Intermediate Functionality for Warehouse Management

Several inventory transactions involve orders, and an order-based approach to reporting warehouse activities was described above. An alternative approach involves the use of documents (rather than orders) to coordinate and report warehouse activities. The document-based approach is oriented toward warehouse activities, such as receipts, put-aways, picks, and shipments. For example, receipts can be reported against a receipt document that represents an incoming shipment containing material from many purchase orders. The document-based approach provides several advantages over the order-based approach, such as supporting receipt and shipment transactions for multiple orders, a two-step receipt process, and a two-step shipping process. It supports receiving inspection procedures that constrain usage until material has been put away. It identifies shortages related to incoming material and notifies availability for outgoing requirements.

The document-based approach represents an intermediate level of functionality for supporting warehouse management activities. Several warehouse management policies determine whether a location will use a document- or an order-based approach for handling receipts, put-aways, picks, and shipments.

Warehouse Management Policies for Using Documents

Several warehouse management policies determine whether documents or orders provide the basis for reporting inventory transactions at a given location. A separate policy can be specified for handling receipts, put-aways, picks, and/or shipments. The possible combinations of policies can become confusing, especially when the combinations lead to different terms for documents. For simplicitys sake, further explanation only covers scenarios involving all four documents.

One of the item tracking policies for lot- or serial-traced items affects the use of documents for reporting inventory transactions. The policy determines whether warehouse documents (such as a receipt document) must identify the lot and serial numbers .

Purchase Order Receipts and Put-Aways

Purchase order receiving activities can be handled as a two-step process using both a receipt document and a put-away document, or as a one-step process using just one of these documents. Further explanation focuses on the two-step process. In its simplest form, the two-step receiving process involves creating and posting a receipt document to receive items into one bin, and then registering the associated put-away document to move items (via take-and-place instructions) into their stocking location. This simple approach only requires a few keystrokes to update information when the default values (such as an SKUs default bin) do not require corrections.

Receipt Document A receipt document is designed to support receiving activities, since it displays purchase order line items with sorting to improve receiving efficiencies (such as sorting by item or purchase order) . Each receipt document has a unique identifier and can be viewed and maintained on the Warehouse Receipt window. There are two basic variations for creating and using a receipt document.

• Generate from the Purchase Order Window. The buyer generates the receipt document for each released purchase order, thereby communicating anticipated receipts to warehouse personnel. The list of receipt documents provides workload visibility for the warehouse.

• Generate from the Warehouse Receipt Window. The warehouse personnel create a receipt document for an incoming shipment. The creation process provides an opportunity to view anticipated receipts. After creating a new receipt document, the user can view all anticipated receipts or a subset based on filters such as vendor and planned receipt date. The visibility represents a schedule of anticipated receipts. The user can then select purchase orders or use filters to select specific line items to be included on the receipt document.

  This approach is typically used to identify all items within an incoming shipment for the location. The items may represent line items from multiple purchase orders. Some people term this a consolidated receipt document.

In either case, the receipt document provides a means for reporting actual receipt quantity and placement in a receiving bin location. The receiving bin location typically represents the receiving dock or a receiving inspection area. The line items on a receipt document can be sorted, such as sequencing by item or purchase order. The printed version provides a turnaround document for recording item tracking data (if applicable ) and differences in actual receipt quantities , and the information can be entered on the Warehouse Receipt window. Posting the receipt document updates inventory balances and the quantity received for each related purchase order. It also automatically generates an associated put-away document.

Put-Away Document A put-away document is designed to support put-away activities, since it displays each items default stocking location and can be sorted to improve put-away efficiencies (such as sequencing by bin location). In a two-step process, it is automatically created after posting the associated receipt document and contains the same line items. It has a unique identifier and can be viewed and maintained on the Warehouse Put-Away window. Each line item includes take-and-place instructions to take the item from the receiving bin location and place it in a stocking location (such as the items default bin). The printed version provides a turnaround document for recording differences in actual placement, and information can be entered on the Warehouse Put-Away window. Placing an item in two stocking locations requires an additional line on the put-away document to identity the separate quantity and bin location. This is termed splitting a line. Registering the put-away document moves the inventory for all line items.

The advanced warehouse management functionality provides a rules-based approach for suggested placement of items into a bin location, rather than just using the default bin as a put-away suggestion.

Sales Order Picking and Shipment

Sales order shipping activities can be handled as a two-step process using both a pick document and a shipment document, or as a one-step process using just one of these documents. Further explanation focuses on the two-step process. In its simplest form, the two-step shipping process involves creating a ship document and its associated pick document, registering the pick document that provides take-and-place instructions for moving items from their stocking location to a staging bin, and then posting the shipment document when items are shipped. This simple approach only requires a few keystrokes when the default values (such as an SKUs default bin) do not require correction.

Further explanation starts with creation of the shipment document and its associated pick document, then returns to the use of the shipment document for reporting shipments.

Shipment Document as a Starting Point A shipment document provides the starting point for coordinating picking and shipping activities. It has a unique identifier and can be viewed and maintained on the Warehouse Shipment window. There are two basic variations for creating and using a shipment document.

• Generate from the Sales Order Window. The order entry function generates a shipment document for each sales order to communicate anticipated shipments to warehouse personnel. The list of shipment documents provides workload visibility for the warehouse.

• Generate from the Warehouse Shipment Window. The warehouse personnel create a shipment document for an outbound shipment. The creation process for a shipment document provides an opportunity to view anticipated shipments. After creating a new shipment document, the user can view all anticipated shipments or a subset based on filters such as shipping agent and planned shipment date. The visibility represents a schedule of anticipated shipments. The user can then select sales orders or use filters to select specific line items to be included on the shipment document.

  This approach is typically used to identify all items for an outbound shipment, such as an outgoing truckload for a specific shipping agent. The items can represent line items from multiple sales orders.

In either case, the shipment document provides the basis for creating an associated pick document and tracking the status of related activities. This pick document coordinates the gathering of material in preparation for shipment, so that shipments can be reported using the shipment document.

Pick Document The pick document is designed to support picking activities with sorting to improve warehouse personnel efficiencies (such as sequencing by bin location for sweep picking purposes). It has a unique identifier and can be viewed and maintained on the Warehouse Pick window. In a two-step shipping process, it is created from an associated shipment document and contains the same line items. Each line includes take-and-place instructions to take inventory from the items stocking location and place it in a staging bin location. The printed version provides a turnaround document for recording item tracking numbers (if applicable) and differences in actual quantities and bin locations, and information can be entered on the Warehouse Pick window. Taking an item from two stocking locations, or taking different units of measure, requires an additional line in the pick document to identify the separate quantity, UM, and bin location. Registering the pick document moves the inventory for all line items. It also automatically updates the associated shipment document with the quantities to ship.

Shipment Document as the Shipping Transaction A shipment document is designed to support shipping activities, since it can be sorted to improve warehouse personnel efficiencies (such as sequencing by sales order or ship-to address). In a two-step shipping process, it is automatically updated with the quantities to ship based on registering the associated pick document. The printed version provides a turnaround document for recording differences in actual shipment, and information can be entered on the Warehouse Shipment window. This includes information about the shipping agent and service that will transport all line items, and an optional external document number such as the tracking number assigned by the shipping agent.

The shipment document provides the basis for tracking the status of related activities. The status indicates whether material has been partially or completely picked, and partially or completely shipped.

Posting the shipment document updates inventory balances and the quantity shipped for each related sales order. Posting can also generate the associated invoices for each related sales order. The system deletes a shipment document after all line items have been completely shipped and invoiced.

Other Transactions

The two-step receipt process (using the receipt and put-away documents) applies to sales returns and transfer order receipts. The two-step ship process ( using the shipment and pick documents) applies to purchase returns and transfer order shipments. The pick document applies to the components for a released production order and is generated from the order. After reporting the output of a production order, an internal put-away and an associated put-away document can be created for moving inventory.

Assigning Responsibility for a Document

Responsibility for each document can be identified by an individual warehouse employee (termed the assigned user ID ). The employee can then filter documents to focus on responsibilities and anticipated workload. Alternatively, the employee can select any unassigned document and take responsibility for it.