BUSINESS PROCESSES AND THEIR IMPACT
WITHIN A WAREHOUSE GUIDED BY A WMS
Business processes essentially form a standard agreed upon and repeatable set of tasks that is officially documented and available (and known) to all warehouse operators. If these processes are well planned and executed, they have the power to set a company apart from its competitors through more efficiency and effective processes.
Inside a Distribution Center there are numerous processes that occur simultaneously throughout the day, each and every day. These processes can be classified on 4 axes.
- Core Process include all relevant activities that guarantee the adequate flow of goods from the inbound of the outbound stage. This includes planning, receiving, storage, replenishment, picking, consolidation & dispatch and shipping.
- Supportive Processes are equally essential to the operation, but these occur as a consequence of the core processes. They include the internal transport, decanting or repalletizing, quality control, packing, inventory management, etc.
- Additional Processes consider any other services that are specific to the business model in place and that take place as and when required. These may include cross docking, value added services (kitting, assembly, customization…) customer returns and or suppliers return, etc.
- Administrative Processes are related to the strategies and rules of engagement defined to administrate and manage the operation. Examples are: location management, SKUs declarations to the system, replenishment strategies, storage strategies, zone management, monitoring and reporting, stock adjustments, credentials, etc. consider any other services that are specific to the business model in place and that take place as and when required. These may include cross docking, value added services (kitting, assembly, customization…) customer returns and or suppliers return, etc.
INVESTING IN A “FIT FOR PURPOSE”
SOFTWARE APPLICATION TO MANAGE YOUR WAREHOUSE
WMS software was first introduced in the 1990s as an add-on or customized extension to an ERP system. Today as a mature independent software, the WMS is more and more frequently seen as a fundamental element of the logistic operation and supply chain strategy.
Each WMS implementation should be configured to fulfil the company’s specific requirements and to achieve this, having the right processes in place is critical.
As shown below, the WMS’s ability to manage a facility depends on 3 key aspects: the physical distribution, available resources, and the processes.
Any change that is made either of the 3 aspects will have an impact on the others. To keep the system working efficiently it is highly recommended that every change made is documented and the impact on all 3 areas is carefully evaluated. Subsequently the appropriate changes must be made (if required) to ensure the systems continues to be fully functional.
PROCESSES INSIDE A WAREHOUSE
ARE HIGHLY SOPHISTICATED
Processes should be documented and reflected within the configuration and functionality of the company’s WMS. The WMS will therefore be able to control and run the operation while adhering to these predefine processes. It is essential to ensure that these processes reflect the real business needs while meeting industry standards and regulations.
The processes definition can be carried out as individual initiative or as part of a larger project. Each business should ensure that they follow the right steps and that the person(s) in charge have the companies full support in establishing and implementing these processes.
Understanding warehouse processes and how to best optimizing these for them to adhere to industry best practices can be complex and challenging. We understand that there is a big difference between the processes of a manual operation and those of a WMS guided operation. WACO has the knowledge and experience to help you make sure your processes are documented, streamlined and as efficient as possible.