Saturday, 3 May 2014

Best Practice - Process Benchmarking for Storage and Inventory Control

Process Group
Poor Practice
Best Practice
Location Management & Review
·  No management/ control over product location and rotation
·  No serial number/lot number used
·  No understanding of cube fill
·  No review of storage locations for proper sizing & access
·  System design allows for automated process of product rotation using variable business rules to ensure proper lot control
·  Capability in system to track serial number and lots, integrated into warehouse and shipping processes
·  System manages cube fill automatically
·  Storage locations are reviewed automatically against current product data to ensure best access and proper sizing
Product Data & Special Requirements
·  No product cube data available
·  No process to segregate products with special requirement
·  No segregation of items
·  No controlled access area
·  System includes all product data characteristics including cube data
·  System driven process to segregate items with odor transfers, fire risk or requiring temperature control
·  Items are stored in special areas
·  High value items managed from receipt to storage
·  Caged and controlled access for all high value and special items
Inventory Control System
·  Periodic inventory counts to determine stock levels
·  Limited or not systems support for inventory control
·  System driven, rules based process for stock level verification
·  Single system of record with full integration between Order Management, ERP, WMS and TMS systems
Transaction Processing
·  Paper transaction with no standard formats/ content
·  Inconsistent transaction processing
·  Transactions captured at point of occurrence using bar codes or RFID tags
·  Transactions in real time
Cycle Count
·  No cycle count program
·  No adjustment to on-hand counts
·  Continuous system generated cycle count program integrated into warehouse activities. Cycle count process if fully supported by wireless RF data collection
·  Cycle Count process records total count and location count accuracy in real time
Inventory Strategy
·  JIT and Lean processes not used
·  Limited understanding of Vendor Managed Inventory concepts
·  No verifiable process for managing excess and obsolete
·  Culture, system and processes support JIT, Lean concepts
·  VMI and supplier stocking programs are widely used and are system supported
·  Aggressive programs to manage excess and obsolete inventory

Source: WERC Warehousing & Fulfillment Process Benchmark & Best Practice Guide, 2010 Edition

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