How Does a Warehouse Work: An SKU Journey from Creation to Delivery (2024)

When you own a retail business, no matter what type of products you sell, understanding the process your inventory goes through can be beneficial. To manage the pathway of a Stock Keeping Unit (SKU), each item is given a unique inventory code to improve traceability which is key to meeting customer demands. From goods-in to delivery, an efficient third-party logistics company can ensure your inventory is accurate and managed correctly, orders are shipped on time and customers are satisfied.

At Spectrum, we use an advanced Warehouse Management System (WMS) to optimise the SKU pathway through our warehouse. We understand the importance of visibility and efficiency at every step of the fulfilment process and are committed to providing a dedicated service to businesses throughout Ireland, Europe and across the world.

Below we have explored each step of the order fulfilment process, demonstrating how the Produmex WMS we use at Spectrum enhances each phase, ensuring products move smoothly from the moment they are received in our warehouse to being delivered to the hands of your customers.

What is Produmex WMS for SAP Business One?

Produmex WMS is a state-of-the-art warehouse management system designed specifically to integrate with SAP Business One. It extends the basic functionality of SAP Business One, providing comprehensive tools to manage warehouse operations efficiently. This integrated warehousing software can transform logistics processes, boosting reliability, productivity and profitability. Produmex WMS is built to support every aspect of the inventory management process, from inbound transactions and barcode scanning to shelf-life management and real-time inventory reports. It addresses industry-specific challenges which aren’t currently covered by SAP Business One, increasing efficiency through standardised and interlinked processes.

The Order Fulfilment Process

The order fulfilment process is a key component of warehouse operations, involving several stages from the moment goods enter the warehouse to when they are delivered to the customer. This process can be seamlessly managed with the right warehouse management system, ensuring each step is carried out correctly, minimising errors and maximising efficiency. The order fulfilment process includes.

How Does a Warehouse Work: An SKU Journey from Creation to Delivery (1)

When an item code is created in SAP and Produmex, the SKU’s life cycle starts. This crucial phase enables us to define an item’s batch, serial number, expiration date, preferred couriers, minimum and maximum stock levels, and integration with an already-existing supplier code, among other aspects

Receiving Goods

The journey of an SKU in a warehouse begins at the goods-in stage. This is where products arrive from suppliers and are systematically checked for quantity and quality. The Produmex WMS simplifies this process by automatically tracking received goods against purchase orders and delivery schedules, ensuring accuracy and efficiency right from the start.

Put Away

After goods are received, they need to be placed in the right storage locations. Efficient put-away is key to optimising storage space and accessibility. Produmex identifies empty storage bins and allows full stock visibility for efficient space utilisation.

Storage

Once items are put away, they remain in storage until they’re needed to fulfil an order. During this phase, Produmex WMS provides real-time inventory visibility, which is vital for accurate stock management. This real-time data and reporting ensure businesses have access to key information such as stock levels, best before date (BBD), batch, serial number, quality status

and stock consolidation. Thus, assisting with demand forecasting and preventing common problems with stock-outs or excess inventory.

Order Picking

The picking process begins once a customer places an order. Spectrum’s comprehensive WMS supports this step by using advanced technology to determine the most efficient picking strategies, whether it’s wave picking, zone picking or batch picking. This not only speeds up the process but also reduces the likelihood of errors, ensuring that the right products are picked for each order.

Packing

After they’ve been picked, items are moved to the packing area where they are securely packaged and ready for shipment. It also generates shipping labels, further automating the process and reducing manual tasks.

Shipping

Once packed, orders are ready for shipping. The Produmex WMS helps to ensure all shipments are scheduled and managed efficiently.

Track Shipping

Tracking and reporting are essential for maintaining control over the shipping process. Produmex WMS offers comprehensive tracking capabilities, allowing the Spectrum team and our customers to monitor the status of shipments in real time. This is crucial for managing delivery expectations and handling any issues that may arise during transit.

Delivery

The final stage in a SKU’s journey is the delivery to the customer. Successful delivery and customer satisfaction rely on the effectiveness of all previous steps in the supply chain. Spectrum has a range of the best-in-class third-party courier companies, and each delivery service is carefully assessed and passed on to a partner courier company, who in turn will ensure that deliveries are carried out as planned and provide documentation such as proof of delivery to support accurate invoicing and customer service.

How Does a Warehouse Work: An SKU Journey from Creation to Delivery (2)

Managing Returns

Returns are an inevitable part of any business and handling them efficiently is essential. Spectrum’s Produmex WMS can also manage returns with the same level of efficiency as inbound logistics. It processes returned items quickly, restocking the appropriate items and updating inventory levels accordingly.

Improving Order Fulfilment with Warehousing Services

It’s fair to say that having a good understanding of an SKU’s pathway through a warehouse is beneficial to whoever owns or manages a business. Understanding the individual steps and how each one can impact operational efficiency and customer satisfaction is key to business success. At Spectrum, using the Produmex WMS helps us maintain an efficient warehouse, from storage to pick and pack process, so you can trust your products are in very capable hands. By leveraging advanced warehouse management solutions, we can boost operational efficiency and enhance the overall customer experience.

To find out more about how we can support you with the logistics process, contact our team at Spectrum today. It’s not just our technology that makes us stand out from the crowd, but our people and expertise will ensure seamless order management, regardless of what type of products you supply. We are proud to partner with many of the global leading brands and we can provide the end-to-end support you need. We look forward to working with you.

Author: Gabriel Cher – Spectrum’s Warehouse Manager

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