Exceptions Handling
This is Chapter 9 of 13 in our eBook on eCommerce Fulfillment for 3PL Warehouses. See the link below to download the full ebook
The one principle that is commonly overlooked is: Isolate Exceptions. When handling such a high volume of orders, any kink in the chain could have a ripple effect on other orders or processes. Having a good exception handling process is key to keep the mainstream of orders flowing smoothly to maintain a higher percentage of successful orders.
An exception can occur at any stage of the process, from batching, picking, packing, or labeling. An exception could occur to an entire client, a single SKU, an entire batch of orders, or a single order. Most exceptions will be localized to a single order, and those smallest exceptions affecting other processes can cause a disproportionate amount of failure. No matter what step in the process an order is in, the warehouse staff and software should be able to quickly pull the order into quarantine, and then process that order by itself, or optionally in a batch with other similar exceptions.
For example, missing or damaged products cause an unexpected shortage on the pick aisle, and the ripple effect could mean that the entire batch of orders can’t be sent to the packing station. It is costly for the warehouse to initiate a replenishment effort in the middle of a busy picking or packing effort, and all the while the current batch may be missing a shipping deadline requirement. The warehouse should pull that order into an exception area for a separate resource to resolve the issue, and the WMS software should be able to quickly transfer that order from the current batch to a new exception batch.
The exercise of handling exceptions at every level of severity and step of the procedure should be planned for in advance of going live. Being prepared for exceptions can be the difference between 99.9% On-Time Shipping performance and 80%. It’s important to meet with your client to discuss various exception scenarios and how they wish for you to handle them. And, most importantly, TEST, TEST, and TEST some more.
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