In recent years, we have faced many challenges and we have tried to be able to find a suitable and optimal solution for each of these challenges, a solution that will increase productivity. In this collection of articles, I intend to talk about the challenges faced, look into how to deal with them, and effect of actions taken on specific KPIs.
One of the main KPIs in the field of warehouse inbound is the TTS (Time To Shelf), which is means of the average time of entry of goods into the warehouse inbound gate until the goods are placed on storage locations.
During the past year of the biggest challenges that we have struggled with, was improving inbound process and decrease TTS KPI to speed of the inbound process and increase inbound capacity with the same resources.
In the past, this KPI was about 1,260 minutes, so at the beginning of my work we wanted to significantly reduce this value, so we started to do several studies and started diagnostic phase to improve this process and increase the capacity of inbound capacity. This would have made the inbound process more mature, as well as preparing for further progress. The aim was not only to increase the efficiency and capacity of the inbound, but also to prepare the process for future plans, which would lead to more positive changes in the process of the inbound.
After reviewing and summarizing the observations, it was decided to raise this issue in a meeting with the teams of operations, finance and commercial, and to finalize and implement the desired solution. My suggested solution was to create a platform for changing the one-to-one relationship of the purchase order and goods receipt to one-to-many. It means, the rest of the goods that were unproblematic and could place in storage locations should be sent to the warehouse, but the entire purchase order should not be closed and only a part of the goods should be finalized. It was the decision that we have come to the conclusion from studies conducted in best practices such as SAP. After about four months of deliberations and discussions on various issues, the Financial, Commercial and Operations Unit finally approved the issue and decided to implement the process.
Due to the issues that were observed, the volume of changes was so large that it was not possible to do them in one phase and it caused increase the failure risk of whole the project, so it was decided to turn the project into 3 smaller phases and each of them will be implemented over a period of time and whole the project will be closed in 4 months.
A few months after the implementation of the project, the result was extraordinary. The 1,260 minutes, which was calculated to be 21 hours per product at the beginning of the project, was reduced to 450 minutes almost 7.5 hours at the end of the third phase, which means approximately 62 percent improvement in inbound processes and increased productivity. Although we faced many problems during the implementation of the project, the desire to achieve a specific goal that improved the process to reduced the work of a large number of people in this sector and increased the entry capacity for the future, caused all these problems to be ignored, hence that led us to take a firm steps on this risky path.