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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.
(309) 494-1243
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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
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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!
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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
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Bin Sizing Analysis / Parts Inventory Concepting Steps
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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
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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
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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)
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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)
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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
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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)
*Based on 32 Dealer Projects since Jan 2014.
Common Dealer WH Storage Equipment Concept Types
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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
*Based on 32 Dealer Projects since Jan 2014.
Common Dealer WH Storage Equipment Concept Types
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Bin Sizing Analysis / Parts Inventory Concepting Steps
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)
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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
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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”
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– 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
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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
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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 (+)
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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 (+)
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Bin Sizing Analysis / Parts Inventory Concepting Steps
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Location Address – Cabinets & Shelving
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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
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Bin Location Assignments
Aisle: BA
Section: 31
Elevation: F
Opening: 03
Location: BA31F03
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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
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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
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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
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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.
(309) 494-1243