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Warehouse Control Systems
RADIO FREQUENCY TERMINALS TIE IT ALL TOGETHER
The radio frequency (RF) driver is a software module designed to allow the warehouse control system to communicate with the RF terminals and standard CRTs. With the exception of receiving, all other functions of the warehouse interact with this software module through the RF terminal.
Receiving
The receiving process uses one program to report to the computer everything received in a shipment. Because the computer tracks the needs for the received shipment, it keeps warehouse personnel from putting away inventory unnecessarily. It also produces bar codes for all items received, if labels are not preprinted.
References are made to! advance shipment notices and purchase order files to verify what is being received with what was ordered. Once received, the system reports what items are needed to fill customer sales orders and transfers to other warehouses. The system then advises where to store the remaining items in the warehouse.
Storing
Since a locator system is implemented, the computer advises where to store the items. The operator does have the option to override the suggested location. Using the pallet ID, location code, and product code, the computer and personnel interact to store the items received.The primary goal of the locator system is to know what is on hand and where it is stored at all times. This leads to easy access and location of items for quick picking.
Picking
The picking system accepts two types of picks: will call sales order and transfer to another warehouse. In picking a will ! call sales order, the sales order number is entered into the RF terminal. The computer sorts by location and directs the employee to pick the items until either the pallet or the order is filled. Once filled, the employee is expected to put the pallet down in the will call shipping area and scan the location code.
When picking transfers, the RF terminal accepts the destination warehouse ID to determine all transfer items. The computer sorts these products by location for an efficient travel route. This process for transfers within a large warehouse can be grouped by zones, alleviating the need to cross an entire warehouse. Filled pallets are stored in the transfer shipping area.
Shipping
Two types of shipping exist: will call and transfer. Will call pallets are usually packed into boxes for shipping. Pallets or boxes are processed through the freight manifest system (UPS approved). This system produces a manifest for ! the common carrier or customer.A transfer is shipped by placing its pallets on a truck destined for a specific warehouse. As pallets are loaded the destination ID is accepted from the RF terminal. The operator can load the pallets in any desired order. When the truck is filled, a manifest is produced showing pallet and product detail.
Each day a report is produced, showing all shipments leaving the warehouse as well as all receipts.
Counting
In cycle counting, the warehouse manager can specify the cycles per year and the count sessions per year. Whether by location or product, the cycle count process tracks the last one counted. When preparing to do cycle count, the computer reports the next location or product range to be counted. If the quantity count differs from the computer's quantity, a recount is necessary. If a discrepancy still exists, an adjustment will be automatically made to the location quantity and a pro! duct count alert is passed to the warehouse supervisor. Financial adjustments are not made until the supervisor has completed the entire product count. Accuracy reports are generated for audit and management purposes. Counting inventory by location ensures the data's integrity. Accurate computer data benefits all facets of the system, as well as, the goal of knowing what is on hand and where it is stored.
The inventory management system maintains information for multiple warehouses. Among the many elements for each item at each warehouse, the system calculates and stores usage rates, stocking levels, and movement classification. This information is easily retrieved allowing for flexible reporting to management personnel.
Usage rates help predict future sales from past sales. By establishing stocking levels, the system ensures the item will! be available when the customer requires it. This automation relieves management from the worry of running out of stock. Management personnel, therefore, can concentrate their time in controlling products with high-dollar movement. Each item is classified by its dollars moved through the warehouse in a period of time. This classification enables management to identify where to spend their time in controlling inventory.
With all facets working in concert, the inventory system is designed so that the least amount of inventory provides the best customer service with minimal labor.
Purchasing
The purchasing system offers a series of automatic ordering programs that require minimal involvement from the purchasing agent. The system establishes order points for each item, based on individual item usage rates. When the computer recommends the restocking of a product, it computes the quantity of an item to buy. Various formulas, such as Min/Max, Economic Order Quantity, and Manual Override, are applied in this calculation. By computing the lowest order cost, only the minimum investment dollars necessary are involved.
If central purchasing is invoked, the needs of all the warehouses are pooled together for volume buying with vendors. If the vendor will drop-ship, separate purchase orders are automatically split out for the applicable warehouses. If, however, drop-shipping is not available or if the needs of several warehouses were combined to meet a minimum order, the system keeps track of the amounts each warehouse ordered. Therefore, when the central warehouse receives the order, the computer informs receiving personnel where to send each item.
The benefits of automated purchasing allow a minimum number of people to make purchasing decisions for the entire company for a wide variety of inventory items.
Sales
Manually checking the stock of an! item at the point-of-sale is time consuming, if not annoying for the customer and employee. Providing an item's real-time quantity available for sale eliminates the need for manual stock checking. Real-time is accomplished by updating when the event occurs. The quantity available for sale is calculated by subtracting quantity reserved for sales orders from quantity on hand. The quantity available for sale is maintained real-time every time an invoice is printed. Knowing the quantity available is important in reducing the labor involved in filling customer orders, as well as in providing high customer service.
Location information on an item is also available to the salesman, through a comprehensive location system. All of these features combine to help the salesman service the customer in an informed and timely manner.
Financial
At the heart of the financial system is the general ledger. Information from the purchasing! , sales, and inventory programs is automatically sent to the general ledger.
The inventory system calculates cost of goods sold, profit margin, costs of inter-warehouse transfers, and cost of adjustments in physical counts. This along with other information is included with the general ledger data. Having up-to-date financial information allows management to direct company investments in inventory. Inventory is usually the most significant asset of the distributor, wholesaler, or retailer.
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