How to save money with material handling

ATERIAL handling in a retail lumber operation affects the cost, distribution and selling of every product. Materials received and stored create a definite cost every time they are moved.

Developing a yard layout and storage pattern that accomplishes needed movement with minimum time and labor can save money, advises Norville Spearman, a material handling specialist. Use company records, a worksheet of yard facilities and a layout of yard storage areas and facilities and warehouse buildings to pinpoint areas that need attention. Consult key yard people for their ideas on unloading, storage and movement of materials and review handling costs as well as equipment operation and maintenance expense.

A proper yard layout is the only way to guarantee the area will serve its many pulposes efficiently, Spearman maintains. He emphasizes that a good plan will minimize travel distances. reduce order picking time, eliminate duplicate handling operations, cut loading and unloading time, permit maximum storage in available space and provide for safety and security.

In planning a yard layout, a dealer should consider the nature of the market served, types and numbers of customers, types and volumes of materials stocked, rate of inventory tumover and likely storage needs. With these inventory and storage considerations in mind, the plan should aim for direct and unimpeded movement, mechanicalhandling rather than manual movement and full and effective use of all available space.

Spearman points out the concept of flow or unimpeded movement in the yard is all important. Distance means time and time means money. Even time as short as that spent in unnecessary maneuvering of trucks or lifts can result in many dollars on an annual basis when multiplied by thc cost of drivers and equipmcnt.

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With efficient movement of materials measured by the number of tons, board feet or square feet of material moved per man hour, there is little comparison between the efficiency of mechanical material handling devices and time consuming manual methods, Spearman says.

Every square foot of the dealer's property has a definite dollars and cents value, he stresses. Any space not used constructively is an unused asset. It is important not to ignore the potential contribution each specific area can make to the business if fully utilized.

A smooth, well paved surface is a definite asset to a dealer. By promoting faster movement, it encourages better service at a lower cost, Spearman tells those attending his Lee Resources material handling seminars. Damage to tires and equipment is held to a minimum and good housekeeping is made easier.

Weather resistant materials should be stored in the yard to conserve high value warehouse space for items that need protection from the elements or theft. By planning the location of stock according to use, both time and money can be saved, he emphasizes.

In laying out a yard, a scale drawing should be used to determine proper aisle widths including turning radius for equipment. The drawing can be used to determine the best use of available space with location of products identified. After aisle measurements and product storage areas are recorded on it, copies ofthe scale plan can be posted in the yard and warehouse forreference and also used for inventory control.

High activity items should be stored near the staging area for that product to make it easier to fill orders with trucks and materials moving a shorter distance. Low activity items can be stored in less accessible areas. This type of arrangement facilitates picking and allows planning for storage of other materials around slow moving items. Dealers with d-i-y, small contractor and remodeler customers who pick up purchases with their own trucks should consider locating products relating to those customers in a separate storage area near the front of the yard or the retail area.

Whenever possible, related items should be stored as close together as possible with easy accessibility. Aisles must not be blocked by uneven stacking of lumber or other materials. Machines must be able to maneuver, unload or stack similar items and move easily within the yard. Arranging materials on a first-in, first-out basis keeps freshmerchandise moving into the picking area, providing automatic rotation of stock.

Story at a Glance

Waysayard plan and storage pattern can cutlaborand handling costs. procedurefor developing betterfl ow. ways to utilize every inch of a yard.

Storing lumber parallel to the aisles makes it easy to select and lift large loads by machine. If stored at right angles to the aisles, lumber must be removed manually to load the carier or an end loader must be used. All materi- als should be stacked as high as possible to conserye valuable yard space. Height of stacks is determined by design and capacity to lift equipment and the stability of the material to be stacked. Lifting equipment currently available makes stacking to heights of 20 feet or more feasible, taking advantage ofboth surface footage and cubic space above. Organization can save time in picking and loading. On large orders, material can be assembled on a lift truck, banded and stored in an assigned stag- ing area for transfer to the delivery truck. The overall effect of a well planned, efficient yard layout becomes apparent almost immediately, Spearman notes. Material handling operations and safety will be improved. Both d-i-y and builder customer buying will be encouraged by a neat, well arranged yard with better service and display of products. Everyone concerned with operations will respond with improved output and generally increased interest in the operation of the business.