Warehouse processes:

Receiving and put-away

Lecture 3 | October 25, 2022

Almost all quality improvement comes via simplification of
design... layout, processes, and procedures.

Tom Peters
American writer on business management practices
Warehouse processes
Receiving
• Also known as goods-in or in-handling

• Supplier compliance ensures that received goods are:

• Correct
• In right quantity
• In right condition
• At right time

• All necessary specifications and detailing needs to be completed before

receiving
Pre-receipt
• Size and type of cartons
• Type of transit packaging – cardboard, plastic, totes, metal stillages, roll cages,
pallets
• Palletized or non-palletized delivery of product
• Size (length, width and height) and type of pallets (euro pallet, four-way entry)
• Specific labelling such as product description, barcode and quantities
• Position of label on carton and pallet
• Carton quantities (inner and outer carton quantities)
• Mode of transport, delivery quantity and frequency of delivery
In-handling
• In-handling is approximately 20% of the total direct labour cost in a warehouse

• Labour is the single biggest cost in a warehouse (upto 60% of total warehouse
cost)

• Matching labour hours to work content is a challenge for warehouse manager

• Optimal product handling reduces labour hours which reduces cost of

operations
Preparation
• When to receive the products at the warehouse (days / shifts / locations)?
• Capacity measurement for conducting the activity

• Recording and logging of the time needed to complete each activity

• Dock scheduling system to allocate resources for each activity

• Training of staff for awareness pertaining to each activity

• Implementation of a system for pre-advice about all activities
Offloading
• Normal consignments managed chronologically

• Special shipments managed as per documents (SOP, MSDS, other controls)

• Management of palletized, bulk, loose consignments

• Availability and management of all resources for offloading (man, material,

equipment)

• Segregation, matching, verification, return, receipt, recording, storing

Checking
• Verification of the goods need to be conducted to ensure accuracy
• Smaller consignments are checked completely
• Larger consignments are checked via a random sampling process (as per company policy)

• The trade-off is between:

• Time taken to check inbound deliveries
• Delay in the product being entered into the system and available for sale
• Number of discrepancies found
• Time taken to rectify the discrepancies

• Automation is a possible way for increasing the efficiency (Barcodes / QR Codes / RFID)
Cross docking
• Identification of items that can be cross-docked
• Involves direct movement of products from goods-in to dispatch bays
• Eliminates storage and picking activities

• Responsibility of suppliers to ensure proper packaging, labeling, accurate and timely

delivery

• Availability of sufficient space for inbound and outbound areas

• Recommended for perishable items
• Walmart delivers 85% of its orders via its cross-docking system
Recording | Quality Control | Put away
Distance of the locations from receiving and
dispatch areas
End of Lecture 3