sf
MHE CHARGING
SEQUENCING RELOADS
INBOUND (30,000 sf)
EXPIDITE
Contents Footprint Allocation
By far, the two largest footprint consumers are rack and floor storage. The rack storage footprint could be significantly reduced via very narrow storage, mobile storage rack, and/or automated storage and retrieval. The floor storage footprint may be significantly reduced via additional lane depth optimization, racking to improve the clear height utilization, and/or mezzanines installed above the floor storage where other mezzanine-able warehouse activities may be located.
Contents Warehouse Performance Analysis
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Contents Warehouse Contract Assessment
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Section 1 PriceSmart vs Domestic Warehouse Club Supply Chain Configurations RightChain™ Warehousing For more information... RightChain.com
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