Logistics, Inventory and Warehouse Management

For manufacturing and distribution companies in today's environment, the correct integration of the purchasing department, the different logistics areas and, within them, the correct inventory management, is key.

Based on a sales plan or forecast, we can build material requirements in terms of quantities and dates, using functionalities such as MRP (Material Requirements Planning), which take into account existing stocks and actual and/or forecasted demand.

This functionality is based on the fact that the demand for most of the items is not independent, only the demand for finished products is. Knowing the demand for finished products, their composition or list of materials, manufacturing times and delivery times from suppliers; these solutions allow knowing which products need to be purchased, how much and on what dates they will be needed. In this way, a list of orders to suppliers is created with the corresponding delivery dates, thus making an efficient inventory management.

Labeling: In-Plant Label Integration and Management

The in-plant label management is a standard identification system by means of barcode, used internationally for the identification of goods in logistics processes.

Basically, it allows to:

Identify logistics units and their associated characteristics.
Ensuring the traceability and traceability of the product throughout all supply chain processes.
Manage goods at national and international level.

This barcode allows the inclusion of additional information such as lot number, expiration dates, packaging, manufacturing and logistic information (dimensions, quantities, etc.). This represents a significant increase in the information available to companies in an automated way.

The identification system GS1-128 allows information to be captured automatically through optical barcode readers. This is the feature that makes it possible for companies to integrate the available information with the company's own transactional processes.

Radiofrequency: RFID Technology

RFID (Radio Frequency IDentification) refers to a type of technology that allows the storage and wireless identification of data. The reading and recording of data is performed by devices consisting of a chip and an antenna, called tags. These antennas are designed to receive radio frequency signals from a reading and recording device called reader or encoder.

The main purpose of the RFID technology is the identification of any type of product with a tag attached to it. This technology has advantages over other existing identification methods, such as barcodes:

The data on an RFID tag can be modified indefinitely.
The RFID technology makes it possible to work in harsh environments for operators, i.e. extreme situations of temperature, humidity, etc.
They do not require direct line of sight between tag and reader.
The information contained in a tag can be far superior to that of a barcode.
It allows identification, traceability and complete localization in the processes of the supply chain.

The final step is to integrate this technology with the company's own logistics processes through the company's corporate applications.

Traceability: Solutions for a complete traceability process

A complete, well-defined, and reliable traceability process is indispensable for prevention or in a crisis situation, throughout the entire supply chain. In the course of this process, it is essential:

Rigorous coding.
Information exchanges between different agents in the chain or within the same company.
Automatic access to the life of the product, allowing us to know its history, from the reception of all the necessary materials, its manufacture, its transfer between CAD (Storage and Distribution Centers), until its delivery to the final customer.

To comply with these premises, it is really necessary to have a computer system that supports and manages all the necessary data volume. The solutions are very varied, hardware and/or software, ranging from the labeling and reading of the bar codes, radio frequency devices, integration with your ERP software, mobile terminals, integrated weighing systems, etc.

The main advantages of an Optimized Traceability Process are:

Increases customer confidence by ensuring greater efficiency in the event of problems.
Decreases reaction time and control of defective batches.
Increases security, allowing to demonstrate the origin of a problem.
Facilitates the location, immobilization, and effective withdrawal of products or batches.
Fast and secure availability of information.

In the ongoing challenge for companies to improve their supply chain, the challenges of the production process have long since been overcome. But once the product is manufactured, it goes to the warehouse. What was traditionally considered a necessary physical space within the company's logistics chain has become a critical service center for different areas.

The main objective of an effective warehouse management is to guarantee the supply of the necessary materials required by the different departments in an uninterrupted manner, and respecting the minimum times necessary to avoid stock ruptures or loss of service.

The incorporation of new systems, the adoption of new tools and working in multi-devices generates speed, savings and an exponential increase in the profitability of your department. All of this must be integrated into a logistics strategy adapted to each organization. At Neteris, we are well aware of all the logistics solutions that can help your company go one step further.

As far as warehouse management is concerned, unfortunately in the industry today there are circumstances in which this objective for stock management is not covered, and we suffer from it on a daily basis:

High product search times due to lack of location or incorrect location management.
Product identification problems.
Loss of traceability.
Lack of integrity between the different warehouse processes: reception, transfers, consumption, manufacturing registrations, picking and dispatches.
Expiration and obsolescence of products in plant.

Can technology remedy these types of incidences? How to make an adequate stock control?

Intelligent warehouses rely on the implementation of ERP systems and WMS software to improve tasks within the warehouse, optimize costs and increase the level of satisfaction of both the internal customer and the end customer.

What is a Warehouse Management System (WMS)?

The WMS (Warehouse Management System) technology allows the user to control the entire supply chain in a simple, intuitive way and with real-time information to facilitate decision-making at any time of the operation.

Today, vendors such as Oracle have warehouse management softwares, as for example Oracle Warehouse Management, a tool from Oracle SCM Solutions that is specifically designed to support the needs of distribution, manufacturing, large assets, and business services. These solutions provide a single platform across an entire global supply chain. That is: to be able to know in real time what is happening in your warehouse and help you manage it.

In addition, you can also opt for the cloud version: Oracle Warehouse Management Cloud which frees you from customizations and upgrades, and offers you the speed and savings of the cloud, as well as the best optimization capabilities and comprehensive warehouse management, whatever the size of your company.

Advantages of WMS software implementation

The implementation of a warehousing management system or logistics warehousing systems has the following advantages, among others:

Increased space utilization, more efficient inventory handling and higher labor productivity.
Real-time inventory visibility and lower safety stock levels.
Allows the establishment of KPIs (performance indicators) to manage personnel.
Establish quantifiable objectives for warehouse management, which will then allow analysis of productivity by cost center, work area, etc.
Dashboards that enable operational analysis.
Have a 360-degree view of your inventory at reduced costs.