Definition and overview: outgoing goods process in intralogistics

As with goods receipt, goods issue is an interface between internal and external materials management. In this process, inventory is provided, quality and identity are (re)checked, and the necessary documents are created.

The finished packages end up in the outgoing goods area and pass through different processes on the outgoing side, depending on the variety of carriers to be served and outgoing relations. The core commonality is that the packages of a shipment must be processed and loaded by the time the truck departs (cut-off time). The cut-off time is a central factor in prioritizing orders, which has an effect on scheduling, and subsequently on batch formation and picking. If the cut-off time is determined by the departure time of the CEP service provider, this has an impact on the entire process chain.

Processes in outgoing goods

In particular, when picking is distributed across several storage areas, the outgoing goods department has a consolidation function (= bringing together all parts of a shipment). In the simplest case, this task is solved by various collections of the packages on staging areas in the outgoing goods department, which, for example, combine postal code areas into destination relations. In the extreme case, a load can be prepared in a previously planned loading sequence by resorting on a complex materials handling technology so that the actual loading of the trucks is fully automatic.

In addition to handling one’s own picking, bypass portions from the goods receipt or production may have to be added, or third-party goods of unknown content integrated.

If not already done in the course of the preceding activities, the documents and labels required on the outgoing side must be generated and attached at the latest before loading.

These are:

  • delivery note / invoice for each consignment
  • SSCC labels / address labels for each package
  • loading lists
  • Other accompanying documents, such as customs documents

Finally, a goods issue is recorded again on the outgoing side, possibly in the course of loading, which enables a final check for completeness. In order to be able to implement a shipment tracking in cooperation with the freight forwarder or parcel service, the shipment or package data must be notified to the affected freight forwarders by remote data transmission (german: DFÜ) (“dispatch advice” or “dispatch note”).

Outbound – Process Steps

The process steps, which are carried out in the course of the outgoing goods, include: Consolidate units, generate packages, prepare destination papers, consolidate packages, prepare shipment and hand over packages. The objectives of the shipment are to create a fast throughput time and to achieve a meaningful consolidation.

In the first process step, the shipping units are sorted. The second step involves packing them as individual or collective boxes. After the shipping documents have been printed, a final check for completeness is carried out. If there is a stock shortage, there is a final opportunity to make a correction at this point. Thanks to the close integration of the warehouse management system with the commercial computer, the actual stock of the shipping unit is sent to the computer and the commercial system can correct the invoice. Then the packages are recorded and routed with updated delivery notes and invoices.

At the end of this business process, the goods are handed over to CEP service providers, such as UPS or DHL, or to freight forwarders and then the delivery gets confirmed.

Outbound – Key Figures

Using the appropriate warehouse key figures, the efficiency, productivity and quality of the outgoing goods process can be assessed. In the outgoing goods process, packed items are collected by the client according to the pick-up principle or handed over to the recipient according to the delivery principle.

For the control center, the number of packages and the number of parcels shipped by CEP, carrier and express are important in this process.

The key figures for the following processes play a role in measuring the shipping targets: capacity utilization, throughput time, space utilization, work progress, number of packages and the number of corrected invoices.

The recipients of the key figures are the head of logistics, the head of picking and other employees who play a role in the shipping process.

Goods issue – invoice and delivery note

When creating an invoice, it is important to ensure that the commercial and logistics systems are clearly divided. Although the logistics system has the actual quantities of the shipped consignment, the generation or correction of the invoice is always the sole responsibility of the commercial IT system.

Therefore, it is necessary to have a close connection between the two systems:

  1. The debit memo is transmitted to the logistics system with the debit data of a shipment.
  2. If there is a deviation (shortage, replacement item, etc.), the logistics system reports the deviation to the commercial system. The commercial system updates the data and transfers the new invoice to the logistics system.
  3. Than the logistics system has the task of physically adding this invoice to the inventory, that is, printing it at the right place at the right time.

The result of these mechanisms is the creation of delivery notes and invoices that correspond to the items actually delivered and not just to the static target value of the host system.

Summary

In manufacturing companies and in trading companies (including logistics centers and distribution centers), goods are shipped to the appropriate customers, delivered themselves, or picked up by the customer. The shipping area is the last area through which the inventory passes before it leaves the company. The various parts of a shipment must be combined; in addition, delivery notes, invoices, and other shipping documents must be created and the goods issue must be recorded in both the logistics and the commercial system.

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