We are all familiar with the 3 fundamental, yet significant elements in any warehouse operation, which are:
In our endeavour to optimise those 3 elements and ensure an optimum and well managed warehouse operational environment as well as to be able to successfully contribute to the progression of our company’s performance, we must always aim to attain and of course to put into practice another set of elements, which I call the “5 Rights”…
1. Right Quality - as per specifications of all required / stored SKUs.
(avoid getting sub-standard, inferior or second-rated SKUs in your warehouse). Minimise your “red tag” area of unwanted/obsolete or damaged SKUs and also ensure less customers’ returns or replacements;
2. Right Quantity - accurate quantity of all required / stored SKUs.
(avoid getting overstocked without a valid reason - be prudent with the Just-in-Case (JIC) application of stocks in your warehouse));
3. Right Timing - precise timing of receiving all required SKUs.
(establish the exact time you would receive, check, record, place and store new orders in your warehouse; execute accurately and on time your cross-docking functions to eliminate unwanted delays and most importantly your customers’ disappointments);
4. Right Customer (refer to both internal & external).
(imperative to be acquainted with and maintain perfect relationships with all your colleagues from other departments (your internal customers) and with your various suppliers or distributors (your external customers);
5. Right Price - reasonable & realistic price for services offered.
(remember that today’s warehouse or Distribution Centre (DC) operates as a profit centre and as such it plays a very important role in the total company’s progression plans and future development as well).
An easy way to recall these 5 Right elements would be to remember the “Right QQTCP” acronym.
About the Author
Petros N. Zenieris, is a Singapore-based management consultant and trainer; ACTA certified. He established a company with the aspiration to providing consulting & training services to SMEs and Entrepreneurs in Singapore and subsequently within the S.E. Asian Region. He is dedicated to providing cost effective & valuable business solutions that quickly bring success to his clients.
Owing to a wealth of accumulated experience & expertise he has earned from over 18 years of service with MNCs in West Africa (Nigeria & Ghana), Petros has been providing consulting and training services to S. E. Asian-based companies seeking to expand their businesses in the African Region.