Businesses are always looking at ways to reduce the cost of servicing orders while at the same time improving the service provided to customers. Savings and improvements made in this area help to raise margins, increase competitiveness and promote growth. We know for many companies it is their warehouse operations where the opportunity to improve efficiency and productivity can not only help reduce costs but also increase output capacity and customer service levels.
The difficulties in efficient and fast turnaround of allocated stock
I’m sure every business has encountered the scenario of waiting for stock to arrive to fulfil customer orders, however for some companies this can be a common situation and the way many of their orders are handled, especially those business using back to back orders regularly.
Importing goods from abroad is one example of where stock will often be sold and allocated to customer orders against the purchase order whilst the goods are still on the water or in production. OrderWise provides the ability to allocate in this way against a purchase order to ensure stock is secured for customer orders and overselling does not occur. Equally companies offering a wide variety of products for sale will look to limit their stock holding by dealing with suppliers that can deliver quickly, allocating the stock ordered with suppliers against the sales order to ensure customer stock priorities are managed and delivery deadlines can be met. Both of these common working practices aside there are also a host of situations that can occur where stock on a purchase order is allocated to a sales order to meet customer requirements and expectations.
The real work however begins once the stock arrives at the warehouse. With orders already sat waiting for stock to arrive, businesses operating in this way have to turn it around quickly and often need to despatch orders the same day. The challenge then becomes how to handle the goods in process in the most efficient way, accurately identifying allocated stock, informing customers of order progress if required and ensuring picking and despatch can be quickly achieved without unnecessary double handling or stock movements.
Identify allocations at Goods In
New development in the 2014 v9.1 release means OrderWise can now check for any order lines with on-order allocations against the purchase order lines being booked in. 2 new Goods In User Group settings have been added to control how this information is presented.
- Activating the ‘Display allocation note message when booking in’ setting will mean that when booking in stock, if there are on-order allocations against it a window will appear detailing the Sales Order number, Customer Name and quantity allocated for each on-order allocation.
- Activating the “Output allocation note when booking in” setting will produce an allocation note that can be printed out. This allocation note provides details of the code and description of the variant, supplier details and PO number and then will detail separately each on-order allocation. This will show Customer information including delivery contact & telephone number, order number, quantity allocated, bin number the stock was booked into and required date. Additional Variant settings can be activated to amalgamate serial number and batch number transactions on the allocation note.
Allocated stock receipt control
Let’s look at an example scenario of how the use of Allocation notes improves operations on the ground. Users book stock into a Put Away/Goods Receipt bin location in the warehouse. OrderWise would inform the user that the stock has allocations against it and an Allocation note would be produced. The Allocation Note is attached to the allocated stock with any remaining stock then moved to its normal picking location in the warehouse.
If required the Customer details and information available on the Allocation note can enable fast and easy update of the customer regarding the status of their order. Using the ‘Goods Received Today’ radio button in the Despatch module users are then able to quickly identify orders waiting on the received goods and start the picking and despatch process. As the allocated stock has been identified at the Goods In stage and not been put back onto the shelf, pickers would be directed straight to the stock set aside with the Allocation note, already where it needs to be for despatch.
Flexible options to meet requirements
This is just one scenario of how a company can use the Allocation note functionality to eliminate unnecessary stock movements, improve communications with customers regarding order status while reducing order turnaround times and servicing costs. Allocation notes can be customised to meet individual company operation and information requirements with the ability to even output allocation labels that can be placed onto stock.
For more information on OrderWise download our brochure or watch the videos.
To discuss your requirements in more detail contact us today on 01522 704083.