Business Process Re‐engineering Continued
Improve receiving accuracy and efficiency
Dramatic warehouse optimization and performance can be realized through automated, managed pick‐bin replenishment. In a paper‐based pick and pack warehouse, much time is spent replenishing pick locations based on the assumption that pickers need to pick as much product as the assigned pick locations can hold. Stock handlers walk through the pick locations and arbitrarily decide how much product is needed to fill pick locations to their maximum capacity.
Manage pick locations better ‐ An effective replenishment strategy will fill the right bins with fast moving product and leave dead stock where it belongs, in the high bay racking until it is required. In most warehouses, the demand created for the top 5% of products exceeds pick location capacity on a daily, if not more frequent, basis. The bottom 5% may not move in a year or even less frequently. The result is that pickers walk past locations full of dead stock to reach to empty locations, where fast moving product should be on hand.
Eliminate pick‐bin stock‐outs ‐ The lost productivity when a picker runs into an empty pick location is only part of the replenishment challenge in the typical paper‐based pick and pack warehouse. Replenishment and picking share similar challenges.
Improve stock handler effectiveness ‐ Stock handlers cover large areas of warehouse, only partially filling their pallets because they are picking products to satisfy the orders left short when pickers run into empty bins. Replenishment activities are typically reactive, resulting from a lack of organization when gathering product from overstock and filling the pick locations. Business process re‐engineering helps to smooth out this procedure by better analyzing pick location demand and driving workflow so those pallets get filled as efficiently as possible.
Better forecast bin requirements ‐ Advanced replenishment enables the WMS to request inventory from overstock before the products are actually required to fill sales orders. This process minimizes the likelihood of a sales/work order being delayed because pick‐bins need to be replenished. Advanced replenishment uses historical velocity to anticipate replenishment requirements based on the minimum quantities of a product that should be stored in a bin, or by the minimum number of days that a product should be on hand in a bin.
Improve shipping effectiveness
Shipping systems can be integrated in varying degrees with a WMS, and many WMS functions support and accelerate the shipping process.
Integrate shipping into the picking process ‐ Shipping labels produced at the start of the picking process and direct picking to shipping cartons can eliminate the need for a separate shipping station in some cases
Rate shop for the most cost effective carrier – Instead of having your warehouse personnel guess at the most cost effective shipping methods, a warehouse solution can automatically determine the best shipping method based on destination and service level requirements.
Eliminate shipping errors – Seamless shipping integration ensures that the orders end up where intended. Eliminate shipping the wrong box to the wrong customer.
Attach the right documentation – When printing packing slips, carton content labels and compliant freight labels, customs and dangerous goods documents are all required for accurate order shipments. Having this documentation integrated into the shipping process ensures that the right documents go with the right orders.
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