With the emphasis on supply chain thinking these days, the end-to-end view seems to be the rage. But determining end-to-end costs and end-to-end savings can be tricky.

It's easy to sketch the hypothetical build-up of costs over time and distance as we move products from our suppliers to our customer's customer. But somehow, as the physical form changes from component to product to order, the task of filling in the numbers becomes extremely challenging. Nevertheless, it's critical that we not be stymied and find a way to get started.

Undeniably, we reach different conclusions about designing processes when our thinking gets outside the four walls of a facility or even outside a single process within the facility.

For example, in distribution centers, we have traditionally placed such great emphasis on picking costs and productivity that:

1) We have fewer and fewer people doing that task, and

2) Other activities have been short-changed in improvement efforts.

To compensate, I now use a measure that compares orderpicking labor with the support it receives from storage and replenishment. I was surprised to find that this ratio is often as high as 1:1. End-to-end analysis surely needs to begin by examining opportunities in this support function.

As a start, determine how many of the products might move directly from receiving to the pick face. Of course, this won't be possible for all products. But, for some it may require only a small adjustment in the size of the picking location. Or, thinking of it in another way, we might be able to match our purchasing increments to the space available in the pick face at the time of re-order.

Sometimes, adding a step to the process can actually reduce end-to-end costs. Limiting the number of trips through the pick face by using some form of batch picking has always been recognized as a way to achieve higher pick rates and reduce congestion in the picking aisles. Usually, this approach is associated with high-speed, automated unit sortation.

In a smaller operation, the benefits can also be achieved manually with a scanning station that directs the operator who is separating the batch picked products into several orders.

This process is inexpensive, scalable for volume fluctuations, and adds very little labor to each item picked. It has the additional advantage of providing a 100% scanning check of the order, ensuring high quality.

In looking end-to-end, we should not ignore the costs incurred after the orders leave our facility. Did we pack to minimize the number of shipping cartons? Are we leaving a lot of empty cube in the trailer/truck? These will become increasingly important questions as fuel-related transportation costs are rising faster than others. And that will create pressure to take this into account.

Once the order reaches the customer, how much time does it take to process what we sent? Did we provide advanced shipping notice? Did we provide contents broken down by shipping carton? Does the packing slip match the products sent? Are the products grouped so that they can be put away quickly?

Complete end-to-end analysis may be difficult. But, it is not too hard to find significant opportunities if we just take time to look over the wall. And when we do, people will be surprised at what they've been overlooking.

Author Information Jim Apple can be contacted at japple@theprogressgroup.com Category expertise: Manufacturing & Distribution Facility Design Integrated Operations Design Material Handling Systems Design Click here for more information about Jim Apple