[Case Study 1] Reserving stock

 In this case study, we look at reserving stock and how it can improve business performance and optimize warehouse management processes to meet the specific requirements of the business model. By using modern warehouse management technology and software, they can keep enough stock to meet customer demand without facing shortages or wasteful excess stock.

Software requirements

 The requirements for the warehouse management software were:

Sales units, business units and stores can all check actual stock and available-to-sell stock, updated in real time in the system, and can reserve goods in advance for a period depending on the product group to make sure goods are always available in the warehouse to sell;

The system provides automatic alerts when reservations exceed their time limit and evaluates the effectiveness of reservations by unit and store.

The solution

 The stock reservation approach for sales units, business units and stores, and how to evaluate its effectiveness, can be described as follows:

1. Create virtual warehouses and reservation orders in the software:

Each sales unit or dealer has its own virtual warehouse in the warehouse management software. This virtual warehouse is created and managed by the inventory manager or an authorized person.

When a sales unit wants to reserve a product, it creates a reservation order in the system. The reservation order contains information on the product, quantity, expected reservation period and the reason for the reservation.

2. Track reservation periods:

The system tracks the expected reservation period on each reservation order. If the product is still in the virtual warehouse after the expected period, the system automatically creates an alert about the overdue reservation.

3. Adjust the reservation period (if needed):

Sales units can request an adjustment to the reservation period if demand changes or in special situations. The request is sent to the inventory manager, who has the authority to approve changes to the reservation period.

4. Cancel a reservation (if no longer needed):

If a sales unit decides it no longer needs the reservation, it can request "Cancel reservation" in the system. The system confirms the request and moves the product back to the main inventory.

5. Báo cáo và theo dõi:

The system automatically creates reports on reservation status for each sales unit. These reports include:

• Expected and actual reservation periods.
• Overdue reservation alerts and the number of products affected.
• Stock status in the sales unit's virtual warehouse.

The inventory manager can use these reports to evaluate the effectiveness of reservations, making sure products are not lost or expired while reserved.

6. Evaluate reservation effectiveness:

To evaluate the effectiveness of reservations, you can use the following metrics and analyses:

• Stock status: compare stock before and after reservation to identify changes in product quantities.
• Reservation period: assess whether the expected reservation period is maintained and respected.
• Overdue alerts: review the number of overdue alerts and the measures taken to resolve them.
• Product condition: assess the condition of products after reservation to ensure quality and safety.

By following the steps above and using warehouse management software, you can manage reservations effectively, ensure inventory is maintained efficiently and safely, and minimize waste and losses during the reservation period.

7. Review overall performance:

To evaluate reservation effectiveness, you need to review the overall performance of the reservation program. This includes the following factors:

• Number of damaged or expired products: compare the number of damaged or expired products during the reservation period with before. A reduction can be considered a positive sign.
• Average reservation period: assess whether the average reservation period stays within the expected time. If reservations stay within the committed period, this can be a positive indicator.
• Number of overdue alerts: review the number of overdue alerts and whether they are resolved effectively. A falling number of alerts can be considered an improvement.
• Total reservation costs: assess the total costs associated with reservations, including storage, preservation and management costs. If these costs are contained and optimized, this can be a positive result.

Read more: Smart warehouse management lessons from 3 successful large companies

8. Collect feedback from sales units:

Collect feedback from sales units or dealers on their experience with the reservation program. They can provide valuable information on reservations and suggest improvements.

9. Create opportunities for continuous improvement:

Based on the evaluation results, create opportunities for continuous improvement in the reservation program. This includes reviewing and adjusting policies, processes and the software system over time to ensure performance and effectiveness.

10. Optimize inventory and costs:

Based on the information collected, optimize inventory and the costs associated with reservations. This includes reviewing minimum stock levels, how to optimize product storage and how to reduce waste.

This approach will help you evaluate and improve the effectiveness of reservations in your warehouse management software. Continuous tracking, evaluation and improvement will ensure inventory is managed effectively and reservation performance improves over time.

Optimizing warehouse management improves inventory efficiency and accuracy

[Case Study 2] Automatic pallet, carton or package counting

In this case study, we look at a real example of managing goods on pallets, in cartons and in packages without manual counting or relabeling. We explore how modern technology can automate this process to help businesses save time and improve inventory management efficiency.

The problem

Goods stored on pallets, in cartons or in packages often cause problems when they need to be shipped or their quantities checked, because the exact quantity remaining in each pallet, carton or package isn't known, so they usually have to be counted again by hand. Tracking the quantities inside means recording them or relabeling many times after each receipt or issue, which is cumbersome and time-consuming.

The solution

Automatically managing the quantity and weight of goods on pallets, in cartons and in packages without counting or relabeling.

The smart warehouse management system uses barcode or QR code technology to link detailed goods information to pallets, cartons and packages. When the barcode or QR code on a pallet, carton or package is scanned, the system automatically displays the key information: the quantity and weight of the goods inside, without manual counting or relabeling.

Here is a detailed description of how the system works:

1. Attach a barcode or QR code to each product:

Before products are packed onto pallets, into cartons or packages, each product can be given a unique barcode or QR code depending on its type and group (for businesses that need to manage barcodes/QR codes at the individual product level). This can be done with a barcode or QR code printer through the warehouse management software.

2. Attach a barcode or QR code to each pallet/carton/package:

For managing products by pallet, carton or package, the process is simplified by attaching a barcode or QR code to each pallet, carton or package. These codes link to the list of products inside. Each pallet, carton or package can contain one or several different products, and their information can be easily retrieved through the corresponding barcode or QR code.

3. Use barcode or QR code readers:

During receiving or shipping, a barcode or QR code reader scans the code on the product (if managed by product code) and the code on the pallet/carton/package.

Khám phá ngay: Optimal efficiency by combining barcodes, QR codes and a smart warehouse layout

4. Smart warehouse management software:

Once scanned successfully, the smart warehouse management software automatically displays product and quantity information:

• Product list: shows a detailed list of the products on the pallet/in the carton/package.
• Actual quantity and weight: determines the actual quantity and weight of each product, however many or few products the pallet/carton/package holds, and whether they are one or several types.
• Exact location: identifies the current location of the pallet/carton/package in the warehouse.

5. Automatic updates:

When goods are added to or taken from a pallet, carton or package, the system automatically updates the remaining quantity and weight. This avoids errors and ensures warehouse information is always up to date and accurate.

When you need to look up or count goods, just scan the barcode or QR code of the pallet, carton or package with the smart warehouse management software and it automatically displays complete information: which products are inside? How many of each? Where are they stored? Which lot/purchase order do they belong to?

Benefits for the business:

Saves time and labor: eliminates the need for manual counting, so warehouse staff can focus on more important warehouse management tasks.

Maximum accuracy: avoids human error during counting.

Optimized processes: increases the efficiency and effectiveness of warehouse management and minimizes the time needed for stock counts.

Easy integration: barcode or QR code technology can easily be integrated into the business's existing warehouse management system.

Automatically managing the quantity and weight of goods on pallets, in cartons and in packages through smart warehouse management software is a modern, effective way to improve goods management in a business while reducing errors and saving resources.

[Case Study 3] Optimizing container and package checks

The process of checking and recording goods by container and package has been improved to optimize the process and ensure quality, replacing the manual approach used before. Below is a case study of one way a leading auto parts distributor optimized its container and package checks.

Optimizing container and package checks

Current situation

During preparation and receiving, the business faced the following challenges:

1. Preparing for receipt required a lot of information, such as creating label print files, arranging storage locations, creating goods check sheets and identifying the item codes to be received. All of this was usually done manually.

2. Checking goods on arrival: when goods arrived, the business usually had to check them physically to make sure the actual goods matched the information prepared beforehand. Only if the information matched would the status be changed to "received".

3. Checking each package: unloading the goods and checking the details in each package, and reconciling documents and packages, took a lot of time.

4. Bulk label printing and matching item codes: to manage goods, the business usually printed labels in bulk and then had to search (by eye) for the package matching each label, which easily caused mix-ups.

5. Checking goods quality: at the same time, the business needed a checklist to know which item codes required quality checks.

The solution

A breakthrough solution to improve this entire process is to apply a smart warehouse management solution with key functions for container checks, package checks, goods checks and goods quality. This makes it easy to track and record the number of containers, the number of packages and product information, and to attach barcodes quickly.

1. Checking/receiving containers:

 To check containers, the warehouse team simply selects the receipt order or packing list to check, and the software automatically displays the list of containers to be checked.

The status of each container (not received, received, waiting...) is shown clearly. After checking, the warehouse team can easily update the container's status.

To check the number of packages in each container, warehouse staff use a barcode scanner (PDA) to count each package, and the count is updated in the software in real time, saving time and improving the accuracy and efficiency of receiving.

2. Checking/receiving packages:

The smart warehouse management system provides this feature to manage packages efficiently.

To check packages, the warehouse team simply selects the receipt order or packing list to check. The software displays the list of specific packages, including product information, quantities to receive and storage locations.

Warehouse staff unload each package, count the actual quantities and record the results directly in the app.

The system automatically prints barcode labels for each product, and warehouse staff stick the barcodes on the corresponding products. This eliminates manual searching and reduces errors.

3. Checking goods quality:

To ensure product quality, we integrated a goods quality check feature into the app.

The warehouse team can select the receipt/packing list to check, and the software displays the list of inspection orders.

Each inspection order includes information on the products to be checked.

Warehouse staff carry out the quality check and record the result in the software as "Pass" or "Fail".

Once the check is complete, the system automatically compiles a detailed list of "Pass" or "Fail" products together with the quantities received and storage locations. The process is then confirmed and completed.

The difference between the solution and the current situation

1. Checking and receiving containers, packages and goods:

● Container checks, package checks and quality checks are created automatically in the software for each receipt order instead of being done manually, which took a lot of time and could cause many errors

● Looking up, checking and reconciling information on packages and the goods inside them between the receipt order/packing list and reality is done quickly with a barcode scanner. Errors, surpluses or shortages on receipt are easy to spot.

● Checking and recording received quantities of containers, packages and goods in the software happen simultaneously via mobile barcode scanners such as PDAs or tablets. This ensures receiving data is updated continuously and instantly so the business has information and can make decisions quickly.

● Barcodes printed directly from the software: the software is integrated with fixed or mobile label printers to automatically print product labels/codes based on the actual quantities received during package or quality checks. Printing and attaching barcodes directly during receipt is accurate and fast compared with printing in advance and searching by eye to match them to products. 

2. How it is done

● Using barcode scanners for package/goods checks speeds up operations and increases the efficiency of handling requests.

Conclusion

In these 3 case studies, we have looked at how a large corporation optimized its warehouse management using solutions Smart warehouse management such as stock reservation and automatic container, pallet and carton counting. The benefits include real-time stock tracking, specific information on where products are in the warehouse, effective reservations, automatic alerts when reservations run over time, fewer errors and more efficient receiving checks.

In the future, technology and smart warehouse management will become increasingly important and essential for businesses. These case studies illustrate how flexible solutions and optimized warehouse management processes can bring greater efficiency and performance to a business.