Parcel Manifesting: To Pre or Not To Pre?

By: Wendy Groff, Senior Associate.

As your customers place smaller, more frequent orders, your small parcel volume is going up. How do you handle this volume efficiently and accurately? A good place to start is to determine when to manifest: before or after picking? In today’s blog we review the pros and cons of these alternatives.

Pre-Manifesting 

Pre-Manifesting means printing order-specific documents (packing lists, labels, etc.) prior to releasing the order for picking.  These documents may print at the time of allocation or when a picker requests work. Pre-Manifesting is typically used when item dimensions are accurate and an optimal pick and pack flow can be designed to enable the picker to retrieve packing materials and documentation. Pre-Manifesting is usually not a good idea when heavy post-picking activity is required, such as repacking, inspection or special handling.

To successfully implement Pre-Manifesting, you must consider several factors.  If printed at the time of allocation who will manage the collating of documents and assure timely delivery to the floor?  If documents are printed when the picker requests work, do you have enough printers available on the floor? Are the printers located properly?  Can picking containers and packaging be stored in a convenient location?

Pros:

• More efficient throughput
• No double handling
• Elimination of pack stations
• Resource cost reduction

Cons:

• Paperwork management
• Possible additional hardware cost
• Order accuracy may be impacted
• Labor impact on picker
• Paperwork must be reprinted in the event of pick shortages or box size substitution
• Doesn’t work well for export orders because some key information, e.g., Country of Origin, may not be known prior to picking

Post-Manifesting 

Post-Manifesting involves completing the packing and manifesting steps after an order is picked.  This option is generally used in distribution environments where item dimensions are non-existent or inaccurate, or where there is significant post-picking activity required (repackaging, order consolidation, inspection, frequent order changes, etc.) that is problematic for a picker to perform.

Successfully implementing Post-Manifesting requires reviewing your picking requirements and facility layout.  Some key questions to ask: What types of pack stations will I require (pack only, inspection, labeling, etc.)?  For each pack station type, what percent of my product will need to flow through the station?  How many stations will I need for each pack type based on average pack rate? What is the appropriate sizing and placement of each pack station?  Can I minimize packer handling through the use of automation such as an in-line scale, print & apply system, conveyor, etc.?

Pros:

• Accurate item dimensions
• Improved picking and order accuracy
• Reduced picking time
• Allows for inclusion of inserts post-picking
• Facilitates serial number capture when picking higher quantities

Cons:

• Additional labor cost
• Packing station space requirement
• Additional pack station costs

Pre- and Post-manifesting are not mutually exclusive, of course. For instance, Pre-Manifesting may be used in areas where product is stored in shippable containers while Post-Manifesting is used throughout the remainder of the warehouse. Regardless of the direction you choose, the first step is to review the trade-offs of each option carefully to make an informed decision on which option is best for your operations.

Need help implementing a parcel manifesting system? Contact us at (201) 940-7311.

Taking Control of Inbound Transportation: Change You Can Take to the Bank

By: John Blanchard

Freight costs appear to be on a never-ending upward trend.  Manufacturers, retailers, wholesalers, 3PLs and just about everyone else is feeling the negative effects of rising logistics costs.  But while most companies recognize the importance of optimizing outbound freight spend, many shippers are falling short when it comes to driving costs out of their inbound transportation.

Depending on the industry and business model, up to 35% of transportation costs are associated with inbound freight. Taking control of your inbound transportation can have a significant impact on supply chain costs.  Why aren’t more companies owning and optimizing their inbound freight? For some firms, the obstacles to moving from prepaid to collect appear daunting:

• Uncertainty around the product and transportation buying power needed to successfully make changes.
• Lack of support within the Transportation department.
• Entrenched Purchasing or Procurement departments that are unwilling to unbundle product and freight costs.
• Lack of a clear business case outlining the business case for an inbound transportation initiative.
• A physical logistics network that isn’t optimally configured to take advantage of inbound opportunities.
• Potential change to your core transportation providers.
• Lack of systems designed to support planning and execution of sometimes complex moves like backhauls, continuous moves or consolidation.

While there’s no doubt that taking control of inbound transportation brings complexity and risk, the path to realizing the potential cost savings can be cleared through inter-departmental communication of the opportunity / business case as well as carefully considered change management. Here are a few tips for successfully managing the cross-functional change required:

• Initiate dialogue with your counterparts in Purchasing and Merchandising to find out if you have willing partners. 
• Work collaboratively with all stakeholders and executives to understand what could be in it for them, creating an incentive to participate.
• Leverage corporate-wide initiatives to reduce costs.
• Develop an air-tight business case highlighting potential savings and the detailed changes needed to realize them.
• Take the time to understand the dynamics among key internal players and constituencies.
• Craft a communication plan to support the project and leverage it consistently.
• Consider best practices in change management as well as inbound conversion.
• Fully understand all foundational requirements like technology before attempting a complex inbound conversion.

By taking a cross-company approach, clearly articulating the business case, and carefully managing change, your company can realize reduced inbound transportation costs and gain a competitive advantage.

Need help with inbound transportation planning? Contact us! (201) 940-7311.