Warehousing and Distribution Logistics

Logistics refers to managing and controlling the flow of goods and other resources from the source of production to the market, and warehousing is a sub-set of this, dealing with the physical storage and movement of goods.

Whereas inventory systems cater for the processing of inventory data, warehousing and distribution systems support the physical management of inventory, together trying to optimise the supply chain.

The theory of logistics is very technical and does not form part of the scope of this web site - we are talking about the practical aspects such as bar code scanning, ways of grouping and identifying stock, managing deliveries and so on.

Business objectives

Important objectives in the warehousing and distribution logistics environment include:

• Easy and accurate identification of stock items
• Quick and accurate processing of stock transactions
• Ensuring the most efficient and practical use of warehouse space
• Ensuring that goods shipped to customers are delivered as promised (i.e. meeting service levels)
• Planning and executing deliveries to make the most efficient use of transport. 

Pitfalls and problems

There are many pitfalls and problems associated with logistics and warehousing, amongst them the following:

• The warehouse is now too small to house the stock required, due to
  • The business growing significantly
  • Market tastes and preferences changing and therefore obsolete stock building up.
• There is no clear system as to where stock is stored, so identical items are stored in different locations or the allocated space is too small, so stock overflows on to the floor.
• Large variances occur with stock takes which are difficult to resolve.
• The wrong stock is delivered to customers resulting in numerous returns and credit notes.
• Stock does not reach customers by the promised date, and / or there are shortages or incomplete shipments when only the entire order should be delivered.
• There is significant and on-going manual checking to see where stock is.
• Picking staff seem to spend more time walking (or running) from one part of the warehouse to another rather than picking the products required.
• Internal or external transport cannot take the delivery loads planned due to size limitations.

The Computer Bird keeps these business objectives and typical pitfalls in mind when implementing new systems or assisting existing SYSPRO  clients. It is our experience that SYSPRO systems, correctly implemented and with appropriate user training, are an extremely effective business tool. SYSPRO  provides the data processing system which records all the related data (usually through keyboard input by an operator), while the associated warehouse management systems address the logistical systems (eg bar code scanning to identify products, making the recording of movements so much easier).

Please contact us if you would like to discuss any of these issues further.
Digby Lorimer on 072 337 7612 or by email

Wendy Thompson on 0861 999 334 / 083 375 3353 or by email

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