Covid-19: Effectively managing replenishment for order picking

Restocking - a major victim of Covid-19

A distribution centre typically holds 2 types of stock: picking (or order picking) stock and inventory stock.

Restocking is the transfer of items from inventory to order picking stock. To guarantee productivity, order forecasts based on the following criteria are calculated:  

• the amount of picking stock still available;
• orders already prepared and in shipment;
• product turnover (low, medium, or high) 

© Warehouse operators

These are the instrumental criteria when it comes to meeting the shortest possible deadlines for delivery to the end customer. 

Efficient restocking thus ensures the timely satisfaction of orders placed by customers.

There are 5 different restocking methods :

• the calendar method: deliveries of pre-established quantities are scheduled on fixed dates
• the top-up method: fixed-date deliveries but variable quantities
• the variable date and quantity method: variable quantities, variable dates
• the just-in-time method: the order is placed with the supplier only on receipt of the customer's order
• the re-order point method: when stock levels reach a pre-determined threshold, an order to the supplier is triggered

The pandemic we are experiencing in the current context of globalization has led to supply delays for many companies. 

As the 2020 Barometer of Supply Chain Risks by the management consulting firm KYU explains: 

With the crisis, the shortage of supply sources has proved to be a major obstacle.

In its report of about forty pages, KYU notes that supply is a sensitive issues for enterprises. And an issue that requires serious risk management. 

Other risk factors for the supply chain are cited in the report, including:

• the global economic crisis following the Covid-19 epidemic
• demand planning is more difficult due to health restrictions and changes in consumption patterns

The health crisis has been with us for a while now, and there’s still no end in sight. 

Enterprises therefore have to:

• carefully monitor their stock levels
• cultivate good  customer relationships
• strengthen relations with their suppliers

To make up for delays caused by late restocking at the distribution centre, picking has to be as rapid and efficient  as possible.

Optimal restocking for efficient order picking

Supply chain managers have to perform a multitude of inventory forecast calculations.

Scallog offers a Warehouse Control System (WCS) solution with smart algorithms that perform many of these calculations automatically. 

The algorithms also generate automatic 24/7 restocking alerts that are relayed directly to your suppliers. 

© A supply chain manager calculates the right levels of stock

This solution greatly reduces the work of supply chain managers. 

The Scallog system is the perfect complement to the Enterprise Resource Planning (ERP) or Warehouse Management System (WMS) tool   already installed in the distribution centre.

Movements related with product counts, costly emergency restocking, the stock shortages and unscheduled breaks in production decrease drastically. 

With Scallog, you can make sure restocking in your distribution centre runs smoothly.

Order preparation and picking stock management are fully optimized by the solution.

Boby robots work with operators to increase productivity threefold. 

Scallog's goods to man system reduces physical exertion by operators while simplifying the restocking process.

Looking to ensure efficient picking with optimized restocking? Feel free to contact us.