Distribution Center Design, Operations and Management

In a world of offshoring, increasingly demanding customer requirements, high-velocity order fulfillment and continuous logistics challenges, distribution excellence has never been more important to both supply chain and corporate success.

By the end of this two-day training course, you will be able to:

Deploy best practices for improving labor productivity, operations efficiency, and inventory accuracy

Apply proven techniques to improve distribution center strategy and execution

Master the  technology tools available to distribution managers 
Discover how to achieve the operational flexibility needed for today’s ever-changing supply chain
Enhance the efficiency of your inbound and outbound logistics
Develop distribution performance and financial measurement systems that drive continuous improvement and alignment with broader supply chain and corporate goals
Implement advanced techniques for inventory and distribution management
Make greatly improved outsourcing decisions
Day 1

Module 1 – Case Study – Starting-Up a World Class DC

Rebuilding an entire distribution network

Network and inventory optimization

Effective Project Management
Building and material handling equipment design
Selecting a Third Party Logistics Provider (3PL)
Selecting and Implementing a Warehouse Management System (WMS)
Employee training and labor management
Metrics for warehouse performance – financial, productivity, and quality

Module 2 – Optimizing DC Facility Layout and Operations

The principles of efficient storage and handling systems design

Factors to consider when selecting design and storage systems

Throughput vs. storage capacity
Dock designs to match the business profile
Configuring the storage systems
Testing the design through automation
How to maximize storage density

Module 3 – Planning For Efficient Materials Flow

Zoning models – matching the layout to the inventory profile

Determining the ideal location for products in your warehouse

Picking, packing and replenishment tools
Interleaved warehouse operations
Slotting models – adjusting criteria as products, locations and demand change
Maintaining peak productivity of your pick line
First In First Out (FIFO), First Ended First Out (FEFO), and the use of rotation windows
Cross Docking – streamlining the flow between the supplier and manufacturer
Organizing the facility to minimize bottlenecks and product damage

Module 4 – Inventory Management and Control

Inbound Advanced Shipment Notifications (ASN’s) and Bar Code/RFID receiving

Cycle counting vs. physical inventories

Where the Count-back process excels
Controlling internal losses
Load Integrity Programs
Tools to control overs, shorts, and damages
Distribution alliance – a partnership that wins

Day 1 Review and Discussion

Day 2
Module 5- DC Performance Measurement – Planning For Efficient Use of Labor And Equipment Resources

Metrics – tracking and managing all warehouse activities

Measuring and comparing KPI’s – internal, supplier and customer KPI’s

Labor Management Systems – workforce performance management
Engineered standards development and implementation
Fostering a culture of continuous development and improvement
Workforce incentive plans

Module 6 – Selecting and implementing Enabling Technologies (WMS, LMS, Slotting, RF, Voice, etc.)

Overview of available technology options

What the vendors won’t tell you about how to select the solution that’s right for you

The selection team and process
Requirements definition
Building, then trimming, the candidate list
How do you really differentiate the solutions?
Implementation, project management and best practices
Ongoing refinement and enhancement

Module 7 – Selecting and partnering with a 3rd Party Logistics Provider (3PL)

Viewing the 3PL as a partner not a supplier

Selection is more than a Request For Proposal (RFP) – how to build knowledge before making your decision

Bid specifications redefined – what is really important?
The three phases from start-up to steady state
Setting performance standards
Rate-based vs. cost plus commercial agreements
Process manuals – defining the expectations

Module 8 – Cost Plus And Gain Sharing – An Alternative To Rate-Based Agreements

Why cost-plus vs. rate-based agreements?

The concept of risk drives 3PL margin expectations – how do we control this?

Budgeting, actual costs, and the variance explanation process
Fixed management fee, base fee, and incentive fee structures
Implementing activity-based costing and cost-plus
Using a cost-plus type process in your own operations
Gain sharing – the correct incentive for 3PL performance

Supplementary Course Materials Review

Day 2 Review and Discussion




Case Study




Training Kit



Lunch + 2 X Coffee Break


Pick Up Participants (Yogyakarta Only)


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