Warehouse Management - Excel by HC12091504518

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									Retail industry audit program - Warehouse management - Warehouse management

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Objectives:

i)   to ensure warehouse management is effective and efficient.




6558c849-7a76-4456-bb6f-0acf4b420d3a.xls - Warehouse management 9/14/2012 10:08 PM                                                            Page 1
Retail industry audit program - Warehouse management - Warehouse management

                                                                                                                     Done   Time     Date        Date               Checked
                                              AUDIT PROCEDURES                                                Ref.    By    Spent   Expected   Finished   Remarks     By:

Audit Procedures:

1.     Review of warehouse management

i)     For warehouse management, enquire whether the company has adopted:
       - bin-level location management
       - paperless receiving
       - real-time put-away
       - order picking with mobile devices
       - cycle counting

ii)    Check whether management has utilized the following to improve warehouse efficiency:
       - slotting
       - automate value-added services
       - load building / cubing
       - speech-based warehousing

iii)   For warehouse management, check whether the company has:
       - conducted a business process review
       - conducted a formal software vendor selection
       - upgraded their warehouse management system to the current version
       - with regular maintenance and support program
       - considered high performance warehouse strategies like advanced pick methodologies, slotting, labor
       management, and speech-based warehousing.

iv)    Check whether the company utilized sophisticated warehouse management software:
       - with automatic data capture (bar-coding and speech)
       - bin-level location tracking
       - real-time mobile communication
       - process direction
       - upgradeability

v)     Discuss with management for strategic actions planned for the warehouse:
       - improve warehouse throughput
       - reduce or contain warehouse labor costs
       - create a more agile, flexible warehouse to keep up with changes
       - improve visibility to warehouse activities, inventory, and order status
       - improve warehouse pick accuracy




6558c849-7a76-4456-bb6f-0acf4b420d3a.xls - Warehouse management 9/14/2012 10:08 PM                                                                                     Page 2
Retail industry audit program - Warehouse management - Warehouse management

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vi)    Check with management, to improve warehouse performance, whether the company has:
        - actively moving toward an automated warehouse management system that provides corporate visibility
       into warehouse activities and supports workflow agility
        - rolling out labor management planning and reporting capabilities
        - seeking to use slotting and warehouse layout tools, increased material handling automation, or
       experienced systems integrators to drive more productivity in confined warehouse footprints
        - focusing on warehouse analytics to improve productivity and gross margin management

vii)   To lower warehouse costs, check whether the company has:
        - captured warehouse metrics and activities and shared them in real time
        - updated their current warehouse management system to take advantage of the new generation of
       technology that is service-oriented in nature and thus eager to integrate and reconfigure
        - used warehouse dashboards and analytics technology
        - formally cross-training associates on several tasks and equipment
        - invested in more material handling automation, especially carousels

viii) Discuss with management whether the company has take actions to improve warehouse operations:
      - create more agile warehouse environment to support customer-specific demands
      - achieve more productivity from existing facilities by revising throughput strategies
      - improve visibility to warehouse activities and inventory and order status
      - improve warehouse employee productivity
      - build a new or expanded distribution centre
      - implement more value-added services capabilities

ix)    Check whether warehouse has flexibility to:
       - accommodate seasonal inventory waves
       - labor fluctuations
       - multi-channel requirements
       - customer demands for specialized packing and labeling and value-added services

x)     Discuss with management whether outbound and inbound functions are fully automated and system
       directed.

xi)    Check whether the company has established primary warehouse goal to exceed customer service
       expectations while keeping labor costs and storage space to a minimum.

xii)   Enquire whether warehouse management system tracks inventory in multi-tier environment, with
       forward picking, overstock, and system directed replenishment.




6558c849-7a76-4456-bb6f-0acf4b420d3a.xls - Warehouse management 9/14/2012 10:08 PM                                                                                      Page 3
Retail industry audit program - Warehouse management - Warehouse management

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xiii) For order picking automation, check whether bar-code scanning is supplemented with technology like
      pick-to-light, voice-directed picking, carousels, or automated storage retrieval system.

xiv)   For shipping automation, enquire whether the company adopts selective checking. Whether case seal and
       manifesting are fully automated, and parcel sortation is used in shipping.

xv)    Check whether the company utilize a multi-warehouse visibility system:
        - whether inbound inventory in transit is visible
        - whether inventory in satellite warehouse is visible across the enterprise, and is available to fill
       customer orders.

xvi)   Enquire whether the company focus on:
        - create dynamic dock and yard environments to support customer-specific demands
        - actively implement multi-warehouse visibility systems and distribute order management systems to
       gain full visibility and use of the inventory they own
        - capture extended warehouse metrics and activities and share them in real time
        - update their current extended warehouse technology infrastructure to take advantage of the new
       generation of technology that is service-oriented in nature and easier to integrate and reconfigure
        - use dashboards and analytics technology

xvii) To improve extended warehouse operations, enquire whether the company has:
      - improve synchronization across functions (warehouse operations, transportation and manufacturing)

        - create company-wide visibility to inventory and order status from warehouse operations
        - improve synchronization across extended warehouse (warehouse, dock and yard)
        - enterprise-wide initiative to share metrics and best practices across extended warehouse operations
        - take a network approach to manage inventory, enable customers/orders to be served from multiple
       locations




6558c849-7a76-4456-bb6f-0acf4b420d3a.xls - Warehouse management 9/14/2012 10:08 PM                                                                                       Page 4
Retail industry audit program - Warehouse management - Warehouse management

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2.     Technology tools

i)     Check with management whether the company has adopted warehouse management technologies to:
       - support changing value-added processes and unique warehouse workflows
       - labor management
       - lightweight inventory control
       - slotting optimization
       - integrated dock and yard management
       - RFID

ii)    Check with management, whether warehouse management system has the following process capabilities:

       - with warehouse management system software application
       - with wireless network in the warehouse
       - workers equipped with mobile devices (including handheld computers, bar-code scanners, headsets)
       - with bar-code label printers

iii)   Check whether the company has adopted the following process automation:
       - inventory control
       - manifesting
       - shipping
       - order-picking
       - replenishment
       - receiving
       - put-away
       - returns processing
       - packing

iv)    Enquire whether the company has adopted the following order picking technologies:
       - bar-code scanning
       - cart-based picking systems
       - conveyor-based picking systems
       - automated storage and retrieval systems
       - pick-to-light systems
       - voice directed picking

v)     Discuss with management whether shipping automation is utilized:
       - parcel sortation
       - buffering and sequencing


6558c849-7a76-4456-bb6f-0acf4b420d3a.xls - Warehouse management 9/14/2012 10:08 PM                                                                                   Page 5
Retail industry audit program - Warehouse management - Warehouse management

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                                              AUDIT PROCEDURES                                               Ref.    By    Spent   Expected   Finished   Remarks     By:
       - in-motion manifesting
       - automated packing
       - automated palletizing
       - voice direction
       - RFID tagging

vi)    Enquire whether the company has adopted the following warehouse technologies:
       - warehouse analytics for scorecarding, metrics and analysis
       - dashboard providing views into warehousing activity, order status, and inventory availability
       - slotting or layout optimization tool
       - cross-docking and flow through support
       - RFID tagging support
       - labor management system
       - voice-directed technology

vii)   Check whether the company has utilized the following labor management technologies:
       - labor optimization
       - reporting
       - support for incentive-based pay
       - integrated time and attendance
       - labor forecasting
       - engineered labor standards

viii) Discuss with management whether the company has used warehouse analytics to improve productivity
      and profitability:
       - analyze performance defects, seasonal flow fluctuations, and factors which drive productivity and
      reliability
       - evaluate the cost to serve customers and the cost to fulfill different categories of orders
       - share the information with the organization to improve gross margin management




6558c849-7a76-4456-bb6f-0acf4b420d3a.xls - Warehouse management 9/14/2012 10:08 PM                                                                                    Page 6
Retail industry audit program - Warehouse management - Warehouse management

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ix)    Discuss with management whether implement of technology has generated benefits for the company:
       - increased inventory accuracy
       - improved order fulfillment accuracy
       - increased order fulfillment capacity with same staffing
       - improved ability to meet customer-specific requirements
       - reduced order pick times
       - improved order fulfillment speed
       - increased inventory turns
       - reduced stock outs


3.     Measure effectiveness of warehouse management

i)     Check with management whether warehouse management brings the following business value:
       - labor savings
       - reduced warehouse downtime
       - improved inventory accuracy

ii)    Check whether the company has established a productivity trend to identify the times of highest
       productivity, the most appropriate positioning of floor associates, and recognize top performance.

iii)   Discuss with management whether the following performance indicators are utilized to measure
       warehouse performance:
       - warehouse labor costs decrease year-over-year, relative to revenue
       - over 99% pick accuracy rates
       - over 99% shipping accuracy rates
       - over 99% perfect order rates
       - over 99% inventory accuracy rates
       - dock-to-stock cycle time for supplier deliveries
       - with one or fewer administrative staff




6558c849-7a76-4456-bb6f-0acf4b420d3a.xls - Warehouse management 9/14/2012 10:08 PM                                                                                   Page 7

								
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