Reader Question

My coworkers and I were discussing Material Handling and Material Flow. In counting the number of times material handling touches a part, I have always counted receiving as one of those touches even though receiving is not technically moving material from one point to another. Is this correct or does receiving fall under a different umbrella? If it is not correct, then why?

Logistics Planner
G & D Integrated

Category: Material Handling

 
 
Expert Panelist Response: From Jim Tompkins, President, Tompkins Associates


In measuring the number of product touches, receiving must be counted.  How fast and efficiently product is received, quality checked, broken down, and/or labeled prior to put away impact not only order fill rates, order cycle times, and inventory allocations, but also the total distribution labor cost.  Receiving does move product in two ways: first it brings product into the facility to a “hold” staging area, second it moves product from the “hold” status into released product, whether this be a physical move or a system move.  Both affect material flow, staging space and timing.

The only exception to this rule would be if the metric being tracked for material handling is only for physical movements by industrial truck or conveyor.  However, that ignores material flow as a whole.

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Other Responses

I agree with the response stated above. To me, anytime labor is required to move product from one place to another, i.e., truck to dock, truck to storage, etc., - it should be counted as a touch and the activity should be measured.

Mike Nardella
VP, Distribution
Pinnacle Foods Group LLC

I would agree with Jim Tompkins wholeheartedly...my experience is that most receiving processes involve multiple touches as Jim has outlined. In fact, at the CSCMP conference this week, the presentation from Carl Zeiss' Lean project team outlined some key metrics in terms of 'average days' to receive certain products due to inbound inspection and repackaging - all very important, but expensive touches. Inbound VAS is critical to many operations and must be counted, measured and costed-out in terms of total warehouse operations.

Steve Simmerman
Partner, Next View Software, Inc.


The real question is how many times do you touch the product in the receiving process, not that receiving is a touch. Do you have to sort and segretate the material? That is a touch. "Oh no, the delivery driver has to do that." Sorry, that is still a touch, and you sill pay for it in the freight charges. Do you have to open a box and scan the UPC to make sure it is in your system? There is another touch. Jim, Mike and Steve are all right, there are many touches in the receiving process. The question becomes, really how much value does any of those touches add to the goods? Answer - No Value.

David Schneider
President
David K Schneider & Company