The rapid flow of material entering in a way that it is free from any congestion or delays requires proper planning of the reception area and its optimum utilization. The reception is the process of planning unit entries, exit and verification as requested by updating inventory records.

The goal to which a company should aim its goods receiving process is automated as much as possible to eliminate or minimize administration and human interventions that do not add value to the product. Another trend considered good in logistic practice is the implementation of programs certified deliveries that not only eliminate administration but minimizing inspections that are considered essential but they do not add value.

First of all, the process of receiving goods must be based on a forecast of entries that report receptions to perform in given and containing at least the time, items, and origin of each reception time, and this process is known as appointment for processes such as racked deliveries should have very specific resources such as forklifts, mobile platforms, ramps, among others.

It is obviously necessary that revenues from internal of external units are distinguished. In the first case, reception requirements are significantly lower than the goods from external sources. The correct methodology identifications throughout the company also greatly enhance the activity of reception in the case of transfer of goods between warehouses or warehouse transformation process. Goods of foreign origin require more exhaustive arrival conditions and must have been previously established with the supplier, bringing greater performance and accountability from the store.

After identification, which must be done immediately and in specific area authorized for this purpose, the goods must pass storage, either temporarily pending its final location, either fixed in its final location.

Storage or warehouse is the operating thread concerning the care and preservation of products with minimal risk to the product, people and company and optimizing the physical warehouse space. The warehouse can be divided into the following areas;

Reception

Area where the reception process activities are performed.

Storage, Reserve or Stock

It is the destination areas of stored products. Absolute adaptation to the goods harbored includes specific areas for special goods stock, returns, etc.

Order Preparation or Picking

It is the area where goods are located after passing through the storage area to be prepared for shipment.

Step Maneuver

It is the area for the passage of people and machines. It is also designed to allow full maneuverability of the machines.

Offices

They are aimed at the location of area jobs, auxiliary to the own warehouse operations and are also aimed at the location of ancillary jobs to the area’s own warehouse operations.

The process of planning and organization is a strategic and tactical character since it has to offer resource solutions in communion with the policies and objectives that include the company strategy in order to enhance competitive advantage by betting the same among the activities or sub-processes to be performed in the process of planning and organization.

Movement

It is the thread store operational nature relating to the transfer of materials/products from one area to another of the same store or from the reception area to the storage location. The activity of physically moving goods can be achieved by different means, using a variety of materials handling equipment. The type of tools used depends on a number of factors such as the following;

  • Volume store
  • Volume of goods
  • Life commodities
  • Cost of equipment against order
  • Amount of required special handling and expeditions
  • Distance of movement

From the perspective of the characteristics of the goods, the flow of incoming and outgoing goods store are varied such as;

  • Last In – First Out (LIFO): Last merchandise entering store, it is the first that comes to expedition. This mode is often used in fresh produce.
  • First In – First Out (FIFO): The first store merchandise entering, the first being pulled out of storage. It is the most commonly used method to avoid obsolescence.
  • First Expired – First Out (FEFO): The nearest expiration date is the first out.

Information

While the main function of the Warehouse Management is efficiency and effectiveness in the physical flow, their achievement is at the expense of information flow, and this is a transverse axis of the processes of logistics management and warehouse management are no exception.Optimization should be therefore a primary objective in Warehouse Management.Its scope extends to all the processes including planning and organization, reception, storage and movement and it develops parallel to them in three following ways;

  1. Information management
  2. Identification of locations
  3. Identification and traceability of goods

Within the management information include the following;

  • Store configuration installation layout
  • Data on available resources
  • Technical data of stored goods
  • Activity report address
  • Evolution of indicators
  • Procedures and work instructions
  • Profiles and job requirements
  • Records of daily activity.

Identifying the locations delves into the module of design and layout of stores. On the other hand, the identification and traceability of goods is detailed in the module of identification of goods. You can read more here about warehouse management process.

Leave a comment