Standard Operating Procedure shortly known as SOP is a tool for process improvement and standardization. Though SOP dates back to several hundred years, it is still not effectively used by the supply chain industry.
In this article, we would like to delve into the unique opportunities offered by SOPs to warehouse operations. SOPs are the documents that help organizations to make the best
practices as a part of organizational culture in performing the various processes, functions and activities.
The macro-level benefits of SOP are
- Well defined steps to perform a work
- Standardization of activities irrespective of who is performing
- Improved safety and security in operation
- Best quality is delivered consistently in a repeated manner
- Easy to train new employee
- Sets a standard on expected performance
- Minimizing wastages in processes
- A platform for continuous improvement
- A document to demonstrate management intentions in Court of Law
Also many warehouses are in the process of transforming from a manual system to an automated system using Warehouse Management Systems (WMS). Before committing for a particular WMS, one need to understand the processes within the warehouse. Just selecting and implementing any WMS may cause lots of disappointments as the implemented WMS may be a complete mismatch with your processes. Hence the first step in automation is knowing your processes – meaning creating standard operating procedures for your warehouse.
Typical SOPs for warehouses include the following:
Warehouse opening and closing procedures
- Inward inspection and receiving
- Outward inspection and shipment
- Dock operation
- Product handling and maintenance
- MHEs operating procedure
- Product picking or selection procedure
- Product put-away procedure
- Procedure for bin allocations
- Procedure for inventory management and reporting
- Warehouse asset records and maintenance
- Warehouse safety and security measures
- Warehouse compliance management
- Procedure and mechanism to monitor and control – pilferage, theft and damage
- Periodical training and assessment of warehouse professionals
- Warehouse material management and disposal policies
- Warehouse disaster management plan
- Administration, HR, taxation and accounting policies
- Procedures for value-added services etc.
Fhyzics Business Consultants Private Limited is a global leader in developing standard operating procedure for several functions related to the supply chain management. If you are looking for SOP related to services related to your supply chain or warehousing, please feel free to complete the below form. One of our consultants will reach out to you to better understand your need and to offer a right solution.
