Warehouse productivity is based on four key points:

• the control of operational procedures and constraints (elementary operations, sequencing of tasks and site layout, interruptions in workload, picking, workstation ergonomics and control of peaks in activity),
• people management,
  • HR management (pay policy, organization and management, absenteeism, individual tracking of productivity, skills and training),
  • planning of operations (planning of arrivals, workload forecasts and forward planning of resources).
• resource management,
  • equipment (storage and handling equipment, conveyors, miniloaders / stations / sorting),
  • layout, volumes and surface area (size of the surface areas and docks, stock levels and interruptions).
• management of bottlenecks on automated sites.

In our opinion, it is therefore necessary to combine several approaches in order to cover all the possible areas of improvement on a logistics site.

1. An initial zero-based budget type analysis that aims to rebuild the site’s P&L on the basis of flows and time standards according to current processes. This analysis identifies the first deviations versus a standard budget. This approach identifies deviations in a number of areas:
   • labor (global productivity [deviation from the standard], absenteeism rates, occupation rates, hourly pay rates by job and by country, etc.),
   • buildings (local labor / technical ratios, dock rotation, alley widths, storage levels, etc.),
   • equipment and overheads (cost of handling equipment, number of equipments, cost of IT hardware, cost of subcontracting, etc.),
   • management and support (typical management structure, management levels, methods (inventories, re-arrangement of picking), etc.).
2. A more refined analysis of the time required to complete the operational procedures in order to take a detailed look at the operational processes of the warehouse and to assess the efficiency of the value chain by measuring time spent without any added value. This approach focuses on the causes of inefficiency and process change scenarios (grouping and then splitting orders, triangulation of forklift movements, mechanization or automation of processes, etc.)
3. Finally, we use detailed analysis matrices to understand the maturity of the planning and management of resources and to identify the associated paths of improvement.

To be fully integrated, this approach requires the close cooperation of the operational staff, even when  the site is outsourced. The associated action plans must be validated in full by the sites, if they are to be effectively implemented.

Argon Consulting helps its customers in:

• the creation of new sites:
  • designing the logistics system:
    • handling headcount,
    • administrative and warehouse management headcount,
    • handling equipments,
    • surface areas: docks, picking, store, offices, other,
    • storage equipment: racks, mezzanines, cantilevers, mobile systems, etc.,
    • indirect costs: taxes, security, IT, etc.,
  • choice of a do or buy services policy,
  • assistance relocating or opening a new site:
    • estimate of investments and the cost of change,
    • preparation of the relocation, operational planning of the move,
    • management of the relocation,
    • staff management and training,
  • definition and deployment of KPIs,
• calls for tender:
  • assistance in selecting a logistics service provider:
    • authoring of the specifications,
    • selection of the panel of service providers,
    • analysis of the proposals,
    • preparation of the comparison matrices, definition of the comparison criteria,
    • support in choosing a partner,
    • assistance in contractual negotiations,
  • assistance in selecting the WMS tools,
• optimization of existing sites:
  • audit and identification of areas of operational improvement:
    • reception process, stock piling, preparation, loading, inventories,
    • operational methods: stocked vs. cross docked flows, picking, splitting, batched,
    • warehouse layout,
    • picking route,
    • warehouse performance indicators,
  • benchmarking:
    • unit costs [payroll, rent, systems, etc.] by region and by sector of activity,
    • occupation ratios,
    • performance measurements and key ratios by sector,
  • identification ofsaturation thresholds and proposal of operational alternatives:
    • in terms of staffing: introduction of double shifts, hiring, temping, etc.,
    • in terms of surface area: reduction of stocks, switch from stored flows to cross, docked flows, densification of storage, extension, overflow areas, etc.,
  • preparation and delivery of training courses for the field or management teams.