Warehousing Operations Guide: Part 6

(6) Work in Process (WIP)

Quick recap: In our previous articles, we learned about the following topics:

1) Receiving


2) Quality Control / Checking


3) Cross-docking


4) Put-away/Transfer


5) Order Picking        

This article is divided into different parts.

For Part 1 — Click?HERE.

For Part 2 — Click?HERE.

For Part 3 — Click?HERE.

For Part 4 — Click?HERE.

For Part 5 — Click?HERE.

For Part 7 — Click?HERE.

"Work in Process" and "Work in Progress" are used interchangeably, but they are two different terms.

Work in Progress is used in accounting that goes onto the Company's balance sheet that tracks the value of inventory items.

Considering the cost of

? Production

? Labour

? Overheads

Required to produce those items.

Work in Process is used in Warehousing, Manufacturing and Production to track physical assets and their state.

WIP refers to those inventory items (partially finished goods) that are not yet ready for shipping. In other words, they are unfinished items.

In simple terms this means these inventory items require more work such as:

? Inspection

? Quality Control

? Printing

And adding any

? Custom logos

? Tags

? Names

etc to the units before they are ready to be picked, packed, and shipped.

These are done to meet the different requirements set by:

→ Customers

→ End users

→ Govt bodies

→ Work Health and Safety Laws

→ EPA laws

→ Companies internal and external stakeholders

etc.

After all the work is completed on Work in Process (WIP) inventory items, they still go through a lot of other different processes such as:

→ Picking

→ Packing

→ Labelling

→ Inspection

→ Dispatch

Before they reach their final destination (this could be their customers or the end-users).

(7) Value Added Services (VAS)

Some warehouse/distribution centres offer Value Added Services (VAS) to their customers and end-users.

But what are value-added services?

Well, in simple terms this means some sort of value is added to the products and that extra cost is paid by the customer.

This is done for a variety of reasons, such as:

?? Reduced handling

?? Increase efficiency & productivity

?? Streamline operations

?? Eliminate unnecessary steps

?? Add value to the products

?? Changing the quality of the products (order items)

etc...

VAS can include the following:

→ Re-Branding

This can include adding brand tags, names, colours etc to selected products as per the customer requirements.

→ Logos, Names, and Embroidery

This may include adding names, logos, and embroidery on different products, which could either be regular transactions or one-offs.

→ Packaging: This can be either specialised packaging or re-packaging.

This may include putting products into smaller cartons/boxes or putting smaller boxes together into a large box as one, with customised packaging.

This can include branded plastic wrapping, protective materials such as bubble wraps etc.

→ Kitting

In this process, items are bundled together, packed, and sent as a single unit to customers/end users in the case of B2C businesses. Eliminating so many steps in material handling.

→ Labelling & Bar-Coding

Adding labels and barcodes to different products to help ease the transaction for your customers.

→ Price tags

Adding price tags on products as per the customer requirements.

→ Security Tags

These are added for theft prevention.

→ Retail ready

This process includes making products retail-ready.

This means as soon as they leave the warehouse and are received by the customers, they can put the items on their shelves without any additional steps.

This reduces material handling and which in turn increases the efficiency of their operations.

(8) Order Assembly

In this process, picker pick orders using carts/trolleys which are then brought to the table (packing station). These orders are left on a table, where they are checked and then packed.

In some places, these orders are checked and packed by the pickers, while in others they are checked and packed by dedicated packers.

This is mostly used by small businesses where the operations are small and have limited resources.

(9) Order Checking

As is evident from the name, in this process the packers check the picked items against the customer sales order.

Note: In some places, pickers do both picking and packing (which includes checking the order items).

Other businesses have two or multiple teams, where one focuses on the picking while the other attends to packing.

Orders are checked for accuracy and to meet different requirements of the many different customers. This includes:

(1) The right number of products have been picked.

i.e., Nothing more, nothing less

For example, 10 Hi-Vis Yellow Navy shirts have been picked.

(2) Orders for the right address have been picked.

e.g., Your customer may have different stores throughout the State/Country.

Although the parent entity is the same, they require shipping of orders to different stores.

(3) Right product types have been picked.

e.g., small size navy blue trouser pants.

(4) Items are in good condition.

i.e., Products are not damaged as otherwise the items would be sent back by the customer.

(5) Attend to any special requests from the customers, such as:

— Value Adding Services (embroidery, special packaging etc)

— Urgent delivery (e.g., Same day or overnight delivery)

— Consolidate different orders together

etc...

Pick accuracy can make or break your customer service experience, which will have a drastic impact on your business.

Therefore, your warehouse staff must pick the right type of items and quantity as listed on the sales order from your customer.

Each workplace is different and will have different standard operating procedures (SOPs) for getting this process right.

This is essential to keep their customers base and to fulfil their business needs.

Order checking is mostly used in those warehouse and distribution centres that don't use the latest technologies such as:

(A) Automation

(B) Picking Technologies, which can include:

• RF Picking
• Voice Picking
• Pick-to-Light
• Vision Picking

etc.

Some Warehouses/DCs still might include order checking as part of their daily operation, even if they are using the above-listed technologies and systems.

(10) Order Packing

In this process, all the order items are brought to the "Packing Area" first, then a container is selected to put the products (order items) in.

? In most places, a station is dedicated to packing.

Once a container is selected, items are put into the shipping container (appropriate to the products being shipped), then it is packed and secured.

During packing attention is given to packaging based on the size and nature of products.

This includes adding:

? Bubble Wraps

? Air Cushions

? Foam

etc...

These are added to the shipping container to prevent the breakage of delivery items during shipping. In the next step weight and the dimension of the container are recorded.

This information is put into a WMS which is connected to the Order Management System to calculate the best courier service based on:

? Delivery Time

? Pricing

? Priority (Same day, Overnight, or Next Day service)

Notes:

? Not all couriers cover all the delivery areas that a business serves. Therefore, it is crucial to have multiple courier partners at hand.

? Businesses engage multiple courier partners for shipping purposes to optimise delivery routes and charges associated with shipping the products.

Once a courier has been selected, labels are printed and attached to the shipping container.

A copy of the invoice (packing slip) is also attached to the shipping container. This is used by the customer to receive orders and check the accuracy of order items.

Shipping containers will vary depending on the size and nature of products being shipped out. They could be any of the following items:

? Plastic Box

? Cardboard Box

? Satchel

? Half Pallet

? Full Pallet

Order packing can involve many different things, depending on the size and nature of the business. It can include some or all the following:

(A) Choosing a suitable container

e.g., a box, carton, satchel, or a pallet

(B) Checking and recording the dimension and weight of the container

(C) Suitable packaging

(D) Using specialised containers for heavy, overweight, and fragile products

e.g., medical equipment, jewellery, chemical IBCC (1,000L tank) etc

(E) Printing the labels and packing list (invoice)

(F) Attaching specialised signs, such as:

— Handle with care

— Fragile items

— Hazardous chemicals

etc…

Items required for "Order Packing" can include the following:

1 ? Packing Station:

Where picked items are packed into a container.

2 ? Computer Software:

That is used for shipping. This could be a browser or a standalone software on the pc.

3 ? Shipping Printer:

Printers such as Zebra to print despatch and delivery labels.

4 ? Invoice Printer:

That prints the packing slip shipped with the container.

5 ? Weighing machine:

To check the weight of the box and is used when booking freight.

6 ? Measuring Tape:

This is used to record the dimension of the container. Dimension refers to the height, weight, and length of the container.

This article is divided into different parts.

For Part 1 — Click?HERE.

For Part 2 — Click?HERE.

For Part 3 — Click?HERE.

For Part 4 — Click?HERE.

For Part 5 — Click?HERE.

For Part 7 — Click?HERE.

Published on 16/11/2021

Last Updated:?02/12/2021 at 12:50 AM