Warehouse common chaos - an analysis - Quick overview

    Throughout my working life in an EMS industry, I have seen a few well managed warehouse. However, I have also seen such many poorly managed warehouses. 

I have taken the opportunity to look into one of the warehouses and would like to share them with you. 

Below is just a quick overview:

• Warehouse Readiness

o Receiving

 Resource

• Receiving

o Critical

o Main purpose

 Receive goods in less than 30 minutes per truck

• How to shorten?

 Cleaer trucks

o Expedited materials

 Special process to handle this

o IDM

o MRO parts

o Process flow

• Expedite team

o Who? 

o Process flow? 

• Sorting process

o Abnormality

 How to handle? 

• Use "Banking" concept

o Normal process

 Provide training & guide

• How to allocate

• What do you have now?

o Can you hire temp staffs?

o Fork Lift

 Driver/operator

 Battery

 Process flow

• Normal

• Expedited

• Must provide proper guide & process flow

o People know what to do

o IQA

 Resource 

• Do we have enough people?

 Process flow

• Normal

• Expedite

• People know what to do

 If IQA lack, it will snowball

 Process flow

• Normal

• Expedited

o Store

 How to store? 

• Can the current resource complete the work?

o If no, please establish new process flow

• Place to store

o WMS

• Process flow

o Kitting

 Major challenge

 Resource

• 2 shifts

o Morning shift

 Clear all expedited kitting

o Night shift

 Clear normal kitting

• Get enough people

 Process flow & expectation

• Finish the activities the same day

o No overflow

o The goal?

 Warehouse operates normally

 Full support of production

• Normal demand

• Expedited process

o MUST Adhere to

 5S

 QBwM

 Zero defect

 No excuse

 Ask yourself this question

• Can or cannot do?

• Want or don't want to

I hope you enjoy the above article. 

I appreciate your feedback and comments. 

If you would like to know more, please let me know. 

Best regards,

Ronald Gan  

Inventory Revaluation

Inventory Revaluation means that you revalue your inventory to even out the price. This is generally due to 2 different pricing for the inventory.

Why do you need to know this, and more importantly why do you need to do this?
If you do not do this and if you are buying/selling your materials with different prices on every month or every quarter or even every day, chances are that you will either make or lose money. And the best part is, you can't even explain why you make a lot of money, or lose a lot of money at first glance.

Example of items that I believe could be categorized to the below timelines:
Revalue Every quarter: Electronics products such as computers, laptops,
Revalue Every month: FMCG (Fast Moving Consumer Goods).
Revalue Every week: Food, Commodity (coffee, wheat, rice, soy, barley, potato, etc)  & vegetables in a free market. (Driven by Demand & Supply)
Revalue Every day: Gas in a free market, ForEx & Stock Market. (Driven by Demand & Supply)

I have taught the concept of Inventory Revaluation in 5 different companies in Asia. I have used very easy to understand but very clear examples for my sharing/coaching session. For those who are interested, please let me know.

When I worked out my explaining graphics in a nice way, I will write more on this topic. For now, this is just the tip of the iceberg on Inventory Revaluation. The graphics will explain the matter much clearer.

I will also share how to establish a robust Inventory Revaluation Process.

And..... why are we talking about this in manufacturing program management blog?
Well, program management owns everything. Every step that could be taken to avoid losses will be highly appreciated by the senior management.


Stay tuned.....