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This is the first in a series of articles that will address C-Store Warehouse fundamentals and the application of technology. The theme throughout will emphasize the 3 magic words in warehousing. Structure, Discipline and Process!

The Responsibilities of the 21 st Century C-Store Warehouse should include: Safety of the workplace, development of warehouse personnel, accuracy in all functions, establishment of reasonable expectations in job functions, attainment of productivity standards, the on time completion of all warehousing functions and true cost management!

The Art of warehousing includes: The organization of a work force to meet the short and long term goals of the organization, the movement of personnel and equipment to meet the daily challenges of work flow, and assisting the company in establishing competitive advantages. The key to success is to identify your objectives, organize for the usual, plan for the unusual and never, never be surprised!

The Science of warehousing is the development of methods for: Employee development and motivation, thruput, inventory management, space and equipment utilization, productivity and work measurement, safety and sanitation and last but most important customer service!

We begin this process with Priority #1 , Employee Development.

Definition of an occupation is: little more than a line of work.

Definition of a Profession is: an occupation that requires special knowledge and training!

We want as many professionals as possible working in our organizations.

Employee development is the prime responsibility of supervision and communication of expectations is the key. Conferences, seminars and visits to other distributors (Golbon Members) are as important to warehouse personnel as they are to any other department.

Training dollars will be returned in the form of more efficiencies and cost reductions!

Tell me and I will forget! Teach me and I will learn! Involve me and I will progress!

Priority #2, Thruput

The goal of most retro-fit warehouse projects is thruput.

Thruput is the overall result based on the productivity of various parts. Thruput and productivity are determined when: The tasks of the warehouse are identified, methods are developed for the tasks and the results of the methods are measured. These measurements should be broken down in to touch and non-touch tasks.

Priority #3, Inventory Management

Inventory is the core of working capital . It should include the cost of the inventory itself and the cost to store and move it. Inventory control and picking accuracy are the two critical areas affecting the warehouse.

Historically, inventory levels have been determined as a means to meet service levels. Inventory buffers have been used to hide operational issues. These buffers are usually the result of a lack of trust in the warehouse and its ability to maintain accuracy in the count and pick functions.

Until the inaccuracies that cause the inventory buffers are eliminated the application of sophisticated systems will have positive but limited results.

Priority #4, Cost Management

Everything has a cost! Most costs have been tracked as a relationship to or with purchasing or sales. I.E. Cost of goods sold, Cost per Order or Cost as a % of sales.

As an industry, our history has been that the warehouse has been the last area considered in cost management. A partial reason for that is the warehouse has been considered as reactive to sales and purchasing as opposed to proactive in cost management. It is your highest single cost factor! 56 to 60% of your cost of doing business is tied up in your warehouse!

BFC, not just technology, the RIGHT technology for Food Distribution!