Why shipping and receiving affect the entire process

A recent idea that reduced product weight by 60%, lowered fuel bills and reduced tire costs by 6%. With a fleet of more than 100 vehicles, this is just one small project idea out of five emerging from a high-impact change management program. Internal procedures and methods are easy to proclaim but difficult to translate into reality. Whether you’re starting from scratch or upgrading existing systems, this list of general notices is a helpful guide. Equipment and layout become considerably easier when you have a map with a clear path marked out for you. Presented as a 10-point list of rules of thumb and consequences, the idea is to help you think through subject headings and support the thought process in an ordered set of steps. This method will help produce a workable system with a minimum of the shocks and surprises that inevitably plague all change management. All quality systems benefit from thinking entirely about the job. Micromanaging the process now will save you a lot of money and time later, and equipment selection will be much less dangerous.

Design- Start with a design for the entire system; Otherwise, you’ll find to your cost that changes rarely affect just one small area of ​​your business. Rule 1, therefore, is not to mess with the small areas of malfunction because it is likely to make things worse.

Traceability- If you don’t have time to get it right the first time, where are you going to find the time to correct it? Rule 2: Spend some time thinking about how to return what you sent your customer to your supplier without breaking the bank in the process.

Driving – If you think handling and storage systems are expensive, wait until you pay the bill for labor, injuries, duplicate and damaged stock. Rule 3: Design your operation to be able to efficiently handle performance. Everything in its place and a place for everything… even to charge batteries! (18 months ago, a few weeks after receiving his new forklift, one of my customers let the battery die. This truck cost almost £38,000, replacement batteries cost just under £5,000. They also lost a lot time while things were fixed).

The smallest unit of measurable cost – How much control do you need? Pallet size or pint size, do you sell bricks or diamonds? This is the size of your report for your monthly performance review, and it seriously affects how you interact with your logistics and distribution support work. Rule 4: Round up the pennies and the pounds will take care of themselves

Storage- Considerations for this include on-site or off-site stores, work-in-progress, and what you expect vendors and customers to have in store for you. Never hold onto junk or old stock, get rid of it and use the cash or space for something more productive. Rule 5: Be very sure of your operating space needs. These are your fixed overhead costs, and if it doesn’t work out, you’ll find these costs expensive and risky to manage. Use other people’s overhead as a first low-cost option before committing to long-term leases. Fixed costs have that title for a reason!

Picking Systems – Typing is faster than walking, so start with an efficient and well-thought-out list. Avoid storage or production work at the same time as picking work. Make sure your shelves have all of your picking requirements ready for picking. Keep inventory recognizable for both picking and counting, either at a glance or by scanning. Keep stock within reach of pickers or harvesting machinery. Rule 6: Apply the main Grand Prix, the fastest moving get pole position!

Equipment – You will need it. Rule 7: Treat your company like your children. Get the best and keep discipline and training top of mind. If you think training is expensive, you can’t afford to be ignorant!

Packaging – For this it is necessary that the product arrives at its destination duly identified and nothing else. Make it like Christmas for the new owner but at the same price as Christmas paper. When it is opened it should still have that magical Christmas delight and like Christmas if it is to be thrown down chimneys it should be protected from Santa’s little helpers and reindeer bumps. If you are going to send as many Christmas presents as Santa does, make sure you have good matching and sorting systems that count and sort quickly. Rule 8: Think about the journey from the shelf to the opening ceremony. You don’t want it back in bits. Shipping products twice wastes resources and alerts the customer to potential system problems.

Packaging – This is an operation and it should flow with everything at hand and with as few process interruptions as possible. Quickly connect it to the issuance of invoices or content notes, or receipts if it has been prepaid. Rule 9 – Make packaging as continuous and uninterrupted as possible, as it reduces errors due to distractions.

Minimum order values – Add up the time it takes for your product to sell based on activity. Add them to the minimum amount that produces enough gross profit to pay them or make that your minimum charge regardless of the amount, then factor in goodwill… or not! Rule 10: Study your order book carefully and make sure the value you add covers your costs.

Additional idea – All systems must consider the environment. All systems must allow for an orderly workplace. Make sure your products are well protected but easily accessible. Products that have their own boxes or cases must take into account the current function and environment by keeping up to date and well supported with maintenance and application ideas. Never miss an opportunity to let the user know what else you do, especially if it makes their day better.

Leave a Reply

Your email address will not be published. Required fields are marked *