Organisations utilise barcoding, radio frequency identification (RFID) controls, and inventory tracking systems to streamline critical processes. However, these standardised approaches are limited to data reading and recording. The physical handling of materials and the unique warehouse procedures are customised for each organisation. This is driven by factors including:
- The magnitude of the warehouse operation.
- Storage capacity.
- Temperature.
- Order profiles.
- Legislative requirements.
- Organisational culture.
- Volume of goods moving through the facility.
The Functions of a Warehouse
The different processes that occur within a warehouse management system (WMS) are fundamentally the same across many warehouse operations and typically consist of:
Receiving: Managing inventory in a warehouse involves utilising a mechanical handling system to efficiently handle various products. Receipts can be generated for either a single product or multiple products, with items like pallets or small consignments playing a crucial role. Suppliers often provide an advance shipping notice (ASN) to streamline the receiving process, which contains essential information about the incoming products.
By integrating the ASN into the warehouse management system (WMS), staff can quickly scan barcoded consignment notes to access the relevant information. If the delivery matches the details in the ASN, the products can be officially received in the system. However, even though the goods are now in staging and ready for storage, some WMS systems allow inventory to be updated while still in staging, which is potentially confusing if items are needed for picking orders.
On the other hand, some WMS systems require products to be physically moved to a designated stock storage location before the inventory is updated. This approach ensures that inventory accuracy is maintained and prevents any disruptions in the picking process. By following these procedures and utilising the features of the WMS effectively, warehouses can enhance their operational efficiency and minimise errors in inventory management.
Put-away: The WMS will alert warehouse receipt staff by displaying a put-away note, signalling that stock in the staging area is ready to be moved to a designated storage location. Upon accepting the put-away task from the WMS, staff will use barcode scanning to identify the goods that need storage.
In cases where a barcode is not available, staff can manually enter the necessary information to verify the goods. Subsequently, the system will instruct the put-away staff to transport the goods to the specified storage location for placement.
Upon reaching the designated storage location, staff can scan the barcode or manually confirm that the correct location has been reached before storing the goods. Once the goods are securely stored, the put-away process is finalised, marking the point at which the products are typically available for allocation to fulfil sales orders.
Picking: The process of selecting items for inclusion in sales orders can be approached in two fundamental ways:
- Primary: The most frequently used method for selecting goods involves delivering them directly to a staging area or packing bench for consignment and dispatch. Consequently, the initial selection becomes the final selection.
- Secondary: In this scenario, the process of second-picking is implemented. Specific initial picks undergo a secondary picking process, mainly when the picked items must be distributed among multiple or distinct orders through a sortation process. Due to the surge in online sales across various sectors, many organisations now carry out secondary picking processes.
Upon receipt of orders, they are typically released in real-time or in waves. Real-time orders are promptly processed as they are received from customers within their natural environment. On the other hand, orders can also be accumulated in waves, allowing for specific picking times and optimised transport routes.
Packing: There are numerous ways that goods are packed, but organisations typically follow the five rules identified below to maintain successful order packing processes:
- Picked goods must be traceable to the location from which they were picked to ensure that goods are rotated to preserve ‘use-by’ or ‘batch’ dates and codes.
- Accuracy and quality assurance checks must be included in the process.
- Goods picked from different zones within the warehouse must be easily ‘combined’, and the system must be managed to ensure the completeness of sales orders.
- Products must be packed according to size, quantity, volume, temperature, toxicity, value, fragility, hygiene and legislative requirements.
- Consignments must always be system-traceable in case the need arises to segregate damaged, contaminated, or out-of-specification goods, and to ensure the customer is correctly billed for the goods supplied.
Dispatching: Efficient dispatch operations depend on an organisation’s capacity to prepare sales orders for shipment precisely when the distribution vehicle is scheduled to pick up the day’s dispatches. This enables a seamless process of balancing and forecasting packing, ensuring that items are dispatched according to the carrier’s pick-up times.
Orders prepared too far in advance can lead to congestion in staging areas, while delayed dispatches can result in loading delays and the risk of late deliveries. Many organisations release orders to pick in waves corresponding to specific delivery routes or carrier preferences to streamline the process.
Returns: Returns are an intricate part of most organisations. Many organisations are experiencing an increase in product returns, primarily attributed to the rise of e-commerce. The intricacy surrounding the handling of returns mandates the following rules:
- When customers return goods, a sales order return authorisation reference should be issued, which outlines what is being returned and the reason for the return.
- All returns must be traced to their sales order document and invoice.
- Organisations must have a pre-determined returns process that delineates what to do with the goods once they are returned to the warehouse, such as returning them to stock, repairing them, destroying them, discarding them, recycling them, or returning them to the manufacturer.
- Credits for returned goods must be system-recorded to document the reason for the return and ensure that customers are correctly reimbursed for their returned orders.
- Inventory must be updated where goods are returned to stock or held for further action.
Value-adding: Within the organisation, there exists a specific department responsible for the production, assembly, modification, and preparation of products for sale. This department plays a crucial role in adding value to the products through various processes. These processes can be intricate, especially when combining multiple items to create a new product.
Dealing with value-adding processes and managing the constant changes in product components can be overwhelming. Over time, organisations have developed systems to help address this challenge. However, many organisations face difficulties integrating the recording of value-adding components with their existing logistics systems or WMS.
Managing these value-adding processes and the dynamic nature of product components can be daunting. Organisations have implemented systems to support these processes and streamline operations.
However, integrating the recording of value-adding components into existing logistics systems or WMS can pose compatibility challenges for many organisations. Finding a seamless solution that aligns with their requirements becomes crucial for efficient operations and successful product readiness.
Warehouse Management System
A WMS is a set of procedures and rules created to improve the efficiency of warehouse or distribution centre operations, ultimately leading to achieving set goals. Previously, the term’ warehouse management information system’ was used to distinguish software that performed this function from conceptual systems. Some smaller facilities opt for manual techniques, such as spreadsheets or handwritten notes, for record-keeping, which are also considered part of the WMS framework.
The term primarily denotes computerised systems that monitor inventory movement in and out of the warehouse. These systems come equipped with additional functionalities, such as identifying the locations of stocks within the warehouse, optimising space utilisation, and coordinating tasks to enhance overall operational efficiency.
Organisations can significantly improve their operations by streamlining processes, reducing errors, and increasing productivity through the implementation of a WMS. These systems ensure that inventory is managed effectively, orders are processed efficiently, and resources are utilised optimally, leading to cost savings and improved customer satisfaction.
Implementing a new WMS can facilitate significant organisational growth and build customer confidence by enhancing operational processes and service delivery. Efficient product management and inventory control are essential for any organisation, and introducing a WMS system can significantly improve these critical areas.
By monitoring and scanning products at each stage of movement within a warehouse, organisations can achieve clear visibility into product locations and ensure proper inventory management. This reduces inventory mishandling, ultimately enhancing operational efficiency and accuracy.
Advanced WMS systems offer a crucial advantage by enabling faster product delivery, a precious aspect in today’s fast-paced and fiercely competitive business landscape. Organisations can streamline their operations and expedite the delivery of goods to customers by meticulously tracking, tracing, and monitoring products across the supply chain. This enhances customer satisfaction and gives the organisation a competitive edge in the market.
Implementing a WMS system offers advantages that extend beyond improving outbound logistics. When managing returns, a well-implemented WMS system can significantly simplify and enhance the effectiveness of the process. Organisations can efficiently handle customer returns by closely monitoring and tracking returned inventory, ensuring prompt resolution and minimising potential supply chain disruptions. This capability further strengthens the overall efficiency and reliability of the organisation’s operations.
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