The Satellite Review Magazine The Satellite Review Magazine Vol 3 | Page 30
OVERCOMING ORDER
FULFILLMENT
warehousing, distribution and even the customer. This
leads to additional changes to customer orders late in
the process.
Other challenges stem from under- or over-selling the product, insufficient inventory, limited production capacity and
inefficient use of labor. With these complexities in mind,
companies are now looking for a solution to help overcome
the order fulfillment burden. While there are many tools
available (ranging from manual, to automated, to a mix of
both), warehouse execution systems (WES) are emerging as
the solution of choice for many leading manufacturing and
distribution companies.
OVERCOMING THE
Order Fulfillment
BURDEN WITH WES
By Dave Williams
Director of Software and Solution Delivery, Westfalia Technologies, Inc.
C
ustomers today are finicky. They expect to receive
their orders as quickly and accurately as possible
while receiving the highest level of service. Consequently, order fulfillment has become more than simply
receiving an order and shipping it out to the customer. Now,
it is about processing that order and delivering it to the
satisfaction of the customer. After all, when customers are
happy with a company’s performance, they will continue to
do business with that organization.
Moreover, IBISWorld predicts that consumer spending
will grow at an annual rate of 2.6 percent over the next five
years, reaching $12.9 trillion by 2020. This growth means
that retailers will require more industry services to deliver
goods to consumers in a timely, precise manner.
As order fulfillment becomes more complex, the burden
falls on manufacturers and distributors to meet customer
30
The Satellite Review
demand in a shorter amount of time. In addition to facing pressure from the customer, these companies struggle
with a number of other challenges that create inefficiencies
throughout the fulfillment process:
•
•
•
Limited Space: Warehouses may have limited space
for storing and staging orders. Similarly, customer sites
may have smaller “back rooms,” and therefore, require
more just-in-time (JIT) order placements.
Unreliable Transportation: The transportation in dustry has become increasingly unreliable due to a shortage
of drivers. If a truck is late or misses its appointment,
orders are not only delayed but also end up sitting in
the warehouse, taking up valuable space. Without a
streamlined inventory management process, this is an
even larger problem.
Lack of Communication: There is often a lack of communication between sales, manufacturing,
www.WestfaliaUSA.com
The term “warehouse execution system” is fairly new with
various, slightly different definitions. But, at its core, a WES
is a software system that provides warehouse management
system (WMS) and warehouse control system (WCS) functionality in a single solution. Eliminating the need for multiple applications, a WES offers the inventory management,
storage optimization and traceability features of a WMS, as
well as the automation control components of a WCS which
provides a real-time view of material handling equipment,
labor status and other key performance indicators (KPIs)
crucial to efficient warehouse operations.
•
functionality to receive and track product while
optimally marrying inventory to customer orders
through its order fulfillment processing capabilities.
Labor Breakdown: As users generate orders for fulfillment, the WES breaks the orders into logical units
of work and distributes the tasks appropriately. It
then uses its WCS functionality to direct automated
material handling equipment and/or manual labor to
execute the work.
Using these capabilities, a WES offers the flexibility to
enable accurate, JIT order fulfillment processes. Users can
easily accommodate for last-minute order changes and
transportation delays while keeping the warehouse moving
smoothly. With quicker load turnaround times, distribution
centers can reduce the probability of truck detention fees
and strengthen carrier relationships. A WES also increases labor efficiency and productivity, cutting down on the
number of wasted steps in the materials handling process.
This leads to greater throughput and, therefore, greater profitability. As a result, companies can readily meet even the
most fickle customers’ needs and fulfill their orders on time,
every time, to their utmost satisfaction.
When compared to traditional, separate WMS and WCS
solutions, a WES has numerous advantages. First, it allows
users to maximize the benefits of automated systems while
increasing inventory accuracy and reducing labor costs.
Second, the solution is also scalable and customizable –
users can turn on and off the functionality needed to meet
their requirements and set up specific business rules. It can
even interface with other applications, such as corporate
enterprise resource planning (ERP) systems and programmable logic controllers (PLCs). Third, a single system
creates consistency across an organization’s facilities and
typically requires a shorter learning curve for operators and
IT personnel.
So, how does a WES address order fulfillment challenges?
In addition to the aforementioned benefits, a WES provides
the following capabilities:
• Built-in Order Planning: A WES has built-in order
planning processes. This allows shipment planners
and dock coordinators to determine inventory and
transportation availability and compare that to order
demand.
• Receiving & Tracking: A WES provides the
www. WestfaliaUSA.com
The Satellite Review
31