EFFICIENT UNIT LOADS - ECR Community

10.3. Modular Space Utilisation Analysis
Description of the analysis
Modular space utilisation is an important effectiveness
and efficiency driver throughout supply chains. The
most critical activity with respect to modular secondary
space utilisation is assortment creation. The supply
chain point where this activity usually takes place is the
RDC, since on average in Europe more than 80 percent
of the total product volume is delivered via this point.
The study therefore focused on unit loads passing
through RDCs, assessing the average space utilisation
by modular class. “Space” for this analysis refers to the
plan dimension (length x width) of a unit load and not
to the volume. Two ways of deriving modular classes
were used in this analysis:
• A strict way of deriving, in modular form,
multiples and sub-modules of the 600x400
master module. Multiples are obtained by
doubling the shorter edge whereas submodules
are derived by cutting the longer
edge in half. The resulting nine modular
classes are shown in the first column of Figure
46
• Applying the plan dimensions recommended in
the ISO standard 3394. All 25 modular classes
are shown in the first column of Figure 47.
Figure 45: Accommodation in modular spaces
72
The two plan
dimensions
The study covered four major retailers (retailers A, C, D
and F in Figure 41) in four different European
countries, most categories and all unit loads passing
through the respective RDC. Since the throughput
volume of unit loads larger than 1200x1000 mm did
not exceed one percent of the total, those unit loads
were excluded from the study. Most unit loads in the
modular classes 1200x1000, 1200x800 and 800x600
mm used pallets, only few unit loads in 600x400 mm
used Quarter Euro pallets. Secondary unit loads are
therefore comprised of smaller modular classes
600x400 mm. To compensate for seasonal variations,
the observation time was set to twelve months. All
active SKUs were sorted into modular classes
assuming:
• The modular classes represent spaces available
in the supply chain
• Each modular space has to accommodate one
unit load and any extra space needed for
bulging, reaching and gripping
• Length and width are maximum dimensions,
no plus tolerance is allowed
• The minus tolerance is given by the next
smaller module
• Only one unit load can be accommodated in
each modular space. This assumes the worst
case scenario (see Figure 45).
400 400 400 400
400
420
150
Source: A.T. Kearney Survey, Efficient Unit Loads project
General practice
Capacity needed:
600 x 400
Space utilisation:
95%
ISO 3394
600 600 600
400 400
Capacity needed:
600 x 400 and 400 x 150
Space utilisation:
76%
150
Strict application
Capacity needed:
600 x 400 and 400 x 300
Space utilisation:
63%
300
The Efficient Unit Loads Report