NetSuite WMS Advanced Warehouse Tour with Alpha Comm

Summary

Alpha Comm designs, manufactures, and distributes cellphone accessories, focusing on efficiency through NetSuite's warehouse management system (WMS). Their process involves receiving, storing, and picking products for shipment across 17,000 locations. WMS integration streamlines procurement, receiving, inventory management, replenishment, order allocation, and shipping. Workers follow WMS-guided steps to ensure accuracy and efficiency, ultimately enhancing their ability to fulfill large volumes of orders swiftly and accurately. This systematic approach is detailed through a walkthrough of their 150,000 square-foot warehouse and subsidiary operations in Montebello, California, and Mexico City.

Takeaways

• 📱 The company specializes in designing, manufacturing, and distributing a wide range of cellphone accessories available at local carrier stores.
• 🚚 They offer a unique 'ship to store' service for carriers, handling the entire process from picking to packing and fulfilling to 17,000 locations.
• 🔄 NetSuite and a fully integrated warehouse management system (WMS) are crucial for achieving the required efficiency in their operations.
• 🏭 The facility described is approximately 150,000 square feet, with additional warehouses in Montebello, California, and a subsidiary in Mexico City.
• 📦 The process begins with procurement, where purchase orders are created and sent to manufacturers, and continues with receiving and storing the products.
• 🔖 Upon arrival, products are unloaded, sorted by SKU, and assigned a license plate (LP) number for tracking and storage location assignment.
• 🔍 A cycle count of SKUs is performed daily to maintain accurate inventory balances, which is managed through the WMS.
• 📈 Replenishment plans ensure items are transferred from storage to pick faces, setting minimum levels to maintain stock for pickers.
• 🛒 Sales orders are processed with an allocation step in the WMS to prevent multiple salespeople from selling the same product simultaneously.
• 🌊 The waving process in WMS consolidates orders for efficient picking, with the ability to cluster orders and control the number of totes per picker.
• 🔗 The picking process relies heavily on RF guns for scanning and instructions, ensuring accurate order fulfillment.
• 📦 After picking, a PAC outstation is used for cross-checking the picked items against the customer's order to ensure accuracy before shipping.
• 📈 The WMS integrates with FedEx for shipping label generation, verifying correct item quantity, weight, and shipping method before finalizing the order.
• 📊 The final shipping label routes the package to the appropriate shipping method container, and the system updates the order status and triggers billing in the accounting department.

Q & A

What kind of products does Alpha Comm specialize in designing, manufacturing, and distributing?

Alpha Comm specializes in designing, manufacturing, and distributing cellphone accessories that are commonly found in local carrier stores.

What sets Alpha Comm apart from other companies in the same industry?

Alpha Comm stands out by offering a ship-to-store service for their carriers, where they pick, pack, and fulfill orders to 17,000 different locations, emphasizing speed and efficiency.

How does Alpha Comm integrate technology to improve efficiency in their operations?

Alpha Comm uses NetSuite and a fully integrated warehouse management system (WMS) to streamline their operations and increase efficiency.

What is the approximate size of Alpha Comm's warehouse in Montebello, California?

The warehouse in Montebello, California is approximately 150,000 square feet.

How does Alpha Comm manage the receiving process of new products?

The receiving process starts with the procurement department creating and sending purchase orders. The receiving department then pre-assigns system homes for products, receives the goods, and prints a license plate (LP) number to track the pallets.

What is a 'license plate' number in the context of Alpha Comm's warehouse operations?

A 'license plate' number is a unique identifier printed by the WMS and attached to a pallet of products, which helps in tracking and managing inventory.

How does Alpha Comm ensure inventory balances through their cycle counting process?

Alpha Comm performs cycle counting of a set number of SKUs every day, where materials workers physically count items and the WMS allows for this process to be recorded, ensuring inventory accuracy.

What is the purpose of the replenishment plan in Alpha Comm's WMS?

The replenishment plan in the WMS ensures that items are transferred from storage locations to pick faces when the stock level falls below a predetermined minimum, keeping enough inventory for pickers.

How does Alpha Comm handle the allocation of items during the sales process?

Salespersons must allocate the items they intend to sell into their orders within the WMS to prevent multiple salespeople from trying to sell the same product.

What is the waving process in Alpha Comm's WMS, and how does it work?

The waving process involves grouping orders into a wave, which can include multiple orders for a single customer. This process helps in organizing and optimizing the picking and packing of orders.

How does Alpha Comm ensure the accuracy of the items picked and packed for shipment?

After picking, the picker uses a PAC outstation to cross-check the items picked against the customer's order in the WMS. The system only allows the creation of a FedEx shipping label if the quantities and items match the order.

What is the role of the integration process between Alpha Comm's WMS and FedEx?

The integration process between the WMS and FedEx ensures that once a shipment is verified and the shipping label is generated, FedEx is notified to update the order status in the WMS, which then routes it to accounting for billing.

Outlines

00:00

📦 Warehouse Efficiency and Integration

The script describes the operations of a company specializing in the design, manufacture, and distribution of cellphone accessories. They differentiate themselves by offering a 'ship to store' service for carriers, which requires high efficiency in their warehouse management. The company uses NetSuite and a fully integrated warehouse management system (WMS) to streamline their operations. The process includes procurement, receiving, storage, inventory management, replenishment, and order fulfillment. The script details the steps taken from the arrival of products to their storage and subsequent picking for shipment. The WMS guides workers through each task using a menu system and an RF gun, which simplifies the process and ensures accuracy. The company maintains warehouses in Montebello, California, and Mexico City, covering a large area and handling a vast number of products and SKUs.

05:00

🛒 Order Fulfillment and Shipping Process

The second paragraph delves into the specifics of the order picking and shipping process within the company's warehouse. Pickers use an RF gun to scan and select items from designated bins, guided by the WMS system, which cross-checks the picked items against the customer's order. Once the order is confirmed, it is weighed and, if correct, a FedEx shipping label is generated. The script highlights the integration between the WMS and FedEx systems, ensuring accurate order fulfillment and shipping. The company also discusses the importance of the PAC outstation for verifying the accuracy of the picked items before they are shipped. The process concludes with the order being closed out in the WMS and sent to the accounting department for billing, emphasizing the seamless flow from order creation to completion.

Keywords

💡Warehouse Management System (WMS)

A Warehouse Management System (WMS) is a software solution designed to control and facilitate the movement and storage of materials within a warehouse. It is integral to the video's theme as it is used to increase efficiency in the storage, retrieval, and shipment of cellphone accessories. The script mentions that the WMS provides a full integration of the warehouse processes, from receiving to shipping, and is used for tasks such as cycle counting, replenishment, and picking.

💡Ship to Store

Ship to Store refers to a logistics strategy where goods are shipped directly from the manufacturer or warehouse to the retail store, bypassing intermediate distribution centers. In the context of the video, the company uses this strategy to fulfill orders to 17,000 doors, emphasizing the importance of speed and efficiency in their supply chain.

💡Cellphone Accessories

Cellphone accessories are products designed to complement or enhance the functionality of mobile phones. They are the main products discussed in the video, with the company specializing in their design, manufacture, and distribution. The script mentions that these accessories are sold in local carrier stores, indicating their ubiquity and relevance to the company's operations.

💡Procurement Department

The Procurement Department is responsible for sourcing and purchasing goods or services from external suppliers. In the video, this department is highlighted as the starting point of the supply chain process, where purchase orders are created and sent to manufacturers, setting the stage for the receipt and storage of products.

💡Receiving Department

The Receiving Department handles the logistics of incoming goods, including the inspection, recording, and initial storage of products. The script describes how this department uses the WMS to pre-assign system homes for products and manage the unloading and palletizing process, which is crucial for the subsequent steps in the warehouse operations.

💡License Plate (LP) Number

A License Plate (LP) Number is a unique identifier assigned to a pallet, container, or batch of goods in a warehouse. The script explains that this number is printed by the dock coordinator and attached to the pallet, allowing for easy tracking and identification of products throughout the warehouse management process.

💡Cycle Counting

Cycle counting is a method of inventory management where stock is counted at regular intervals to ensure accuracy and detect discrepancies. The script mentions that the company performs cycle counting daily using the WMS, which helps maintain accurate inventory balances and is a key aspect of their inventory management strategy.

💡Replenishment Plan

A Replenishment Plan is a strategy used to ensure that stock levels are maintained by transferring items from storage to pick face locations. In the video, the WMS is used to set minimum levels for pick face locations, triggering the transfer of materials and ensuring that there is always enough stock available for pickers.

💡Pick Face

A Pick Face is the location in a warehouse from which items are picked for order fulfillment. The script explains that items must be transferred to a pick face before they can be picked, which is a critical step in the order fulfillment process facilitated by the WMS.

💡Wave Process

The Wave Process in warehouse management involves grouping orders together for processing at the same time, which can improve efficiency. The script describes how the sales team's orders are lumped into waves, with the wave coordinator using the WMS to assign materials to customer order numbers, streamlining the picking process.

💡PAC Outstation

A PAC Outstation, or Pack Outstation, is a location where the final packing and checking of orders take place before shipping. The script highlights the importance of this station in the video, where the picker's actions are cross-checked against the customer's order using the WMS, ensuring accuracy before the shipment is prepared.

💡FedEx Integration

FedEx Integration refers to the process where the WMS communicates with FedEx systems to facilitate shipping, including generating shipping labels and verifying order accuracy. The script describes how this integration is used to ensure that the correct items and quantities are shipped, and to obtain shipping labels, which is a crucial part of the company's distribution process.

Highlights

Alpha Comm specializes in designing, manufacturing, and distributing cellphone accessories.

They offer ship-to-store services for carriers, picking, packing, and fulfilling to 17,000 locations.

NetSuite and a fully integrated warehouse management system enhance operational efficiency.

The 150,000 square feet warehouse in Montebello, California, and subsidiary in Mexico City handle product storage and distribution.

Workers follow a step-by-step process in the WMS to perform their tasks efficiently.

Procurement department creates and sends purchase orders to manufacturers.

Receiving department pre-assigns system homes for products and manages inbound items.

Dock coordinator prints receiving paperwork and manages unloading and pallet building.

License plate (LP) numbers are used to track pallets and products through the system.

Cycle counting is performed daily to maintain accurate inventory balances.

Replenishment plans ensure items are transferred from storage to pick faces for picking.

Salespersons allocate items to orders to prevent multiple salespeople from grabbing the same product.

The waving process in WMS consolidates orders for efficient picking.

Pickers use an RF gun to scan and pick items according to cluster numbers and bin instructions.

PAC outstation cross-checks picked items against customer orders for accuracy.

Integration with FedEx allows for automatic shipping label generation and order closure.

Salespersons select shipping methods, which determine how orders are routed for dispatch.

The warehouse management system simplifies tasks for workers, streamlining the receiving to shipping process.

Transcripts

but alpha come we help design

manufacture distribute any kind of a

cellphone accessory that you might walk

into your local carrier store to

purchase everybody and his brother or

selling accessories one thing that makes

us different is we're doing ship to

store for our carriers we pick pack and

fulfill to 17,000 doors but in order to

do that we have to become as fast and

efficient as possible through NetSuite

and the full integration of the

warehouse management system the

efficiency is incredible as we do a walk

through through the facility you'll get

an idea of what we're talking about this

warehouse is approximately 150,000

square feet and we have warehouses here

in Montebello California and a

subsidiary in Mexico City we receive

product we store it and we pull it for

hicpac and shipment the WMS system

provides so the average worker they just

have to follow the steps in the menu to

get their job done so it's laid out in

processing steps that they can follow up

the process starts of course in our

procurement department where we will

create and send purchase orders to our

manufacturers and the receiving

department they'll have those POS

they'll be waiting for those inbound

items to come in via schedule they can

go in the system and they can pre assign

a system home for a particular product

or they can simply run a report in WMS

and say you know let me see all the

empty locations I have because some of

those products may need four or five

locations when the products come in we

unload them the dock coordinator in our

case will printout receiving paperwork

out of the WMS side then he simply

brings it over to where he's receiving

the goods they unload the trucks and

they build a pallet sorting all the

different SKUs and putting the like SKUs

on to a particular pallet then from the

WMS system he'll print what's called a

license plate an LP number this LP

number is then attached to the

particular pallet product from there now

he starts receiving through his RF gun

the particular SKUs on that pallet by

scanning the barcodes then a material

handler will get on a forklift

they will come scan this particular LP

and they're going to do what's called

put tube in so for example in the WMS

system if that particular SKU the

materials manager assigned it to this

particular bin the material handler who

scans the LP he scans the particular

location set up through the parameters

in WMS that's married up in the WMS

system which completes the initial

receiver so after we received the goods

and we put them in their storage bins we

also cycle count X amount of SKUs every

day to make sure we're maintaining

inventory balances and that's done by

our materials manager in here in the

inventory part of WMS so he can build

anywhere from 1 to 50 per se if he wants

to in a cycle count plan and the

materials worker would go out and

physically count those items the WMS

does allow for that to totally be done

in RF but in alpha comm particular case

we still use it with the worksheet one

of the next phases is replenishment you

don't pick items from a basic warehouse

storage bin it has to be transferred to

what's called a pic face in order to do

that we use what's called a

replenishment plan from the WMS system

so for example when the materials

manager sets up a pic face location he

can set a minimum level and say anything

that's at or below its minimum level

come out on this replenishment report

and what that does is it sets up a

transfer of the materials from a storage

location to that pic location and that's

a process that always keeps enough there

for the Pickers to pick another thing we

have to do when you have a sales group

up there selling items the salesperson

has to go into the system and if they

want to sell a thousand of those they

have to allocate those thousand items

into their order otherwise you have

multiple sales people trying to grab the

same product so the allocation process

is also part of the WMS and then those

items are held for pick pack and ship

the next phase of course after we have

our materials receive put away and

manipulated for picking is what's called

the waving process in WMS the sales team

upfront put orders in the system and the

wave coordinator can do what's called

create a

she can lump anywhere from one to a

hundred orders per se

once she manipulates all those orders

and puts them into a particular wave

number that's what grabs the material

and assigns it to that particular

customer order number in that wave so

there we do what's called building a

cluster and a WMS system you can wave

multiple order numbers for a particular

customer into a cluster and control how

many totes you want that picker to pick

we marry up the particular order to a

bin number and from there they'll go

into the pic warehouse and they'll start

picking the orders the picker will scan

the particular cluster number and it

will tell her to go to a particular bin

she'll scan that bin and it will tell

her how many that particular item to put

into this container for that customer

this particular process is where we rely

heavily on the RF gun once they finish

picking an order we use a PAC outstation

the importance of the PAC outstation is

we're cross-checking what that picker

picked in the RF gun as we marry it up

to the customers shipping container that

we prep for shipping he'll bring the

particular order up in the WMS part of

the screen and it will show the customer

all the items that customer ordered then

he'll simply start scanning the items

and that's the cross-check he's building

that shipping container in WMS as he

scans those totals marry up with the

requested quantity on this side once he

completes that order we set the

container on the FedEx scale now in the

WMS system we have what's called an

integration process the WMS information

integrates and talks to FedEx if all

those items are the correct quantity and

the correct item and the correct weight

he can hit his finish button and at that

point he will get his FedEx shipping

label if the quantities are wrong and

the item is wrong it will not let him go

further and he cannot get the shipping

label and finish the customer container

once that's done FedEx writes back to

our WMS system which closes out the

order and goes to our accounting

department for billing

one of the intricate parts is in WMS

when the salesperson creates the order

they pick the shipping method do they

ship it ground do they ship it ground

priority or do they ship it pallet and

as you get the final shipping label at

pack out station it'll route it to the

appropriate container for example if

it's an overnight express it'll set here

on the dock and it will go out overnight

express if it's regular ground is simply

loaded into the FedEx truck and the

trucks take it away at the end of the

day the warehouse management system

provides so the average worker they just

have to follow the steps on the RF gun

to get their job done from the first

stage with the Alpha comm receiving

process to the pick pack and ship

process so it's laid out in processing

steps that they can follow