Chervrolet manufacturing plant

Oldies but goldies!

If you have a spare 25 minutes, don´t miss this brief documental about the old days, when manufacturing cars had a lot to do with people and not with robots, machines and so on.

Enjoy!

Assemble line

Friday! Hard works pays off!!

Pallet storage methods

Most companies store their products in pallets at their warehouses. Depending on the necessities and the storage limitations, there are several pallet storage methods that can be used by the warehouse staff to efficiently storage the merchandise. In today´s post we will examine some of the most common pallet storage systems.

Block Stacking: The method of block stacking involves stacking boxes or units one on top of the other, and store them on the warehouse floor in lines of blocks. This is one of the most cost effective methods since it doesn´t require to use racks.

The pallets can be stacked to a specific height based on three conditions: 


-          The weight of the items placed on the pallets.

-          The height of the warehouse.

-          The pallet conditions

The pallets will need to be retrieved from the pile in a last in, first out manner, LIFO (not to be confused with the FIFO manner, which means first in, first out), therefore when stacking the boxes it has to be taken into account which pallet will be needed first to avoid leaving unusable empty spaces (this is referred to as a honeycombing effect) that can´t be refilled until the whole rack has been emptied.

This method is more useful for small and medium size warehouses that want to keep their expenses controlled.  

Stacking Frames: Stacking frames method allows for pallets to be store very high and it´s particularly useful when pallets are not stackable. The frames are made from decks and post and can be moved easily through the warehouse when needed.

This system is most used for those warehouses that need some extra space during busy periods. With stacking frames the issue of honeycombing is similar to block stocking.

Single-Deep Pallet Rack: Single-deep pallet racking provides access to each pallet stored in the rack, this method ends the honeycombing problem as whenever a pallet is taken out, a new one can be placed where the original was. This type of racking allows various heights depending on the needs of the warehouse and the forklift’s abilities.

There are several reason that make this method more efficient than others. Honeycombing issues are not a problem anymore as we said and space is available as soon as a pallet is removed. On the other hand, this method requires more space therefore warehouses with limited space are advice to choose a different pallet storage method.

Double Deep Rack: This method is similar to the single deep pallet rack differing in the double-deep rack being able to store pallets two deep. The double deep rack incorporates two single racks that are placed together, leading to a reduction of the number of aisles required, nonetheless this type of racking is susceptible to honeycombing and it might not be as efficient as the single deep racking.

Finally, double deep racking will require the business to invest in a double forklift to remove or place the pallets.

Drive-In Rack: This method offers from five to ten pallet spaces much alike the double deep rack. This type of method is similar to the block stacking because the last in and first out principle, LIFO, is used when retrieving pallets. The biggest problem of the drive in rack method is that it provides limited space for the forklift to place and remove stock resulting in increases of the time needed to maneuver the stock.

Pallet Flow Rack: This method is maybe the most expensive but I might be worth it as in some cases it´s also the most efficient. The pallet flow rack method makes it possible for a pallet to be moved from one end of the rack to the other end on a conveyor. The pallets are removed using the first in, first out method (FIFO). Once a pallet has been removed from its place, another pallet can be placed on the spot left

Push Back Rack: This method uses a rail guided carrier to push the pallets further back into the storage area. When a pallet is placed it pushes the other pallet loads back. When a pallet load is taken off, the next pallet is moved into that load’s position. This system is a LIFO solution and might not be suitable for those warehouses requiring FIFO. 

Depending on the particular need of a warehouse, choosing the best and most efficient pallet storage method can lead to more space, more time and more money saved.

Pallets (I) materials; advantages and disadvantages

 This post will be focused on one of the most important elements on every single warehouse, the pallets. We can define a pallet as a flat transport structure that supports goods. This definition can be extended but I aim to keep it as simple as possible.

The use of pallets has spread over almost every warehouse since they were first introduced. Is has been proved that pallets make it easier to move heavy merchandise, storage the goods in different levels and optimize space whether we are transporting goods or storing them.

Even though there are many pallets sizes, a few different sizes are widely used while the others are very rare particularly in medium and large size companies.

The International Organization for Standardization (ISO) sanctions six pallet dimensions as follow:

	Dimensions (W × L)		Region most used in
	40.00 × 48.00		North America
	39.37 × 47.24		Europe, Asia; similar to 40" × 48".
	45.87 × 45.87		Australia
	42.00 × 42.00		North America, Europe, Asia
	43.30 × 43.30		Asia
	31.50 × 47.24		Europe

While most pallets are made of wood, there are also pallets made of metal, cardboard etc. Each material has advantages and disadvantages.

Wood

The majority of pallets used are made from wood due to this material being the cheapest compared to metal or plastic. We can find softwood pallets and hardwood pallets.

Some advantages of wooden pallets are:

-          Strong and durable

-          Less expensive than other materials

-          Easy to construct, repair, splinter and recycle

-          Suitable for storing in racks and piling.

In the other hand wooden pallets have some disadvantages that don´t make them ideal for some purposes

-          These pallets are heavier than plastic or paper pallets, making them more expensive when air freight is needed.

-          Difficult to clean leading to the growth of bacteria, insects etc. Most pallets shipped across national borders must be made of materials that are incapable of being a carrier of invasive species of insects and plant diseases, in this cases, it might not be feasible to use wooden pallets to transport the goods.

Paper

Paper pallets are used for light loads, and when recycling and easy disposal is important.

 

Advantages of this type of pallets are:

-          Light weight

-          Good strength for its weight

-          Recyclable and easy disposable

However paper pallets are the best choice when looking to store or transport light loads, they have some disadvantages:

-          Damageable if stored outside

-          Difficult to store in racks and piles

-          Not suitable for very heavy loads

Plastic

Plastic pallets are getting more and more common in supply chain due to the many advantages they have:

-          Highly resistant to water,  corrosion, contamination etc
-          Easy to clean
-          Durability and resistance

-          Low weight

Even though plastic pallets are becoming more and more popular, there are still several disadvantages that might make some companies reluctant to use these type of pallets:

-          More expensive than wood and paper pallets

-        Although plastic is more durable than other materials, when it cracks or breaks repairs are more expensive and difficult.

-          Sometimes plastic pallets can´t be stacked.

Metal

Aluminum and steel are the most popular materials used on metal pallets, and are generally found in the automotive, food, pharmaceutical and chemical industry.

Metal pallets only makes 1% of the current pallet distribution nonetheless they are becoming more attractive to industries that deal with heavy merchandise.

-          Stronger than paper, wood and plastic

-          Very resistant and durable

-          Easy to clean, free of pest

-          Suitable for food and chemical materials

-          Lower cost associated to insurance as metal pallets are more durable and cost effective and very rarely suffer considerable damage.

From the disadvantages point of view, we can mention

-         Metal pallets are more expensive than any other material

-         Heavier than other materials, incurring in higher costs when air transporting

We can say we know what we need to chose the type of pallet that suits most our business!

The next post will verse about the different types of pallets from the size and shape point of view.

Inventory

In today´s post, we will be zero in on key word in Supply Chain; inventory.

Since Toyota started its “just in time” strategy, there has been a lot of talking about the necessity of inventories and whether a company might hold raw materials, pieces, or finished goods in their warehouses. Whether your company is a retailer or a manufacturer there are several reasons for and against maintaining inventory.

Reasons for maintaining inventory:

-       Demand: Maintaining inventory ensures you always have product available when demand increases. Any business should keep an adequate supplies to meet expected and not so expected demands. This is essential for those businesses whose demand strongly flows due to seasonal or economic fluctuations or for those whose products are characterized by a rapid turnover and high demand.

-       Cost: Having enough space to keep the merchandise allows the companies to bulk buy at reduced costs. Suppliers often offer discounts on purchases above a certain quantity. Buying large amounts of goods and storing them on the companies’ facilities results in significant savings.

-      Time: For some companies the lead time from order to delivery is crucial, having enough merchandise ready to be delivered timely will ensure the customer gets the products promptly avoiding third party delivery charges and fostering new future purchases.

-          Inflation: In times of high inflation, holding vast supplies of inventory can result in substantial benefits for the company, which might be able to cope with the demand while avoiding the cost associated to the inflation.

-         Supply shortages, disruptions: When supply shortages or disruptions occurs whether they are expected or not, holding enough merchandise on inventory ensures the company´s ability to meet the demand and allows a certain degree of self sufficiency until these disruptions are solved.

Even though there are certain powerful reasons for maintaining inventories, it is true that there are also some reasons that might recommend avoiding stockholdings, some of these reasons are:

-         Space: Maintaining inventory requires a vast space in which the merchandise can be properly managed. This usually means having a warehouse with enough space to adequate a loading and unloading area, a picking space if needed, racking for efficient storage and any other facilities that are necessary to keep the merchandise stored. In addition to that, some products ask for concrete storage conditions such as specific temperature ranges, or certain isolating materials, that will help to preserve the goods or to avoid harms.

-       Cost: Holding inventory will make the company incur in costs, rent, equipment, insurance, workforce and so forth. Cost for maintaining inventory can quickly mount up getting to a position where large amounts of money are invested only to successfully manage your storage facilities.

-          Stock control and training: To effectively manage inventory, a high-tech computerized system must be installed and maintained, and staff must be properly trained. Every inventory control system will require the cooperation of all the employees and therefore adequate training will need to be provided, and that takes us to our previous point, costs. Training will imply sending the employees to training classes or holding training sessions at the workplace.

-         Time: Finally, another potential problem that comes with inventory control is that it takes time. Apart from the time invested in training, employees will have to get used to the new methods and in many cases money will be lost endowing the staff with the tools needed to manage the inventory accurately.
  

Despite of the costs associated to inventory management, it seems very complicated to avoid completely inventory and overall, the best option will be to keep a minimum amount of merchandise on inventory while arranging commercial deals with our purveyors to ensure continue flow of supplies.