Did you know most warehouse inventory errors start in receiving stock?
Whether you’re a manufacturer, retailer, or distributor, your warehouse operations and receiving stock processes play a pivotal role in making your business successful. Your warehouse is a complex, multi-faceted central hub through which virtually everything passes: from raw materials waiting to be manufactured into finished goods, to finished product waiting for shipment to a distribution centre, retailer or end-customer. Warehouse operations and your WMS affect virtually every business-critical issue, including inventory management, worker productivity, shipment accuracy, timeliness and, ultimately, customer satisfaction and ROI.
The reality is, too many warehouse processes are still pen-and-paper-based. Just as problematic is technical fragmentation, with technology available in only a few operations. Flawless fulfilment requires technical and operational integration across all your processes and workflows. You could argue that all areas of the warehouse are equally important but the bottom line is if we receive things poorly the odds of us picking them and shipping them properly are pretty close to zero. A cloud WMS system can cost effectively assist in increasing efficiency and productivity.
If you make a mistake in the receiving area, it can have a 10-fold effect on the rest of the warehouse process.
Most distribution professionals understand that it is not enough to know how their company performs year over year; they must also continue to improve their performance in order to stay ahead of their competition. Today’s companies are in an environment where their customers continue to demand more – instant availability, error free service, and customised products – all at a lower cost. That is why many professionals look to adopt best practices via the latest WMS as a way to drive improvement.
When it comes to world-class receiving and put away one of the general principles is to try to minimise the number of handling steps throughout the process.
It can’t be emphasised enough just how important receiving stock and put away is in the whole process of warehousing. Maybe you’ve heard the expression garbage in garbage out. It’s important to understand how receiving and put away are linked with all of the other activities not just in the warehouse but in the supply chain as a whole. There’s a very direct link between receiving and put away and the suppliers that we’ve chosen and the practices that we’ve chosen to use to integrate with those suppliers.
Five Key Principles to Keep in Mind with Receiving Stock
1. Proactive Activity
The general idea in receiving is that all of the resources to accomplish this they need to be scheduled via a WMS and processes so it’s a proactive activity it’s not something that is reactive.
2. Minimal Flow Path
There’re all kinds of different flow paths that receipts can take. It’s key to make sure that for each product coming from each type of supplier you have chosen the minimum cost flow path.
3. Minimise delay
It’s crucial to do all that you can to put away immediately so there’s no delay between the receiving and the putaway process. It’s important to make sure that you chose the optimal location for the put away. It’s useful to combine put away and retrieval activity to maximise the labour utilisation the equipment utilisation.
4. Quality Control
Maintain a quality control group in the warehouse to monitor put away accuracy – just like they would be monitoring picking accuracy, shipping accuracy, and inventory accuracy. This way mistakes are caught early in the process instead of late in the process when it’s difficult to do something about it. Another opportunity for quality control is to monitor the damage rate and put away. Oftentimes, as a result of the excess handling or sorting that may be required a good portion of the damage may occur in the putaway process.
5. The Ability to Assign Receiving Docks
Allowing the WMS system to drive a best practice warehouse process during receiving & putaway will result in big time and money saving benefits for most operations.
If you utilise a concept called pre-receiving (assigning a product of location in transit) then you will know where exactly the inbound pallets will be located in your warehouse. Take the time to assign each inbound truck to the dock door that minimises the processing time for that inbound truck. That little simple step may be worth an increase of receiving productivity of fifty percent.
Many warehouse layouts diminish the size and importance of receiving at a great detriment to their entire operation. Think of all the activities receiving stock does. They add labels, count the items and reconcile them with the manufacturer’s packing list. They break down pallets. They accommodate back orders, they report manufacturers shipping errors. All this activity needs to be supported and optimised. By focusing on reducing receiving errors and inefficiencies in conjunction with your WMS, you will improve the flow of your entire warehouse.
When looking for a warehouse management system provider, look for one who understands best practice warehouse processes for goods in processes for receiving and putaways. Strong experience of industry specific best practice is also vital.
Having to educate a software provider on your industry is time consuming and you are unlikely to benefit from a collective customer base all funding innovation into a single platform.
Clarus WMS will outline the fundamentals of a goods in best practice warehouse process that will ensure that stock is received properly into the warehouse; if it doesn’t come in correctly you don’t have much hope of maintaining stock integrity going forward!
Want to do something a little different with your goods in process? That’s not a problem. Using the workflow manager you can customise the process to suit you and your customer’s needs.
Speak to one of our team to understand how Clarus’ WMS system can cost effectively support best practice warehouse management processes, better customer service and highly efficient working for a range of warehouse operations with pay per month options and no IT infrastructure needed.
Our platform can scale from a one user, small depot system to a 100’s of user distribution centre operation. The ClarusWMS platform will cost effectively scale with your business based on demand.
ClarusWMS is a UK based supplier of warehouse management solutions with a wealth of industry experience in third party logistics, wholesale / retail distribution, online fulfillment and manufacturing warehousing.