Supply chain management inculdes  the integration of key business processes with the expressed intent of eliminating  inefficiencies at each leg of the supply chain. This chain  starts   with the procurement of raw materials that are used in assorted products and finishes  when the completed  product is delivered  to either the retail store or the customer’s home . In this article, we are going to  talk about  the last leg  of the supply chain, product distribution.

Logistics is the way  modern  businesses   rely on to ensure quick  and efficient delivery of products. It does this by focusing on three essential steps —product storage, product transport, and supply chain management. At present, the most popular storage and shipping technique is known as pick and pack.

It is a different   nickname, we  are aware  . But when we explain exactly what it is, it will seem appropriate . The pick and pack technique first became popular when large companies had to ship  many different products to many different places. For the average  warehouse, this process was a  disaster . It was time-consuming and extremely   costly .

The reason for this was uncomplicated : there was so much data that had to be  looked at   on an individual  basis.   Think   for a moment the different  costs that come with shipping  products to other states or other nations. As you might expect, shipping a product locally is much less expensive than shipping it overseas. But the logical systems at that time were simply not designed to quickly and efficiently figure the costs associated with shipping products to faraway  customers. As a result, the company often lost money on shipping fees.

But computers changed  all that. They made it possible for managers to keep close and accurate track of inventories and to make precise shipping calculations before a product was even packaged . The pick and pack shipping technique was introduced shortly after.

What pick and pack actually entails is the proper storage and later shipping of requested items. At the start, all items are stored in bulk containers, often on pallets, as a way to maximize storage space. Later, they are separated and set on shelves for quick  access. Supply chain and logistical management lets warehouse managers and later workers know when it is time to remove the individual items from their bulk storage containers and place them on shelves.

Then, when a customer places an order for a particular item, a warehouse employee will “pick” the item off the shelves. He will then package it and send it out with the next shipment.

Filed under: Customer Service • Management

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