The supply chain industry has assumed a whole new dimension with the outbreak of the pandemic. Consumers have become greatly reliant on e-commerce platforms that have helped in the further burgeoning of the supply chain verticals. Moreover, by offering consumers various benefits such as same-day or next-day delivery, cashless and contactless delivery, these e-commerce giants have empowered the customers. This has not only raised the expectations of the end-consumers but also has had a greater ramification in plummeting the complexities of the supply chain. The pertinent question is, ‘How?’

Any person who is attached to the supply chain industry is keenly aware of the terms, first-mile and last-mile delivery. These two seemingly simple terms hold within them the entire corpus of the supply chain industry, which is, bringing untainted products from the manufacturer or supplier to the doorsteps of the end consumers. With the heightened expectations of the same-day/next-day delivery on the surge, the e-retailers, as well as the localized sellers, are under the tremendous pressure of meeting the customer demands. And this is where the importance of both the first-mile delivery and the last-mile delivery comes into play. The complications having been multiplied, unless the entire gamut of delivery chain is optimized, the consumer gratification would remain a far-fetched idea.

Before we move further, let us delve into the definitions of the first and the last-mile delivery.

First-Mile Delivery

The first-mile delivery refers to the first leg of the arduous journey that a product makes. It is an oft-neglected part of the supply chain as it does not face the end consumer. Because of this, the challenges that embed into it are grossly overlooked. First-mile delivery holds different meanings for different sectors. For manufacturers, first-mile refers to the delivery of the produces from the factory or farm to the origin warehouse. For retailers, it refers to the delivery of goods from the supplier’s warehouse to the retailer’s distribution center. For the e-commerce companies, first-mile means delivery of the ordered products from the supplier’s facility center to the third-party logistics providers.

Mid-Mile Delivery

In certain cases, between the first and the last mile delivery systems, we get to see the mid-mile delivery. Mid-mile delivery exists only in the wholesale and the bigger retail verticals. In the case of the wholesalers, they act as the mid-mile delivery agents as they form the link between the suppliers and the retailers. However, it is the retail vertical where the mid-mile delivery is conspicuously seen. While smaller retailers who serve only a particular area through a singular DC do not need to avail this facility, bigger companies and e-commerce platforms that have a far more complex logistics chain indeed have a mid-mile delivery layer added into their systems. Concomitantly,  goods are brought from the origin warehouses to the individual store locations or smaller facility centers, using the mid-mile delivery strategies so that the goods can be meted out to the end-user through last-mile delivery systems.

Last-Mile Delivery

The last-mile delivery is the most complex, user-facing, and much-talked-about leg of the entire stretch of the delivery chain.  The most critical part of a product’s journey, last-mile delivery refers to bringing the products to the homes of the end-consumer or the final fulfillment centers. This is the most expensive and challenging part of the delivery process and since this part deals directly with the end-consumers, it is demanded to be agile and responsive. Hence, most companies focus on optimizing this segment to ramp up efficiency.

Conclusion

The face of the logistics domain having undergone a sea-change, all the legs of the delivery process need to be optimized and digitized in order to render the end-to-end visibility. Today’s empowered consumers demand the status of their consignments at their fingertips apart from expecting promptness in delivery. There are several hurdles that need to be triumphed over. While the logistics managers must find a way out in reducing the cost of transportation, inadequate and inefficient tracking, packaging, labeling, manual dependence on route planning also pose some serious threats. On top of it, lack of human resources who are skilled enough to handle the entire process without hitting the bumpy road is still a reality. Companies are working hard to meet the expectations by doing away with the shortcomings. However, it is still a long road ahead before all these issues are relevantly addressed, zero to no error in delivery is achieved and supply chain optimization truly lives up to its name.

The global pandemic that raged across the months that have gone by has changed the way we viewed and gauged the world. Certain actions and paradigms made an inroad into the humdrum life of all humans. Fear, disdain, and hopelessness pervaded throughout the world. However, in the all-consuming hollowness of the pandemic, the thing that stayed afloat was the supply chain industry.

Albeit it must be mentioned that the supply chain industry also received a fair share of brickbats in the initial months of the pandemic because of the shutdowns and closures in various parts of the world that came to being with institutional lockdowns being implemented. Owing to this unprecedented situation, shipments did not commute and hence many of the warehouses had to face a conspicuous amount of shortage of goods. On the other end, certain warehouses came to a standstill with good sitting idle.

What added to this woe was the erratic customer behavior. A huge number of consumers worldwide veered towards online buying. And the demand for pharmaceuticals, food products scaled up drastically. With the warehouses getting depleted with lack or excess of inventory due to the breakdown of activities, meeting the consumer demand and keeping life moving became a huge challenge.

Additionally, warehouses being labor-intensive places, posed a huge threat to the resistance of the disease. Managers had to skillfully divide the warehouse into clusters and the working hours into shifts so that one-way traffic in the aisle could have been made possible, without resorting to the harrowing thing called layoff. With a considerable number of workers and their families getting infected, the operations indeed had to be run with less manpower than usual. All this and more became a recipe of a veritable nightmare for the managers. However, as resilient as the sector is, warehouses soon came over the hindrances. With the vaccination drives getting rolled out across the world and the world coming back to wheels gradually, the operations of the distribution centers soon hauled up. However, the pandemic introduced certain norms in the fabric of the warehouses that have stayed back even after the eye of the storm has passed. It is safe to say that all these actions and trends are going to remain a part of the corpus of warehouse operations, just the way wearing masks and maintaining distance would stay back as the inseparable parts of our routine lives for the longest time to come. Let us have a granular view of the means that warehouses have adopted and that are going to control the way warehouses process themselves.

1. Balance between Inventory in Hand and J.I.T: Lean manufacturing was in vogue before the pandemic hit in. Hence, just-in-time delivery of goods gained popularity. Manufacturers received raw materials in the amount that they needed. This efficacious method proved to be ineffective when the business operations slowed down and the manufacturers wallowed due to a shortage of goods. This gave rise to the importance of buffer stock. Warehouses and manufacturers realized how safety stocks are significant in backing up productions in the time of need. Hence, the trend of maintaining inventory in hand shot up. However, the balance between J.I.T and buffer stock should be maintained and the warehouse layout must be adjusted accordingly.
2. Warehouse Automation: Though warehouse automation was slowly making its presence felt throughout, it is the pandemic that has accelerated its growth and has made everyone aware of the effect it can bring to the floor. Several challenges are to be met within the space, namely dealing with the shortage of manpower, increased space for the buffer stock, clustering to ensure little to no human interaction. Automation in the form of automated storage and retrieval system (AS/RS), carousels, and other equipment are effective solutions to these problems. These tools can optimize the warehouse space to a great degree and can speed up the work to meet the fluctuating customer demands fruitfully.
3. Decentralization: With the surge of e-commerce, modern consumers have taken to the habit of same-day or next-day delivery. Delay or disruption in the process of delivery can be very detrimental to the supply chain and the bond between the customers and the companies. Hence, warehouses have come up with the plan of satellite warehouses. Instead of a centralized warehouse to meet the demands of consumers in the whole region, various warehouses near the customer-intensive areas can work wonders in speedy delivery and tackling disruptions.
4. Near-shoring of Manufacturing: Manufacturers that had off-shored their operations suffered massively during the COVID surge. Their operations stagnated, warehouses got depleted. In order to avoid getting trapped in this vortex all over again, many manufacturers have decided to bring their operations on-shore or near the shore. This not only brings down the operational cost significantly but also greater control can be exercised over the functions. 
5. Social Distancing within the Floor: As mentioned earlier, warehouses are spaces that are susceptible to the transmission of diseases due to their layout. The pandemic has changed the way operations were carried out in a way so that social distancing norms are complied with. Shifts are divided for different operations, sanitizing stations for workers and tools are installed, more space is required for inventory in-hand and automation tools, one-way traffic in the aisles is ensured. All these measures are instrumental in bringing down the footprints within the floor and also in making sure the jobs and the health of the workers are not at stake.
6. Increased Dependence on 3PL Logistics: Due to all the aforementioned issues and the decentralization of operations, there is a glaring need to increase the warehouse capacity. Because of this and the unpredictable pattern of demands, many companies have leaned towards the 3rd party logistics in warehousing. These logistics companies professionally deal with the disruptions that distribution comes across. Such partnerships to upscale the existing infrastructure can prove to be extremely beneficial in the times to come.
7. The Impetus gained by E-commerce: Though e-commerce is a phenomenon that existed way before the pandemic, the impetus it gained during the pandemic is outstanding. The sector has gone a few years ahead, over the past few months due to the jump it made in terms of expenses made on it. With fear raging big on the human minds about going out, e-commerce platforms brought their facility to the doorsteps of the consumers. Consumers felt empowered, omnichannel platforms gained prominence, and prompt delivery and reverse logistics came into vogue. Therefore, many buyers prefer buying online instead of going to brick-and-mortar stores. With this, the profile of orders has changed from being boxes picked for retail stores to individual orders picked for end-users. The complexity of orders has increased, and thus different picking methods are being leveraged to comply with the changed sales velocity.
8. Inventory Visibility: The knowledge of the status of their orders constitutes an integral part of the repository of power that consumers enjoy due to the rise of e-commerce platforms. Add to it, the decentralization of warehouses. Hence, warehouses now need to be completely in command of the location and the status of their goods. There is an increased demand for the visibility of the products and to attain the same, smooth coordination amongst the distribution centers is extremely important. The transparency in operations has become a sine qua non in striking durable customer bonds.
9. Omnichannel Logistics: Omni-channel logistics have come into being as the by-product of the booming e-commerce platforms. Omni-channel distribution strengthens consumers by allowing them to explore any channel; be it online or offline; to buy products and letting them choose any place to deliver their products to. To meet the heightened expectation and sales dynamics rendered by omnichannel logistics, warehouses must rely upon superior techniques, technological solutions and scale up their business.
10. Cold Logistics Gaining Prominence: It has already been mentioned that buyers these days do not wish to visit brick-and-mortar stores to buy goods as e-commerce has brought facilities to their doorsteps. One of the most imperative things to form a major part of the buyers’ buying list is groceries. Because of the increased demand for groceries and food items, talks related to the cold supply chain have also come to the fore. To store perishable goods like food products, we need cold storages, which are expensive spaces and need to be commissioned on prior notice.
11. Warehouse Management Solutions: The pandemic has blatantly pointed out the pitfalls that existed within the gamut of the entire supply chain. One of the major issues has been the lack of interest in technological solutions out of apprehensions. However, if the unpredictable demand patterns are to be met, then warehouses need solutions that are in sync with technological advancements. This includes a warehouse control system to handle materials, inventory, and warehouse management systems so that various picking strategies can be adapted according to the suitability of the demands. Such solutions offer flexibility in the picking speed and are highly scalable as various adjustments can be done via them.

The accursed days of the pandemic are slowly waning. However, the memories of uncertainty about jobs and lives are still fresh. Thus the supply chain verticals and especially warehouses must be prepared to face any kind of disruption that may unpredictably come across its way. With the flexibility offered by warehouse management systems, 3PL must be used to hilts to optimize warehouse capacity. Use RattusWMS, the highly configurable, multi-warehouse SaaS developed by experienced professionals of supply chain and IT sectors to see how operations become seamless in a cost-effective way.

Warehouse operations, just like the larger gamut of the supply chain, are dependent on each other. The success and efficacy of one operation determine how efficiently the other tasks would be performed. Putting away the received stock is a very important cog in this wheel as it directly controls the cost, the accuracy, and the purported time for picking. Put-away refers to the storage of goods to warehouse locations and if it is done haphazardly, it is surely going to take a lot of time for the pickers to retrieve those items. A proper pick-path can never be generated which would lead to utter chaos on the warehouse floor. Pickers would run the extra distance in the warehouse and sometimes empty-handed and this would surely amp up the labor cost. It is needless to say that this faulty put-away can lead to wrong items being picked and would strain the business relationships among the partners. Hence, it is of utmost importance that warehouses follow a proper and methodical approach towards the put-away process.

The mainstay of modern put-away is not only managing the ware but also managing the locations. The success of the modern put-away lies in the warehouse executives’ knowledge of the aisles, the racks, and the bins, that are to be found at every nook and corner of the warehouse. This constitutes a wholesome grasp over the storage location, their capacity, and their size et al. Therefore, it is the foremost job of the warehouse executives to optimize the storage locations to felicitate picking. It is only when products are put-away scientifically that an efficient picklist can come as an aid.

Objectives of Effective Put-away

The core of put-away consists of certain goals that need to be achieved to curtail the time and the labor cost as well as to optimize the further proceedings. They are as follows:

1.  To move the cargo from the dock to the optimal storage area as fast as possible.

2.  To ensure the security of the cargo as well as the employees.

3.  To optimize the warehouse space.

4.  To store items in such a way that traveling time within the warehouse while picking and put-away is reduced significantly.

5.  To store items in such a way that an efficient pick-list is generated and goods are retrieved without much of a hassle.

Best Practices of Put-away

1.  Training and Accountability: Most of the time it is the incompetence of the warehouse workers that leads to the fallacious put-away. They are unsure of the optimized storage location. They do not have proper training and route mapping at their disposal to carry out the work efficiently. Due to this negligence, a lot of product gets damaged and misplaced and this results in unexpected delays in shipment. So it is of primary importance that warehouse workers are properly trained, instructed, and guided as to how the operations can be carried out without making any significant error. A proper route map of the warehouse should be made available to all and sundry so that everyone gets to know where and how to store items. Unless accountability is imposed upon the employees, there will always be space for errors. It is only when the employees know that the responsibilities of their assignments lie entirely on them that we get to see a drift from the lackadaisical approach.

2.  Data Collection and Analysis: To have a practical and scientific outlook towards the put-away process and to utilize the business intelligence wisely, a consistent process of data collection and data analysis must be carried out without any failure. With efficacious data analysis, the most optimal storage locations of particular items can be determined. In this process, multiple factors related to the cargo and the locations must be taken into consideration. These include the cargo type, sales velocity, storage capacity, cargo dimensions, and receiving/shipping frequency etcetera. This process can either be done with the help of a warehouse management system or the entirety of the process can be automated so that the best results are yielded. However, relying on technology is inescapable here. Otherwise, manually, such complex and error-free analysis and data collection are tedious and next-to-impossible.

3.  Monitoring Storage Availability through Barcodes and RFID: Warehouses must monitor the storage capacity and the availability so that workers do not run extra distance empty-handed or come back without accomplishing the task. Barcode scanners and radio-frequency identification devices (RFID) can come up to be extremely helpful in facilitating optimal storage and monitoring the warehouse locations through sensors. These ultra-modern gadgets can faithfully appraise the warehouse executives of the capacity and the free space available in storage locations so that products can be placed judiciously over there.

4.  Create Timeline: The warehouse is a very busy space where products are received and shipped in bulk daily. If the work is put off, then backlogs are piled up, congestion takes place on the floor and unnecessary hassle is invited. Thus a strict timeline must be followed by all means so that workers stick to it and over time this adherence to deadline becomes a habit.

5.  Direct Put-away: Direct put-away is a method that enables the movement of consignment from the receiving dock to the shipping dock without the product going through a staging process. Direct put-away is an extremely beneficial means of put-away as it significantly reduces the storage time and doesn’t allow many touchpoints. This method greatly eliminates the scopes of errors. However, to make this process exist, warehouses need an effective WMS that can assign the final destination right from the process of generating ASN or the receipt of items. In this scenario also, we get to see how technology can significantly aid the operations.

6.  Classification of Products: There are multiple inventory management processes available and warehouses can stick to some of them according to their needs. ABC analysis, FEFO, FEFO are some of the most popular means. Warehouses should categorize their ware according to their sales velocity and put fast-moving items near the receiving area so that workers do not run the extra mile while picking and traveling time can be saliently reduced.

7.  Task Interleaving: Task Interleaving is the process wherein different warehouse operations are yoked together and assigned upon an individual at the same time so that they do not travel a fallow distance. This method brings down the fallow time that gets unnecessarily wasted in the business days.

8.  Usage of Fixed and Dynamic Locations: Based on the types and sizes of ware that are being stored and the capacity of the warehouse, fixed and dynamic locations in storing products can be judiciously juxtaposed. Fixed locations are the permanent locations that are associated with a particular type of item or a store. Fixed locations are useful in the sense that they expedite the entire warehousing process. Since workers know very well where they would store a product, there is little chance of mistakes, and the warehouse is governed in a very organized manner. Dynamic locations, as the very name suggests does not ensure to be the permanent location of any product. Workers put away the goods in the nearest or the first available location. Dynamic locations offer the flexibility that is needed while storing high-volume products. The products stored in dynamic locations can be replaced with different items as other locations are emptied and require replenishment. However, it must be noted that without a competent inventory management system that can track and trace products, this juxtaposition of fixed and dynamic locations can be a very confusing affair and can lead to a very clumsy state.

This preceding discussion has highlighted a point that technology is the saviour in the current competitive scenario. Without resorting to digital transformation, warehouse operations and especially the put-away of things can never be done effectively. The warehouse management system assigns locations according to the demands of the products and renders help in doing away with the mistakes that can occur along the process. WMS comes as the greatest help in tracking and tracing products with their service of providing end-to-end visibility. So it must be concluded that an advanced warehouse management system is an ultimate need in any distribution center and the DC's must adapt themselves to this digital transformation if they haven’t done already or if they have at all, the system must be upgraded for good to accommodate all the things necessary to cater to the contemporary demands.

If one has to put forth in simple words, the answer to this question, ‘What does WMS do?’, then the response would be that it streamlines the entire supply chain operation and thus takes the center stage in the supply chain ecosystem. The whole ambit of the order fulfillment process, ranging from sourcing to inventory control and from shipping to order return management, is taken care of by the centralized warehouse management system.

As it has been mentioned, inventory management is one of the key components of WMS functionality. Over the years, it has gained prominence due to the service it renders in keeping the record of warehouse inventory clean and accurate.

Reasons behind the Sudden Thrust over Inventory Management System

The inventory management system is that dynamic solution that keeps the record of the inventory within the warehouse. Various methods and approaches of inventory management are applied to ensure the optimum result and to make sure that the products are procured and/or shipped on time. At the center of a competent inventory management system resides the keenly insightful data that notifies the warehouse of the availability/unavailability of products and the changing trends, demands, and patterns so that warehouse resilience is swiftly achieved.

A centralized inventory management system is one of the most pre-requisite things to run warehouse operations smoothly for big retailers and e-commerce platforms. These organizations having multiple distribution centers across a geographical location need to depend on their sister warehouses regularly to strike the balance between supply and demand curves. Without proper software support to coordinate amongst them, the entire objective of communications would collapse.

It has been conspicuously noticed that warehouses lose out on a lot of useful time and resources in optimizing the first-mile movement. In most cases, these actions bear no fruit and end up in smoke if a proper inventory management system is not there to provide a buttress. The chaos in most cases results out of the lack of knowledge about the product’s unavailability and the exact location of the products. Subsequently, the warehouse workers hit panic mode, run helter-skelter and thus end up doing something that Shakespeare would have called, “Full of sound and fury/Signifying nothing”. This nothingness of disruption can be faithfully avoided with an efficient inventory management system.

 The Things One Must Ensure before Implementing Inventory Management System

1. Identify the Most Suitable Technique: There are several inventory management techniques available in the logistics vertical. Some of them include ABC inventory, FEFO, FIFO, LIFO techniques etcetera. One of the very first and foremost things that a warehouse must do is that out of the pool of methods at their disposal they must choose the one that cuts the coat according to the cloth. The warehouse must consider what kind of products they are dealing with and the features that they have. In accordance with the product dynamics, the most appropriate inventory management technique is chosen so that the warehouse space is optimized and zero wastage is ensured.
2. Integration: The whole objective of having a centralized inventory management system gets ruptured if there is no proper format of integration. In order to gain better visibility into the products’ supply chain and to offer seamlessness and the same degree of effectiveness across the supply chain, integration with other solutions to get an overarching view over the supply chain becomes a very important factor. Companies that wish to dabble into inventory management must look into this factor.
3. Set Up a Proper SOP: Standard operating procedure which is known by its abbreviation SOP, is the properly documented step-by-step instructions that help workers carry out operations. Whatever is done in implementing or operating the system must be duly documented so that it may function as a reference point for the future. Once the SOP is built up, it can be referred to and adhered to strictly to attain optimization.
4. Know the Stock Levels: The most important thing to consider before a suitable inventory management system is implemented is that companies know their stock levels in and out. The details of the stock, including their features, their demand, and sales velocity should be under the grasp of the companies so that all their future actions are based on that. Furthermore, each company must have its threshold limits so that as soon as the stock reaches certain limits, the inventory management system informs the warehouse that the stock needs to be replenished.
5. Staff Training: Human force is the best asset of any company. If properly trained and utilized, they can bring better results than the companies can even expect. Thus it bears upon every company that before they implement anything new, they must duly train their staff about the new design, methodology, technology et al. They must be brought in to consensus that they follow the SOPs. With the proper training and monitoring, the warehouse’s workforce can yield tremendously profitable results without much scope of wastage in time and money.
6. Re-think the Warehouse Layout: One major concern that is sadly often neglected is the warehouse layout or design. The warehouse is an expensive space and every square inch of it must be utilized to its hilt. It must also be kept in mind that products are not huddled together or kept in such a way that it may evoke confusion among pickers. Sometimes, it is also judicious that the warehouse space is vertically increased to accommodate the increased flow of products. At others, the length of the aisle space needs to be considered before digital application so that warehouse equipment can do their work without any hint of obstruction. The design needs to be based on the type of warehouse, the kind of products it harbors, and its tools. The layout must be reviewed at fixed intervals so that it remains updated with the upgraded technological advancements and methods.
7. Have Actionable KPIs: The success of any new enterprise is gauged against some yardsticks. The parameters that are set against the inventory system operations are Key Performance Indicators or KPIs. Every company must set up a solid KPI to judge the performance of their investment and to track how the solutions are faring. Without a proper set of KPIs, the whole venture takes the form of a lost ship that doesn’t know where to sail.

Concluding Ideas

Warehouse automation or initiating a new solution in the fabric of the system is a tiresome task. Apart from looking over the financial pros and cons of it, the above-mentioned factors indeed need to be looked into before taking the leap. Otherwise, a whimsical decision may lead to financial drainage rather than securing a vantage point. However, once all the internal and external factors are judged even-handedly, WMS or inventory management system must be chosen very wisely. Only a carefully cultivated solution like that of Rattusapps can yield fruit that would be of greater use. With decades of expertise and years of research, the system has been developed by the Rattusapps team and it can ensure a handsome ROI in the long haul. Hence one must choose judiciously to stay abreast.

Why EDI Is Gaining Prominence?

Human work is tantamount to follies and delays but EDI, which is bound by standard electronic format is such a marvel of modern technology that it mitigates scopes of mistakes in any kind of information sharing. EDI replaces the age-beaten and problem-ridden systems like letters, fax, and email. While in these systems, processing of the documents can sometimes take abnormally long, EDI makes the task automated and hence easy and lightning fast. All types of documents can be processed with EDI which range from purchase order to advanced ship notice; from invoice to inventory details; from customs details to payment details.

The most special thing about EDI documents is the standard format that they adhere to. This formatting language is used so that computers can read these messages. In the case of human language, a lot of things can get lost in translation but to ensure maximum efficacy, certain standard formatting is used across EDI. TRADACOMS, ebxml, UN/EDIFACT, ANSI, VDA, VICS, SWIFT, SAP, ODETTE, EANCOM, RosettaNet, Oracle Gateway, HIPAA, are some of these formats. Business partners agree upon the format and version of EDI standard they would use so that computers can read the messages seamlessly. An in-house EDI translator or an external service provider helps machines go through EDI documents and come up with accurate meanings.

The Difference between Legacy Process and EDI in Document Handling

When we compare the paper-based or legacy documenting system with EDI, we get to know the agility that gets embedded in the latter. In the former, the buyer enters information manually to create a purchase order, after having come to know of the need. The PO is printed and/or mailed to the supplier. On acknowledging the PO, the supplier issues invoice, and the process of shipment gets initiated. The acknowledgment can take days altogether sometimes. In this tedious process, if there is a little bit of error that creeps in, the process can get further delayed.

On the other hand, EDI documents are automatically generated once the party requires inventory and sends the PO to the vendors. The vendor’s sales order system receives the PO almost immediately and sends EDI-generated invoices to the buyer and issues shipment instructions.

Data Elements and Segments

In order to give lucidity to the EDI documents, the data elements and segments are formatted according to the EDI protocols. In the process of creating these EDI documents or transactional sets, standardization of rules is stringently followed so that the machines get to read the information and that too in its proper place.

Data elements are individual sets of information embedded in the transactional set which may constitute the company’s name, address, city, order quantity et al. Each data set is separated from the other. The data elements may vary from numeric, text, alphanumeric type; may constitute code or symbolic values like the symbol of currency.

Data segment on the other hand is the group of similar data elements. In a segment, similar elements are clubbed in together and each segment gives away unique information. Each element within the segment is separated by separators.

To give clarity to the process of data transfer EDI documents are placed in envelopes, which are digital counterparts of paper envelopes. Each transaction set is kept in a message envelope. Each group of a transactional set, such as a group of invoices is kept in a group envelope and all the group envelopes that are sent are clubbed in one interchange envelope. 

The Process of Sending EDI Formatted Files

To generate an electronic EDI document, one needs to bring the necessary information in one place. The data can be manually entered on devices or can be exported from spreadsheets. Companies that are ready to stay a step ahead go for applications that interface for EDI documents or can create automatic output systems so that EDI formatted documents are generated as soon as the need occurs. After having the data heaped up, they need to be adequately formatted according to the EDI norms. This can either be done by enterprise-level on-premise software or by can be outsourced to EDI service provider who translates the data to suit the needs of the customers. After having the documents prepared and formatted they are sent to the other parties either directly through secure internet protocols or they are handled by EDI service providers and sent by them.

In Conclusion…

EDI is a fast-paced data integration system that has become the need-of-the-hour. In this modern market where everyone needs to have an edge over the others, EDI renders speed and security to the business process which was unimaginable a few years ago. To get away from the rut and redundancy of paper-based and manual systems and to do away with errors as much as possible, business firms must mull over resorting to EDI formats and the time has come to spare serious thoughts to it.

With the exponential rise of the e-commerce platforms in recent years, the importance of warehouses has taken the centre stage in the supply chain network. From a layman’s perspective, a warehouse is nothing but a space where products and raw materials are stored before they are finally dispatched to manufacturers or consumers. However, those who are insiders in the industry know how warehouse is that significant cog in the wheel of the supply chain that keeps the balls rolling. Unless there is an optimized, efficient warehouse at the helm, the whole process of manufacturing and distribution would receive flak. The whole supply chain is dependent on the efficacy of warehouse that demands special attention in the 21st century.

Since the sales velocity and the operational complexity have increased and multiple layers have been added to the supply chain network, warehouses across the world have gone for a digital overhauling. Warehouse management systems that monitor the end-to-end operations of warehouses, coupled with measures taken in favor of automation have changed the face of warehousing for good. However, there are managers who are either still cynical or nonchalant about strengthening their operations. This is mainly because either their business is too small to afford the digital boon or they are skeptical about the expenses they would incur. It must be noted that the fear of expenditure is nothing but a myth as properly implemented digital transformation always leads to handsome ROI in the due course of time and because of that even the small and medium business organizations are also taking the baton forward. Hence, in this article, we would try to highlight the limitations that a traditional warehouse would have that can be easily overcome with the sensible adaptation of digitalization.

1.  Accidents and Mishaps: Warehousing is a heavily labor-intensive process. A lot of workers serve the warehouse floor and they are susceptible to accidents. They need to handle items of various sizes in copious amounts. If they handle it manually, a lot of physical strain occurs that can dwindle their productivity. Additionally, the mental strain of recalling the exact locations of all items and pick-paths and accomplishing multiple targets in a stipulated deadline can be strenuous mentally. Moreover, improper handling of forklifts can be disastrous for the workers and can lead to fatal injuries. Warehouses that resort to automation processes employ AI/ML that can perform plenty of tasks at a greater speed with little or no human intervention, causing little threat of unfortunate occurrences.

2.  Problem of Space: Warehouse is an expensive space and every inch of it counts. Since traditional warehousing is intensely manned, a lot of errors can crop up in the course of operations. One of them is faulty space utilization. Due to the miscalculations on the part of the executives, many times items are stashed wrongly which leads to stockpiling at one place and stock-out at another. Warehouse management system is a software solution that efficiently deals with this problem of space and helps in the seamlessness of operations.

3.  Wastage of Time: Traditional warehouses do not leverage resources and picking options optimally. Resultantly executives run extra distance empty-handed and a lot of fallow time creeps into operations. Warehouse management system generates the most useful pick-path for the workers and introduces various picking options like wave picking and batch picking. Additionally, through features such as task-interleaving, various operations are yoked together so that optimum results can be achieved. Workers just have to follow the instructions given by WMS and it frees them from the hassle of registering all the routes and locations mentally. The operational time that is freed up can be sensibly utilized in other constructive work such as getting trained and upgraded. Traditional warehouses with human planners have a tough time routing and re-routing paths that get completely eliminated in tech-savvy distribution centres.

4.  The Rut of Documentation: Warehousing is a process that entails a lot of documentation. Most of these documents are manually registered and maintained. This huge pile of documents can easily get misplaced or can be manhandled. The misplacement can not only lead to delays and demurrage, but also pilferage that can incur huge losses for the companies. Again a lot of useful time and resources get grossly wasted in locating the exact documents from the heaps of papers. Furthermore, an overt dependence on paper-based work can be detrimental to the sustainability missions of the companies. And it is a proven fact that the organizations that have clear eco-friendly objectives earn goodwill in the contemporary markets.

5.  Issues Related to Scanning: Most of the traditional warehouses do not have scanners to single out items and that can cost workers a lot of mental and physical strain. Even those warehouses that have barcode scanning systems harbor their own set of problems. Barcode scanners cannot scan items that are placed at a particular distance or have any other object hindering their view. Moreover, these scanners cannot scan multiple items at the same time and takes a lot of time in scanning all the consignments collectively. This wastage of precious working hours can be eradicated entirely with the smart application of Radio Frequency Identification Devices.

6.  Inventory Inaccuracy: The single biggest problem that traditional warehouses face is the complications that arise out of inaccuracy in knowing inventory level. Without a thorough grasp over the level of stock that a warehouse has, overstocking and stock-out are extremely common. In such scenarios, warehouse managers do not have a proper idea when their shelves would need replenishment. Concurrently, purchase orders are not served timely and then shelves go empty for days causing disruptive tremors across the entire supply chain. Moreover, without proper adherence to FEFO, FIFO rules, fast-moving products can get damaged. All such traditional warehouses conduct the annual audits of stocks manually and that causes shut down for a few days. However, in smart warehouses with efficacious inventory management systems, cycle counts are conducted at an intermittent period and that too simultaneously with the everyday operations, without causing breakage in the productive timeframe.

7.  J.I.T and Cross-Docking: This point can also be clubbed with the compromised warehouse spaces. E-commerce platforms have empowered consumers in such a way that they prefer same-day delivery or promptness in delivery to a greater length. Modern warehousing methodologies of just-in-time delivery or cross-docking completely corroborate to the efficiency in dealing with warehouse spaces. Without a competent workforce enabled by technology, this magnitude of proficiency would always remain elusive.

8.  Forecast and Analytics: One prime feature that WMS-enabled modern warehouses provide and traditional paper-based warehouses don’t is the privilege of business analytics. Business analytics is a powerful set of tools that analyses business trends in predictive and descriptive ways. These methods are extremely fruitful in presenting a strong business case. Additionally, they present a tentative forecast of the future trends that can help businesses stay afloat in times of disruptions and renders resilience to the fabric of the enterprise. This is an especially practical aspect of warehousing where customer demands have become exceedingly volatile and disruptions, both seasonal and unprecedented, have become the order of the day. The post-COVID scenario of uncertainty has cemented the need for formidable data analytics. In the traditional warehouses, where there is no scope of data curation, BI does not even exist in the whole purview. On the other hand, WMS stores individual data pertaining to manufacturers, sellers, product details, locations, shippers, and all the necessary stakeholders that create a huge pool of data that can be utilized to its hilt.

9.  Lack of Transparency: Traditional warehouses do not offer end-to-end visibility into their operations due to the lack of technical expertise. But in the modern day and age, stakeholders need complete transparency in the entire distribution cycle and thorough knowledge on the statuses of their consignment. The zilch of it takes away the reliability and credibility of the warehouses. Not only does WMS fulfills this age-appropriate need, but with the help of AR/VR tools, multiple parties would also be able to go through the entire process in the days to come.

This discussion attempts to prove how traditional warehouses have started losing their sheen in the light of digital transformation and recurrent disruptions. Though a digital revamp may seem to burn a hole in the pocket, it is an extremely important and even a necessary facet of the modern supply chain. With the resurgent importance of warehousing operations, one would definitely not afford to lose sight of profitability. Spending on WMS, AI/ML, WCS etcetera are good investments. They reap the fruit of labor consistently and in their own sweet time. Thus, it is time to shrug off the slumber of indifference and adapt to the changes to keep up with the pace of time. Otherwise, obsolescence and redundancy loom large over businesses.

In the day and age of competitive market where e-commerce has burgeoned exponentially and same-day-delivery, just-in-time deliveries are being preferred by customers, the importance of warehousing is felt like never before. With the financial world’s gazes having shifted prominently to the supply chain industry and logistics sector having been considered as an imperative instrument in keeping the world running even amidst unprecedented disruptions, efficiently managed warehouses have taken the center stage. Resultantly, warehouse management system or WMS, as it is called has gained the impetus that it duly deserved. Initially, a software solution to optimize the operations of the larger distribution centers, WMS is now functional in the businesses of small and medium degrees. 

WMS proves to be efficacious in all the operational processes of a distribution center, right from receiving consignment to shipping and everything in between. The efficacy of WMS is far-reaching. Not only does it streamline operations, but it also reduces overhead expenses, manages inventory accurately, eliminates man-made errors, stores data for analytical usage, strengthens customer relationship and eventually renders agility and resilience to the enterprises.

With WMS, warehousing becomes such a transparent process that every single stakeholder receives real-time updates of the location of their items, making tracking and tracing much easier jobs. With a lot of superfluous operation operations having gotten ridden, warehouse executives get a lot of time at their disposal to engage themselves in other productive works such as getting trained and upgrading themselves. Moreover, apart from controlling the entire gamut of warehouse actions, WMS offers its users a centralized interface which gives ease of usage and a cohesive perspective of all the complex operations going in tandem.

WMS and Inbound/Outbound Logistics

To understand the significance of warehousing in its most basic level, we can say that warehouse seamlessly acts as the medium of the process through which raw materials are turned into products and products are distributed across the grids. The stronger the warehouse is the prompter is the process. Warehouse operations are primarily divided into two types: inbound logistics and outbound logistics.

Inbound logistics is the chain of operations that bring purchased materials to the businesses. The very first step in inbound logistics is purchasing. Inventory management system, which is an inessential feature of WMS, proves to be extremely beneficial in streamlining this process. As soon as the inventory of the warehouse reaches a certain level, it notifies the partners so that stock-out is avoided and replenishment takes place as soon as possible. Once purchase order is automatically issued and the consignments arrive, they are scanned with the help of advanced devices and the entire range of data related to them is stored in a singular location. Once the consignments arrive, WMS directs the warehouse stuff to store them at proper places through various put-away and slotting techniques. This not only helps in bringing accuracy and promptness to the operations, but also unearths opportunities of optimum storage utilization.

Outbound logistics, on the other hand, comprises of processes that bring finished goods to the consumers. In this network of operations, maximum scopes of mistakes are to be found in the picking process. WMS provides the warehouse stuff the most efficient pick-path and picking guidelines so that correct product in its best quality reaches the end customers. While packing the goods, all the labels can be printed directly with the help of the information that has been stored by the RFID scanners so that minimum human intervention is sought.

Benefits of Using Warehouse Management System

Apart from and along with all the ways that WMS facilitates the movement of freight within and without the warehouse, there are certain other groundbreaking means which has established WMS as the go-to application in the domain of modern logistics.

1.  Cloud-based Application: Most of the warehouses opt for cloud-based warehouse management system that can be accessed anytime and from anywhere. Due to this ease of access and flexibility it offers, all the parties involved can be on the same page when it comes to info sharing.

2.  Scalability: Warehouse management systems frequently need upgrades to fit the need of the hour. WMS providers, most of whom are external vendors are always in touch with market trends and take the matters of upkeeps in their hands, thereby freeing the warehouse of a cumbersome job.

3.  Reduced Paperwork: One very distressing aspect of traditional warehousing is the truckloads of papers that go into the operations. The huge barrage of paperwork not only creates confusion in a moment of haste, but also misplacement and mismanagement leads to utter chaos and financial loss. Moreover, with the rest of the world partaking in green initiatives, plethora of paperwork can cause hindrances by the warehouses. WMS entirely digitalizes the operations and greatly reduces paper-based documentations.

4.  Reduces Cost: WMS is particularly effective in reducing the operational overhead cost. By automating a great deal of operations, the labor cost can be conspicuously reduced. Furthermore, by streamlining the processes, errors that could have been induced by human beings are curtailed. With a particular eye into inventory management, unwanted phenomenon like pilferage, stock-out, overstocking can be reduced. And thus, by bringing the errors down and amplifying security, loss and cost can be put under check.

5.  Transparency: WMS provides its users and customers with greater magnitude of transparency. All the actions that start with receipt of items at the warehouse to shipment for outbound distribution come under the ambit of real-time visibility. With the precise location and status of the goods known to the warehouse stuff, accurate information can be percolated to the carriers, the bottom-line distributors and the end-customers.

6.  Accuracy in Inventory: Inventory accuracy is a major deal in warehousing. Without the distribution center’s proper knowledge of its inventory, a lot of financial losses can occur. The best way to keep a tab on the stock is auditing. However, the annual inventory counts can be tedious affairs that can result in temporary shutdown. With WMS at the helm of warehouse, regular cycle counts are possible that can not only furnish accurate information, but also can be performed without causing a halt to the business.

7.  Data Collection: Having all the necessary information about the products, including the seller details and their movements, warehouses can form insightful perspectives into the trends of the market and demand of the products. With stipulated KPIs as objectives, operations can be measured against the metrics and conclusions can be drawn. With an automated and optimized workspace and analytical features, the details can be transformed into actionable data and that can be utilized in striking future business deals.

8.  Customer Satisfaction: With the better performance from the side of the DC, rendered by an effective WMS, products and services reach customers quicker and they are also notified of their goods’ statuses. Hence, the companies that apply WMS are bound to have happy customers who would have a better return value.

9.  Streamlining Labor: WMS comes with features that can facilitate actions like cross-docking. Furthermore, by generating the most effective pick-paths, WMS leverages resources optimally so that the workforce on the ground can achieve maximum targets through minimum efforts and much of operational time is not wasted. Task-Interleaving, wave picking, batch picking and other such novel operational methods yoke time and resources together for better result in terms of productivity, reducing errors and killing fallow time.

10.  Effective Bin Management: WMS can prove to be extremely helpful in the process of storage of products. With the accurate knowledge of cubic capacity, slot locations and the features of product profile, items can be stored in such a way that the expensive warehouse space can be utilized optimally.

11.  Reduces Issues Related to Scanning: Most of the warehouse management systems come with the added feature of RFID scanning. While regular scanning systems have many limitations and the feature of it being a hand-held device can waste a lot of operational time, the radio-frequency identification devices are worthwhile innovations that can furnish and store product details, mitigating scopes of errors.

How to Choose WMS?

While opting for the best-suited system for warehouse, one must keep in mind the needs of the enterprise and the size of the business. Thus a proper homework in the form of peer review must be carried out. WMS implementation can be an expensive process that can make customers flinch from resorting to it, though it gives a solid return-on-investment in the longer haul. Thus warehouse executives must attend a lot of workshops and should make their stuff undergo a lot of training before taking the plunge, lest the investment should not turn out to be a damp squib. Many-a-times it is seen that the features that are offered by the vendors meet the needs of the customers but certain things needed by them are not to be found in any of the solutions. So the warehouse owners must ask themselves if they would walk the path of developing an enterprise-sized, on-premise system or should it customize the existing system.

Questions to Be Asked

Once the warehouse owners are fixated on implementing WMS, they must zero in on certain necessary questions that must be posed before the WMS vendors, such as:

·  What is the cost of the installation process?

·  What are the equipment and added support that the warehouse must extend from their side?

·  How is the system going to add value to its existing operations?

·  How long will it take to get visible ROI?

·  What are the costs and scopes of adapting the system for better scalability?

·  How can the vendor ensure data security?

·  How easy would the system be for all the warehouse employees to use?

·  Questions related to user license

All these and more must be asked so that all the doubts and qualms are suitably addressed and no apprehensions are at play before or during the implementation.

In Conclusion…

The digital overhaul in the recent past has changed the world as well as the supply chain for good and software solutions like warehouse management system have taken the operations a few notches higher. To keep up with the pace, warehouse owners must resort to the transformative measures. Therefore, with all the critical questions and significant issues at the fore of the mind, business firms should go all out in looking for the most suitable solution in accordance with their needs and enjoy the fruits of the merit they have reaped.

One of the most important positive changes that have come into being in the collective consciousness of people in the 21^st century is the re-awakening of environmental concerns. Riding atop this surge, comes awareness into the ecological hazards and the ramifications of it. While conservation of environment is the onus of every single individual on the surface on the planet, it is the industrial sector and especially the supply chain industry that must rise to the occasion. For a very long period of time, manufacturing industry has been indicted of leaving maximum carbon footprints. It is now their responsibility to bring it down and at the same time strike a balance between burgeoning demand and consequent, seamless supply.

In Shambles…

These are the days of cutting-edge competitiveness when supply chain models have become multi-tier with the multinational giants depending on layers of suppliers in order to get their work done. While these MNCs themselves try to comply with the conservational norms, it becomes extremely difficult for them to keep a tab on their lower-rung suppliers and stakeholders and monitor how they are adhering themselves to the conservational protocols as the network is far too complex and far too spread out. Ironically, the stakeholders are most of the times small entities who do not harbor proper knowledge and guidance pertaining to this grave concern and they breach the environmental protocols in order to meet the deadlines set by their partners in the higher rungs. Thus it is not only the need of the hour to set up a green supply chain but also to give it a form of green supply chain network where the lower-rung stakeholders are given proper guidance by the bigger companies and are monitored and taken care by them and are given incentives for bringing about change.

The Idea Behind

Green supply chain refers to all the techniques, methods, ideas that can be harnessed in order to embed sustainability goals into the entire gamut off supply chain. While the end goal of this venture is to reduce pollution and waste, to encourage usage of eco-friendly products and services and better operational and end-of-life product management, this can prove to be extremely beneficial in terms of profitability. Not only does the environmental metrics of companies give a positive thrust to their images but also with the help of low-cost, reusable, recyclable materials and end-products, the overhead expenses can also be brought down that can result in a staunch customer loyalty and higher profit margins. Thus by integrating sustainable models in supply chain and by judicious selection of design, operation, distribution, suppliers, raw materials and reverse logistics modes, tremendous amount of value is entrusted upon supply chain industry and the whole idea behind it can fizzle out if the processes are not streamlined or supported by each and every player in the game. Environmental principles are applied across the entire order cycle including assemblage, procurement of raw materials, re-engineering tools to suit the requisites etcetera. Moreover, in sync with the idea of reducing fossil fuel depletion, transportation systems are re-modeled to accommodate bio-fuels.

The Fact-of-the-Matter

Green supply chain models have come into existence especially due to the intervention and regulations imposed by the governments. Numerous trade laws have been passed and there are nations where stringent vigilance is kept so as to keep environmental degradation in check. The restrictive measures can go to the extent of banning the production of products that pose threat to the environment in the very manufacturing level. Not only is it the government, but also the customers have also woken up to the fact that harmful impacts on ecology can result in extinction. With the barrage of media coverage, institutional stewardship and mass campaigning, environmental concerns have been indoctrinated into the gentry in such a way that any company that does not follow the norms can face severe brickbats in terms of reputation. It is exactly this pressure from the regulatory bodies and end-users that propelled the supply chain leaders mull over the possibility of revamping the domain end-to-end. Resultantly, they have encouraged their employees to adapt themselves to green practices for not only environmental but their own sustainable business model. This awareness percolates to the chain of suppliers constituting the green supply chain network. It must also be noted here that competitiveness in upholding an organizational image as an envoy of change is also a key factor in implementing the radical change in the system. With the society’s increasing awareness of the impacts of industrial activities, green supply chain and resource planning have come to see the light of the day.

Green Purchasing, Green Management

One of the most important factors embedded deeply in the environmental principles of supply chain is green purchasing. With the noble objective of reducing waste and sensibly utilizing the existing resources to their hilt, green purchasing delves into procurement of raw materials which are reusable and recyclable. Consequently, at the end of the products’ life cycle, with an astute application of end-of-life management the components of the defunct products are leveraged as raw materials. Not only does it help operation performance getting skyrocketed but also curtails the procurement and manufacturing cost and thereby giving impetus to the profitability and productivity.

Coupled with the objectives of green purchasing, green management of manufacturing and marketing also boost efficiency, improve environmental compliance and help in carrying out greater social responsibilities. This can be achieved through a careful process of planning, packaging, producing and promoting products in the most eco-friendly ways and properties possible.

Sensibility in Transportation

The distribution phase of the supply chain is a major adjunct in the whole process. Once the manufacturing is done using green resources, quality is ensured and cost is mitigated, lean logistical models in transportation and warehousing become decisive aspects of cost-controlling and in the goal of strictly complying with the environmental principles. Usage of bio-fuels render tremendous amount of help in preserving biomass and in bringing down carbon emission. Transportation management systems are extremely helpful tools that stop conveyances running extra-mile and regulating the last-mile delivery so that maximum efficacy is extracted with minimum errors and cost.

Green Warehouse

 When it comes to warehousing, it is an oft-neglected cog in the wheel of green logistics. Most often do we get to see how the errors and delays in the warehouses driven by hazardous documentation can result in wastage and non-compliance to ecological norms. The solution lies in implementing a robust warehouse management system that automates the distribution centres and gets rid of the piles of paperwork. With the help of an efficient pick-path management, inventory management and RFID/barcode scanning systems, warehouses can eliminate the extra cost that gets entailed and do their own bit by contributing to the sustainability goals.

Reverse Logistics

Reverse logistics and after-sale services are those functions that can be tapped in very intelligently in order to promote customer association and to procure raw materials at the end of the products’ life cycles. Instead of simply doing away with the products, they can be brought back, can be re-used and value can be added to scraps if reverse logistics is a strong contention of the logistical chain.

In Conclusion…

Green supply chain is not only a generous initiative undertaken by companies that are sensibly awake or are willing to undergo an image overhaul as a part of marketing tactics. The respect that the companies earn and the cost efficiency that they strike have become so imperative in this modern competence-driven market that it is a mission to be undertaken by all and sundry. The question is of sustenance, of nature, of economy, of the industry and eventually and inevitably of the companies themselves. They must yoke the green initiatives with their operational models, do whatsoever is needed to attain that and redo whichever silo they are lagging in because unless there is sustainability within and without, what purpose does ideas serve?