Online Merchandising ManagementIn the area of online inventory management, the development of receiving procedures and physical layouts that accurately support the real needs of today will contribute to much more efficient labor and space utilization. Because incoming shipments fall into certain categories that each require different receiving processes for efficient handling, it is necessary to keep detailed daily records of the trailers unloaded, how many were common carriers, contract carriers, backhaul, railcars, etc. How many of each of these need to be unloaded on their day of arrival or could be staged for a later day's unloading? With this kind of information, a receiving area could be laid out for maximum efficiency and modified promptly to support changes as they take place.
There are many operating concepts for improved customer service that should be attempted only if there are sufficient meaningful data available to make proper judgments. One of these is cross-docking. Here the intent is to unload receipts and send them directly to a waiting shipping trailer without delay. The idea is appealing, but without a sound basis for operational analysis, such as the need for a shipping door for every store, it can result in high capital and labor costs with results that still miss the mark. Alternatively, the ability to receive goods on one day and be able to ship on the next may be more cost-efficient for your operation. All the things we've discussed have one common requirement: the need to organize, plan, and control with a high degree of certainty. The primary tool for making this possible is a comprehensive operational database. O'Donald is senior consultant, Technics Group, with Rapistan Corp. He has held numerous assignments with responsibility for conceptualizing, system design, equipment specification, bid evaluation, contract negotiations, procurement, installation acceptance, testing, and training personnel for a wide range of material handling system types. He attended Western Michigan University; Kalamazoo, Michigan and Albion College; and has a B.A. degree in mathematics and physics. To better serve larger customers, we are exploring the possibility of replacing faxes with an electronic data interchange (EDI) system for communication. We want to expedite the receipt of their orders and give them immediate shipment status down to the serial number. This picking system is flexible enough to allow bulk picking or picking down to the order or individual product level. And given the tremendous growth of both TAIS and the laptop computer market, flexibility and portability were key criteria. Distributors and manufacturers must respond to today's demand for information immediacy. This means smaller lot sizes, quicker response times, and faster inventory turns. By shortening product and information pipelines, TAIS is helping itself and its customers meet this demand. |