Distribution 1

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Lesson 9

Receiving & Put-away

AIDC Technology

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Agenda

• Review of DC Operations & Packaging

• DC Receiving
• Amazon Receiving
• DC Technology
• ACME Receiving challenge

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Get your phones
ready!

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 Learning Objectives

• Describe the receiving, put-away and replenishment

operations
• Describe cross-docking options
• Discuss the main Automatic Identification and Data Capture
(AIDC) technologies used in supply chain materials flows; for
example: Barcodes (existing), RFID (emerging)

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Amazon Receiving

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What processes did you see
at Amazon Receiving?

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We can divide our Distribution Centre
activities as follows:
• Inbound:
• Receiving
• Put-away
• Outbound:
• Replenishment
• Pick
• Pack
• Sort/Stage
• Ship
• Support:
• Inventory Accuracy
• KPI Reporting
• Everything else …

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A typical DC ...

Replenishment Replenishment
Open
Reserve Storage Case (Broken)
and Picking Case Picking
Pallet Picking

Sortation, Staging, Packing

Receiving Crossdocking Shipping

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The receiving process:
• Unloading, inspection and quantity/product verification of
inbound materials:
• Unloading time: unitized vs. floor-loaded; automation
• Advanced planning: receipt of ASN via EDI, shipment tracing
• Receiving appointments:
• Dock, labour scheduling, compliance penalties
• Documents: Manifest, BOL, Packing Slip

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The receiving process (cont’d):
• Quantity/Product Verification:
• May be eliminated for high performing suppliers, “certified receipts”.
• Inspection
• OSD Reporting (overages, shortages, and damages)
• Product Disposition
• Filing of damage, shortage claims.
• Handling of returns (Reverse Logistics)
• Inventory updating
• Mostly real-time, but could still be batch

Why is receiving important?

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The put-away process: where

• Storage: on floor (stacks), in racking, shelving.

• Fixed stock or Variable (random) stock locations
• Zones: depend on product size/characteristics, pick frequency, storage
system, materials handling equipment, security, safety

• Warehouse Management System (WMS):

• Controls all moves, or receives updates about moves determined by Who
operators decides?

• Task interleaving:
• Combines tasks to reduce empty return trips after put-away: could be pick
or replenishment
• Travel time = productivity = $ labour

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The replenishment process:
• Movement of goods from overflow/reserve location to pick location (from
secondary to prime location)
• Stock rotation considerations:
• First-in, first-out (FIFO)
• Last-in, first-out (LIFO)
• Least shelf life, first out (LSFO) for perishables
• Variety of replenishment strategies
• Pick-face empty
• Pick-face down to a specified level
• Pick-face replenished at regular intervals to specified levels; e.g., daily
requirement

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What is cross-docking?
• Eliminates put-away, replenishment, and picking operations.
• Goods are not stored for extended periods.
• Heavily Information Systems dependent
• Range in techniques from:
• Pre-identified and physically pre-sorted to customer before
arrival (most anticipatory; cross dock)
• Assigned after arrival based on current inventory position at
ship-to location (most responsive; flow management)
• Term “flow-through” sometimes used

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The Difference Between X-dock and Flow…

CROSS DOCK FLOW MANAGEMENT

▪ Store orders are pre-determined ▪ A bulk order is placed on the supplier

▪ Supplier picks and packs individual ▪ The supplier send the bulk order to the
store orders retail DC

▪ Supplier sends a consolidated ▪ In the meantime, store requirements

shipment to the retail DC are determined

▪ Merchandise is brought in the ▪ The bulk order is received and

receiving door, is immediately sorted immediately taken to a sorting station
into store shipping lanes, and sent to where individual store orders are
the store on the next shipment picked, packed and shipped to stores

▪ Merchandise typically stays in the DC ▪ Merchandise typically stays in the DC

less than 24 hours less than 24 hours

Source: Dr. Alan Saipe

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Technology in dc

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The systems infrastructure needed to support a
modern DC:
• ERP:
• Enterprise-wide transaction support
• Financial records; for example, inventory totals, both unit & $
• WMS:
• Process control for all DC activities
• Inventory details at the bin (location) level of detail
• Shop Floor Control
• Integration of conveyors, scanners, RF guns, material handling equipment with the WMS

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Technology – WMS solution from Oracle

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Technology - The Perfect Warehouse

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 Automatic Identification and
Data Capture (AIDC) Technology

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What is Automatic Identification and Data Capture
(AIDC) Technology?

• The technologies used in the supply chain:

• Barcodes and scanners
• RFID
• Magnetic stripe
• Biometrics www.voxware.com

• Benefits: Accuracy, labour savings, time savings

• Facilitates automation of processes such as conveyors
• Evolution of standards, governing bodies, technologies

AR warehouse technology – picking at DHL

https://www.youtube.com/watch?v=I8vYrAUb0BQ
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Where do I start?

GS1 © GS1 Canada 2012

GS1 is a leading global organization dedicated to

the design and implementation of global standards
and solutions to improve the efficiency and
visibility of supply and demand chains globally and
across sectors. The GS1 system of standards is the
most widely used supply chain standards system in
the world.

GS1 Canada supplies service in Canada.

www.gs1ca.org

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Where Bar Codes Are Used …

© GS1 Canada

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Bar codes are everywhere …
Closed Loop
• Bar codes (“license plates”)
used within a company’s DC &
logistics processes
• Not intended to be readable by
other participants in the supply
chain
• Often used to support DC
automation.
Open Loop
• Bar codes used across the
broader supply chain in
accordance with industry
standards
• Intended to be readable by
other participants in the supply
chain
• Used to support information
exchange.

Many different standards

Verification of printing to ensure scanability

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A few common barcode formats …

UPC (Uniform Product Code)

2D Stacked Barcode – Code 49

PDF 417

2D Matrix - Maxicode

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Scanners: a key AIDC component
• Require line-of-sight
• Read range is called “depth of field” (DOF)
• 3 main types:
• Contact wand: DOF is almost 0 inches, cheap, for low volume
applications, linear barcodes only
• CCD: up to 8 inches, rugged, also reads 2D barcodes
• Laser: up to 40 feet, most expensive, common in Logistics
• Mounted or hand-held
• Many vendors; e.g., www.ocr.ca

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 More about barcodes, GTINS and More …
https://www.gs1ca.org/pages/n/subscription/index.asp

• https://www.youtube.com/watch?v=J3t-XEKugtM
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1. Global Trade Item Number (GTIN)

UPC: Historically 12 digits; first commercial use in 1973

EAN: Currently 13 digits
Global Trade Item Number (GTIN) encompasses:
UCC-12 (UPC)
EAN/UCC-13
EAN/UCC-14
EAN/UCC-8
Transition from UPC to EAN/UCC-14 expected in future
Minimum U.S./Canada requirement: scan up to EAN/UCC-13,
but Databases must accept 14-position number (for growth)

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2. Serialized Shipping Container Code (SSCC)

GS1-128 (UCC/EAN 128) Barcode

Applicable to Cases, Pallets, Container loads (logistics units)

Unique identifier worldwide

Applications: ASN, Shipping, Receiving, Put-away, Tracking

© GS1 Canada

http://www.gs1ca.org/files/std_BarCodingBasicsforShippingContainers_en.pdf
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3. Global Location Number (GLN)

Global Location Number

Uniquely identifies a location worldwide

13-positions:
6 – company
6 – location: address, building, floor, office, dock, etc.
1 – check digit

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Barcodes are used throughout the supply chain …

Retail check-out (POS)

Distribution centres

Quality control and tracing

Package tracking and delivery

Container/Vehicle control and identification

Others?

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 What is RFID?
• RFID – radio frequency identification – a technology that uses a
“memory chip” with an antenna and a remote reader.
• The chip contains logistics information about the product, pallet,
or container. This information can be “read” as the chip moves
past the remote reader.
• There is no need for line of sight or close proximity as there is
with barcodes.
• Note: RFID is not “RF”. RF typically refers to the radio frequency
hand held bar code scanners used in the DC.

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Examples of RFID Pilots/Functionality

• The original Wal-Mart mandate (~2003):

• Pallets and cases from top suppliers tagged
• Readable at conveyor speed of 600 feet/min.
• Objectives:
• Improve inventory accuracy
• Reduce Receiving labour
• Reduce out-of-stocks when inventory in wrong location in
stockroom
• Reality: pilot programs & point solutions – not a SC revolution

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Acme Distribution – What to fix ?!?!
• Yard security
• PO control / verification
• Dock door control / allocation
• Put away location
• ERP data synchronization
• Too few forklifts
• Container unloading speed
• Inflexible management
• Timing of shifts/personnel
• Conflict resolution with carriers
• Document control / automation
• Resource sharing with picking /
shipping
• Lack of metrics
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 Assignment

• Watch Dr Edward H. Frazelle lecture!

• Read the information about barcodes and RFID on the AIM

website, www.aimglobal.org. Select Technologies, then
Barcodes and RFID.

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Appendix
RFID Technical Details

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 Transponder or Tag
Memory: ROM, RAM, Programmable (EEPROM), WORM

Power source: active, passive, or semi-passive:

active : internal battery, heavier, more expensive, limited
life, more range, better noise immunity, higher
data transmission rate
passive : requires more powerful reader
semi passive: battery for sensor functions
Antenna: size, orientation determine power needed and
read range

Protective packaging

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Reader/Interrogator

Controls communication with tags

Decodes signals, does error detection/correction

Power determines range: most applications under 10 feet,

some up to 100 metres (with active tags)

Provides energy to passive tags

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