Distribution Center Systems
Logistics Systems Consultant
Chairman, EIQ Research Society
Shin Suzuki
A slide deck by Mr. Shin Suzuki explaining distribution center functions, storage, and picking concepts. It covers everything from fundamental logistics functions to concrete operational methods.
Distribution Center
Shows the basic role and positioning of a distribution center.
Dead Storage vs. Fluid Storage
Explains the difference between "dead storage" (simply storing items) and "fluid storage" (premised on moving items as needed, when needed).
Functions of a Distribution Center
Outlines the wide range of functions of a distribution center, including receiving, storage, picking, value-added logistics services, and shipping.
Transfer Center (TC)
The concept of a TC (Transfer Center), which holds no inventory and immediately sorts and ships incoming goods.
Value-Added Logistics Services
Discusses value-adding logistics services such as price tagging, assorting, and packing that go beyond simple storage and movement.
Changes in Warehouse Functions
Illustrates the historical background of how warehouses have shifted over time from "storage-centric" to "sorting and value-added processing-centric" roles.
Storage
An explanation of the objectives of storage in a distribution center and the necessity of proper storage equipment and layout.
Reserve & Active Storage Layout
Illustrates the concept of separating the "Reserve" area (for stock) from the "Active" area (for picking operations).
Reserve & Active Storage
Provides further detail on functional separation between "Reserve" (storing bulk inventory efficiently) and "Active" (boosting operational efficiency).
Warehouse Characteristics
Classifies warehouse characteristics (temperature zones, security, floor area, etc.) based on handled goods and shipping types.
Receiving & Shipping Systems
An overview of the series of system flows from the entrance (receiving) to the exit (shipping) of items.
Order Picking
An explanation of "Order Picking"—the most critical operation in a distribution center—where items are gathered based on customer orders.
Picking Layout Diagram
Sample diagrams visually representing flow lines and layouts for picking operations.
Basics of Order Picking
Highlights the basic movements of picking work ("walk, search, take") and perspectives for improving efficiency.
Picking Time
Breaks down picking time into elements like "travel," "search," and "retrieval" to analyze where waste occurs.
1 Second
Emphasizes time management importance at logistics sites, showing how accumulating "1 second" significantly impacts overall productivity.
Increasing Hit Density
Layout optimization techniques to increase how many items can be picked within a limited walking distance (Hit Density / picking density).
PCB
The concept of three different shipping units in picking (PCB): Pallet, Case, and Broken (piece).
Order Picking Patterns
Classifies various order picking patterns, such as item-by-item picking (single) and batch picking (seed-sowing/assortment).
Locations
Location management principles for where items should be placed on shelves, such as fixed locations versus free locations.
Picking Methods
Methodology comparison: whether workers walk to gather items, or machines bring items to workers (GTP: Goods-to-Person).
Work Methods
Explains actual operating tools, including paper list picking, handheld terminals, and voice picking.
Batch vs. Single Diagrams
Illustrates differences in flow lines between "Batch" (picking multiple orders together) and "Single" (picking one order at a time).
Batch & Sorting ("Karuta-Tori")
A variation of batch picking where items are collected together in bulk and then sorted per order (conceptually like Karuta card matching).
Assorting (Seed-Sowing)
Explains the "seed-sowing method (assorting)," where total picked quantities per item are distributed into slots for each store (order).
Assorting Example
Specific examples and visual concepts of assorting work utilizing Digital Assort Systems (DAS) and similar technologies.
German Case Study
Introduces advanced logistics center and picking system case studies from overseas (Germany).
POLA Case Study
Case studies of system implementations and innovations in Japanese companies (e.g., POLA) to handle high-variety, small-quantity, high-frequency shipping.
Automation & Mechanization
Explains the implementation of automated equipment (automated warehouses, sorters, etc.) to address labor shortages and boost productivity.
Key Points for Boosting Productivity
Key points for comprehensively raising productivity, moving beyond simple mechanization to layout optimization, flow line shortening, and information system utilization.
Intelligent Automation
Discusses the importance of "intelligent" automation through advanced data processing using AI and WMS, rather than simple hardware automation alone.
Pattern Picking
Explains techniques to streamline picking by analyzing order trends and taking into account item combinations (patterns) frequently shipped together.