If you’re like me, the idea of setting up a centralized warehouse feeding five (or more) different manufacturing plants sounds like an adventure worthy of an Indiana Jones sequel( bonus points if it has the boulder chases).
But much like Indy, we warehouse implementers need a ultra-smart strategy to get through the obstacles in our way. Implementing advanced warehousing for multiple plants is complex, but with the right mindset and approach, it doesn’t have to become a labyrinth of regret.
Buckle up, cause this is going to be a deep dive.
Do: Establish Clear Goals for the Warehouse
Why It Matters: The first step in any successful implementation is aligning everyone to the same objectives. Is the warehouse feeding plants that have high variability in their demand? Are the manufacturing processes time-sensitive, requiring just-in-time deliveries? Clear goals will steer you toward the right setup.
Pro Tip: Implement wave processing if you need to prioritize and group warehouse work by urgency. It allows you to execute picking and shipping tasks based on plant schedules, preventing the chaos that often ensues when priorities collide.
Don’t: Skip Out on Labeling and Scanning Strategies
Why It Matters: Labels and scanning are the backbone of an advanced warehouse setup. I can’t stress this enough—if you don't have a solid labeling strategy for everything (from pallets to locations), your operations will be disjointed from day one.
Pro Tip: Set up GS1 barcoding standards for uniformity across all five plants. This reduces the chance of mis-scans or routing errors and makes it easier to track the movement of goods across different facilities.
Do: Leverage Advanced Work Templates and Location Directives
Why It Matters: You want the warehouse to know where to store and pick goods automatically. Advanced work templates and location directives in Dynamics 365 allow you to set rules for different item types, manufacturing priorities, or batch/serial numbers.
Example to Simplify
Start with basic templates and directives. Assign all inbound goods from suppliers to a bulk storage location first and then pick items based on production demand using demand-driven replenishment.
Example to Complicate
Over-engineering the work templates by trying to account for every scenario upfront (such as different product classes, or varying production times across plants) will slow down your processes. Instead, build templates gradually based on actual data from post-go-live operations.
Don’t: Neglect the Human Element
Why It Matters: Your warehouse staff is just as important as your advanced warehousing system. A robust system will fail without proper training. Make sure employees understand how to work with mobile device menus and use process guides embedded in the handheld devices for tasks like putaway, picking, and cycle counting.
Pro Tip: Before go-live, run a day-in-the-life simulation with your warehouse team to ensure they’re familiar with workflows. This is especially crucial when managing a centralized warehouse that serves multiple plants—each plant will have its own priorities, and your staff needs to be agile in dealing with these complexities.
Do: Build for Scalability
Why It Matters: A centralized warehouse supporting five manufacturing plants can be a logistical nightmare as you scale. Will your warehouse support future expansions? What if you need to add more manufacturing sites or products?
Pro Tip: Design your location setups with flexibility in mind. Use zone-based storage, which allows you to separate goods based on temperature control, high-turnover items, or specific plant requirements. Set up flexible picking routes to account for future expansions or shifts in plant demand.
Don’t: Forget About Integration with Manufacturing and Transportation Modules
Why It Matters: The warehouse doesn’t operate in a vacuum. It needs to communicate seamlessly with your manufacturing plants and transportation logistics.
Easy to Miss: While most implementations focus on inbound and outbound processes, they often miss out on the critical step of material transfer orders between the warehouse and plants. Setting up cross-docking workflows can smooth out the movement of materials, ensuring that goods are picked and shipped to the right plants without unnecessary holding times.
Pro Tip: Simplify with Cross-Docking and Kanban
Example to Simplify: If your manufacturing plants are on a just-in-time production model, cross-docking is your best friend. Rather than holding goods in the warehouse for long periods, items can be transferred directly to the plants based on real-time demand. Implementing Kanban replenishment with cross-docking ensures that your plants only receive the materials they need when they need them.
Example to Complicate: Trying to implement automated material transfer orders before you fully understand plant demands can lead to material shortages or surpluses. Start simple with manual transfer orders until you can measure plant performance and adjust accordingly.
Post-Go-Live Gotchas: Things You’ll Wish You Had Known Earlier
Ah, go-live day. The champagne is flowing, and the system is running… until it isn’t. These are the little things that might not become apparent until after the system is live:
Physical vs. System Inventory MismatchesIf your warehouse team is manually adjusting quantities after go-live, it’s a sign that your initial inventory uploads weren't accurate. Double-check every location before go-live to avoid scrambling post-launch.
Unexpected Bottlenecks in Wave ProcessingAs wave templates evolve, they might prioritize certain orders over others in ways you didn’t expect. Monitor waves in real-time for the first few weeks post-go-live and tweak the configurations to match the flow of goods between plants.
Cycle Counting OversightMany teams don’t realize how essential regular cycle counting is until discrepancies pile up. Integrate a cycle counting schedule within the first week after go-live. Use system-directed cycle counting in D365 to automate the process based on movement thresholds or time intervals.
Dad Joke of the Day
What occurred when the cup of coffee got offended by a joke? A brew-haha
And remember, if things start to get too complex, take a deep breath, step back, and ask yourself: What would DynamicsDad do?
Happy Monday
DynamicsDad
Comments