QAD Warehousing – Receipt to Ship
Demonstration Guide
May 2015
EE2015
Overview
This demonstration focuses on one aspect of QAD Warehousing – the Receipt to Ship
process – and shows how this functionality supports the vision of the Effective Enterprise;
where every business process is working at peak efficiency and perfectly aligned to the
company’s strategic goals.
QAD Warehousing
Receipt to Ship
Key Points
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Enabling the Effective Enterprise
Related Metrics
Automating Warehousing processes will directly affect Customer Service, Inventory
Effectiveness, Supply Chain Effectiveness, Manufacturing Efficiency, Manufacturing
Schedule and Asset Utilization KPIs.
Typical measurements related to these KPIs include Delivery in Full On Time (DIFOT),
Inventory Accuracy, Inventory Location Accuracy, Fulfillment Efficiency, Size of Safety
Stock, Stock outs per Period, Gross Margin Return on Inventory Investment and
Capacity Utilization.
Improvements measured using these KPIs affect cost of sales, operating income margin,
and fixed asset effectiveness. You can reach 99.9% inventory accuracy and a perfect
order percentage of 95% or more, improving fill rates and on time delivery to 99.9%. You
will reduce inventory levels by 10 to 30%, warehouse space requirements by 20 to 50%,
labor cost by 20 to 30% and administrative labor cost by 50 to 80%. You will also improve
fixed asset effectiveness, capacity utilization and manufacturing schedule
achievement.
Additional metrics and the relative importance of each one will depend on your
definition of the Effective Enterprise. You can monitor performance against your
defined metrics using a combination of Business Intelligence Dashboards, Operational
Metrics, Browses and Reports.
Receipt to Ship
Related Metrics
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Delivery In Full On Time (DIFOT)
Inventory accuracy, location accuracy
Fulfillment efficiency
Size of Safety stock
Stock outs per period
Gross margin return on inventory investment
Capacity utilization
Key Points
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Standard metrics
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Importance varies by company
Enabling Solution
QAD Warehousing supports improvements to these key metrics by automating the
Receipt to Ship process, generating tasks for your warehouse operators and
communicating them directly on their RF devices.
When products are received – either expected on a Purchase Order or ASN, or
unexpected arrivals – directed put-away finds the best, most-suitable location based
on capacity constraints; popularity code for fast and slow moving items; pallet types;
space; weight; expiration date; and many other attributes – with rules defined by item,
item type, warehouse, type of transaction, supplier and more.
There are over 170 put-away rules representing best practices from multiple industries,
configurable to meet your unique requirements.
Using directed put away, no longer are received materials left sitting at the dock while
your warehouse staff try to figure out on their own where to put them. Warehouse
operators get specific directions on their RF devices. No more scribbling locations on a
piece of paper – material movers record activities as they occur, scanning bar code
labels using RF terminals or using mobile devices for quick and accurate data entry.
Pickers will no longer have to search for product in the warehouse. Automated
replenishment efficiently moves materials to the pick face and system. Directed picking
tasks take your pickers to the right location – increasing productivity, eliminating
wasteful paperwork and speeding up customer response.
Receipt to Ship
Enabling Solution
• Automate warehouse processes
- 170+ put-away rules
- Configurable logic
• System-directed tasks
- Put away
- Pick face replenishment
- Picking
• RF devices / bar coding
Key Points
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Automates put away, replenishment and pick process; Configurable rules
Demonstration - Receiving
In this demonstration, you will see how Warehousing automates processes by following
a purchased item from receipt to put away.
You will see how Warehousing automatically generates tasks, creates pallets, and
tracks the various material move transactions – creating a simplified workflow for your
warehouse using real-time directed activities.
Receipt to Ship
Demonstration Summary - Receiving
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Purchase order receipt
Warehouse transactions
Inventory detail
Put-away calculations
RF transactions
Key Points
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More Detailed Demonstration of Receiving
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Use Location Information – Unit of Measure
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Put Away Algorithms
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Generate Put Away Tasks
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Process using RF Device
How QAD simplifies processing
Purchase Order Receipt
Begin by receiving material against an open purchase order. Once again, notice how
the system generates the receiving detail.
Based on a standard pallet size of 100 defined for this item, it calculated there would be
3 pallets and generated a “license plate” (reference number) for each one. Typically,
these would be printed and affixed to the pallet at the receiving dock, and used by
material movers to scan pallets as they pick up and put away.
This simple receipt is a sample of the power and flexibility of QAD Warehousing. Once
set up, it operates in the background – accessing defined pallet sizes, checking
location capacity, recommending put-away locations, and automatically generating
tasks.
Demo
1. Maximize QAD Enterprise Application
2. Select 5.13. 1 Purchase Order Receipts
3. Enter Order WMS1
4. Click Next 3 times
5. At Line Items, enter Line 1, Quantity 300, Site 10-301, Location 010RC001
6. Click Next
Note the pallet references PL0000xx
7. Click Back 3 times
8. Click Yes
9. Click Next
10. Click Yes
11. Click Next
Key Points
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Warehousing runs in the background
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Automatically looks up pallet sizes
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Defined in Item-Warehouse Maintenance with Logistics UM = PL
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Generates license plate numbers (LPN)
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Automatically generates put-away tasks
How QAD speeds up response time
QAD Alerts
The purchase order receipt generated put away tasks for your material movers – one
for each of the pallets received. These will appear on their RF device, but you can also
generate an automatic alert message.
For a simple put away, you might just send this to the material mover – either as an Alert
in their QAD inbox or to their email, perhaps displaying immediately on their mobile
phone.
You can send alerts to any number of individuals or roles, and contain all the relevant
details. You can set up Alerts for any number of situations, not just when parts need to
be picked or put away, but also if there are serious issues like failed inspections or
shortages – focusing management time and attention where it is most critical.
Demo
1. In Messages, click Alerts (OR look at your inbox on your mobile phone if you set
up the Alert to be sent to your email there)
2. Double-click Receiving Putaway Alert
Key Points
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Automated alerts for routine or critical situations
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Sent to selected users/roles
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Include all relevant data
How QAD maintains complete audit trails
Warehouse Transaction Inquiry
Review what happened when this Purchase Order Receipt was processed. Here are PO
receipt transactions.
Note the Algorithm information – Algorithm Type PA, for Put-Away. This was the
algorithm used to determine the location to recommend for the put away task.
Do you see the product receipt on the bottom left? The pallets were received into
location 010RC001 - the receiving dock - and a Put-Away task has been created to
move them to a storage location – 040PL002. This transaction remains pending until your
process the put away task.
Demo
1. Select 4.9.1 Warehouse Transaction Inquiry
2. Press Up or Down Arrow to see the RCT-PO Transactions
Key Points
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One transaction per pallet, Shows open tasks (go away once processed)
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Algorithm PA for put-away; generated task TRANSFER
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Received into receiving location 010RC001
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Waiting to be moved to storage location 040PL002
How QAD maintains inventory accuracy
Inventory Detail Inquiry
Here is the actual inventory transaction.
Review location 010RC001. Do you see how it updated Quantity on Hand to reflect the
items received? Notice the “Expect Out” column. It shows they are temporarily in this
location, awaiting movement.
If you look at location 040PL001, you will see the opposite. Zero quantity on hand, but
with multiple pallets of materials Expected In.
You can always see exactly what your balance is and what activity you expect, at
every location.
You will also notice on this display that the first four pallets are moving to pallet location
1, but the fifth is going to pallet location 2. That is because location 040PL001 has a
capacity of four pallets.
Demo
1. In Favorites, select Inventory Detail Inquiry (or select 4.9.13)
2. Enter Site 10-301, Item Number 03210
3. Enter Output page
Key Points
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Quantity On Hand updated by receipt
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Expect Out shows they are due to be moved to another location
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Expect In shows there is an outstanding Task to move product into this
location
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Detail Alloc / Pick places a reservation on the items
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Warehouse Location Maintenance defines location capacity (040PL001 has
capacity 4 PL)
How QAD improves productivity
RF Put-Away
Inventory shows the materials at the Receiving location. What do your material movers
see? Switch to the RF Device for the forklift driver – UserB.
Here is a list of all their open tasks – there are five pallets sitting in receiving waiting for
movement into storage. They can use this list and select one task at a time (perhaps
based on whatever pallet they pick up first), or, more typically, they will just select Next
Task and let the system direct them to the next thing they need to do.
Here’s the first task – take a pallet and drop it at location 040PL001. To process it, just
confirm the location the parts came from, scan the license plate and put away
location.
The next task will display automatically – one by one moving each of the five pallets to
storage.
Be aware that what an operator sees on the RF device is completely flexible. You can
tailor what you want to have shown on the screen and you can require that the user
enter or scan any or all of the information – whatever makes your warehouse most
efficient and error-free!
Demo
1. Maximize UserB PuTTY session
2. Enter 1 Work
Note: if you see a star, that’s the message that you entered in the Overview demo.
3. Enter 2 Select Task
4. Press Control + E to back up one menu
5. Enter 1 Next Task
6. Enter Loc 010RC001
7. Enter Ref <PL000240>
8. Enter Qty 100
9. Enter Loc 040PL001
10. Process the other 4 remaining tasks exactly the same way - When done note
message: No task available
OR use 4.8.7 Movement Confirmation Workbench
Key Points
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PuTTY emulates RF Device
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Next Task – shows one task at a time in priority sequence
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Select Task – shows queue, can highlight and select from there
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Others – Transfer, Location Audit (Cycle Count), Kanban, Receipts, Shipments
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Customize screens
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select what must be scanned/entered on a transaction
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specify what can or can’t be changed
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select the unit of measure that can be used
Automatic poller displays new tasks as they come in
Note: You can process tasks in a batch using Warehouse Confirmation Workbench
How QAD tracks inventory details
Inventory Details
As transactions occur, QAD Warehousing updates inventory positions in real-time. No
longer do you see these items on the receiving dock. They are in the Pallet storage
location. Since there is no demand for any of these items, nothing shows as allocated or
picked.
Demo
1. Maximize QAD Enterprise Application
2. In Favorites, click Inventory Detail Inquiry (or select 4.8.17)
3. Enter Site 10-301, Warehouse 01, Item 03210
4. Enter Output page
Note: the capacity of 040PL001 is four pallets.
Key Points
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Totally integrated, warehouse activities immediately update inventory
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Seen by planners, sales orders, manufacturing orders
Demonstration – Replenish / Ship
The next part of this demonstration shows how QAD Warehousing automates the
picking and replenishment process.
First, use replenishment logic to instruct warehouse personnel to move materials from
reserve storage to the pick face locations, then pick and ship a single sales order. Enter
another order, this time one that you are not able to ship in full, then see how the
purchase order receipt creates a cross-docking task for the backordered items.
Note: QAD Warehousing supports a variety of picking processes – picking one order at
a time, picking a batch of orders and sorting them during picking or afterwards at the
shipping dock, or creating a picking wave. This demonstration focuses on the discrete
order pick example, and shows you how you can manage a multi-step shipping
process – picking the items, moving them to a packaging area, then to the shipping
lane for containerization and loading onto a truck. Another demonstration covers
picking multiple orders.
Receipt to Ship
Demonstration Summary – Replenish / Ship
• Replenishment
• Sales Order picking
• Package and ship
Key Points
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Replenish Pick Face
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Pick products from Pick Face
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Package and ship
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Cross-docking
Note: review other picking options in the Sales Order Picking demonstration
How QAD simplifies replenishment
Replenishment
Depending on your warehouse design, you may have reserve storage and forward pick
locations, with carefully managed replenishment activities.
Often you will pick from the forward pick face locations. These are typically floor level
pick locations reserved for split pallet, broken case or case storage.
Reserve storage is in other locations – usually more difficult to reach or on upper rack
locations.
Replenish pick face locations as needed from the reserve storage – based on
established replenishment point, pallet sizes, maximum quantity and capacity.
Demo
1. Select 4.16.13 Replenishment Request
2. Enter Site 10-301, to 10-301, Item Number 03210, to 03210
3. Check Create Transactions
4. Enter Output terminal
5. (Optionally) in Messages, click Alerts
Note: if you subscribed to the pick alert, you will see alerts for the PICK-RE tasks.
6. Click Inventory Detail Inquiry tab
7. Enter Site 10-301, Warehouse 01, Item 03210
8. Enter Output page
Key Points
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Replenishment is optional
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Some warehouses receive / pick only pallets; won’t use this
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Best Practice when picking less than full pallets
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Reserve Location (full pallet)
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Forward Picking / Pick Face
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Carefully managed replenishment
How QAD automates processes
RF Replenishment
Here are the tasks generated on the material mover’s RF Device – prompting them to
pick up particular items and put them away in the specified location. When one task is
complete, it automatically prompts them with what to do the next, until all pending
tasks are complete.
Demo
1. Maximize UserB PuTTY session
Note: the next task should display automatically
2. Enter Loc 040PL001
3. Enter Ref <PL000240>
4. Enter Loc 040BX001
5. Enter Item 03210
6. Enter EA, Qty 100
7. Process the next task exactly the same way. When done note message: No task
available
8. On both PuTTY session, press Control + E 3 times to return to login prompt
9. Maximize QAD Enterprise Application
10. Click Inventory Detail Inquiry tab
11. Enter Output page
Key Points
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Replenishment tasks generated for material mover
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Again, immediately reflected in inventory balances
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Note: only Pallets have a Reference
How QAD simplifies picking
Sales Order Picking
To finish this process, what happens now if you take a sales order – perhaps for an odd
number of items 126? Use the discrete order picking process, generating a pick list/preshipper for this order.
You can see here how it automatically picks from the forward locations.
Demo
1. Select 7.1.1 Sales Order Maintenance
2. Enter Order WMS1, Sold-To 10C1005
3. Enter Site 10-301
4. Click Next 2 times
5. Enter Line 1, Item Number 03210, Site 10-301, Qty Ordered 126
6. Click Next 6 times
7. Click End Lines
8. Click Trailer
9. Click Next 2 times
10. Select 75.10.13.17 Picklist/Pre-Shipper Automatic
11. Enter Sales Order WMS1, To WMS1
12. Click Run
13. (Optionally) In Messages, click Alerts
Note: if you subscribed to the pick alert, you will see alerts for the PICK-SO tasks.
14. In Favorites, select Inventory Detail Inquiry
15. Enter Site 10-301, Warehouse 01, Item 03210
16. Enter Output page
Key Points
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Picks one full pallet, 2 boxes and 6 EA
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Pick Sequence, looks first for full pallets, then boxes then eaches
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Pick alerts are optional
How QAD makes warehousing staff more efficient
RF Picking by Zone
Notice the RF Tasks display on both RF Devices. User A is an operator that uses a handtruck, not a forklift, and processes all the picking tasks for the BX and EA locations. UserB
is a forklift driver and gets all tasks for the PL locations.
Even when you are picking and shipping one order at a time, Warehousing helps you –
eliminating the paper step, moving parts faster and more efficiently, by generating
tasks and communicating them to mobile warehouse workers electronically on their RF
terminals / devices and letting them record transactions error-free simply by scanning
the bar code.
Go ahead and pick the pallet, then pick the eaches and boxes. It is likely you will
combine the loose materials – the eaches and boxes – on one pallet. Notice you can
enter a pallet reference for that. When done, you drop the whole pallet.
Demo
Note: if you have both UserA and UserB sessions set up to display Next Task, you will
automatically see the EA and BX tasks on UserA and the PL task on UserB.
1. Minimize QAD Enterprise Application
2. In UserB PuTTY session, enter WLG <blank>, Location <blank>, Task <blank>
3. Enter 1. Work
4. Enter 1. Next Task
5. Enter Loc 040PL001
6. Enter Ref <PL000242>
7. Enter Qty 100
8. Enter Loc 060PA001, PL, Ref <PL000242>
9. If you are not already logged on as UserA, in UserA PuTTY session, enter WLG
<blank>, Location <blank>, Task <blank>
10. Enter Site 10-301, Warehouse 01
11. Enter 3. Picking/Container
12. Enter 2. BP Pick All
13. Click Enter to select order (this is indicated by the *)
14. Click F1 to process
15. Enter Location 040BX001, item 03210, L <blank>, R <blank>, Qty 10, EA, To Ref
PL990001
16. Enter Location 040BX001, item 03210, L <blank>, R <blank>, Qty 10, EA, To Ref
PL990001
17. Enter Location 040EA002, item 03210, L <blank>, R <blank>, Qty 6, EA, To Ref
PL990001
18. Enter Drop All 1
19. Enter Location 060PA001
When done note message: No task available
Key Points
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Split tasks among operators based on item, location, equipment
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Optionally group picked items on a pallet for tracking
How QAD simplifies product shipment
Picked Item Inventory
Look at the inventory display again. Now you see the items in location 060PA001 – an
intermediate packaging area where you move picked items to prepare them for
shipment.
Notice the quantity in the Picked column – this indicates you picked these items against
specific orders.
Demo
1. Maximize QAD Enterprise Application
2. Click Inventory Detail Inquiry tab
3. Enter Site 10-301, Warehouse 01, Item 03210
4. Enter Output page
Key Points
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Displays references and Detail Pick
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Intermediate packaging location not required
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Could pick and move directly to shipping lane
How QAD streamlines processes
Shipping
Finally, take the packaged materials and load them on to the truck. You can load
individual pallets, or build a container then put that on the truck.
The material handler can confirm the shipment on the RF Device, or the supervisor
might confirm the shipment using the Pre-shipper/Shipper Confirm – just as all other
orders processed using QAD Enterprise Application. No difference in process!
Demo
1. Maximize UserB PuTTY session
2. Press Control+E 2 times to return to main menu
3. Enter 3. Picking/Container
4. Enter 4. Container Move
5. Enter Ref <PL000242>
6. Enter Destination Loc 070SH001
7. Enter Reference PL990001
8. Enter Destination Loc 070SH001
9. Press Enter
10. Press Control+E to return to menu
11. Select 5. Ship Truck
12. Enter Loc 070SH001
13. (Optionally) Enter Carrier Shipment Ref <your pre-shipper number –
PS101311001>, Vehicle ID <CO TRUCK 1>
14. Press F1 to select shipment
15. Press F4
16. Enter Confirm Shipment 1
17. Press Control + E to return to the menu
Note: you can also process shipments using 7.9.5 Pre-Shipper/Shipper Confirm
18. Maximize QAD Enterprise Application
19. (Optionally) in Messages, click Alerts
Note: if you subscribed to a shipment alert, you will receive a Shipment Notification.
20. Click Inventory Detail Inquiry tab
21. Enter Site 10-301, Warehouse 01, Item 03210
22. Enter Output page
Key Points
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Pre-shipper/Shipper Confirm
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Can do on RF Device – select Ship Truck
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Or do using standard process – Pre-shipper/Shipper Confirm
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Ships sales order
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Moves items from shipping dock
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Flags ready for invoicing
How QAD improves customer service
Cross Docking
What happens when there is a backorder? Depending on your processes, QAD
Warehousing can automatically direct backordered items to the staging area when
you receive them – that’s cross docking.
For example, here is an order for 350 units. You can pick 300 now, leaving a backorder
for 50. There is an outstanding purchase order for 500. When this is received, rather than
create put away tasks for the entire quantity and then another task to pick the back
ordered items, QAD Warehousing creates directs the backordered items immediately
to staging.
Demo
1. Select 7.1.2 Sales Order Browse
2. Search Order equals WMS-BO
3. Select 75.10.13.17 Picklist/Preshipper Automatic (or 7.9.1)
4. Enter Sales Order WMS-BO, to WMS-BO
5. Check Update yes
6. Click Run
7. In Favorites, select Movement Confirmation Workbench (or 4.8.7)
8. Enter From Site 10-301, To 10-301
9. Check Select All
10. Click Next
11. (Optionally) Click Next/Yes to move the material to the staging area
12. Select 5.13.1 Purchase Order Receipts
13. Enter Purchase Order Number WMS-BO
14. Click Next 3 times
15. In Line, press down arrow
16. Enter Quantity 500
17. Check Multi Entry
18. Click Next
19. Click Back 2 times
20. Click Yes
21. Click Back/Yes
22. Click Back/Next
23. Click Movement Confirmation Workbench tab
24. Click Next
Note: 50 go directly to 060PA001; 450 go to PL storage.
Key Points
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Automates backorder processing
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Minimizes put away/picking tasks
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Speeds up order turnaround; improve customer service
How QAD helps maximize storage utilization
Warehouse Capacity
Now that you have material in your warehouse, take a quick look at capacity. This is
probably the emptiest warehouse you will ever see, but you should get the idea. Here
you can see both the absolute value and the relative fill value of each storage location
in your warehouse.
Absolute full shows you if there is inventory in this location or not. Relative full
percentage compares the actual number of items to the capacity.
You can review this on a report, giving you insight into how full your warehouse is for all
locations, or you can use a graph like this one, representing how close to capacity the
warehouse is at any point, location by location.
Demo
1. Select 4.3.17.13 Location Full % Report
2. Enter Site 10-301, To 10-301
3. Enter Output printer
4. In Favorites, select Location Capacity Graph
5. (Optionally) Select Actions > Grid View
Key Points
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Absolute full is binary
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either there is something in the location or not
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it does not indicate how many parts are in that location
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Relative full percentage compares the quantity in the location with capacity
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Report, graph or grid view
How QAD adapts to your business environment
Warehouse Location Capacity
If you would like to look behind-the-scenes and see some of the underlying information
making this all work, start with looking at the location information.
The system maintains capacity and usage of each storage location. You assign each
storage location to a Work Group and then assign tasks by work group – meaning you
may have some warehouse staff focused on put-away functions, and others assigned
to pick specific aisles. They will only get the tasks waiting for them on their RF devices…
they won’t see all the waiting tasks – just the one’s they need to take care of. Unless
they have nothing to do, then they can ask to see other open tasks where they may be
able to assist.
QAD Warehousing also uses settings like Popularity to optimize slotting – for example,
you may want to fill the lower shelves first, or put fast moving items up front and in the
easiest to get to locations – to speed up the picking process and make your team more
efficient.
You define all of these settings during implementation, customizing QAD Warehousing
to meet the needs of your unique business environment.
Demo
1. Select 4.3.13 Warehouse Location Maintenance
2. Enter Site 10-301, Location 040PL001
3. Click Next
4. Click Next 3 times
Key Points
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One of the many key items you set up when defining your warehouse
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Dimensional data – height, length, width - useful for large, bulk items
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Capacity - In general, how many pallets fit here? Item-specific, how many
pallets of this item fit here?
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% Full – for analysis
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Work Group - Location or person - Tasks assigned by work group
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Popularity - Decide what locations to fill first; most popular; easiest to get to
How QAD automates complex calculations
Algorithm Assignment Report
How does all this fit together? Using powerful algorithms – decision trees the system
walks through each time you execute a particular transaction.
For example, on a basic receipt the system calculates the number of pallets then looks
for a storage location. A more complex algorithm looks to see if there is any more of this
item in stock and tries to put it there.
These are simple examples – you can get much more complex – restricting partial
pallets to certain locations, merging lots, checking for dedicated stock locations and
more.
Each type of action can be made up of any number of algorithms – in fact, there are
over 170 algorithms. All of this logic is customizable to your specific situation and once
defined will operate automatically to optimize your warehouse based on the capacity
and constraints unique to your operation.
Demo
1. Select 4.6.11 Algorithm Assignment Report
2. Enter Algorithm Type PA, To PA, Transaction Type RCT
3. Enter Output page
4. Select 4.6.6 Algorithm Master Browse
5. Search Algorithm Type equals PA
Key Points
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Put-Away example - Algorithm Type PA
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Find any storage location that is available
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Algorithms are like Decision Trees
o
Sequence 10 – if yes, stop – do that
o
If not, continue to Sequence 20 – if yes, stop – do that
o
If not, continue…
o
Last step is always a generic action – if you can’t do anything else, do this
(ie. Put in any empty spot)
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Can be very complex, multi-step
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The system goes through the algorithm one step at a time, and when it gets a
yes, it stops. You define all this during system setup – that’s how flexible it is
Closing
In closing, using QAD Warehousing you will have a more efficient and accurate
warehouse. This allows you to decrease inventory even as you improve fulfillment,
increasing customer service and manufacturing schedule achievement. Automating
processes using mobile devices eliminates errors and reduces cost, ensuring
compliance while improving gross margin return on inventory investment.
QAD: Enabling the Effective Enterprise!
Receipt to Ship
Closing
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Delivery In Full On Time (DIFOT)
Inventory accuracy, location accuracy
Fulfillment efficiency
Size of Safety stock
Stock outs per period
Gross margin return on inventory investment
Capacity utilization
Enabling the Effective Enterprise!
Key Points
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Enabling the Effective Enterprise
o
Improve efficiency and accuracy
o
Decrease inventory; increase fulfillment
o
Automate processes
o
Eliminate errors; reduce cost
o
Improves gross margin return on inventory investment
Impacts almost all KPIs