Tag: warehouse management system

Inbound and Outbound Logistics Processes (Step-By-Step Guide)

Choosing proper 3PL logistics services and a trucking company with a modern warehouse management system (WMS) is crucial to any successful supply chain management process. Within the supply chain process, there is a much smaller piece of the puzzle that is arguably the most critical component in maintaining accurate inventory: The Inbound and Outbound Logistics Process.

1. Inbound Logistics Process (Receiving)
2. Outbound Logistics Process (Shipping)

If an inventory is not initially received and reported accurately during the inbound processes (ex. by the company’s Receiving Department), it becomes nearly impossible to maintain an accurate system or record. This affects all aspects of logistics services and the supply chain.
Also, if the outbound shipping process does not operate correctly, shipments may be incomplete, arrive late, or sent to the wrong recipient.

For this reason, you should figure out how to choose a logistics and trucking company that focuses a great deal of attention to the inbound and outbound process. To ensure that this process runs as smoothly as possible, at Tenax Transport (a 3PL logistics company serving the USA and Canada), we use a top-of-the-line warehouse management system (WMS) with real-time logistics services capabilities.

Inbound & Outbound Logistics Process (Step-by-Step Guide)

To figure out the difference between inbound and outbound logistics, it’s important to first know the basics of an inbound and outbound process. That will help you better understand how it affects the efficiency of your overall supply chain. Let’s take a look at inbound logistics vs outbound logistics.

The Inbound Process:

1. Recording and Receipts

Recording and receipts drive the inbound process. Receipts help supply chain professionals ensure that each step in the process is completed and communicated with accuracy. Basic receipts include item, quantity, unit of measurement, and other required information.

Elements that should be tracked throughout the inbound process include- lot numbers, manufacturing dates, expiration dates, serial numbers, P.O. tracking, various inventory receipt statuses, default receipt status rules, emergency re-direction, routing of times to special staging on “short” inventories, immediate availability of items for backorders and cross-docks, and more.

Pre-receipt notification is among the newer and exciting logistics services in use by supply chain companies. This service speeds up the inbound process by reducing the amount of information entered manually. The pre-receipt process allows for automation, real-time receiving and put-away functions, reduction of receiving errors and minimizes cost.

2. Load Arrival

Your receiving process should start immediately after pre-receipts have been loaded into the WMS system.

However, with a highly functional WMS system, the product is more than simply received. Within minutes, the system can make receipt/load appointments in advance, or reserve docks, doors, and staging areas.

This preliminary inbound planning helps supply chain management companies become more efficient when completing each logistics service. All receipt information should be already entered with minimal human error. Due to this, when a receipt/load arrives, the warehouse coordinator knows exactly which dock door to direct the truck, and then can easily assign an unload staging area.

3. Receiving Real-Time Information

The “receipt” is handed to coordinators, already “bar-coded” with specific instructions for an associate who can begin the receiving activities and real-time reporting.

Checking processes as you go ensures that the inbound process continues to run smoothly. Automated systems used by your logistics and trucking companies should ensure that warehouse associates are at the correct dock door and are unloading the correct shipment based on information from the bar-coded receiver.

Once the inbound receipt and load arrival process are completed warehouse associates begin detailed receiving. Types of receiving are different for each supply chain and trucking company. (Learn more about how to know if you need a supply chain company)

There are two ways receiving:

> One-Step Receiving: When customers benefit from eliminating the staging and have their products sent directly to storage
> Two-Step Receiving: When the receipt/load needs to be staged instead of putting directly into storage

4. License Plate Tracking

Having control over your moving product is just as important as having control during storage and warehousing. Trucking companies know this and have started allowing for their license plate numbers to be tracked through WMS systems.

This is an important step in managing the entire inbound process and will become necessary in December 2017 when ELD compliance becomes mandatory.

Understand the Logistics Services Included in Your Inbound and Outbound Logistics Process Flows
Improve your inbound/outbound logistics by first understanding their process flow.

5. Put-Away and Receipt Close

In older systems, once the product was received, it was stocked only by professionals. This is still true today in certain cases. However, new systems provide for other options and automation.

The final step for logistics and trucking companies involved in the inbound process is updating in real-time that the trailer or carrier has been emptied.

This is when real-time capabilities allow for review and exceptions.

The process speeds up when receipts and other information can be sent in real-time. It also allows for docks to be immediately labeled “available” for other receipts/lead shipments.

The Outbound Process:

1. Order Entry, Adds, Changes, and Deletions

When the inbound process is handled correctly, it allows for an easier outbound process.

Order entry is similar to the pre-receipt process in the inbound process. The first step of an outbound system is to validate orders, check for errors or duplications, and handle exceptions immediately.

Up to the point that line item are loaded onto an outbound trailer, customers should have the ability to add, change, or delete specific items or entire orders.

Making these logistics services available to customers is the number one reason why real-time reporting is crucial to the outbound process.

2. Replenishment and Product Picking

Replenishment is essentially planning for future deliveries by establishing pick pre-requisite requirements and scheduling logistics services and activities to be completed before the corresponding pick tasks.

This step allows for your supply chain to continuously operate with minimal manual planning and strategy between steps.

The picking process can be simple or very complex. Your picking process should be unique due to the nature of different businesses, industries, and clients.
Choose logistics and trucking companies that allow for tailored picking capabilities and strategies.

3. Packing, Staging, Checking, and Loading

Packing is arguably the most important logistics services involved in the outbound process. It includes packing items, inspecting, labeling, routing, and manifesting outbound orders per specific customer requirements.

If this step isn’t managed flawlessly, completed shipments and arrival times can be compromised and the reputation of the business will be at stake.

Staging locations should already be decided if an automated system is involved. While going through the process of staging, checking, and loading each step should be recorded in real-time thorough WMS for accuracy and timeliness.

Once all shipments are loaded and ready to go, a warehouse coordinator should be automatically updated, and a warehouse associate should be directed to load your order onto a trailer.

4. Shipping and Document Generation

The last step to a successful outbound process is shipping the product to its final arrival place and creating a log of the process for your records.

The Key

If you are considering using a logistics or trucking company, ensure that you are hiring a company that can meet your specific needs in an efficient, highly functional way that is reported to you online and in real-time. Choose Tenax Transport, our capabilities provide the most options, provide unique and personal solutions, real-time updates, and control, as well as an ability to improve our client’s inbound and outbound process.

FOB or EXW, Which One To Use?

FOB or EXW, Which one to use? International Commercial Terms or Incoterms can be confusing for any new importers, as things to be aware of include trust, picking the best option and the best solution to ship and import. With this article, we aim towards the common incoterms FOB or EXW, which are the basic essential terms to be familiar with when importing for outside your counter.

FOB:-

FOB is an acronym for ‘Free on Board’, it is a port to door shipment. It refers to a shipping arrangement where the seller or sender has ownership of the goods only until when the are loaded.

After the loading process supplier takes ownership at the point of departure from the seller’s shipping dock. The supplier is responsible for providing transportation of the goods sold to a main shipping origin point. The shipping origin point is a port as incoterms are used for international trade which in turn imports goods through the sea.

When a buyer or the receiver gets the ownership of goods then it is considered as a complete delivery or delivery is accomplished. If goods are damaged in transit, the buyer should file a complaint with the insurance carrier. The cost of delivering the product to you are included but further, all the costs will be handled by the buyer.

So, in short, FOB means that the first seller sends the product which with the help of the supplier, and then reaches to the buyer who later has to arrange and ship it to the desired location.

Advantages of FOB:

As a buyer, you don’t have to worry about documentation in the origin country except for clearance as this goes under the supplier’s responsibility. If a buyer is withdrawing the trade the seller can still recover the goods before the goods are loaded to port, similarly, the buyer doesn’t have to pay if he doesn’t get the desired quality or quantity.

Disadvantages:

FOB disadvantages include situations when the supplier refuses to pay the cost that has been agreed upon and similar scenarios related to charges.

EXW:

EXW stands for Ex Works and it is a Door to Door shipment, all the cost, and the responsibilities are with the buyer. In Ex Works shipping term the only responsibility that the seller has is to ensure that goods are available when the buyer needs them. Ex Works term is used while making an initial quotation for the sale of goods without mentioning costs.

Advantages:

Buyer is the only one in charge, cost, risk, and transport will have to be dealt with by the buyer with which he can get the prices of all their costs upfront, Suppliers don’t add any margin to shipping.

Disadvantages:

Buyer is responsible for all the risks included within shipping to delivering at the door, Customs have different cost in countries which might lead to extra costing and the first time buyers don’t have an idea about the cost upfront.

EXW or FOB? :

Both these terms have their benefits and risks it depends on your knowledge of goods and of International commercial terms, with FOB being the most commonly used as it eliminates or splits the buyer’s responsibility, whereas in Ex-Works all costs and responsibility is to the buyer. FOB and EX Works both be used to get an idea about the costs and then make the right decision.

What is Drop Shipping?

What is Drop Shipping?

In the dropshipping process, the online seller doesn’t keep the products it sells in stock. Instead, when a customer buys some items from a store, the store purchases the item from a third party and has it shipped directly to the end customer. As a result, the merchant never handles the products it sells.

The major difference between dropshipping and the standard retail method is that the selling merchant doesn’t keep the products in inventory. The merchant purchases inventory when required from a third party – usually a wholesaler or manufacturer – to fulfill customers’ orders.

In this setup, the seller doesn’t need to invest in purchasing inventory for its e-commerce business. In this case, the manufacturer will charge the seller a higher wholesale price for each product, in exchange for handling the warehouse and shipping individual orders rather than shipping to the seller in bulk. Although the e-commerce seller does not any product in stock, on the seller’s website it looks as if they are selling their own products. The seller handles everything from the marketing of the products and to the customer handling, while the manufacturer provides warehouse and shipping services.

RELATED:BENEFITS OF OUTSOURCING LOGISTICS SERVICES TO THIRD-PARTY COMPANIES

The process for dropshipping is as follows:

1. Show items offered by one or more drop shipping companies in your online store.
2. A customer chooses the product and places an order in your store.
3. You forward the order to the manufacturer for handling the shipment of the order to the customer.
4. The manufacturer processes the order and ships it directly to your customer.

With this kind of retail fulfillment method, the seller doesn’t need to purchase the inventory and keeps it in the stock. This is a key feature of using the dropshipping process for e-commerce businesses.
Drop Shipping is a great option for sellers who do not have enough capital to buy their own inventory, or who don’t want to handle warehouse and logistics related work. You can also place a wider selection of products using drop shipping for your business. It can also be a low-risk way to test new products before you bring them into inventory.

Choose Drop Shipping or Third-Party Fulfillment for Your Ecommerce Business?

Dropshipping and third-party fulfillment are different e-commerce, business models. Both involve an outsourced order fulfillment process, but the services provided by drop shippers and fulfillment centers are quite different.
Dropshipping and third-party fulfillment fulfill different needs for e-commerce sellers. Your business may choose to outsource order fulfillment to both of these types of providers at different times, depending on your business needs.

Call Tenaxx Logistics for Your Order Fulfillment Services

Want to find out more about our order fulfillment services? Contact Tenaxx Logistics today by filling out our online form or call us at 519-260-2738 and let us know what your business requirement. We’ll talk to you about possible shipping requirements and give you an accurate estimate for the services you need.

Key Stages of Order Fulfillment Process

Order fulfillment is an important part of the supply chain process. It is the process of receiving, processing, and shipping orders to the end customers. It’s possible to handle fulfillment in-house or outsourcing it to a third party logistics company that handles the process for you.
To maintain quality control and maximize profit as much as possible, many smaller operations opt to handle their own order fulfillment process. But if you want to focus more on the main fields of activity, and work more efficiently and productively, opting third-party logistics is the best solution. The order fulfillment process varies according to the type of business, inventory management, and supplier selection and can become highly complex. Here are mentioned the key stages of the order fulfillment process:

Receiving Stage

When you receive inventory from suppliers and manufacturers at your warehouse. the next steps will be:

1. Count all the items which you have ordered.
2. Check to make sure no items have been damaged during shipment.
3. Add the record of new inventory to your warehouse management software to keep the count, sales numbers for each item and also to track the location of items.
4. Add SKUs/barcodes to every item you received if they aren’t already labeled correctly.
5. Place individual items into ready-to-deliver kit packages, if necessary.

After following all these steps carefully, the next stage is to shelve it in the warehouse. By properly storing the items in the warehouse, you can maximize the speed and accuracy of your order fulfillment process thus can increase warehouse productivity.
Store each SKU in its own box, with overflow stored in another area of the warehouse. Keep SKUs that sell most often in boxes closer to the packing stations for easier access.

Processing Phase

The order processing phase starts when an order is received from the customer. Typically, fulfillment software integrates with shopping cart software so that when someone places an order online, the order is automatically sent to your fulfillment software at your warehouse, too.
After receiving the order, items are picked by staff and taken to an order packing area. In the packing area, firstly the items are checked for quality and packaged with the best materials appropriate for the items. Packing slips and other information are added, then the box is sealed and moved to the shipping station.

Delivery Phase

Once the order is in the shipping station, it’s ready for delivery to the end customer. In the shipping station, the package is weighed and the best delivery method is selected. Once the package is ready to deliver, the shipping station will update the status of an order to make sure customers can track their orders until they are delivered. After the order has been delivered to the customer, it can be considered fulfilled.

Choose Tenaxx Logistics for Your Order Fulfillment Services?

Want to find out more about our order fulfillment services? Contact Tenaxx Logistics today by filling out our online form or call us at 519-260-2738 and let us know what your business requirement. We’ll talk to you about possible shipping requirements and give you an accurate estimate for the services you need.

5 Ways to Optimize Your Pick and Pack Process

The picking and packing process is an important part of the order fulfillment process. By optimizing the overall pick and pack system, you can streamline your order fulfillment, gain customer trust, and increase your business profits.

Here are given 5 ways to optimize the pick and pack process:

Utilize your Warehouse Space Effectively

The items should be placed according to the order requirement. By designing your warehouse for efficiently storing and picking of items, you can save the time it takes to gather items for your orders. The arrangement of items should be done carefully such as always place top-selling items near the packing stations, store items right next to each other which are commonly packed together.

Keep Your Warehouse Well-Ordered

By keeping your warehouse area clean and well ordered you can make pick and process easy and fast. Ensure that the items your packers staff needs for orders are arranged correctly around the workstation. Always place the items from receiving inventory in the same place to avoid wastage of time in searching for items.

Use WMS for Tracking Items

Use a warehouse management system (WMS) to keep the record of items that are listed in the order and to find them easily. By using advanced warehouse management software you can save lots of time in it takes in finding and keeping the record of the items for orders.

Try Different Order Picking Methods:

Try different order picking methods such as zone picking in which each order picker is assigned a particular zone and will do order picking within this zone only, or batch picking where the assigned picker picks multiple orders simultaneously.

Ensure your Inventory is Up To Date

An optimized pick and pack process always depend on the accurate inventory system. Always ensure that your inventory is up to date for easily keeping the records of the items and to track them easily. Check for items that are out of stock and place the orders of those items for avoiding delay in the order fulfillment process.

Bottom Line:

Your pick and pack process is only one important part of running a warehouse efficiently. With the help of up to date inventory management system, you can optimize your pick, pack, and shipping process and increase your business profits by maximizing warehouse productivity and gain customer trust.

If that’s what you want in your business, we are here to help you.