| Off late, warehouse management system | | | | in fact it can increase the amount of re-work and |
| deployments have gained good pace and all ERP and | | | | hence will impact the picking accuracy negatively. |
| SCM products companies have started investing into | | | | Another factor that has weightage here is that what |
| their solutions to fine tune to map to industry specific | | | | is the age or version of the warehouse system that |
| solutions. It has been a proven fact now that this is | | | | the organization is using. While most of the industry |
| one of those controllable areas which can really make | | | | leader organizations were early adopters of WMS |
| an impact in improving supply chain of organizations. | | | | system but they are the ones which are facing |
| When it comes to taking the necessary steps to | | | | bigger pressures today as the WMS solutions have |
| create a more flexible and agile warehouse that can | | | | evolved over time and much better and efficient |
| adapt and change to the ebb and flow of the market | | | | solutions are available today against what they are |
| conditions, the goal is to ultimately minimize the time | | | | using. The organizations that kept pace with this |
| product or inventory stays in your warehouse - | | | | change and kept on upgrading their solution, were in |
| ultimately creating a near real-time inbound / | | | | much better position today. |
| outbound activity that matches all inventory to | | | | While almost all major ERP providers are offering |
| orders intended to turn revenue as quickly as | | | | these solutions but there are a few best of breed |
| possible. | | | | solution providers also available in market and |
| The metrics that are required to be tracked to | | | | companies are divided in their approach towards who |
| improve the warehouse system and process | | | | they want to talk for getting the solution deployed. |
| efficiency are: | | | | While assessing the improvement areas in existing |
| - First time sales order line picking accuracy | | | | warehouse system or going to deploy a new |
| - On time shipment | | | | solution, the organizations need to make sure that: |
| - Back order percentage | | | | - They break the processes into smaller pieces and |
| - Turn around time for converting an order into sale | | | | then focus at all potential areas instead of trying to |
| - Labor cost in warehouse | | | | address just the most glaring issues |
| The reason why I added labor cost in warehouse as | | | | - They spend quality time to measure the important |
| one of the metric to measure is that while increase in | | | | warehouse processes like Labor management, Yard |
| number of pickers can improve the picking accuracy | | | | management and Dock management |
| and turn around time but at the same time it will | | | | - They need to keep looking at warehouse as the |
| drive the labor costs in warehouse up, so this will not | | | | enabler for improving the end to end supply chain |
| be an optimum solution. The best solution will be to | | | | process rather than a standalone system |
| study the whole process first and find out the areas | | | | - The team identifies the future growth areas in this |
| where there is a room of improvement. Then we | | | | and adequate budget is guaranteed towards these |
| need to implement processes that create more | | | | areas. Remember that even in this times of |
| warehouse efficiency in addition of bringing down the | | | | recession, investments will not stop but every |
| operating costs with no sacrifice of service levels.To | | | | organization will become wiser to invest in right areas |
| create more flexibility and agility in the warehouse, | | | | Few other metrics that can provide the warehouse |
| organizations need to leverage technology that can | | | | system readiness index to an organization are: |
| bring automation and visibility. Visibility here, means | | | | - Capability to process warehouse activities without |
| that the picker knows the contents of every bin in | | | | paper - Yes, it is possible to avoid paper pick slip too |
| the warehouse in real-time and is also able to track | | | | - Ability to confirm transactions and communicate |
| inventory attributes like lot number, size, serial | | | | with automatic data capture in real time |
| number or date etc. in real time. This visibility needs | | | | - Advanced picking and replenishment process |
| to be blended with automation like: | | | | practicing |
| - Automated receiving or put away with the help of | | | | - Distributed order management usage |
| Radio Frequency Identification device (RFID) or bar | | | | - Cross docking practices |
| coding | | | | - Reverse logistics handling capabilities |
| - Automation in replenishment process | | | | - Event management handling ability |
| - Ability to send advance shipping notices | | | | The remaining year of 2009, as many experts have |
| - Managing containers with the order lines they | | | | put it, is a year of transition where the organizations |
| contain etc. | | | | need to take this as an opportunity to dust-off |
| This combination will help in improving the overall | | | | existing issues in the WMS side of the Supply Chain |
| efficiency of the warehouse system definitely with | | | | and ensure that they have the best of solutions |
| lower costs in the longer run. One thing that we need | | | | available that have the potential of reducing their |
| to note here is that while we have talked about the | | | | cost of carrying inventory and its potential |
| visibility, it has to be real time or near real time | | | | obsolescence, the cost of warehouse labor and the |
| visibility. If the employee has access to data that is | | | | potential inefficiencies of processes. |
| month old then still the issues will not be resolved and | | | | |