In order to meet the general trend of Industry 4.0, warehousing needs to move towards systematic management

In order to meet the general trend of Industry 4.0, warehousing needs to move towards systematic management

In recent years, as the environment has gradually moved towards a small number of customized requirements, and with the active application of smart technology, we have begun to enter the era of Industry 4.0. Many manufacturing industries are preparing to change their business models to cope with this trend, but they have encountered bottlenecks on the road to intelligent automation. Low inventory accuracy is an important key issue.

Warehousing management links purchasing, production and sales and it plays a central role in demand and supply. In a way, it is a balancing mechanism across the supply chain. However, traditional warehouse management still tends to use paper documents as a means of communication for internal information. Not only is there a risk of losing information data, but there are also some limitations in terms of time and external factors, especially the sharing of inventory data. These will become a stumbling block to market competition. Therefore, companies must seek to shift warehouse management to more direct, more transparent traceability and a more flexible direction.

Many companies have similar experience. For example, when a business unit wants to ship, due to the gap between inventory information and actual inventory, the company cannot respond to the customer’s accurate delivery and achieve a low probability. In addition to this, when the production unit wants to produce, it finds that the supply of raw materials is insufficient. The process of material shortage is more complicated and the production schedule is delayed, which reduces the speed of shipment. In fact, these core priorities are to ensure accurate implementation of “account integration” on a management basis to better respond to customer orders and ensure secure inventory management materials and raw warning mechanisms for semi-finished products. 

The matchup of the booked quantity and actual quantity should be as high as at least 90%, in addition to relying on more convenient and technology devices (such as Barcode, RFID, Big Data, IoT, AI, etc.) to simplify and unify the procedures on storage and storage allocation and other transaction behaviour, can help the development of the follow-up to have an early warning mechanism warehouse management.  The following four points is the direction of a management:

  1. Build a complete SOP
    Through standard and clear workflows, you can avoid frequent mistakes.
  2. The implemented of the voucher assignment
    According to the document process, enterprises can grasp the actual situation more transparently and accurately.
  3. The number of inbound and outbound warehouses is indeed accurate
    If the number of inbound and outbound warehouses is not accurate, the inventory quantity cannot be accurately determined.
  4. Really perform warehouse inventory
    Periodic inventory to audit and review the implementation of the above three points, and make adjustments.

Even with some smart technology equipment, it is not enough to meet the conditions for moving to Industry 4.0. You need to be prepared to move toward systematic management, and ERP is the platform with big data and integration function. A complete ERP system can make the voucher assignment, the timeliness, integrity, and accuracy of the documents more in place through the complete SOP. As long as the accuracy of the information is in place, the internal information can be obtained through the system with more accurate progress and the available quantity of the product, and at the same time, various misunderstandings can be avoided as much as possible.

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