Processes

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This document describes the processes and rules that drive the creation of the pick and put suggestions. There are three major processes in DC1 Warehouse Management:

Preferred pick/put away/stock count unit

You can create a preferred pick/put away/stock count unit on the Item file, Location types panel. By attaching one or several item units to a location type you create a connection that specifies which units are preferred to be picked/put away/counted in different locations with different location types.

It is possible to define, e.g., different pick units for the same location type in order to pick different packages from the same location or different pick units from different locations. The preferred pick unit information is printed on the pick suggestion.

Pick process

This section describes the pick process.

Pick suggestions

In DC1 Warehouse Management, the pick suggestions replace the ordinary pick lists that are used in DC1 Distribution. Pick suggestions include all items, even those that are not activated for DC1 Warehouse Management processing. Items that are not activated are printed at the beginning of the pick suggestion, as no zone/location can be determined for these items. The pick suggestions are generated through the pick rules and processes described below.

Zone picking

Zone picking means that the manual picking routines in the warehouse are divided in zones. If this is the case, then DC1 Warehouse Management offers the possibility to sort and page break pick suggestions per zone. All or some of the pick suggestions can be printed on selected printers placed nearest to the zones in the warehouse.

Labels

Additional labels can be printed for a warehouse zone. These labels will be used as address labels, and also as information on what to pick and from which location. A function exists that allows you to only re-print put away labels. Then, the applicable label must be set to YES in the applicable fields listed below.

    Reception/put away
    Put away from bulk
    Replenishment

See Setting up DC1 Warehouse Management for more information.

Pick rules

The pick rule defines how the system should search for available stock in the warehouse. The pick rule is defined per item in the Item file, but can be overridden when batches are created in DC1 Radio Frequency.

There are four pick rules:

Pick priority sequence

During the pick suggestion creation, the system follows the pick priority defined in Work with warehouse locations. The system starts looking for available items in the location with the highest priority (100) and continues with lower priorities if no stock is found.

FIFO sequence

Using this pick rule, the system suggests that the oldest item be picked first (First In First Out). For items that are activated for FIFO processing the following is considered:

  • The pick suggestion processing will consider the date of receipt for the item/location when a location is suggested on the pick suggestion.
  • If a primary pick location exists for the item, pick replenishment will also consider the date of receipt for each item/location when replenishment suggestions are created.
  • Put away can never be performed to locations where the item already exists.
  • The item can never be moved to a location where the item already exists, unless the location is a primary pick location.

Note: This DC1 Warehouse Management FIFO handling is connected to the physical movements of goods and should not be mixed up with the FIFO handling in DC1 Distribution which is related to the valuation of the stock.

Quantity sequence

If this pick rule is used the system tries to find a location with enough stock for the order so that the item only has to be picked once.

Pick priority, overreservation

This pick rule allows reservations in item assigned locations even if the specified quantity is not available. The quantity must, however, be available in the warehouse or be suggested for replenishment.

Note: The Overreserv allowed field must be set to YES in Work with warehouse locations.

Note: The Accumulate batch to fill order function should be activated in the DIS control file if this pick rule is to be used for batch controlled items. This ensures the best rotation of batches from and to the primary pick location. Stock should be rotated to primary pick locations via overstock locations (replenishment). For example, the oldest batch should always be in the primary pick location. To achieve this, the put away level should also be set to zero for the primary pick locations.

The following fields affect the pick process:

    Max pick volume %
    This percentage is calculated against the total capacity for the suggested item and location size. It is used during pick suggestion creation for all item assigned locations for the specified warehouse zone.
    Suspend pick error
    When a location is suspended, no more transactions, e.g. pick suggestions, can be created for this location and the location cannot be selected for stock take.

Pick location processes

This section describes the process of determining pick locations.

The following four processes apply:

The system starts by checking if the item is batch controlled, then continues with the steps displayed below until a location has been defined.

Note: Picking will never be suggested for a location with a priority for which Pick is set to NO in Work with suggestion priorities.

  1. Batch controlled items
    1. Batches are selected according to the ordinary rules in DC1 Distribution.
    2. If a selected batch is stored on multiple locations, the rules 3.1 – 3.3 below are applied for the location within the selected batch.
  2. DC1 Warehouse Management FIFO controlled items
    1. Attempt to pick full/partial quantity from a location according FIFO/pick priority.
  3. Items that are neither batch nor FIFO controlled
    1. Attempt to pick full quantity from a cross-docking location in pick priority/FIFO sequence.
    2. Attempt to pick full quantity from a location in pick priority/FIFO sequence.
    3. Pick partial quantities from locations in pick priority sequence/FIFO sequence.
  4. Items that should be picked on a transit order
    1. These items can only be selected from the transit location where the goods were stored when either the connected purchase order, work order or manufacturing order was received.

Put process

This section describes the put process.

Put away suggestions

In DC1 Warehouse Management, the put away suggestions replace the ordinary Goods reception notes in DC1 Distribution. Put away suggestions include all items, even those that are not activated for DC1 Warehouse Management processing. Items that are not activated for Warehouse Management processing are printed at the beginning of the put away suggestion, as no zone/location can be determined for these items. Put away locations for items are generated through the rules and processes described below.

Zone put away

Zone put away means that the manual put away routines in the warehouse are divided in zones. If this is the case DC1 Warehouse Management offers the possibility to sort and page break put away suggestions per zone. All or some of the put away suggestions can be printed on selected printers placed nearest to the zones in the warehouse.

Labels

Additional labels can be printed for a warehouse zone. These labels will be used as address labels, and also as information on what to put away and from/to which location. A function exists that allows you to only re-print put away labels. Then, the applicable label must be set to YES in the applicable fields listed below.

    Reception/put away
    Put away from bulk
    Replenishment

See Setting up DC1 Warehouse Management for more information.

Put away rules

To what locations the items should be put away is defined by several parameters in the following tables and files:

Work with warehouse locations

The following fields affect the put away process:

    Pick priority
    Put away will never be made to a primary pick location (pick priority “100”) unless the location has been reserved for the item being put away (Locations are reserved via the item code in the Location file).
    Location size
    Put away will only be suggested to locations for which the location size matches the location size that is defined for the item in the Item file.
    Put away level %
    Put away will only be suggested to a location if the utilised capacity (displayed in percentage for the location) is less than the percentage defined in this field. Put away will never be suggested to locations for which this field is set to 0%.
    Multiple put away
    Put away will never be suggested to an occupied location for which this field is set to NO.
    Multiple items
    If this field is set to NO for a location, put away will never be suggested to this location if it is occupied by a different item.

Item file, Warehouse Management

The following fields affect the put away process:

    Put to existing loc
    If this field is set to NO for an item, put away will never be suggested to a location where the item already exists unless the location is item assigned or if it is a bulk location.
    Put to occupied loc
    If this field is set to NO for an item, put away will never be suggested to a location occupied by a different item unless it is a bulk location.
    Pick rule
    If this field is set to 2 (FIFO sequence), put away will never be suggested to a location already occupied by the item or to a bulk location.

Work with suggestion priorities

The following fields affect the put away process:

    Put away
    Put away will never be made to a location with a suggestion priority for which this field is set to NO.
    Cross docking
    If the code is used as a put away priority, and this field is YES, then the locations that are defined with this priority are available for put away for cross docking needs.

Put away processes

The put away processing can be divided into two main steps; the receiving area and the normal pick locations. The steps in which the system searches the warehouse for available stock are described in Receiving area and Put away process steps.

Receiving area

In the first step of the put away process, the system checks the following receiving areas:

  • Cross docking location
    Goods can be received in the cross docking area. In order for goods to be received in the cross docking zone/location, there must be sales orders waiting for shipment within the cross docking days. The quantity needed for the sales orders will be placed in the cross docking zone/location instead of in the normal put away locations.

    A cross docking zone/location can be defined on 3 different levels in the system and is applied in the following order:

    • It can be entered when the Reception note is printed and will be valid for all items in the created Put away suggestion.
    • It can be entered on item/warehouse level in the Item file.
    • It can be entered on warehouse level in the Item file and will be a default value for all items for which no cross docking zone/location has been defined on item/warehouse level in the Item file.

      Note: If nothing has been specified on the 3 levels above, the cross docking zone/location will not be used. The next step is the receiving zone/location.

  • Receiving location
    Goods can be received into the receiving zone/location using the following order or directly into the pick location without a specific receiving area.

    A receiving zone/location can be defined on 3 different levels in the system and is applied in the following order:

    • It can be entered when the Reception note is printed and will be valid for all items in the created Put away suggestion.
    • It can be entered on item/warehouse level in the Item file.
    • It can be entered on the warehouse level in the Item file and will be a default value for all items for which no receiving zone/location has been defined on item/warehouse level in the Item file.

      Note: If nothing has been specified on the 3 levels above, the receiving zone/location will not be used. The next step is the Put away process steps.

  • Transit location
    Goods must be received in a transit location if the purchase order is generated through a BtB sales order. This applies only if BtB feature used is set to YES in the DIS control file.

    A transit location can be defined on 3 different levels in the system and is applied in the following order:

    • It can be entered when the Reception note is printed and will be valid for all items in the created Put away suggestion.
    • It can be entered on item/warehouse level in the Item file.
    • It can be entered on the warehouse level in the Item file and will be a default value for all items for which no transit location has been defined on item/warehouse level in the Item file.
  • QC receiving location
    Goods that will pass through the QC process can be received into a QC location or directly into pick locations.

    A QC receiving location can be defined on 3 different levels in the system and is applied in the following order:

    • It can be entered when the Reception note is printed and will be valid for all QC controlled items in the created Put away suggestion.
    • It can be entered on item/warehouse level in the Item file.
    • It can be entered on the warehouse level in the Item file and will be a default value for all items for which no QC receiving zone/location has been defined on item/warehouse level in the Item file.

Put away process steps

In the second step of the process, the system uses the normal pick locations. This step is divided into three different processes that are performed in the following cases:

  • Process 1
    This process is only performed if Put to one location is set to YES in the Item file.

    The item will be put away to primary pick locations where the item already exists (step A) and item assigned locations (step B). Then steps C-I will be performed, in sequence, in attempt to find a location where the remaining reception quantity can be put away in full.

  • Process 2
    This process is only performed if Put to one location is set to YES in the Item file and if no location was found to accommodate the full reception quantity.

    Steps C-I will be performed in sequence and put away will be suggested for partial reception quantities.

  • Process 3
    This process is only performed if Put to one location is set to NO in the Item file.

    Within each step (A-I) an attempt will first be made to find a location where the full reception quantity can be accommodated and then second to find locations where partial reception quantities can be received.

    Example:
    If no item assigned locations (step B) are available that can accommodate the full reception quantity, then partial reception quantities for available item assigned locations will be suggested before continuing to step C.

The following steps are included in the put away processes described above:

A. Primary pick locations (pick priority “100” entered in Work with warehouse locations)

  • Primary processing sequence
  • Put away priority
  • Free capacity

B. Item assigned locations (item code entered in Work with warehouse locations)

  • Primary processing sequence
  • Put away priority
  • Free capacity

C. Locations assigned by Location group with existing inventory for item

  • Primary processing sequence
  • Put away priority
  • Free capacity

D. Unoccupied locations assigned by Location group

  • Primary processing sequence
  • Put away priority
  • Free capacity

E. Locations assigned by Location group that are occupied by other items

  • Primary processing sequence
  • Put away priority
  • Free capacity

F. If Assign to group only is set to YES in the Item file, then the result will be that no location is found. If Assign to group only is set to NO in the Item file, continue with step G.

G. Locations, not assigned, with existing inventory for item

  • Primary processing sequence
  • Put away priority
  • Free capacity

H. Locations with no existing inventory (unoccupied locations)

Primary pick locations (pick priority = “100”) will not be considered by this step.

  • Primary processing sequence
  • Put away priority
  • Free capacity

I. Locations where inventory exists for another item and for which Multiple items is set to YES in Work with warehouse locations. Primary pick locations (pick priority = “100”) will not be considered by this step.

  • Primary processing sequence
  • Put away priority
  • Free capacity

Cross docking

If the cross docking related fields in the Item file have been completed (Cross docking, Only at stock out, Cross dock process, Cross dock location and Cross docking days), then three different cross docking scenarios are handled by the system, as described below.

Cross docking scenarios

Scenario Description
1.
Staged cross docking
Cross docking is performed after goods reception during the put away from bulk process.

The goods are normally received into a receiving location. Then, during the put away, cross docking needs are found. The cross docking location for the warehouse or item can be used (fixed cross docking area), or the normal put away rules can be used for the cross docking balance (random cross docking area). All random locations defined with a pick priority with Cross docking = YES will be available to store the goods.

2.
Direct cross docking to forward picking
Cross docking needs are flagged as soon as possible in order to prioritize the put away process.

Cross docking needs must be realized during reception to be able to handle the received goods as fast as possible. The receiving/fixed cross docking location for the warehouse and/or item is used, but as in scenario 1, a specific forward picking area (random cross docking area) can be used directly during the reception process.

3.
Direct cross docking to normal picking
As in scenario 2, the cross docking needs are flagged as soon as possible in order to prioritize the put away process.

Also the receiving/fixed cross docking location can be seen as a fast receiving location indicating that the put away process must be speeded up. The put away process then follows the normal put away rules out from the receiving/fixed cross docking location. The final pick location is suggested based on the warehouse setup.

Replenishment process

This section describes the replenishment process. The replenishment process generates both pick and put suggestions. The suggestions are generated through the replenishment rules and processes described below.

Replenishment rules

Replenishment put away locations will be determined as follows:

  1. The item/location must meet the selection criteria entered on panel Replenishment suggestion creation.
  2. The item/location must be below its replenishment level.
  3. Item/locations meeting the From location selection criteria must exist with available stock for the replenishment.

Process (To locations)

Only item assigned locations will be considered for replenishment. Locations will be considered for replenishment based on the selection criteria entered on panel Replenishment suggestion creation. See About working with replenishment suggestions (DC1 Warehouse Management) for more information about the selections.

Process (From locations)

The determination of pick location for a replenishment pick suggestion can be divided into the following three processes:

  • DC1 Warehouse Management FIFO controlled items (i.e. defined with pick rule 2 (FIFO sequence) in the Item file). Pick quantities from locations in FIFO sequence (disregarding pick sequence).
  • Items that are not FIFO controlled
    Pick quantities from locations in pick priority sequence/FIFO. Within each pick priority, locations will be processed in FIFO sequence.
  • Items that are batch AND date handled
    Pick quantities from location in last arrival date sequence, i.e. the oldest arrived items first.

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