New to supply chain or starting fresh at a new company?
The early days can be daunting, but guidance is available.
Take a moment to view the video provided below—it might help you settle in smoothly.
This week, we’re focusing on the physical aspects of supply chain operations—how products move through the system. This is especially useful if you’ve recently joined a new company or role, as it helps you understand operations quickly. Next week, we’ll discuss information systems and key performance indicators (KPIs).
Look at the Physical Processes
In my role at Logistics Bureau, I frequently visit new clients to assess their operations. The first step in understanding a supply chain is observing the physical processes. I begin by visiting the warehouse, starting with the receipt dock. I ask questions like: Where do the products come from? Are they manufactured locally or imported? How are they delivered—palletized or in containers? I also check how products are unloaded—whether done by third parties or in-house staff. Any issues here, like delays or inefficiencies, are critical to identify early.
Put Away Process
Next, I examine the put-away process. Are products moved directly into picking locations, or do they go into bulk storage first? I look for any signs of unnecessary delays or double handling. If products are stored inefficiently—such as being placed in hard-to-reach locations—it can indicate areas for improvement.
Picking Process
The picking process is another key focus. Are products picked as full pallets, cases, or individual items? I assess whether the picking method, such as batch or discrete picking, fits the operation. I also look at the technologies being used, like voice picking, and how picking is planned. For example, is it based on discrete orders, or is wave picking used?
Packing and Dispatch
The packing and dispatch processes are also crucial. How are orders packed and prepared for delivery? Delays here could signal issues with inventory management or dispatching.
Deliveries and Customer Service
I always try to go out with delivery drivers to see how deliveries are managed. Whether using in-house or third-party vehicles, observing how products are loaded and delivered can reveal problems with scheduling, routing, or customer issues. Finally, talking to customer service helps identify recurring customer problems or areas for improvement.
By following this approach, you can quickly get up to speed with the physical side of supply chain operations.
Related articles on this topic have appeared throughout our website. Check them out:
- You and Your Supply Chain Career
- Supply Chain Q&A Sessions
- The Most Important Thing in Supply Chain Management
Editor’s Note: The content of this post was originally published on Logistics Bureau’s website dated January 04, 2023, under the title “Understanding Supply Chains Part 1- Physical Processes“.
