21 November 2021 Imagine what a city would be like without the nomenclature of neighborhoods and streets and the numbering of houses. Practically impossible to think about, right? Now reflect on how much GPS has brought more agility to our movements. Technology has been a crucial factor for us to move within a city, quickly identifying our destinations and with the security of not making mistakes. These situations can be associated with a distribution center, composed of multiple aisles, enormous shelves, and a wide range of products. Employees responsible for stock replenishment, order preparation, or inventories need an addressing system to quickly locate storage areas and goods. And with the support of technology, localization becomes even more agile and precise. Having an addressing system is essential not only for easy localization but also for the best use of storage space, for conducting inventories efficiently, and for quick and precise picking. Understand better in the following topics. What is logistical addressing? Logistical addressing consists of a localization system that indicates every position in the warehouse. For it to be truly effective, it must be implemented with a simple methodology and easy logic, so that it is understood by both permanent employees of the distribution center and temporary ones, usually hired during peak periods. How does it work? Just like the identification of houses in a city, logistical addressing consists of streets, buildings, floors, and apartments. The streets are the aisles; the buildings are the columns of the shelves (modules); the floors are shelf levels; and the apartments correspond to each compartment where the products are stored. See the diagram below: Logistical Address In the addressing system, each of these elements (street, building, floor, and apartment) is identified with an important warning: the use of letters should be avoided, as they are limited and can confuse professionals. For a better example, imagine a picker located on 10th Street and needing to move to 18th Street; in practice, they will know they must cross 8 aisles to reach the position. If it were a move from J Street to S Street, they would have to calculate how many aisles they need to cross. Therefore, the use of numbers is the most recommended. It’s worth noting that using numbers in addressing greatly facilitates barcode identification, which is widely used by collectors and the WMS system. Good practice recommends that: ▪ Streets (aisles) should not be identified by repeated numbers; ▪ An aisle usually has odd columns on one side and even ones on the other, to favor zigzag separation; ▪ Ideally, start numbering the buildings always from the position of the docks; ▪ The numbering of building floors (levels) should start from the lowest to the highest, in ascending order. Therefore, a product address would be identified as follows: This code (12-04-03-01) will be used for various purposes, making stock control, material handling, and personnel much simpler. What types of logistical addressing? The definition of the addressing system can follow different criteria, the main ones are: Fixed addressing system (or fixed position): each product has a fixed position, determined according to a pre-established standard. This system has the advantage of facilitating a visual evaluation of the company’s portfolio turnover rate and the disadvantage of requiring a larger storage area and necessitating a redistribution of positions in case of demand variation. Rotating addressing system (or chaotic/random position): in this system, the goods do not have a fixed position, meaning all addresses are available at any time. It is important to emphasize that this model works well only when the warehouse follows predefined rules, such as ABC Classification or ABC Curve. When a product arrives at the warehouse, it is checked if there are more items stored in it and if there is more space for storage in the box where they are located. If so, this product goes to the position where the others are. Otherwise, it is taken to another free position, following all conservation criteria. The rotating system has the great advantage of allowing better use of storage space, reaching up to 92% of its physical capacity. But be careful: since there is a high turnover of products, which often change position, it is essential to have software like WMS, which manages addressing and automatically suggests positions, as well as balancing lines and defragmenting stock when necessary. By using the WMS system, your company gains significantly in both the use of every m² of your warehouse and in process efficiency. There are also companies that use the mixed model, mixing the two types of location. In these cases, it is important to consider the characteristics of each product and its turnover, in addition to being very precise in handling it and constantly updating it. What are the advantages of logistical addressing? We started this text by addressing one of the main advantages of addressing: organization and ease of product localization. But the benefits go beyond. With an efficient addressing system, your operation: ☑ Has more agility in processes, especially in picking; ☑ Makes better use of all resources (people, equipment, and area); ☑ Reduces costs; ☑ Allows for more efficient and accurate stock control; ☑ Facilitates the implementation of systems that benefit management and increase productivity, such as WMS and RF collectors. Block System Addressing in the block system, where simple stacking of pallets occurs without the use of storage structures, only requires indicating the area, street, and pallet position number. It is not necessary to indicate the level or gap. Signage It is very important to invest in signage throughout the warehouse, making it easier for employees to identify addresses. Labels must follow a pattern, be visible to everyone. Remember: a storage position without labels or with a label difficult to see or read is misleading and can lead to space misuse, resulting in losses for the company. It is also important to use road signs to mark each aisle, in an easy-to-read format, even from a distance. A recommended size is 300×400 mm. These signs should be affixed at the beginning, middle, and end of each aisle. Another important sign is traffic, which prevents accidents and makes the flow of people and machines more organized. It is normal for there to be narrow aisles, and in this case, it is advisable to signal the direction of each street. It is also recommended to signal intersections and tunnels, using signage painted on the floor. In addition to these signs, it is crucial to delimit the block areas and the alignment of pallets on the lower floor of a structure. The pedestrian crossing is another extremely important signage, which facilitates the transit of employees and visitors and prevents accidents. Barcode The use of barcodes to address shelves greatly helps maintain organization and quickly locate products. With the use of software like WMS and RF collectors, you will have greater control of your stock, bringing greater precision in storage, separation, and movement tracking. Some tips for using barcodes: Use only numbers, avoiding letters and symbols like “-” and “/” Prioritize the use of digit pairs. E.g.: 03 05 11 24 Prefer the use of wider bars, facilitating reading from a distance Use the fewest possible characters in the code so that it fits within the label space If you need to optimize addressing in your warehouse, start now! With the right system, your company gains in management efficiency, organization, and greater inventory control, increased productivity, and cost reduction. Logistical Addressing: The Foundation for Operational Efficiency Deagor WMS per ecommerce può aiutarti!