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Preparation and Delivery of Goods

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Preparation and Delivery of Goods

Definition of Goods Preparation 

Definition of Goods Preparation Storage is "The process of preparing for the physical release of goods from the warehouse in accordance with the ordering and delivery documents and in conditions in accordance with the requirements for handling the goods."

Picking activity is very important in a warehousing operation. Edward H Frazelle, Ph. in his book "Supply Chain Strategy" states that the picking process is half of the warehouse activity.

With such a large portion, it is clear that the handling of the picking process in the warehouse will directly affect the efficiency and effectiveness of warehouse operations in general.

Still in the same book, Edward also states that the trip to the location of picking goods is the largest part of the time consumed.

This means that to increase picking productivity is actually very simple, namely by shortening the travel time to the picking location.

Stages in the Picking Process, including:

  • Priority picking
  • Dividing picking list documents
  • Personal recording and timing
  • Selection of picking equipment pick-Picking
  • Traveling pick to Picking the locations
  • Searching for requested items
  • Arrangement of items on pallets or trolleys
  • Collecting Results picking
  • Picking confirmation
  • Legality of documents

Understanding Shipping (Delivery)

Understanding delivery is "the process of preparing the physical delivery of goods from the warehouse to a destination that is tailored to the document ordering and delivery as well as the conditions in accordance with the requirements of the handling of goods"

Prior to delivery, the activities undertaken after the goods are prepared is packing (pack) and sorting (sorting).

Packaging is done individually or in combination for the convenience and safety of the goods. While sorting is the collection of picking or packaging to the correct route and must compare the capacity of the truck and the route to be traversed.

The most important things to do in the pack and sorting process are as follows:

  • Addressing and labeling the destination of the goods
  • Reduced search time in packaging
  • Grouping between cartons, boxes or other packaging
  • Provide special labels 
  • Counting the number of coli
  • Grouping packaging into the correct departure flow

Basic principles in packing and sorting are as follows:

  • Checking documents and goods
  • Activities of goods vs goods

Barriers in the process of packing and sorting, namely:

1. Slow of goods delivery 

2. Irregular pre-delivery locations

3. Damage to goods

4. Incorrect order of delivery plans

5. Trucks that are not according to plan

6. Partial picking

7. Incomplete documents

Activities that take place in the process of packing and sorting can also be measured by KPI which will be useful for management.

These benefits include:

  • Average box or carton
  • Can be measured by the total number of boxes or pcs available and the number of cartons after packaging

For example: East direction 100 boxes or cartons, North direction 40 boxes or cartons

Effectiveness of Goods Delivery 

According to Donald J Bowersox & Davids J. Close in their book "Logistics Management", it is stated that transportation activities spend 44% of the total logistics costs. 

Even in Indonesia, according to several sources, transportation costs incurred by companies can reach more than 60%.

Donald J Bowersox & Davids J. Close also divided the components of administrative costs 6%, customer service 4%, inventory 20% and warehouse 26%. From this it is clear that the transportation activity is an activity that needs to be handled very seriously.

In practice, savings in transportation costs can be done directly by implementing the following:

  • Minimizing waiting time for loading at the warehouse and waiting time for loading and unloading goods at the destination
  • Maximizing delivery capacity per vehicle type
  • Arrange the route to be addressed carefully
  • If possible, delivery is carried out in units pallets, not in shards or cartons.
  • Avoid stealth costs.

KPI for Goods Delivery

KPI (Key Performance Indicator) for delivery of goods is used to measure speed, accuracy, volume and other conditions determined by management.

To get the KPI for the preparation of goods properly, it is necessary to know the basics of work activities in this section, namely:

  • Checking documents and goods 
  • Goods activity and location 

By knowing the basics of these activities, it will be known the obstacles that occur in the process of sending goods related to the basics of these activities, namely:

  • Slow goods 
  • Damage to goods
  • delivery of Incorrect order of delivery plans
  • Inadequate transport fleet
  • Trucks not according to standards
  • Safekeeping (promotional) goods 
  • Management of CN goods

This is a review of the article on Preparation and Delivery of Goods. Hopefully this article can add to your insight related to warehousing management.

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