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Warehouse Management
The source, make, deliver processes
Within a supply chain, there are several key activities encompassing procurement, production, and fulfillment of orders. These are commonly known as the Source, Make, and Deliver processes.
Source involves the procure-to-pay processes, closely tied to inbound logistics and the receipt of goods.
The Make processes in context of warehouse management is concerned with internal logistics and the restocking of inventory.
Finally, the Deliver processes covers outbound logistics, focusing on activities essential for fulfilling orders, referred to as the order-to-cash cycle.
Get inspiration from the description of logistics features presented below to reflect over the most promising opportunities for additional value within inbound, internal and outbound logistics processes in your context.
Inbound logistics
Inbound logistics encompass the processes involved in receiving, inspecting, storing, and managing inventory. Each step in this phase plays a crucial role in ensuring the integrity and accuracy of inventory data, which forms the foundation for subsequent warehouse operations.
- You have a confirmed purchase order
- The supplier ship the goods, and they are in transit
- The estimated time of arrival approaches, the receptions must be planned
- The goods are unloaded at a designated gate and confirmed received with or without damage to the carrier
- At some point the received goods are to be verified in accordance with specifications
- And all approved goods must be put-away into stock.
- Deviations will lead to disposition of the material as deviation and liability case handling proceeds
- For all approved products that are put into stock forms the basis for three-way matching the invoice to be verified. As the received invoice match the system generated supplier invoice information, the payment is authorized.
The features are listed above are generic requirements.
Which ones are the most important for your industry?
Internal logistics
Internal logistics encompass the movement of goods within the warehouse, while inventory management focuses on maintaining optimal inventory levels to meet demand fluctuations effectively. Core processes within this phase include picking, stock replenishment, and stocktaking, each of which contributes to the efficient flow of goods through the warehouse.
- The make features start with the direct material requirements from planned productions
- Material needs must be issued based on requirements from the operations
- In most instances the production, testing and packaging of products are handled by manufacturing operators
- Disposition of scrap and disposal of waste might be categorized as internal logistics tasks
- As semi-finished or finished products are finalized, they are moved and staged for release into the next process, that can be either further processing, or into finished goods inventory, ready to be delivered
- Within inventory management the internal logistics are involved in stock replenishment, picking components in main storage, staging for sorting and distribution to production lines in manufacturing
- There is also a need to secure record accuracy by a variety of stock taking principles
The features are listed above are generic requirements.
Which ones are the most important for your industry?
Outbound Logistics
Outbound logistics encompass the processes involved in picking, packing, and shipping goods to customers or other destinations. Timely and accurate execution of outbound logistics is essential to meeting customer expectations and maintaining a competitive edge in the marketplace. Advanced warehouse features are included in the figure below.
- Confirmed sales orders determines the activity level in the outbound logistics
- As sales orders are confirmed inventory must be assigned to reflect the commitment
- Shipments are planned based on the flow of orders. The more predictable the demand is, the better foundation we will have to plan a shipment schedule.
- Products are picked – then packed and staged for shipment
- When the time of shipment approaches, the shipment is loaded, shipped and on its way to the destination
- A delivered order must be invoiced
- A receptions notification can be collected upon delivery to the customer.
- We also have advanced features related to how to fulfil orders in various scenarios, end possible integrations of related equipment and related systems
The features are listed above are generic requirements.
Which ones are the most important for your industry?
Take part in the discussion
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We hope you've noted down some ideas to bring to the session and trust that you now possess a thorough understanding of the various warehouse management practices.
Most importantly, we want to hear from you!
We encourage you to bring any questions or feedback to our workshop discussions, Your inputs will influence the direction of our development.