Updated: May 27, 2020
Design in supply chain is one of the most important phases in a project, we will need to consider all the different processes that will take place in a logistics operation, such as the receiving inventory, storage, picking, packing, shipping and more. A good design will help us to automate and improve processes, to reduce costs and provide a high quality service for clients.
Considered as a combination of order management, inventory, transportation, storage, materials handling, and packaging throughout a warehouse facility. A correct plan will involve managing people, materials, resources and third parties, hence, is the key in order to meet customer requirements in a timely and cost-effective manner.
The receiving process starts when a trailer get into the warehouse and is located at the reception door or yard locations, the inventory is unload physically from the trailer and product identification starts, this is pre-receiving process (when the inventory is identified). The receiving process adds the inventory in the WMS and it becomes part of the system stock.
Picking process involves order preparation, it may include a collection and grouping of different products to fulfill an order. There are several ways to perform a picking activity and different picking methods as an example using a Radio Frequency or a Voice device and Carton or Bulk picking method. A successful picking process will be determined by how long could take to fulfill an order and this implies that the warehouse should have a correct configuration to accomplish this.
In the shipping process, an operator has already picked all the items required to fulfill the order and put them into a shipping location, then, another operator will group, pack and/or palletizes the products and will ships them out on the next available trailer to be dispatched to the client. Inventory and shipping transport availability will be a key factor in order to achieve the whole process in a timely and cost-effective manner.
Inventory control is the way of managing stock once it arrives at a warehouse, store or other storage location. Inventory management involves tracking inventory throughout the supply chain, from sourcing to order fulfillment.
The goal to inventory control is minimize holding, replacement and shortage costs of inventories and maximize the efficiency in production and distribution.