UNIVERSITY OF ECONOMICS AND LAW

Course

WAREHOUSE MANAGEMENT AND DISTRIBUTION

Instructor: Dr. Nguyễn Duy Quang

Email: [email protected]
2024
 Chapter 3. Warehouse Process
Receiving and Put away
1. Introduction
“Almost all quality improvement comes via simplification of
design… layout, processes, and procedures” (Tom Peters)
 Chapter 3. Warehouse Process
Receiving and Put away
Warehouse processes
 Chapter 3. Warehouse Process
Receiving and Put away
2. Receiving
* Pre-receipt
. Need to ensure that the supplier present the products
to the warehouse in the most appropriate way.
 Chapter 3. Warehouse Process
Receiving and Put away
2. Receiving
* Pre-receipt
Areas that need to be discussed both internally and externally
prior to the order being placed should include:
Size and type of cartons; type of transit packaging – cardboard,
plastic, roll cages, pallets; palletized or non-palletized
delivery of product; size (length, width and height) and type of
pallets; specific labelling such as product description,
barcode and quantities; position of label on carton and pallet;
carton quantities (inner and outer carton quantities, for
example); and mode of transport, delivery quantity and
frequency of delivery
 Chapter 3. Warehouse Process
Receiving and Put away
2. Receiving
* Pre-receipt
. Delivery in the standard selling quantity is also crucial in
assisting the man ager to increase the speed of throughput and
simplify picking.
. The method of delivery needs to be compatible with the
unloading equipment available at the warehouse.
. The transfer of much production offshore has resulted in a
significant increase in container traffic.
. The benefits of palletizing product include protection from loss or
damage during handling and transportation and a reduction in
the number of people required to load and unload containers.
 Chapter 3. Warehouse Process
Receiving and Put away
2. Receiving
* Pre-receipt
. Delivery in the standard selling quantity is also crucial in
assisting the man ager to increase the speed of throughput and
simplify picking.
. The method of delivery needs to be compatible with the
unloading equipment available at the warehouse.
. The transfer of much production offshore has resulted in a
significant increase in container traffic.
. The benefits of palletizing product include protection from loss or
damage during handling and transportation and a reduction in
the number of people required to load and unload containers.
 Chapter 3. Warehouse Process
Receiving and Put away
2. Receiving
* Pre-receipt
. The trade-off is the reduction of space utilization in the
containers. One potential method of reducing the trade-off
effect is the use of slip sheets in place of pallets
 Chapter 3. Warehouse Process
Receiving and Put away
2. Receiving
* Pre-receipt
. The high cube containers provide additional internal height and
therefore the double stacking of pallets becomes more feasible.
 Chapter 3. Warehouse Process
Receiving and Put away
2. Receiving
* Pre-receipt
. Containers with large numbers of product lines will still need to
be sorted at the receiving bay whether they are palletized or
loose loaded.
 Chapter 3. Warehouse Process
Receiving and Put away
2. Receiving
* Pre-receipt
. The International Organization for Standardization (ISO)
sanctions six pal let dimensions, detailed in ISO Standard 6780.
 Chapter 3. Warehouse Process
Receiving and Put away
2. Receiving
* Pre-receipt
. Plastic pallets are also becoming more widely used whilst the
automotive industry has tended to use metal stillages to
transport and store automotive parts.
 Chapter 3. Warehouse Process
Receiving and Put away
2. Receiving
* Pre-receipt
. Recent innovations in the pallet sector have included iGPS’s
plastic pallets that are said to be 100 per cent recyclable as well
as being 30 per cent lighter than wooden pallets.
. iGPS’s plastic pallets have also embedded RFID tags into the
pallets to enable tracking to take place and there are also
barcode and alphanumeric identifiers.
 Chapter 3. Warehouse Process
Receiving and Put away
2. Receiving
* Pre-receipt
. Products delivered in outer cartons need to be labelled.
Information can include barcodes, which need to be compatible
with your radio frequency (RF) equipment and which hold data
such as product code, description and pack quantity.
 Chapter 3. Warehouse Process
Receiving and Put away
2. Receiving
* Pre-receipt
. The pack quantities of carton will depend on the value, weight
and volume of the product and, although there is no legal limit,
outer cartons should not weigh in excess of 20 kilograms (44
lbs) from a health and safety point of view.
 Chapter 3. Warehouse Process
Receiving and Put away
2. Receiving
* Pre-receipt
. Discussions between the warehouse, procurement, customer
services and the supplier should alleviate many of these
problems.
. The premise is to discuss requirements with the supplier and if
you need them to do things differently then you need to take the
initiative. z
 Chapter 3. Warehouse Process
Receiving and Put away
2. Receiving
* Pre-receipt
. Another truism to bear in mind is the 80/20 rule as it applies to
suppliers. Not only is it likely that 20 per cent of your suppliers
provide 80 per cent of your stock but it is likely that 20 per cent
of your suppliers cause 80 per cent of your goods-in problems.
. Need to put measures in place to identify the suppliers who are
not performing to standard and work with them to introduce
improvements.
 Chapter 3. Warehouse Process
Receiving and Put away
2. Receiving
* Preparation
. To ensure that suppliers deliver into the warehouse when you
decide, not when it suits them.
. To provide the delivery time for each supplier or their
subcontractor. Need to decide on when you are going to
receive products into the warehouse.
. Need to keep records of the time it takes for each type of
delivery and share this information with your booking-in team.
. By introducing a dock scheduling system you are able to allocate
accurate time slots, measure productivity, organize labour. and
also check demurrage and penalty charges.
 Chapter 3. Warehouse Process
Receiving and Put away
2. Receiving
* Preparation
. Warehouse staff need to be aware of the products being
delivered, the type of vehicle and the equipment required to
offload.
. Details of any pallet exchange agreements also need to be
ascertained.
. Pre-advice of the products being delivered is also advisable so
that the details can be entered in the warehouse management
system (WMS).
 Chapter 3. Warehouse Process
Receiving and Put away
2. Receiving
* Offloading
. The vehicle details need to be checked against the booking
reference. Any vehicle seals need to be checked against the
delivery paperwork.
. Offload temperature-controlled vehicles: the temperature history,
the current temperature of the goods.
. Can use forklifts, conveyors, robots, labors to offload the cargo.
 Chapter 3. Warehouse Process
Receiving and Put away
2. Receiving
* Checking
. Once the goods are offloaded, you need to decide whether they
need to be checked before put-away.
. Trust is an issue here and unless you are 100 per cent certain
that your suppliers are totally accurate with their deliveries on
every occasion, some form of checking will need to take place.
. Can take the form of a random check of certain product lines
rather than checking the whole consignment. A count of total
pallets may be sufficient.
. The utilization of barcode scanners has speeded up the process
significantly and improved accuracy.
 Chapter 3. Warehouse Process
Receiving and Put away
2. Receiving
* Crossdocking
. Cross docking is a process where products are moved directly
from goods-in to the despatch bays. This replaces the need to
place the product into store and any subsequent picking
operation.
. Cross docking needs the full support of suppliers as to how they
present the product. This includes clear labelling and advance
notice of arrival together with accurate, on-time delivery.
. Cross docking requires systems to identify the product that
needs to be cross docked and a process needs to be in place
to recognize and alert the staff.
 Chapter 3. Warehouse Process
Receiving and Put away
2. Receiving
* Recording
. there could be a requirement to record more than just the
standard data such as product code, description and quantity
on arrival
 Chapter 3. Warehouse Process
Receiving and Put away
2. Receiving
* Quality control
. there could be a requirement to record more than just the
standard data such as product code, description and quantity
on arrival
It is accepted that certain products will require more stringent
checking on receipt. These include high-value items, food,
hazardous goods, temperature-sensitive product and
pharmaceuticals.
 Chapter 3. Warehouse Process
Receiving and Put away
3. Put away
In order for this system to work effectively, a great deal of
information needs to be programmed into the system. This
includes the following:
● size, weight and height of palletized goods;
● results of an ABC analysis or slotting
● current order data;
● family product groups;
● actual sales combinations; current status of pick face for each
product;
● size of pallet locations; weight capacity of racking.
 Chapter 3. Warehouse Process
Receiving and Put away
3. Put away
Distance of the locations from the receiving and despatch areas