In modern production enterprises, timely and accurate arrival of purchase orders and the impact of expired materials on products are crucial for production enterprises. Once the procurement of materials is not timely and accurate or the materials expire, it may lead to production stagnation, customer disappointment, and even contract breach. Therefore, our company has made the following improvements to the management of material arrival.

1. Implementation of Half Day Arrival Task for Purchase Orders

The prerequisite for achieving the half day delivery task must be a reliable supplier, and accurate demand forecasting is a key factor to ensure that suppliers arrive on time. Our supply chain department fully understands market demand by analyzing historical data, market trends, and customer feedback. Based on this, we conduct effective demand forecasts for the next month at the end of each month and share demand forecast information with suppliers. This can help suppliers carry out production planning and inventory management, thereby better meeting our order needs and achieving half day delivery tasks. Of course, any policy implementation from zero to one requires a continuous improvement process, and we are no exception. At the beginning of the implementation of the half day delivery task, our on-time delivery rate was only about 50%. Since the implementation of this policy for four months, our on-time delivery rate has now reached 80%. Our goal is to implement a two hour delivery task when the on-time delivery rate reaches 98%. We need to eliminate all waste as much as possible in terms of raw materials, warehouse turnover, labor, and logistics.

2. First in, first out for goods

The first in, first out principle refers to the principle of storing materials according to their arrival time in arrival management, and operating according to the principle of first in, first out materials when leaving the warehouse. The principle of first in, first out is an effective measure to control the expiration and failure of materials. Our company conducts control during the arrival and storage process. When materials arrive and are stored on the shelves, we scan the code to input the warehouse locations information. When they leave the warehouse, the system automatically recommends the warehouse locations for the materials to be stored first. The warehouse manager will ship according to the system prompt for the warehouse locations.

3. Levelization of procurement and arrival

Levelization of arrivals refers to the basic maintenance of a constant volume of arrivals per week. The procurement unit generates a weekly procurement plan based on monthly procurement demand forecasts and weekly production tasks. The weekly procurement plan is combined with weekly delivery tasks to generate a balanced warehouse with a constant daily total volume of goods in and out.

Through half day delivery tasks and continuous optimization of ERP system automation management, we can achieve fast and accurate control of material arrival and first in, first out of materials, improve the efficiency and accuracy of warehouse management, help us better manage inventory, avoid expired and ineffective materials as much as possible, ensure stable production and product quality, and improve the management level and competitiveness of enterprises.