Optimizing Warehouse Operations: The 'B&H' Approach

Published: Wednesday, September 18, 2024

Since B&H Worldwide is exclusively focused on the aviation industry, the team understands the critical nature of grounded aircraft and tight maintenance schedules.

Running a warehouse is a complex task that requires efficiency, smart technologies, highly skilled people, clean storage space, safety measures, precision and a lot of planning to run it smoothly and stay ahead of the game in this digital age where shipments and storage are crucial in global trade.
Imagine a warehouse where every task—from receiving stock to shipping orders—flows seamlessly.
This is the ultimate goal, and optimizing operations is key to achieving it. Mark McKenna, Regional Director (West) at B&H Worldwide, emphasizes the importance of a proactive approach to warehouse optimization.
In this article, McKenna shares insights with Air Cargo Update into B&H’s FirstTRAC technology and how it empowers aviation customers with total control and visibility over their warehouse inventory.

Systematic Approach
Effective inventory management requires a systematic approach to overseeing and controlling the order, storage, and utilization of components essential for producing goods and services.
The aim is to maintain optimal inventory levels—avoiding excess stock while preventing stockouts.
Inventory management has evolved significantly over time. In ancient times, merchants relied on basic methods to track their goods.
As industries grew, so did the systems, progressing from manual counts to computerized solutions.
The 20th century saw major advancements with concepts like Just-In-Time (JIT) and automated inventory systems, laying the foundation for today’s sophisticated platforms.
Modern systems like B&H’s FirstTRAC offer real-time visibility and seamless integration with various processes, making inventory management in the aerospace sector more accurate and efficient than ever.
This evolution underscores the importance of technology in contemporary inventory management.
Reduced Shipping Times with FSLs
Customer expectations are changing rapidly, driven by the rise of e-commerce, where fast and reliable shipping is now the norm.
To reduce shipping times and enhance warehouse efficiency, forward stocking locations (FSLs) can be a game-changer.
“All of B&H’s forward stocking locations (FSLs) operate around the clock, 24/7/365 and are strategically located in key aerospace hubs worldwide. Our cutting-edge inventory management platform, FirstTRAC, supports this continuous operation, helping us meet tight delivery deadlines,” says McKenna.
Since B&H Worldwide is exclusively focused on the aviation industry, the team understands the critical nature of grounded aircraft and tight maintenance schedules.
“Our Aircraft on Ground (AOG) shipping operations are managed directly at each FSL, ensuring there’s no delay from order placement to dispatch and shipping. Everything is handled efficiently on-site, thanks to our dedicated shipping teams,” McKenna adds.

Enhanced Efficiency with FirstTRAC
With FirstTRAC, inventory levels, shipments, and orders can be tracked in real-time, enabling swift responses to changes and disruptions.
FirstTRAC’s cloud-based nature ensures that critical information is accessible from anywhere, at any time, allowing for data-driven decisions, reduced errors, and improved overall efficiency.
“FirstTRAC is our proprietary inventory management platform designed to give customers complete control and visibility over their stock. This cloud-based global system manages logistics from start to finish, linking B&H Worldwide’s operations teams with customers through near real-time data sharing,” explains McKenna. From order placement to post-shipment reporting and analysis, FirstTRAC keeps everything streamlined.
“When items arrive at our FSLs, all relevant details are electronically recorded in FirstTRAC, including verification checks, condition assessments, trace documentation, and serviceable/unserviceable tags, along with photos of packaging and items from various angles. As items are dispatched, wall-mounted monitors display FirstTRAC’s dashboard to help operators prioritise and meet individual customer requests and KPIs. Once orders are prepared, FirstTRAC integrates seamlessly with other logistics systems to manage shipping and provides detailed information on stock levels, shipping data, and KPI management,” McKenna continues.

Electronic Recording, Verification and Condition Checks
Condition checks are critical for ensuring the quality and integrity of inventory.
FirstTRAC allows for electronic recording, verification, and condition checks, which reduce errors and improve overall efficiency.
McKenna notes that all premium products are accompanied by electronic check sheets confirming details such as piece count, trace documentation, and order and serial numbers of the received items. “These check sheets, along with all shipment paperwork and photos, are uploaded into FirstTRAC, enabling our customers to verify accuracy and inspect the condition of their items,” he says.
Instead of cycle counting, B&H conducts thorough monthly stock checks, electronically scanning all inventory items. “FirstTRAC ensures no manual inputs are allowed during these checks, so discrepancies are quickly identified and corrected according to our standard procedures,” he adds.
“At B&H Worldwide, we offer a full range of inventory management services, including receipting, shelving, storage, order picking, dispatching, and complete stocktaking. We also handle electrostatic discharge (ESD), hazardous goods packing, customer audits, and industry-specific audits such as ASA100 and AS9120b. Our services extend to aircraft engine transportation and storage, consulting, purchase order (PO) management, return order (RO) management, quarantine management, Vendor Managed Inventory (VMI) programs, kitting services, and airside deliveries,” he noted.

Customized Services and Specialized Handling
B&H Worldwide has customized its services to meet the specific requirements of its customers. Examples include condition checks on outer and inner packaging, Foreign Object Debris (FOD) checks during receipt and dispatch processes and uploading photos and documentation into FirstTRAC to ensure full visibility and accountability.

“Hazardous areas in all our FSLs globally are properly defined and segregated, and dangerous goods (DG) packing services are provided at all our sites,” explains McKenna. “Aircraft engine storage and handling is one of our specialties. We have the capability for long-term storage of aircraft engines as well as providing aircraft engine preservation services. For example, in humid environments or where climate control is unavailable, we offer a specialized solution in which engines are placed inside individual enclosures where humidity is tightly controlled and monitored, keeping the engines in excellent condition.”

B&H also operates FSLs dedicated to aircraft tire storage, managing the distribution of new tires and the return of cores for retreading.

Ensuring Security and Integrity of Stored Inventory
Stored inventory is only as secure as the measures in place to protect it. Implementing robust security measures, such as 24/7 CCTV monitoring, secure access controls, and regular security audits, ensures the integrity of inventory.
“One of the most critical aspects of warehouse security is ensuring that personnel are trained to handle sensitive aviation inventory,” says McKenna. “All of our locations are staffed by operators who are Aviation Security trained, as required by CAA, TSA, and other regulatory bodies. Our sites have secure controlled access, utilize CCTV and alarm systems, and are temperature and humidity controlled to aviation standards where required. These conditions are recorded and managed in compliance with AS9120b requirements.”
B&H handles static-sensitive items using ESD equipment to ensure that assets are not compromised. “We use ‘neat stacking’ principles for items stored in racks and bulk areas, ensuring that all storage areas are clean, tidy, and aligned with no overhangs. We have tool control in place and apply FOD controls in all inventory areas. Any items that do not comply with our storage processes are placed into quarantine areas within the FSL, from which release can only be authorized by the customer,” McKenna explains.

Adapting to Evolving Demands and Regulations
B&H Worldwide prioritizes compliance and regulations.
The company’s Group Head of Trade Compliance and QHSE ensures that the company remains up to date with regional regulations and holds weekly meetings with the Executive Team to review and update compliance matters.
B&H uses Denied Party Screening (DPS) software to protect both the company and its customers and performs Know Your Customer (KYC) checks on all new clients before initiating any business relationships.
To adapt to evolving demands, B&H Worldwide has a nimble management team capable of quickly developing business cases and making decisions. For instance, during the COVID-19 pandemic, B&H set up two large warehouse operations in the USA within just 90 days—one to support an aerospace manufacturing production line and the other dedicated to repairs and line maintenance at a major airport. This quick turnaround demonstrates their ability to respond effectively to urgent needs.

“B&H has its own software engineering team, so we are not reliant on third parties to update and enhance our software. Because of this in-house capability, I am pleased to share two examples of how we provide solutions and cost savings within the aerospace supply chain. B&H Worldwide has developed a Vendor Managed Inventory (VMI) Program with one of our strategic OEM customers to simplify their supply chain, save costs, and ensure an uninterrupted supply for production. Over 30 suppliers are linked through FirstTRAC, with parts required for production stored in a central FSL to be called off at required production intervals, rather than coordinating individual shipments from multiple suppliers worldwide,” says McKenna.

While FirstTRAC is B&H’s proprietary warehouse management system (WMS) used by most customers, the company understands that some clients prefer their own standalone systems. FirstTRAC integrates with a variety of inventory systems, allowing data to flow seamlessly in both directions. This enables customers to continue using their in-house systems while benefiting from FirstTRAC’s capabilities.
B&H Worldwide is committed to continuous improvement, a core aspect of their AS9120b certification.
The company undergoes regular external audits by LRQA, a leading ISO certification body, and maintains rigorous internal audits and risk assessments through its Quality Management System (QMS).
The Continuous Improvement Manager at B&H oversees both internal projects and external consultancy for clients, demonstrating the company’s dedication to evolving practices.
“Recently, we’ve enhanced our warehouse operations by re-evaluating our use of IT equipment, time spent on shelving and retrieving inventory, and management of slow- and fast-moving items. We also considered operator ergonomics and better integration of automated systems. As a result, we redesigned our warehouse layout, invested in automated equipment, and enhanced our FirstTRAC platform. These changes led to a 20% reduction in warehousing space, faster travel times, more efficient processes, and a decrease in health and safety risks by eliminating redundant manual tasks,” McKenna explains.
Employee training and development are also pivotal at B&H. The company provides extensive training on systems and AS9120b QMS procedures. This year, they are rolling out an ‘Advanced Technical Training Program,’ designed by B&H’s Technical Training Manager, who has over 35 years of experience in aviation. The program includes FAA-certified courses on topics such as airworthiness, Part 145 legislation, and safety in operations. This initiative aims to deepen staff expertise and solidify B&H’s position as ‘Best in Class’ in their field.