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Focus on Warehousing

Todays global economy is dependent on efficient supply chains that ensure the timely flow of
products. The flow occurs through a network of facilities and transportation systems that
carry product to their final destination, the consumer. Warehouse facilities are complex
operations requiring the integration of people, systems and technology to work effectively and
achieve optimum performance.
An important tool to evaluate
objectives. Process analysis is
warehouse performance, and indeed particularly useful in identifying any
organisational performance, is
disconnection between business
business process mapping.
activities and business objectives
Process mapping is a visual depiction relating to customer service,
of the accumulated activities that
efficiency, effectiveness, and
take place in each business process.
These activities ultimately determine
Typical process mapping steps
the companys value proposition to
customers and its overall success. So include:
Process identification, meaning
processes must be analyzed to
document and map existing
ensure theyre streamlined, meet
processes, (AS IS Stage);
operating standards and cost
structures and, support key business Benchmark performance and

establish business KPIs. Measure

performance to identify
performance gaps, business risks
and key controls in a process;
Discuss with personnel their
involvement in the process to
obtain each individuals point of
Determine required performance,
identifying areas of improvement
Document required processes,
including flow charts.

Is continuous
improvement part of your
company culture?
Is it a struggle to improve
your warehouse processes?

Do your employees
wrestle with processes
that fall short of best
How many non-value
activities are you currently


MARCH 2012

Focus on Warehousing
SIPOC Mapping - SIPOC is an
abbreviation of Suppliers, Inputs,
Process, Outputs & Customers
The purpose of a SIPOC Map:
Good process management or
continuous improvement activities
should commence with a high level
understanding of the scope of the
process first. A SIPOC Map or Chart
should define the boundary of the
process, and provide a structured
way to discuss the process, and
reach consensus before a detailed
mapping exercise begins.

TIPAs a general rule, high level process maps

should contain no more than 7 steps. The
objective is to over simplify the process so it can be
easily understood.

The primary advantage of a swim
lane diagram is the ability to
clearly illustrate which
department, function or person
is responsible for performing the
activity or making the decision.
This approach is very useful for
cross-functional mapping such as
in the case of sales order


MARCH 2012

Focus on Warehousing
Detailed process mapping
provides a more thorough
picture of a process, capturing
the inputs and outputs of
each step in a process and
allowing you to classify them
as critical, noise, standard
operating procedure or
By controlling inputs and
measuring outputs you can
improve performance and
process efficiency. Detailed
process mapping also helps
document decision points
within a process.


Value stream mapping is a method of creating a one page picture or a high level look at a companys flow of goods or
services from order intake to final
delivery, identifying waste within
and between processes.
The objective is to visually present
all the material and information
flows across and throughout all
the processes. Practitioners can
drill down to discover bottlenecks
and identify all value-adding and
non-value-adding processes.
Key metrics captured are cycle
times, defect rates, wait times,
headcount, inventory levels,
changeover times, etc.


MARCH 2012