Storage to Shipment

We traditionally store items the same way in which we receive them from a supplier. For example, if we receive 4 large boxes on one pallet, we maintain this structure when storing the items. When it comes time to fill an order of 2 boxes, an employee on a vehicle must go to the location, lift 2 of the 4 drums onto his or her vehicle, and then proceed to package and ship this order.

There are 2 main challenges with this approach: 1) In order to retrieve the drums, an employee is harnessed to a vehicle that is 30+ feet off the ground. The employee then has to separate two individual drums from the remainder of the packaged drums, which requires heavy lifting of 100+ lbs without much support. 2) We are completing more time consuming work during the most time-sensitive period, after a customer has placed their order, within our operational flow.

Goal: How do we create a storage to shipping flow that is more ergonomic for warehouse employees and shifts the bulk of the work to earlier in the process?

COMPANY
McMaster-Carr

COLLABORATORS

ROLE

Fulfillment Teams

TIMELINE

Feb.'16-Apr.'16
Supervisor &  Researcher

Problem Statement

We need to design a more ergonomic and time sensitive end-to-end approach to filling large and heavy items within the warehouse.

Research Methods

In order to understand the details of the end-to-end fulfillment process, I interviewed warehouse vehicle drivers, observed the operation over the course of a few weeks, and went on live vehicle "ride-alongs" to witness pain points within the process. I coupled qualitative research methods with quantitative data analysis to quantify how many times these pain-points occurred.

Interviews

I observed the end-to-end fulfillment process and interviewed employees during each stage. I learned which items were tougher to lift while on a vehicle and what constraints drivers faced in the process.

Ride-Alongs

I spent a few days riding along on the vehicle as drivers completed their fills. I was able to witness the ergonomics behind filling individually while on a vehicle and get a better sense of how much weight drivers lift per day.

Data Analysis

I analyzed months of data to identify the top 10 heaviest items whose storage arrangement did not match how we actually sent the items to customers.

Insights

There are a handful of heavy items that we frequently store in bulk that are ordered in lower quantities. This requires drivers to frequently lift and maneuver items from the storage pallet to their vehicle to fulfill a customer order. There are benefits to rethinking how we store these items to improve how we ultimately fill the items.
When we move material as soon as we receive it from a supplier, we do this on the floor (ground level) and there are multiple people helping to lift material to make this process more ergonomic. Items over 100+ lbs are lifted by a team if done on the floor. If lifted on a vehicle, a solo driver is in charge of this.
When we fill a customer's order, we are constantly crunched for time. We are always trying to find ways to reduce the time from when a customer places an order to the time the order is out the door. Moving heaving items alone, while in the air, takes up a large portion of this sensitive time period.

Proposed Solution

Designing a process in which we store items as we expect to most frequently ship them, rather than how we currently receive them from the supplier, will increase the ergonomics during a fill, and shift the bulk of the workload to earlier in the process, thus reducing the time taken during the more time-sensitive order fulfillment period. We propose to prepare items based on how they typically ship in advance.

Prototyping

In the example below, we receive this heavy item from supplier in a pack of 4; however, customers frequently order 2 each. Rather than storing as a pack of 4, we will break this pack down to 2 packs of 2 each. This way, when it comes time to fill a customer order for 2 each, the driver has no lifting to do. The item is already stored the way it will be shipped to the customer. We save time during the fill because we shifted the work of splitting this order to earlier in the process. By having a team split up heavy items earlier in the process, individual lifting is reduced and overall ergonomics are improved.

Testing

I gathered a team of participants within each stage of the process to test how the new flow would work. Team consisted of employees in the receiving, filling, and shipping department along with employees within our system development and coding teams to make back-end adjustments to our process. We began testing with large drums that would benefit the most from the new process.

A/B Testing

Each morning when we received a supplier receipt, we would gather a team of individuals to break this down from 4 each to 2 orders of 2 each. For the pilot test, employees came in early on over-time to work out any procedural issues. A/B Testing helped identify exactly how much work we were shifting to earlier in the process and how many people we would need during this step.

Feedback

Throughout the process, I gathered feedback from all employees involved in testing. The drivers loved the new process and felt much safer about not transferring as many items while in the air. The employees participating in team lifts felt the additional work we were now moving to earlier in the process did not greatly impact them, given they had both the people and the time to do this.

Iterations

During this process, we discovered slight hiccups around staffing needs as well as space constraints within our warehouse. The downside of storing as we ship is that we now require double the space to store these items. During our iterations, we found a balance between how many orders we can prepare in advance based on the amount of space we had available to us.

Outcome

We organized and executed A/B workflow testing to optimize filling operations, evaluated time and ergonomic metrics, and performed a cost-benefit analysis to recommend a transformed end-to-end shipping process that shortened order fulfillment timeline and eliminated 10,000+ lbs. of lifting per day.
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