Stores management Traditional focus on efficient stock holding Recent focus on efficient stock movement because: Reduce expenditure on storage and handling Facilitated by computerised inventory systems and automation Value-based supply chain concept - optimising customer service with minimal inventory investment and operating costs Changes in manufacturing e.g. JIT Development of logistics systems designed to integrate purchasing, transportation, inventory management and warehousing activities The ‘Time Compression' concept Formerly emphasis was on efficient holding of stock to meet customer requirements, avoid losses through wastage, deterioration, theft and obsolescence. Current emphasis is on movement of stocks. Change due to following factors: Remember our ice berg Concept aimed at balancing conflicting goals of high customer service with low inventory investment and operating costs. To provide most effective means of meeting internal and external customer requirements Aims to reduce the time consumed by processes through elimination of non-value adding activities. Spending time doing something doesn’t necessarily add value. Reduce the time spent doing something = reduce the costs

Stores Management General Objectives Most efficient use of space available Rapid and easy access to stock Efficient and balanced traffic flow Mechanisation and automation are appropriate Minimal travel distance for stock Minimal number of handling occasions Positive location and identification of stock Appropriate product grouping relating to similar storage characteristics and issue frequency Maximum protection and security Regular review of stock and processes to ensure the objectives are continually met for inputs, outputs and verification (stock checking) My example Reduce handling = reduce costs (Unichem pick face example) – reduce handling / reduce error potential clearly identifiable locations, the stock is always there – binno’s for every product, ABC or random? E.g. fridge, flamms, top 50 E.g. Unichem visual appearance inspection – stock check recurrent discrepancies

Do you believe your store meets these objectives satisfactorily Do you believe your store meets these objectives satisfactorily? Which objectives are most problematic? Which objectives are met well? PROBLEMATIC Number of handling occasions Positive location and identification of stock Appropriate product grouping according to issue frequency WELL Protection – Hanwell Security - Legislation

Stores Management Concepts Pareto and ABC analysis Cube Principle Goods Movement Theory Stores design & workflow Identification & allocation of storage locations Constraints Theory PARETO and ABC Remember Kevan Identify quick turnover items or slow moving stock Quick turnover – store to allow regular and easy access Slow movers – remote locations CUBE PRINCIPLE Focuses on use of all available space More space used – more specialist equipment required e.g. high rise racking, narrow aisle fork lifts Consider equipment costs v utilisation of space Baxter’s equipment & space utilisation essential. Us, would we use equipment often enough to justify cost? GOODS MOVEMENT THEORY Movement adds cost without adding value and introduces error potential To lower total acquisition costs – eliminate unnecessary movements, inefficient handling Move goods as little as possible – single stock locations, direct delivery to end user STORAGE LOCATIONS Alphabetical for easier manual identification Computerised for most efficient usage (robot) Fixed so always in the same place Flexible for most effective storage CONSTRAINTS THEORY Identification of bottlenecks within processes Analyse constraints to determine where to allocate resources

Number of possible lay-outs most common being U-flow and through-flow Explain diagram MHRA prefers through flow (particularly in manufacturing) Raw materials and finished products arrive and depart from different areas in the store. Most important objective is reduce time taken to pick stock. i.e. High turnover items easily accessed (close to hand) Travelling distance for staff minimised

Identify the constraints in your organisation. How are they managed? Loading robot Delivery peaks and troughs in goods-in (e.g. Tesco v us) Boxing day – lots of picking staff waiting for top-up staff to complete orders

Automation Advantages Space – small footprint Speed accuracy Disadvantages Cost Power or system failure Correctly titled as AUTOMATED STORAGE, HANDLING AND RETRIEVAL SYSTEMS Robots, A-frames, automated stacking cranes Constraints need to be clearly identified before investment Will expensive automation resolve What will be the impact on processes? (Dispensary example) ADVANTAGES Space. Smaller footprint required than for manual processes but beware capacity Speed Accuracy DISADVANTAGES Cost Power or system failure. Goods difficult to retrieve in event of breakdown. Anyone been in? What other options are available for you to embrace automation? Ward order assembly