Understanding Supply Chains Part 1- Physical Processes

Are you starting a new role in supply chain? Whether it’s your first time in the field or a new position at a different company, adjusting can be a challenge.

Want to get ahead faster?

Be sure to watch the video shared below for some valuable insights.

Getting to Know the Physical Side of Supply Chain Operations

This week, we’re focusing on the physical aspects of supply chain operations—how products move through the system, which is especially helpful if you’ve recently joined a new company or role. By quickly understanding how things work, you can identify areas for improvement. Next week, we’ll dive into the information systems and key performance indicators (KPIs) that support the operation.

Starting with the Warehouse and Receipt Process

When I start working with a new client in my consulting role at Logistics Bureau, I first focus on understanding their physical processes. I begin by visiting the warehouse to observe the operation firsthand, starting at the receipt dock. Key questions I ask include: Where do products come from, are they made locally or imported, and how are they delivered—palletized or in containers? I also want to know how the unloading process works, whether it’s done manually or by a third party. It’s important to identify any problems with receiving products, like delays or inefficiencies.

Observing the Put-Away Process

Next, I observe how products are put away after they’re received. Are they moved directly into picking locations, or do they go into bulk storage first? I look for any extra handling or unnecessary delays in the put-away process. If products are stored in ways that don’t match their needs—for example, items being stored in a way that’s difficult to pick—this could be a sign of inefficiency.

Examining the Picking Process

Then, I focus on the picking process. Are orders picked by full pallets, cases, or individual items? I assess whether the picking method (like batch picking or discrete order picking) is suitable for the business and whether technology, such as voice picking, is being used effectively. I also look at how picking is planned—whether it’s based on discrete orders or waves—and if the process is logical for the company’s needs.

Reviewing Packing and Dispatch

The next area I examine is the packing and dispatch process. How are orders packed and prepared for delivery? Are there delays or bottlenecks? If orders are delayed, it could be a sign of inventory management problems, inaccurate stock, or delays in carrier pickups.

Observing Deliveries and Getting Feedback

I also like to get out onto the delivery floor and accompany delivery drivers. Whether the company uses its own vehicles or third-party services, it’s important to see how products are loaded and how deliveries are managed. This can reveal issues with delivery scheduling, route planning, or challenges at the customer’s end. Finally, I always make time to talk to customer service. Even though much of customer service is now automated, speaking with staff helps me understand any recurring customer issues and how the business is addressing them.

This hands-on approach gives a comprehensive overview of the physical supply chain processes and helps identify opportunities for improvement.

Related articles on this topic have appeared throughout our website. Check them out:

Editor’s Note: The content of this post was originally published on Logistics Bureau’s website dated January 04, 2023, under the title “Understanding Supply Chains Part 1- Physical Processes“.