(3) What is the risk of warehouse operations becoming over-reliant on key individuals? Standardization is the answer!

Issues and solutions at overseas distribution centers — from the client perspective

Issues and solutions at overseas distribution centers
— from the client perspective

(1) Inventory discrepancies occur even with ERP inventory control! Why?
(2) No more shipping errors! What is the cause?
(3) What is the risk of warehouse operations becoming over-reliant on key individuals? Standardization is the answer!
(4) Is there good visibility on overseas warehouse inventories? Cloud-based Warehouse Management System (WMS) is the answer!
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Has this ever happened in your workplace?

issue

The warehouse is located in a country with a high incidence of churn, yet warehouse operations are still highly reliant on skilled workers.
The high burden placed on these workers creates significant risks during job handover in the event of absence or retirement.

On one occasion, shipping instructions did not reach the relevant workplace. The warehouse clerk was away when the shipping order arrived, and had failed to perform a full handover detailing his responsibilities. As a result, his replacement simply assumed that the matter would be dealt with when he got back.

Solution

solution

WMS is a great way to standardize operational procedures. It can also be used to smooth out workloads by facilitating the sharing and delegation of tasks.

POINT

Standardization and workload smoothing help to reduce the risk of over-reliance on key individuals.

Without WMS

Without WMS image

Distribution warehouse dependent on key individuals

Details of procedures and processes are unknown
Lack of proper handover system
Unexpected developments cause disruption of business
Have to check progress of tasks frequently

With WMS

With WMS image

WMS improves operational efficiency by tracking job status

Facilitates handovers between personnel
Allows multiple people to work on the same task

Navigate tasks using job instructions and handheld terminals (enables standardization)

Has this ever happened in your workplace?

issue

Shipping instructions are not entered into the system or forwarded to the workplace, and as a result the shipment is missed.

The wrong product number or destination is entered in the shipping instructions, leading to an incorrect shipment.

Solution

solution

Better coordination between systems is required. This eliminates the problem of over-reliance on the warehouse clerk, thereby helping to prevent human error and reduce delays.

POINT

Workplaces where inbound and outbound deliveries are processed manually by skilled personnel frequently encounter the following problems:

Data processing delays
Frequent errors in job instructions and invoices
Too much variation between workers in how tasks are performed; lack of coordination and information sharing

Given the amount of client data involved, there is a real risk of human error leading to a major incident such as a security leak or unauthorized access to client data.
Human error can be reduced significantly by introducing better coordination between systems and eliminating manual data entry.

Has this ever happened in your workplace?

issue

First in first out (FIFO) is not implemented correctly, leading to instances of expired stock.

Solution

solution

The FIFO system is important for maintaining product quality, accurately monitoring available quantities and minimizing slow-moving inventory. If recently arrived products are placed at the front and shipped out first, older products are left unused for a longer period. This has the potential to lead to unacceptable variance in product quality.

POINT

WMS provides effective FIFO management by selecting products for shipment in accordance with predetermined allocation priority rules based on product characteristics such as binning date, date of manufacture, best-before date and lot number.

Receving

Warehoused by binning date

Receiving, inspecting, and storing based on scheduled deliveries list
Binning labels are generated immediately after delivery, showing expiration date, lot number, and other product information