1.1 Methodology

Part of the ILS process offered would be the detailed analysis of the current volumes and process of your company’s supply chain and then model the future projections and business strategy. Once a detailed model of the business process currently and in the future is accepted, ILS will then verify the groups supply chain and logistic strategies. Once a strategic direction is confirmed, ILS will then develop conceptual designs to provide an operational solution to the projected throughputs and logistics and supply chain strategy.

The designs ILS would generate would aim to meet the objectives developed in collaboration with your company, as well as accommodate the functional throughputs and volumes developed by the modelling process above. There are many ways to undertake the same process from a manual through to an automated solution. The best fit solution for your company will be chosen depending on the particular circumstances with regard to your business requirements and objectives. Typical criteria that will be evaluated for multiple designs, developed in conjunction with your company are:
• Cost
• Flexibility
• Systems capability and complexity
• Local supply/support
• Life cycle cost
• Ability to be maintained
• Integration with warehouse management system (WMS) and business systems
• Compatibility with existing infrastructure and simplicity of adaptation to new layout
• Capability to change while keeping operations running

Once the design solution is chosen in principle, ILS will then detail this along with the operational and functional specifications. This would be used to set out tenders, RFP (Request For Pricing) or other enquiry mechanisms to be sent to suitable suppliers. The negotiations and appointment of suppliers will be done with your company and would set out to meet the requirements above.

ILS will also design the envelope of the buildings as well as the infrastructure needed to operate the facility, along with the functional requirement and design parameters the constructions team must achieve. This will include a basis for design from which the building design can be detialed. The bases for design will include floor requirements and specification, lighting levels, environment, door and access requirements, heights, column centres, site layout, yard and support facilities (fire, power and services) to name a few. ILS also takes the role of technical interface to the professional team on behalf of your company to ensure the design and construction is according to the original requirements.

Once the construction phase has started on the facility, ILS will interface continually with the professional construction team to ensure full coordination with the materials handling installation. The next phase is project management of the installation of materials handling solutions provided by the suppliers appointed above. ILS takes the role of project manager and coordinates all suppliers with the building interface and integration between suppliers, right up to commissioning.

ILS would also help your company select and interface their computer systems required to run the facility and to meet the operational requirements. Here ILS would develop a full functional specification together with the operational team and issue this to the marketplace as an RFP in order to select a suitable vendor. ILS would assist in the go live preparation in undertaking the facilities set-up physically and on the system, including labelling of racking, database of locations, XYZ coordinates and ensuring the operational algorithms and system configuration meets the functional specification.

In order to meet our objectives of a best practice operation and a functional operation to the original designed strategy and concepts, ILS needs to be involved in the operational go live. Here ILS would assist your company in developing the operations procedure manuals that encompass the selected systems functionality as well as the physical operations requirements. ILS would assist in training and supervision of the go live process.

Post go live ILS would undertake audits to ensure that the desired design functionality and throughputs are being achieved and identify any areas for change or improvements.

The above methodology covers the total approach ILS would have in addressing a project of this nature. The methodology has been developed and proven over 20 years of experience with similar projects, and will give your company the confidence and guarantees of a successful result with a supply chain support infrastructure that meets its business needs and growth.

1.2 Consulting phases

ILS employs an internationally recognised standard approach to consulting. This is as follows:

Here ILS will get familiar with the business needs for the facility. This will include:
• Review of all data relating to product mix and volumes
• Review of all projections
• Visit to operations to review existing infrastructures and methods

Once ILS has a database of the planned facility, this will be reviewed by your company and confirmed as a fair representation of the future expectations. This data will be the foundation of all work going forward. Should data not be available for all aspects, ILS together with your company will build up some assumptions using our best industry knowledge and together confirm that this is the best representation of the future.

ILS will model the flow and then develop conceptual optimised designs of best practice processes for all warehousing operations. Thereafter ILS will then optimise the logistic requirements and integrate this with the physical and site layouts – including:
(a) Receiving operations
(b) Cross dock & line pick operations
(c) Storage systems
(d) Picking systems
(e) Dispatch systems
(f) Transport interfaces & truck loading / unloading
(g) Service infrastructures (e.g.: power, water, sewerage, air conditioning, charging, fire)

ILS will then present conceptual designs of the developments (with budgets) to management.

All recommendations will be broken up into short, medium and long term.

Here the team will:
(a) Establish base needs for the new facility.
(b) Add future growth in volumes, stock keeping units, ranges, customers, etc.
(c) Develop final design criteria for the medium & long term (5 to 15 years).

Here ILS will:

• Review the strategy design
• Comment on the strengths & weaknesses of your company’s strategy.
• Finalise and document the final direction

Once the design of the warehousing & associated infrastructures has been optimised & accepted by all parties, ILS will then set up an optimum site development plan for your distribution centre(s).

This includes:
• Optimising site utilisation.
• Optimise flow.
• Maximising potential for growth.
• Ensuring logical interaction between areas.
• Optimising site flow, truck turning circles and vehicle access.
• Maximising site security and control.
• Maximising site vehicle capacity.
• Positioning and capacities of all support infrastructures.
• Allowing maximum flexibility for change.
• Minimising earthwork costs.

Using the criteria above, ILS will develop various design layouts of the overall site. Layouts will also illustrate the paving and roadways around the site, which will show the interface between facilities and the overall site flow.

Effectively this completes the planning phases and the next phases relate to detailing the design for implementation.

The output from this planning stage will include:
• Drawings and layout plans.
• Justification and operational data.
• Budgets.
• Programs and methods of implementation.
• Recommended operational procedures.
• Assistance in preparation for financial justification.

This phase includes the documentation of the building requirements – ready for issue to professional team (engineers and architects) or developers for construction. This includes building documentation of the functional needs of the building in terms of:
• Earthworks, storm water and drainage.
• Foundations.
• Warehouse buildings.
• Ventilation & air conditioning
• Support buildings.
• Mechanical infrastructures.
• Electrical infrastructures.
• Air-conditioning and refrigeration.
• Roads.
• Support services.
• Security systems.
• Fire protection systems.

Output from this phase includes final building users and functional requirements documentation. This documentation will be used as the basis of design by the professional team or the developers.

Having completed the planning and concept developments, this phase includes detailing and tying together all accepted concepts and operational flows. Therefore all budgets will be refined, description of operations finalised and layouts finalised, both internally and externally. This prepares the design for the development of the specifications.

This phase includes the specification of all materials handling infrastructures and includes:
• Racking and in rack sprinklers.
• Lift trucks and industrial equipment.
• Protection equipment.
• Charging.
• Signage.
• Docks and doors.
• Support infrastructures.
• Security systems.

Output from this phase includes documents for all materials handling infrastructures. The specifications for materials handling will not include detailed design of any equipment but detailed specifications to be used in the procurement process.

It is envisaged that materials handling infrastructures will be tendered in an international market & the specifications used accordingly.

1.1.4 Operational setup

Once a conceptual process has been developed ILS can document the DILO (day in the life) of the facility which will include all the operational processes for each area. The expected productivity and staff levels will also be developed as well as any broad based systems requirements for product tracking and movement control. In addition to the above, ILS will also propose ideal manning levels (based on comparative benchmarks from similar operations). Typical staff organisational structures will also be recommended. This will be in keeping with the proposed methodology for running the distribution operations.

Note: This process allows your company to:
• Find the best solution – using the best technology
• Reduce costs – by creating a competitive tender environment

In our experience it is vital all suppliers of equipment or solutions quote on a defined world class system – where clearly measurable performance standards are laid out. Typically a competitive tender environment – sourced from an international environment can reduce costs by as much as 30% to 50% and substantially increase the quality of the solution offered.

• Details of some of the ILS processes