SYSTEMS INTEGRATION
strategicinsight
Start at the end
Planning a material handling system is not about what equipment to install—
not at first. It’s about starting with a clear understanding of what the system
should do when it’s up and running.
WHEN PLANNING A MAJOR MATErial handling system, it can seem a long
road between inception and completion, from
the blank page to an effective operation.
That journey begins with a good map—or, more precisely, with a detailed system design for the warehouse
operation. Crafting a detailed plan can be a complex and
often daunting process. Experienced systems integrators
say the journey begins with a clear understanding of the
destination.
“The first thing we like to do is get a handle around the
real objectives or goals of the project,” says John T.
Giangrande, a senior account executive for Fortna, a
major systems integrator and supply chain consulting
firm. “If you’re building a new DC or expanding an existing DC, what’s the driver? Is it about business growth, or
are you consolidating distribution centers?” Labor productivity or transportation costs could be other factors
affecting a design. “That leads to a more in-depth conversation to reach an understanding of the impact on operations,” he says.
Giangrande is the author of a white paper
for Fortna titled “Profitable Distribution
As Giangrande explains, that means asking questions
like what is the business case—is it to reduce redundant
inventory, consolidate processes, or improve customer
service response? “That’s really critical,” he says, “because it
helps develop the framework over what to do. That’s where
we start.”
Setting objectives also requires some level of foresight
into how business flowing through a DC is likely to evolve.
“What are the numbers of orders, the number of lines per
order, and how is that likely to change over time?” asks
Giangrande.
It’s important to engage not just distribution, logistics,
and transportation in the discussion, but all the parts of the
business that will rely on the system’s success. Jimmy
Benefield, director of strategy and operations for enVista,
another supply chain consulting specialist, says, “One of the
