Warehouse fulfillment is typically perceived as a shipping problem where orders are not leaving on time. While carrier schedules, packing times, and numbers of employees are factors that can be affected by management, there are a host of earlier problems in receiving, put-away, picking, packing, and shipping that can cause delays in fulfilling customer orders.
An item can be listed as available even though it is not in the inventory. A picker can be walking all over the warehouse to complete one order. New stock can be sitting in the receiving area and not entered into the inventory system. These small problems can add minutes to completing each order and hours to completing the daily workload.
A well-managed inventory system can ensure that the receiving process flows smoothly into shipping. By having an efficient inventory system, employees are able to complete orders more effectively, and managers are able to pick up on problems before they affect customers. To improve fulfillment speed, managing the inventory that is already in the warehouse is often more effective than adding more space or staff.
First, determine the root cause of delays. What appears to be a packing station delay could actually be caused by a variety of other factors, including bad inventory data or stock that has not been placed optimally in the warehouse.
Identify and record delays for each stage of the order process, from order placement through to the dispatch of completed orders. Record for each stage the time taken to complete the task, repeated pauses, additional approvals required and searches for information to complete tasks.
Speaking with the warehouse staff can also give insight as to problems within the inventory system. For example, pickers, packers and receivers have the best knowledge of the problems encountered within the warehouse. They can point out problems such as having to search for products, having to ask for approval, long aisles with difficult-to-read labels, and products being listed as in stock when in reality they are not.
Once you have documented the issues in your warehouse, you will be able to tell whether they are one off events or whether they are in fact process problems. These are very different and therefore require very different solutions. For example, a one-off picking error would require coaching of the picker. However, a repeated error in a specific area of the warehouse would indicate a problem with the labeling or the layout of that area.
The Inventory Facts for Warehouses project investigated how employees utilize information in the warehouse. In one example, order pickers reported that when the system said they had ten of an article, but in reality they had only eight, they would spend time searching for the remaining units. In many cases, the order would then need to be amended, delayed, or even canceled.
These ‘cycle counts’ will vary depending on the stock items being counted but it’s common to count higher value, faster moving stock on a more regular basis. For example, the warehouse team could be asked to complete counts of some of your faster-selling lines on a weekly basis, whilst slower-moving products are counted less frequently.
All inventory movements (receiving, putaway, picking, returns, damaged goods, transfers) should be recorded in the inventory system as quickly and accurately as possible. A delay of even a few minutes in updating the system can cause problems with the information that is available to other employees in the warehouse.
These processes must be clearly outlined so that each employee knows when to scan a product, report any damage, etc. Each employee must follow the same processes for recording errors, etc. in order to ensure accurate inventory records.
Not every product needs to be treated the same way. Products that are fast moving need to be located in the warehouse in the easiest location for picking, while slower-moving products can be located in less accessible locations of the warehouse.
Identify Top Selling and Frequently Picked Stock and Position Them Close to Pick Facing Areas so Less Walking Time Exists. Top selling Stock, that also gets frequently ordered together with other Stock items should also be placed close to each other so that less time exists in picking between orders of stock that is frequently ordered together.
Different products need to be stored in different ways. The bigger, heavier, items need to be stored in the highest safe point in the warehouse and the smaller, lighter, products can be stored on shelves, in bins or in compartments within the bin to stop them getting mixed up with other products. The fragile products need to be stored in a way that they are not going to get damaged in the busy area of the warehouse and away from the fork lift trucks.
By reviewing the organization of your stock on a regular basis, your warehouse can be organized to meet your changing needs. As customer demand changes, and seasonal lines become more or less popular, the organization of your stock in the warehouse will need to change also to reflect the new top-selling items.
Here’s how to maximize your fulfillment process by making sure that your material-handling tools help solve problems rather than creating new ones. In other words, your warehouse equipment should enhance workflow instead of bogging it down.
Material-handling tools should solve a specific workflow problem. They should not create more problems when, for example, bottom dump hoppers are utilized to deal with scrap, bulk components, packaging materials, etc. within a warehouse. These units can improve the material handling in a warehouse by allowing for the quick collection and release of contents, thus reducing the need for manual labor. This would, however, require a careful examination of the available space in the warehouse, the load that would be placed on the hoppers, as well as the flow of the employees through the warehouse.
Work Tools Solve Specific Problems in Warehouse Processes; When Added Without Prior Analysis of these Processes, They Simply Shift the Bottleneck to Another Place. In order to select proper work tools for material handling, one has to first of all determine the locations in a warehouse where the material in question is stored, and where it is needed. He must then also determine the frequency of movements of that material. With that information at hand, he can then select appropriate work tools.
While speed is important in a warehouse, it must also be safe. According to the Occupational Safety and Health Administration, aisles and passageways in warehouses around mechanical handling equipment must be of sufficient width, free from hazards and maintained. A fast moving warehouse that is not safe for employees is not an efficient warehouse.
Receiving does not mean that the product has arrived at the warehouse to sell. It must go through an inspection, recording and putaway process. A receiving checklist can be used to standardize the process. A purchase order can be used as a receiving document and the checklist can include space to note any damages found during the receiving process. The shipment received must match the Purchase Order (PO) received from the vendor. If not, then note the discrepancy on the PO and have the person who signed for the goods verify the shortage or overage.
Develop a receiving checklist that contains items that must be inspected for damage or received accurately. Utilizing this type of tool helps to verify that all items from a shipment have been received correctly and in full, prior to closing out the receiving function for that specific shipment.
The Process of Putaway should be structured. The storage of received products should be based on demand, product type, etc. Every product has a defined storage location within the warehouse. This makes sure that picked products are taken from the storage locations that have the lowest amount of stock, to avoid picking products from the same location too many times.
The Receiving Area Should Be Clear of All Excess Inventory to Process Incoming Shipments in a Timely Fashion. Shipments can arrive at the warehouse at the same time and can take up a lot of floor space for an extended period of time. This creates a problem of identifying processed goods versus unprocessed inventory that is left on the warehouse floor.
Reduce Fulfillment Delays by Creating an Inventory System that Makes Accurate and Efficient Work Possible.
If your company has invested in inventory information, it should make efficient work easy to do. Reliable stock records, organized storage, and a good system for receiving and replenishing inventory will prevent small delays from adding up. Appropriate equipment to do picking and other warehouse work will reduce manual handling. Performance metrics for the warehouse will indicate where more improvement is required.
Consistency in customer service is key and aims to deliver the same high level of service and order fulfillment during peak and normal periods. By utilizing correct inventory information, a well-organized warehouse and correct procedures for employees to follow, orders can be processed as efficiently as possible to ensure smooth order fulfillment.
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