OMSAN LOJİSTİK

Reception and Inspection Processes

Procurement and Supplier Relationship Management

Latin America Logistics Center

Logistics Management Series

Supplier

DC

Consumer

DistributorDistributor

Cross-DockCross-Dock

TraditionalTraditional

DirectDirectDistributor

Warehousing

DC

Future

Supply Chain Integration

Practices of Reception and Inspection

• Direct Delivery

• Cross Docking

• Reception Programming

• Automatic Unloading

• Automatic Reception and Inspection

• Volume and Weight Appraisal at Arrival

Suppliers Management: Reception

• Do Not Receive!

• Direct Deliveries from Supplier to Customer– Maximum Productivity– Reception and Delivery with Zero

working hours– Shorter Lead-Times within the whole

Chain

Principles of Reception

• Pre-Reception!– Supplier’s Information– Purchase Order vs. Reception Documentation– Type & Quantity of Goods– Price, Stock ID, Location– Updating of In-Transit Stock– Transportation Information– ID Vehicle, Driver, Route– ETA (Estimated Time of Arrival)– Reports of Status (ASN’s, EDI, Internet)

Principles of Reception

• Cross-docking

• Is a Mix of Reception and Delivery Tasks based exclusively on Information of availability of Products to be Received and Products to be Delivered

• Requires Information in Real Time, Certified Suppliers, and Information systems capable to handle crossed information with instructions

Cross Docking!

Reception Vehicles

• Measuring and Weighting • Data Entry• Warehouse Space Allocation • Supplier Performance Evaluation• Inventory Status Updating

Principles of Reception

• Place directly in the points of primary picking!

– Increase the Cycle of Turns of the Supply Chain

– Increase Fill Rate to Customers– Certify Suppliers

Principles of Reception

• Complete all necessary steps to an efficient deconsolidation of the shipment at reception

– Pre-packaging en in Logistics Units!– Apply marks and labels from the supplier facilities– Pre-allocation of product from the supplier facilities– Weight and Volume for Warehousing and

Transportation Planning

Paper Elimination

• Systems Integration – Investment US$9 Million

• EDI Strategies– Investment US$1 Million

• Cost Reduction– Personnel– Mail– Time– Binders– Internal Courier

Qualtity of the Process from the Supplier

• Bar Codes! And Now RFID

• Labels from the Supplier

• Real Time Data

• Batch Processing

• Data Cleaning from the Source

Red, Yellow, Green

Red– 100% Revision– Non-certified supplier– Charges for Verification– Performance Indicators under the

expectations– Supplier entering the system– Supplier leaving the system

Red, Yellow, Green

Yellow– Selective Verification– Is Certified but in trial period– Performance Indicators closer to objectives– Can be an ex-green with current quality problems– Can be and ex-red in process of improvement

Red, Yellow, Green

– The buyer trust in the supplier’s quality assurance program

– The Supplier performs the inspection of goods before delivery to the buyer

– Performance Indicators match to the objectives– Random Quality Control– Electronic Information before delivery

“Four Wall” Inventory Positioning

Cross Docking

Continuous Flows of Inventory

Replenishment Products with Regular Turns

Low Volume

Products and Slow

Turns

Conventional Orders by the Customer

Conventional Orders by the Customer

Cross Docking Pallets from Truck to Truck

Cross Docking Pallets from Truck to Truck

Niches Concept, Center of Transport Concentration -

Super Combo’s

Niches Concept, Center of Transport Concentration -

Super Combo’s

Sequential Items ModePicking by Batches

delivered to Customer

Sequential Items ModePicking by Batches

delivered to CustomerPicking by Batches by

Customer/Store

Picking by Batches by Customer/Store

Check Move Paper Digitize Validate Print Label

Move Label Apply Label StoreScan Update

Reception Process RedesignManual Reception Method

Reception Process Redesign Reception Method with Bar Codes

Check Scan Validate Store Scan Update

Customer Service and Management of the Purchase

Order• Surveys– Look for Problems not Pats on the Back

• Offer Alternatives

• Deliver Correct Information in Real Time

• Delivery Tracking

• Accountable and with Answers

• Be the Best and Seek for the BESTRich Rankin, Gerente de Compras, Ameritech

Suppliers and Efficiente Reception Process

• Certified Suppliers• Anticipated Supply

Notices (ASN´s)• Fulfilling of Schedules

and points of Delivery

• Quantities– Weight, Volume, Units

• Packaging• Product Blends• Type of Vehicles• Identification and

Documentation