Pillars of WMS
Receiving and putaway have often being defined as 2 of the 4 pillars of a typical Warehouse Management System. Put together the two pillars account for no less than 17% of warehouse operating expenses. Hence choosing the right processes and a system to support these processes is paramount.
Supplier and supplier site settings in Oracle dictate EDI communication with a supplier. The point of initiation would be when a buyer creates an order and approves it. Thereafter the EDI order is translated into an EDI document format called an 850 purchase order. The EDI 850 purchase order is then securely transmitted to the supplier either via the internet or through a VAN (Value Added Network).
If the purchase order is sent using a VAN, then the buyer's VAN handshake with the supplier's VAN. Theses transactions are seamless, secured and reliable. The supplier's VAN ensures that the supplier receives the order.
The supplier's computer system then processes the order. Once the goods are ready to be shipped the supplier responds via EDI 856 which is the ASN instruction. This ASN can directly be routed to the host system or can be processed via a TMS and then integrated to the host system.
We all know the usefulness of ASN. ASNs can be processed within the host system and used to initiate the supplier invoicing ahead of the physical receipt of the goods. We assume here that the host system performs a standard receipt where the receiving and delivery are two separate transactions. In case the host ERP system also has Oracle WMS implemented the ASN information can be processed and tied to the putaway rules. These are the internal rules and procedures for positioning stock in a warehouse or store after goods inward processing.
Efficient usage of ASN in a WMS can help in cross docking products more efficiently and cost-effectively. The process is being used to reduce costs out of the supply chain, accelerate inventory velocity, and improve service levels.
Once the receiving activity is complete in the host system an Expected Receipt Transaction can be generated to the WMS system. There are best of breed systems available in the market to meet business needs. These include Manhattan Associates, High Jump, Red Prairie, Catalyst International, and SAP SCM 5.0 besides Oracle WMS. Most of these products provide for:
• Detailed ASN information along with a supplier portal for manually capturing this information.
• Integrates inbound information into WMS logic to enable cross docking and labor planning
• Configurable rules enable the assignment of shipments to the best dock door available based on user-defined parameters.
• A graphical representation of the yard shows location status, trailer status, and visibility into truckload contents.
• Recommends a door based on the putaway class of the inventory on the trailer and the compatibility of the trailer with the dock door.
A prudent product evaluation will thus determine the strength of the two pillar of the warehouse. Therefore organizations indulge a careful selection of the product that best suits their requirements.
In the words of Peter Drucker: "Checking the results of a decision against its expectations shows executives what their strengths are, where they need to improve, and where they lack knowledge or information."
