How Can ERP Distribution Software Uncover Warehouse Inefficiencies?

Knowing exactly what’s happening as products move through the warehouse is vital to uncovering inefficiencies.

An article on the DC Velocity website says people often make decisions based on perception instead of reality. You can avoid this pitfall by using ERP distribution software and relying on a technique called “genchi gembutsu” that employs the “direct observation of actual conditions.”

One way to do this in a warehouse is to “be the package,” the article says, by physically moving along the path that a product would. This phrase is applicable since “genchi gembutsu” is a Japanese phrase that literally means to “go to the spot.” By doing so, you’d be able to see with your own eyes where the inefficiencies are. Certain steps along the way may make sense in theory, but you may find they’re pointless once you see them actually carried out.

While it’s a good idea to follow the path of packages — or “act like you’re the product” as one senior manager says in the DC Velocity article — through the workflow to find inefficiencies, that won’t provide a full picture. It’s just as important to follow the data. In other words, where’s the data going? Where’s it being held up? Often a package is delayed because an order is waiting for approval. Or there could be inefficiencies in the picking process. If you follow the data, you’ll see where the bottlenecks and delays are occurring.

Technology systems like NetSuite’s ERP distribution software provide important workflow management capabilities. That means once a piece of data is acted upon, the next step in the process is initiated automatically. For example, if an order is approved, the order might immediately be released for fulfillment. Then, once it’s fulfilled, an email can be sent out to update the order status. Analyzing the workflow is the key to maximizing efficiencies, and ERP distribution software provides that functionality.

Source: DC Velocity, May 2013