Blog Archives

Catch Weight

30/10/2023

Catch weight management is a crucial aspect for companies dealing with variable-weight items, especially in food distribution or industries where product weight fluctuates. The system allows for the tracking of both an average per item quantity/weight as well as an actual per item quantity/weight.

To simplify, catch weight management involves the identification and tracking of both average and actual per-item quantities or weights. This method is essential for effectively managing business processes, particularly when handling variable weight units of a product.

Example Scenario:

Receive the Order: A customer orders 12 packs case of frozen chickens. While the specific chickens to be shipped are not yet known, the average weight per chickens is communicated to the customer as 15 kgs, and they are billed at $1.50 per kilo. The invoice is estimated based on the expected weight of 180 kilos (12 chickens x 15 kilos each) at a cost of $270.00.
Provision the Product: When fulfilling the order, it's found that the actual weight of the selected chickens is lighter, totalling 150 kilos instead of the estimated 180 kilos. Utilizing catch weight management, the slightly lighter chickens are shipped, still meeting the customer's expectations.
Invoicing the Customer: To ensure accurate billing and customer satisfaction, the customer is invoiced based on the exact weight of 150 kilos rather than the initial estimated weight. The cost for the 150 kilos of chickens is calculated at $225.00 and reflected on the final invoice.

This system enables accurate invoicing, inventory control, and cost management by considering both the average and actual weights of variable items. It ensures fair and accurate billing, minimising discrepancies between estimated and actual quantities, and ultimately enhances customer satisfaction.

Businesses dealing with products that vary in weight and require invoicing based on the actual weight rather than a fixed quantity or package count find catch weight management vital. This approach is especially common in industries where the actual weight of a product determines its final price or cost. It allows for a more accurate and fair billing process, ensuring that customers are charged based on the exact weight they receive rather than an estimated or average weight.

Absolutely, implementing a Warehouse Management Solution (WMS) for accurately capturing catch weight items on the warehouse and factory floor is a game-changer for businesses dealing with variable-weight products. You can use the WMS to scan LPN (Licence Plate Numbering) as well which will capture all cartons and the weight on the pallet with an instance scan of the barcode.

The process of manually capturing weight, batch, expiry dates, carton counts, and other specifics for each item picked is not only error-prone but also incredibly time-consuming. Without an automated system, the potential for errors significantly increases, and the manual effort involved in tracking and inputting this data can slow down warehouse operations.

A WMS streamlines this process by automating the data capture through scanning GS-128 barcodes and more. As each carton or pack is scanned, the system automatically records vital information such as weight, batch numbers, expiry dates, carton counts, and the precise weight of the items picked. This data is then seamlessly transferred to the ERP system, ensuring accurate invoicing and streamlined operations.

The efficiency gained by using a WMS not only minimizes errors but also accelerates warehouse processes. The ability to swiftly and accurately capture data, especially for catch weight items, ensures precise invoicing and enhances customer satisfaction. The use of automated technology significantly reduces the margin for error and ensures that customers are billed accurately based on the exact products received, thereby improving trust and reliability.

Please contact us for further information.

Status Quo

23/10/2023

In our company, The RIC Group, our Supply Chain Solution is now in its fourth generation, and we've been successfully implementing Warehouse Management Systems (WMS) and Transportation Management Systems (TMS) for over two decades. Implementing a WMS can significantly enhance efficiency and labour optimization, ensuring a business's ability to scale.

So, why do many businesses continue with the status quo? Surprisingly, the discussions I had with potential clients 20 years ago are strikingly similar to those I have today when visiting new prospects. The majority of these prospects are still relying on paper-based processes, and their warehouse operations remain entirely manual. It's a common scenario, regardless of a business's size or revenue.

The question often asked by these prospects is, 'What exactly are we getting here?'
Change can be a daunting prospect, especially in the world of business. The status quo represents a comfortable and safe zone, leading business owners to ask, 'Why fix something that isn't broken?' I frequently hear, 'We know our current processes are inefficient, but they get the job done.' When selling software, there's often a fear of loss, where prospects worry about technical performance or the monetary investment required.

In my view, the status quo is essentially 'cost-to-delay.' Sticking to outdated processes incurs hidden costs, leading to decreased productivity, missed opportunities, and errors. The status quo negatively impacts efficiency, effectiveness, and overall productivity, hindering a business's growth potential.

Recently, I revisited a couple of our customers who were initially hesitant to implement a WMS. However, as we began to implement the Warehouse Management Solution, they quickly embraced the disruption when they witnessed immediate return on investment and the removal of inefficiencies.

One of our customers shared that it used to take them three days to ship an order, but now they manage same-day shipments thanks to the scalable process provided by the WMS. Moreover, the volume of orders has naturally increased because customers now trust that their orders will arrive promptly. For this customer using our last-mile delivery, the moment orders are picked, consignment labels are generated and applied to the pallets, eliminating the inefficiency of waiting for freight labels, manual data entry, and ERP updates. This alone saved the customer two hours of labour each day, equating to 20 hours per week and close to 1,000 hours per year.

Both customers reported that, over the last 15 years, the most significant return on their investment in technology was the Warehouse Management Solution. The efficiency gains alone justified the investment within the first year. They emphasized that this return on investment far exceeded what they experienced with ERP system upgrades, often considered the more phased approach to IT projects.

I encourage businesses not to focus on what they are 'buying,' but rather to embrace disruption. Failing to do so essentially results in buying into a 'cost-to-delay' scenario.

Contact Paul on his email to talk further.