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Pros - consumes least space, physical movement of product is minimal The dispatch process can be divided into four stages as under:
Cons - Sophisticated WMS required to assign locations
Do-it-today:generally, put away tends to take back-stage to prioritize other tasks such as pick-
ing, replenishing, shipping and loading. Parking the put-away process causes congestion, repeated
movement of product and therefore possible damage to goods or packaging.
Execution 4.6.1 Order Processing
The planning provides a blueprint of how to go about assigning resources. Sometimes unusual situ- The outbound process begins with an order. This could be a sales order(SO) or a stock transfer
ations can trigger a need for change in schedule. These can be handled as exceptions or priorities. order or a material requisition to the feeding line. The sales order will typically specify the SKU
required by the customer and the quantities for each of them. The SO are generally processed by
Monitoring Finance team which checks if the payment is received from the buyer or is there enough credit limit
No process can be made effective unless it is constantly monitored for improvement. The put-away available. Once the SO has been processed and cleared in the system all the subsequent process of
process is no exception. Monitoring the major factors that might affect efficiency of the put-away picking and dispatching starts.
process helps in process enhancement.
The Sales order processing also allows the sale invoices to be generated which accompany the goods
An effectively managed put-away process enhances warehouse operations and positively impacts during transit. Though in most of the cases the Sales Order are processed not at the warehouse.
many other factors like total storage capacity, managing short-shipped or cancelled orders, prevent- There is a backend team which processes the Customer orders. However, in certain cases the ware-
ing damage to inventory, eliminating congestion in aisles and so on. house team may be allowed to process the sales orders. In such cases, the customer Purchase directly
flows to the warehouse and warehouse processes the Sales Orders based on the material availability.
4.6 Warehouse dispatching
4.6.2 Picking and Pick List
Dispatch of the goods from the warehouse is the most fundamental job of the warehouse. The goods
received and stored have to be finally delivered to final customer or to manufacturing line for pro- Picking is an extremely important warehousing process. This stage drives the productivity of the
cessing. Following are typical flow of dispatch process. whole dispatch and ordering process and makes it one of the most critical processes in supply chain
management.
The first decision in the picking is the decision to decide the methodology of processing the orders.
There are two broad ways to achieve this:
Discreet Order Picking
In this method one order is picked at a time. This method is common when travel is not a major
factor and when customer orders average one to a few products. For example, warehouse received
order as under:
SKU 1 SKU 2
Order 1 2
Order 2 3
Order 3 1 4
