Process Checklist - Warehouse Re-engineering

Overview

Establish project team for local requirements
Obtain macro understanding of current Logistics processes and computer system
Do a macro review of Warehousing and Distribution
Determine unique requirements
Document warehousing project requirements

Communications for a Warehouse Project

Develop communication to internal employees
Develop communication to external / third party suppliers
Develop broad communication to customers
Announce to internal employees
Announce to external / third party suppliers
Announce to Customers

Sales Process Review

Sales
Level of sales by month
Level of credits by month
Split of sales by state / location
Sales by product
Level of back orders

Last Customer survey finding

Delivery issues
Product issues
Customer perception
Customer issues
Review current policies and procedures
Agree service level for market
Agree communication strategy for performance levels to customers

Marketing

Market segments that are attractive by product and customer?
Landed cost of goods, manufactured cost of goods?
Cost to serve by customer / customer segment?
Are there distributor customers who should be served direct?
Which products and customers are high margin?
Why do some products and segments have higher margins?
Which product/customer segments are growing/falling?
Preferred segments in the various product category markets?
Market initiatives can be used to target each segment?
Resources and capabilities required to target preferred segments?
Constraints and strategic considerations that might arise?
Are there customers which are service driven and will pay a price premium?
Do you have the resources / capabilities to target preferred customers?
How should prices be set and controlled?
How are prices currently set and controlled?
How should marketing and costing information be integrated?
Information required to support market targeting and pricing?

Finance

Company financial year?
Cut off times each month?
Value of inventory?
Inventory provisions?
Currently in inventory in transit inventory?
Current budget for distribution?
Supply Chain costs by
In-bound freight and customs
Warehouse costs
Out-bound freight costs
Total distribution costs as a percentage of sales

General Management

What is the main weakness of warehousing and distribution?
Which market segments are attractive to the Supply Chain?
Competitive advantages of Logistics to this company?
What is the cost of the warehousing to serve the customer?
Are you getting an adequate price for customer exclusives?
Are there distributor customers who should be served direct?
What characteristics determine attractiveness to your customers?
How do you compare to your competition for customer service?

Human Resources

Are company improvements possible?
What scope is there to improve the Logistics performance?
What scope is there to improve individual performance?
Benefits that will arise from process improvements?
Will conflicts arise from process improvements?
Culture of the company?
Training schemes offered by the company?
What induction programs are used by the company?
Is there scope to reduce direct head counts?
What opportunities exist to reduce people costs?
How are IT systems used and what tools do they provide?

Inventory

Are inventory improvements are possible?
What scope is there to improve performance?
What benefits will arise from rationalising the product mix?
Should the range of products offered be reduced?
Can demand variability be reduced?
What inventory holdings need to be held?
Is there scope to reduce direct costs?
Are there opportunities to reduce costs?

Inventory Planning

Are planning improvements possible?
What scope is there to improve forecasts?
What benefits will arise from rationalising the supplier mix?
Should the range of products offered be reduced?
Can demand variability be reduced?
What inventory holdings need to be held?
What is the current method of setting safety stock levels?
Is there scope to reduce inventory holdings?
What opportunities exist to reduce costs?
How are IT systems used and what tools do they provide?

What is Warehousing?

What physical improvements are possible?
What scope is there to improve performance?
What benefits will arise from rationalising the product mix
Should the range of products offered be reduced?
Can delivery variability be reduced?
What inventory need to be held?
Is there scope to reduce direct labour costs?
What opportunities exist to reduce costs?
How are IT systems used and what tools do they provide?

Distribution

What physical improvements are possible?
What scope is there to improve transportation's performance?
What benefits will arise from rationalising the customer mix?
Should the range of services offered be reduced?
Can delivery variability be reduced?
Is there scope to reduce direct labour costs?
What opportunities exist to reduce costs?
How are IT systems used and what tools do they provide?

Freight Forwarders

What physical improvements are possible?
What scope is there to improve the forwarders performance?
What benefits will arise from rationalising carriers?
Should the time frames of services offered be reduced?
Can delivery variability be reduced?
Is there scope to reduce direct transport costs?
What opportunities exist to reduce costs?
How are IT systems used and what tools do they provide?

Process - Customer Service

Order taking
Credit processing
Order data processing
Credit data processing
Not Required by Customer
Ordering Errors by Customer
Order Duplicated
Damaged Stock Received by Customer
Dated or Discontinued Stock Received
Wrong Goods Delivered (pick error)
Errors at Order Entry
Product Labeling Errors
Goods Lost in Transit
Disputed Returns
Short Shipments
Product Recall
Price enquiries
Price Adjustments
Wrong Customer Invoiced
Adjustment for Incorrect Credit Process
Freight Adjustment
Rebates
Revise Trading Terms and Conditions
Communicate revised Trading Terms and Conditions to customers
Other

Process - Distribution

Order picking
Order packing
Order dispatch
Delivery transport

Process - Warehousing

Moving a warehouse
Identify team members for project
Configure warehouse
Design warehouse
Relay out warehouse
Review warehouse layout
Agree new specification for warehouse computer hardware
Install new computer hardware
Define power needs and location
Install electrical work
Develop new numbering system for bin locations
Arrange printing of new location labels
Install numbering system
Install Packing Benches
Move Inventory
Organise trucks for move
Organise staff for move
Move remaining inventory
Inventory Stock Take
Orders issued out of warehouse
Review stretch wrap / labeling machine

Warehousing Documents

Pick slips
Invoices
Put-a-way labels
Job descriptions for staff
Repacking paperwork
Current skill levels of staff
Standard operating procedures
Obtain current key performance indicators

Warehouse Process

Receiving process
Put-a-way process
Picking process
Invoicing process
Credit process
Dispatch process
Re-packing process
Cycle count process
Inventory adjustment process
Stock take process
Barcode printing
Back order reports
Purchase orders
KPI reports
Review documents for above processes
Review costing for rest / new year
Agree on Cost Model
Draft new agreements / KPI's

Process - Logistics

Planning & Sales forecasting
Are there sufficient data points
At least two years history is required for seasonality
The more data points the more stable the forecast confidence in reliability
Unusual Demands
Specials
Non standard lengths
Logistics Errors
Random/abnormal demand
Change in pattern
Inventory data Integrity
Recording demand
Recording credits
Recording re-works
Forecasting at stock keeping unit
Common method of forecasting
Length of forecast period
Local market Supply Chain
Overseas stock requirements
Consolidation on a National basis
Inventory Management
Product Mix
ABC inventory
Product grouping
Products
State Mix
Safety Stock
Location of safety stock
Calculation method for safety stock
Agreed level by stock keeping unit
Minimum Quantity Buys
Local purchases
Overseas purchases and the Supply Chain
Customer cycle time requirements
Performance Levels
Stated Customer Service Levels; and
Agreed process service levels overall

Process Logistics

process

Logistics - Anything but simple

Logistics are all about getting the correct products to your customers - consistently, on time.


Simple. Or is it?

In order for your supply chain to work seamlessly, your logistics require flexible and agile coordination of a complex set of processes, operations and systems.


It takes a best practice consulting solutions provider with experience, knowledge, proven methodology and the ever-more important, technological capabilities to provide accurate, fast logistics consulting.


At STL Warehousing we practice what we preach.


That's what our clients want - and that's what we provide.

Call +61 2 9889 8000 today.

Australia,

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