Dealer WH Planning Support MCCARTHY (9 Sept 15)

1

RIGHT PART, RIGHT PLACE, RIGHT TIME

Partnering to Achieve Success

Dealer Warehouse Planning Support

Mike P. McCarthyDealer Parts Operations

Caterpillar Parts Distribution

Customer Services Support Division, Morton, IL.

[email protected]

(309) 494-1243

2

Overview / Agenda

– Bin Sizing Analysis / Parts Inventory Concepting

– Warehouse Improvement Opportunities

– Process Steps

– Data Inputs

– Data Analysis Steps

– Outputs / Recommended Equipment List (REL)

– Common Dealer WH Parts Storage Equipment Types

– Warehouse Equipment Layout Planning Scenario

– Location Addresses

– Master Location / Parts Prelocation Lists

3

Bin Sizing Analysis / Parts Inventory Concepting

– Dealer Warehouse Improvement Opportunities / Considerations

– Parts Inventory has outgrown the existing main or branch warehouse

– New vs Existing Facility: Consolidating, building new or relocating to

another facility location (Off-site or on an Existing Campus)

– Maximize use of existing warehouse interior / exterior space

– Reconfigure existing warehouse parts storage layout to increase

warehouse efficiencies and ‘flow’

– Upgrade to ‘new’ or re-use existing parts storage equipment

– Implement a warehouse management system (WMS) …transitioning

to a new dealer business system

– Forecasted & Actual Equipment Cost!!!!!!!!

GOAL: Minimize capital investment, Maximize parts storage density!

4

CAT Bin Sizing Analysis Helps Dealers to….

‘Right Size’ a parts inventory to the Right Storage Concept and Location by:

– Matching up Dealer parts inventory data to the Caterpillar packaged parts

dimensional data (by CAT AA PN & Qty).

– Determining the optimal number and sizes of storage locations necessary by

Dealer PN, Packaged PN Size, Quantity per PN and SPEED

– Concepting a Dealer’s parts inventory to the right storage equipment location type

focusing on: Drawer Cabinets, Bin Shelving, Racking and Floor / Lot locations

– Identifying the optimal Drawer Cabinets, Bin Shelving, Rack Section profiles and

quantities required for a specific inventory

– Determining specific drawer cabinet drawer heights and internal layouts and bin

shelving unit profiles for use in getting vendor purchase quotes or in-house

equipment resizing

– Providing warehouse parts storage space estimates (SqM or SqFt)

– Providing Parts Prelocation Lists (PPLs) to assist with PN re-Concepting process

5

Bin Sizing Analysis / Parts Inventory Concepting Steps

6

Bin Sizing Analysis Data Collection

Dealer Parts Inventory Data Set

– Collected via coordination with the Dealer

via Dealer’s Inv Control or Business system

– Essentials: Cat AA PN, On-Hand Qty, MIN,

MAX, Current Bin Location, Annual Calls,

Annual Demand

– Last 32 Projects, PN Qtys: 976 - 30,000

BSA Questionnaire (BSAQ)

– Provides increased understanding of

Dealer’s current status, needs, plans, goals

& project timelines

– 23 Questions…

• Dealer Contact information

• Green Field vs Brown Field Site

• New or Existing Storage Equip

• External Expansion Factor

• % of Non-Cat Inventory

7

Bin Sizing Data Analysis Process

Bounce Dealer

Data against Morton

900K PN Dbase

Receive, Review &

Format Dealer Parts

Inventory Data

Receive Output File

of Dealer PNs w/

Packaged PN Dims

Run Macro to gen

input files for

Concepting Tool

Import Concepting Tool

Output into Drawer

Design Dbase & Run

Import Drawer Design

Output w/ Drawer & Bin Counts

into Bin Sizing Tool

Run Bin Sizing Tool

to Generate Drawer

& Shelving Profiles

& Required Qtys

Review Drawer &

Shelving Profiles &

Manually Adjust

(Make it Real)

Format & Finalize

Output into REL

Import PN Dim Data

& Run Concepting

of PNs to Locations

8

BSA Output: Recommended Equipment List (REL)

REL = 24 Tabs of Info & Data

– ‘Dashboard’ Tab accounts

for all Dealer CAT PNs

– Non-Hydraulic & Hose Build

– PNs Concepted to Storage

Equipment Types

• Drawer Cabinets

• Bin Shelving

• Rack Sections

• Floor & Lot

– Identifies Recommended

Quantities of…

– Drawer Cabinets

– Bin Shelving Units

– Rack Sections

– Estimated Costs (USD)

9

BSA Output: Recommended Equipment List (REL)

Estimated Storage

Equipment Footprint Tab

– Provides SqFt & SqM

requirements based on

Storage Equipment &

Floor Location

Quantities

– Includes Aisle Space

Requirements

(Pedestrian & Fork

Truck)

10

Modular Drawer Cabinets

– 72%* of Dealer inventory PNs Concept to drawers (Range: 62.8% – 80.9%)

– Standard 30” (76cm) Wide x 27 ¾” (70cm) Deep x 59” (150cm) High

– Extra-wide 45” (114cm) Wide x 27 ¾” (70cm) Deep x 59” (150cm) High

– Utilize interior metal dividers, partitions or plastic cups

– One unique location address assigned per location

– High storage compression

*Based on 32 Dealer Projects since Jan 2014.

Common Dealer WH Storage Equipment Concept Types

11

Bin Shelving

– 17%* of Dealer inventory PNs Concept to shelving (Range: 10.8% – 18.5%)

– 18” (46cm), 24” (61cm) & 36” (92cm) Deep x 36” Wide x 84” (2m) High

with 12” (30cm) Deep on Request

– Closed sides and backs (recommended)

– One PN & unique location address per location

– Full-height dividers (recommended)



12

Racking

– 7%* of Dealer inventory PNs Concept to racking (Range: 3.8% – 16.5%)

– Most Common: 42”(106cm) Deep x 8’ (2.44m) Beam x 24’ (7.3m) High

– Variations dependent upon ceiling height, inventory mix and forklift type used

– Cantilever & Large Part Racking…

– Covered / Uncovered - Indoor vs Outdoor



13


Some Dealers no longer want assistance after

the Stage V ‘REL Review’ but more Caterpillar

Support Available in Stages VI, VII & VIII

STAGE V: Provide detailed recommended

profiles & quantities of Drawer Cabinets,

Bin Shelving Units, Rack Sections with

Estimated Costs (USD)

14

STAGE VI: WH Parts Storage Equipment Layout Scenario

– Orientation: North American

Dealer Branch Store…

– Parts Desk / Customer Area

– Parts Staging Area

– Hose Build Area

– Shipping Dock Access

– Service Area Access

– Lot Storage Access

– Main Fork Truck Aisle

– Inv: 5,800 AA PNs

– WH Space: 13K SqFt or

1208 SqM

– Green Field Site

– Buying New Storage

Equipment

113’, 34.4m

150’, 45.7m

70’, 21.3m

15

WH Equipment Layout: Option #1 Initial Cabinet & Bin Placement

– BSA / REL Recommended

– Drawer Cabinets (20% Expansion)

• 33 x 30”

• 10 x 45”

– Bin Shelving (50% Expansion)

• 40 x 18”

• 40 x 24”

• 13 x 36”

– All Cabinets & Shelving ‘above’

Main Fork Truck Aisle

– All close to Parts Desk / Customer

Area (+)

– Away from Fork Truck Activity (+)

– Parts Staging Area Lost (-)

– No Future Cabinet / Limited

Shelving expansion possible (-)

Cabinets: 33 x 30”, 10 x 45”

Bins: 37 x 18”, 41 x 24” & 12 x 36”

16

– Cabinets next to Parts Desk / Customer Area

– 72% of Inv near Parts Desk / Will Call Area (+)

– Parts Staging Area Adjacent (+)

– 45” Cabinets Below Will Call Area (~)

– Future Cabinet expansion possible (+/-)

– All Shelving Below Main Fork Truck Aisle

– 16% of Inv to Shelving

– Pedestrian & Fork Truck Activity Mixed (+/-)

– Future Shelving expansion possible (+)

– Drawer Cabinets – Same Qty

– Bin Shelving Adjusted Down from BSA/REL

– 36 x 18” (-4), 36 x 24” (-4), 9 x 36” (-4)

– Recall that 50% External Expansion was used

– Racking along West Wall (+)

WH Equipment Layout: Option #2 Cabinet & Bin Placement

17

WH Equipment Layout: Option #3 Cabinet & Bin Placement (FINAL)

– All Drawer Cabinets located below Parts Desk

– Retail Area available near Parts Desk /

Customer Area (+)

– Parts Staging Area Adjacent (+)

– 30” Cabinet Qtys adjusted Up to 37 from 33

– Future Cabinet expansion possible (+/-)

– Shelving Below Main Truck Aisle

– Pedestrian & Fork Truck Activity Mixed (+/-)

– Shelving expansion possible (+)

– Bin Shelving Adjusted Down as per Option #2

18

WH Equipment Layout – 1st Racking Option

– 38 x Rack Sections

– 42” (1M) Deep

– 15 x 8’ (2.4M) Beam

– 23 x 9’ (2.74) Beam

– 26 Recommended

– Utilize available

perimeter wall space e

– Fork Truck Access

from Main aisle (+)

19

WH Equipment Layout – 2nd Racking Orientation Option

– 37 x Rack Sections

– 42” (1M) Deep

– 1 x 8’ (2.4M) Beam

– 36 x 9’ (2.74) Beam

– 26 Recommended

– Fork Truck Access

from Main aisle (+)

– Better Flow (+)

20


21

Location Address – Cabinets & Shelving

22

Drawer Location Assignments

Aisle: AA

Section: 11

Elevation: C

Opening: 21

Location: AA11C21

14 24 34 44

13 23 33 43

12 22 32 42

11 21 31 41

23

Bin Location Assignments

Aisle: BA

Section: 31

Elevation: F

Opening: 03

Location: BA31F03

24

Master Locations List (MLL)

– Generated via MS

Excel & Access

– Locations based on

– Final Equipment Layout

– Final Cabinet & Bin

Shelving Profiles &

Quantities

Aisle: AA

Section: 11

Elevation: C

Opening: 21

Location: AA11C21

25

Parts Prelocation List (PPL)

– Tool to Assist Dealer in

Relocation of Parts

– Re-concepting inventory

in existing equipment

– Moving PNs from existing

to New Storage

Equipment

– Requires updated Dealer

AA Parts Inv Data Set

– Takes into account Branch

Annual ‘Calls’ and

‘Demand’ to locate PNs

– Generated via PC-SAS

program

26

In Review….

– Bin Sizing Analysis / Parts Inventory Concepting

– Warehouse Improvement Opportunities

– Process Steps

– Data Inputs

– Data Analysis Steps

– Outputs / Recommended Equipment List (REL)

– Common Dealer WH Parts Storage Equipment Types

– Warehouse Equipment Layout Planning Scenario

– Location Addresses

– Master Location / Parts Prelocation Lists

27

RIGHT PART, RIGHT PLACE, RIGHT TIME

Partnering to Achieve Success

Thank You for the Opportunity

and your Time

Mike P. McCarthyDealer Parts Operations

Caterpillar Parts Distribution

Customer Services Support Division, Morton, IL.

[email protected]

(309) 494-1243

Documents

Dealer WH Planning Support MCCARTHY (9 Sept 15)