H&D Distributors, Inc.. How We Manage Our Massive Seal Inventory

by Derek Fay

As a distributor of small parts, being able to manage our seal inventory efficiently so that we can find the right product quickly is critical.

Our in-house seal inventory includes over 30,000 different SKUs, so having a simple and effective organizational method is critical to our success.

For decades, the traditional way to store small parts has been in cardboard bins or boxes. However, as the industry continues to evolve, more warehouses have moved to a paperless system where technology is leveraged to ensure seal inventory accuracy and operational efficiency when finding a specific part. Since implementing this type of system at H&D, our efficiency has increased by 15% — that is 15% more productivity at almost no additional cost.

Here are a few of the things we learned when implementing our updated seal inventory system.

Don’t Emphasize Speed; Focus on Effectiveness

“Smart location names” are often used when developing a modern warehouse. For example, a smart location might be A01-02-03-04:

A is the warehouse zone
01 is the aisle in the warehouse zone
02 is the shelving unit number
03 is the row
04 is the position from the left on that shelf

After studying statistics on productivity, we found that our most productive employees were not the fastest movers through the warehouse. Instead, they were the employees that already knew which location they needed to go to (as opposed to arriving at the zone or aisle and then having to search for the exact location). What enhanced the performance of these employees was being able to look for a color rather than navigating several numbers.

Color Coding Is More Cost Effective than Light Bars

In many modern warehouses, the standard way to assist employees in quickly finding seal inventory they are looking for is to use light bars. However, light bars are expensive to deploy. Color coding offers the same benefit, but at a fraction of the cost.

Using the smart location example given above, simply change one of the numbers to a color. For example, instead of A01-02-03-04, the code might become A01-02-RD-04 where “RD” stands for “red.” When starting a search for the correct product, you would immediately know that when you get to the correct area of the warehouse, you will be looking for the fourth bin in the red row. Since the human brain can see colors faster than it can count numbers, time spent will be reduced by deploying this methodology.

Consistency Is Critical for Seal Inventory Management

As with any organizational method, enforcing consistency with how you label your seal inventory is the only way to ensure success.

In addition to being able to see colors more quickly than numbers, people are also creatures of habit. Over time, we begin to develop muscle memory — a form of memory that involves recalling a specific motor task through repetition. This is why the color sequence throughout the warehouse remains consistent. If the color sequence is red, blue, green, and purple in Zone A, it should maintain the same order in Zone B.

Finally, choosing your color abbreviations wisely is also recommended. If using the abbreviation GR for green, be sure that there is no overlap with another color, such as gray. Reducing the possibilities for potential confusion will make the color coding system much easier to implement, allowing you to increase your efficiency more quickly.

We hope this article has given you some insight into how H&D Distributors delivers on its promise to help our customers find the right seal, the first time. To get the sealing solution you need as quickly as you need them, shop our online store or contact one of our sealing experts today.

About H&D Distributors

For over 40 years, H&D Distributors has provided expert sealing solutions for OEM and MRO customers in various industries where productivity is key, including hydraulics, oil and gas, and semiconductor. Leveraging in-house engineering and testing expertise, exceptional customer service, and a global network of top sealing manufacturers, H&D's goal is to deliver solutions for its customers’ pressing sealing challenges expertly, accurately, and on time.

About Derek Fay

As President of H&D Distributors, Derek Fay leads a team of sealing experts with a passion for problem solving, expedited delivery, and a proven go-the-extra-mile attitude toward customer service. H&D thrives on providing unique solutions, the right products, and speedy service to industries where productivity is key.