Warehouse Processes/Operations

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WAREHOUSE PROCESSES/OPERATIONS

- It is the warehouse activities that satisfy customer needs’ and requirements while
utilizing space

Starts with 1 process


 Receiving an Advanced Shipment Notice (ASN)

Strategies
- Indicate important decisions, plans and ways of implementing the warehouse
processes
- Well organized, followed flow chart
- Equipment should be there
- Technology should be there
- Different cost relating things are decided there

PROCESSES
- Receipt of ASN
- Receiving
- Put-away
- Storage
- Picking
- Packing
- Cross-docking
- Replenishment
- Dispatching
- Returns
- Value-adding
- Stock counting
- Housekeeping

INBOUND ACTIVITIES > STORAGE > OUTBOUND

Order picking the most labour-intensive activity

Sometimes it is in the put-away, simultaneously prepare in the cross-docking stage, send to


the customers. it does not stay in the warehouse that much.

Order processing (customer service)


Floor operations (warehouse supervisor) – for receiving team, putaway/picking team,
releasing team and inventory control team.
ASN – first process
- Two types of variety
- Some say only for inbound
- Some says only for outbound

Warehouse
They get ASN
That goods are coming in
From all kinds of modes

So inbound and outbound

Warehouse should be noticed of any receipts before the cargo actually arrives for making
preparations – inbound

ASN is an alert or notification of imminent deliveries. And similar information provided by


packing list (how it should be packed) or bill of lading (describing what type of goods,
quantity, where and how deliver. Also contains packing list)
Prepared by buyer or cargo owner. With consent of seller. Prepared for carrier or shipping
agent.
But 1 copy is given to the warehouse.

Pre-alert and preparation for the cargo reception forms the Receipt of ASN

It comes in an electronic format (EDI). Standard format can be called EDI 856 or EDI X12
system.

Inbound cargo to warehouse arrive in LCL (less container load) or FCL (full container load)
from oversea or within country.

Lead times – time initiation from when you get noticed to when it is received by customer.

What are the objectives of ASN receipt?


- Coordinating with the carrier and transporter for the clearance of the cargo
- Creating an expected receipt which will inform about the actual cargo arrival of the
warehouse
- Expediting the receiving process
- Ensuring that new products/items are properly set up in the warehouse
management system (i.e. item code and description, unit of measure, packaging
type, pack configuration, picking criteria, etc) before any receiving starts.

Process of receipt of ASN


- Several steps are followed to process the receipt of ASN including customs and port
clearance (if required)
- Customer initiates the process
- The main party involved in the process is the customer service staff in the order
processing team
- The process will be ended when the tally sheet and other shipping documents
needed for receiving are passed to the receiving team in the warehouse

Receiving process
- Begin with advance notification of the arrival of goods.
- Allows the warehouse to schedule receipt and unloading to coordinate efficiently
with other activities within the warehouse.
- Refers to the actual receiving of physical cargo in lorries (LC) or containers from the
transporter by the warehouse.
- Receiving (goods-in or in-handling) is a critical process to ensure that one needs to
get everything right at all times.
- If things go awry at this stage of the warehouse process, the issues will be happened
such as the receipt of incorrect items then direct impact on inventory accuracy and
fulfilment of customer’s orders.

Objectives of the receiving process:


- Validating the actual cargo received against receipts for the shipment
- Inspecting the cargo for damages
- Preparing the cargo for put-away into storage

Goods receiving practices


- Any damages or discrepancies must be clearly reflected on the DO of the transporter
- Seal number on the container must be verified. If there is any discrepancy it should
be reported to the customer immediately and unstuffing is suspended until the
further instructions are received from the customer
- Some guidelines regarding the inspection of cargo during the receiving process
should be established
- 100% inspection for LCL
- 10% inspection for FCL
- IF the outer packing is tampered with or torn, 100% inspection

Non-conforming product issues:


- Short-landing (i.e quantity received is less than stated in the document)
- Over-landing (i.e quantity received is more than that stated in the document)
- Wrong part number received
- Form of the product in terms of color or size received is different from that stated In
the document
- Wrong batch or lot number
- Expired products
- Torn packaging
- Damaged products
DISCUSSION 3.1.

1. OPINION ON RECEIVING AND PUT-AWAY PROCESS

Receiving important to control activity


Putaway – some warehouse use temporary
Withdraw some other
Provide labour for put away process
They don’t know how to go or where to put
Theyre not actually familiar with the ASN
That can create problem for storage
Warehouse managers ignore these
Labour shortage

To store the goods in the right rack, right place, right shelf in the right store and right way

Recall some of the labourers


On that day during this period you have to do this job
Comes with this ASN
And the job requirement
Maybe cannot use equipment in the warehouse
We should not neglect this

PUT AWAY PROCESS

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