Distribution Center Customer Service
Management
Working in the customer service arena at a distribution center requires many of the same skills that any retail or business-to-business position requires. For example, a distribution center ships packages to businesses, just as a manufacturer does. The person in this position must possess a good understanding of retail issues, and how these are resolved, along with the ability to understand the point of view and needs of the retail customer. One thing that cannot be forgotten is that no matter how far removed from the retail customer the manager is, the decisions made will directly impact that end consumer.
In addition to the skills I just mentioned, the distribution center customer service manager needs to have excellent communication skills using a variety of media, a good grasp of high volume logistics complimented by the ability to analyze raw data and cull it into a useable (reportable) format, a good understanding of general distribution center operations, and the ability to partner with the management of each functional area within the center.
Although this position requires you to be the bearer of problems to the functional departments within the distribution center. If approached properly, showing the proper respect to each of the functional areas and the staff that work in these areas, the customer service manager can be the liaison that bonds the distribution center with the end consumer. The upbeat nature of a good customer service manager can often be mistaken for weakness; however, this type of personality can break down barriers by reinforcing the non-confrontational, teamwork oriented nature of the position. Confronting the issues and being frank about possible solutions is necessary, however, the customer service manager must remember that this position does not actually resolve any issues. This person actually resolves issues as a true manager should, by working through others to achieve the desired results.
Two Categories of Customers
Customer service in the distribution center environment is divided into two distinct categories (product delivery, and issue resolution) with two distinct customers (internal and external). Product delivery includes receiving, order processing, trailer loading, and transportation to the stores. Issue management includes issue identification, research, issue resolution on both short-term and long-term levels, and communication. Internal customers include distribution center personnel and corporate officers. External customers include your clients’ receiving managers, store managers, district managers, and other senior managers. Even if the clients you are servicing belong to the same company that you do, you need to promote their needs in the same manner you would for a customer who does not belong to your company.
Management is defined as the process of accomplishing tasks through the efforts of others. This statement is especially true for the customer service manager, no matter what the company does. To accomplish any improvements in the level of service being provided by your organization, you must be able to effectively communicate ideas to the group that is responsible for implementing these improvements. To accomplish this task, the manager must incorporate a wide variety of communication skills. Communication includes initial notification that an issue has been identified, an explanation of the issue to management in a way that they can understand the problem, constant updates to both internal and external customers as the company progresses towards issue resolution, historical research and results communication to the management team, and ultimate resolution communication to the external customer. The vehicles that can be used to communicate include newsletters, flyers, email, telephone, focus groups, staff meetings, videos, PowerPoint presentations, and bulletin boards.
Remember that as you move into the customer service arena, you are the ambassador of good will to your customers on behalf of your distribution center, and the advocate for your customers to the distribution center. Always consult with all parties who are touched by the issue you are working on, and remember that issues can be both positive and negative. Make sure you take the time to look for the positives, and include them in every conversation along with compliments and words of praise as appropriate.
Customer service is too often viewed as a reactionary function, rather than a proactive function. If all you do is react to problems and situations, then you are nothing more than a fireman. What follows is a discussion on the functions within the distribution center that directly affect the customer, the specific tasks within each functional area, and common areas for error. If you are able to identify and correct these problems before your customer becomes affected by them, your center will become more proactive than reactive, which is better for your organization and your customers.
Receiving
Let’s start with the receiving function. We are going to focus on the area where attention to detail can help the customer. In brief, the receiving process most commonly consists of receiving an advance shipping notice (ASN) via electronic data interchange (EDI) into your warehouse management system (WMS). The license plates are printed prior to the trailer arriving at the assigned door. During the unload process, the product is counted and reconciled against this ASN information.
The problems that most commonly occur at this stage are properly reconciling the incoming inventory with what was to have been received. RFID technology is quickly moving to help this process, but we are not there yet. The receiving dock worker is supposed to open at least one box per trailer load and confirm that the quantity inside matches the master carton label. If they are in a hurry, this does not always get done, or the items are miscounted. Remember that the stores order by the individual unit, so if the carton count is off, the stores will not receive the quantity they are being billed for. It is easy for a receiving dock worker to lose sight of the customer service aspects of the job, so reminders need to made that will help them remain focused on the importance of their function.
Put Away
The next function that affects the customer is the put-away process. The receiving department puts a license plate on the pallet of merchandise. This label tells the put-away driver exactly where to place the pallet. It gives the module, aisle, bay, level, and position for the pallet. Where this process can go wrong, and ultimately affect the customer, is when the driver puts the pallet into the wrong bay. By doing this, the picker will be instructed to pick from that bay, but the items being selected will not be what the customer ordered. The system identifies that the customer received the correct items, but what they actually received may be of greater or lesser value affecting their total profitability, and will not be what they ordered, which will directly affect the end consumer. This will ultimately cause either shrink or swell to both the customer’s inventory and the distribution centers inventory.
This can be caused by laziness. The driver can also be pressed to handle more freight than he feels he can handle, and in rushing to get the job done, he puts the pallet into the wrong slot. Most of the put away errors that I have found are where pallets are placed in a slot directly adjacent to the one the pallet belongs in. Once again, RFID technology will help in resolving where the missing inventory is located, but will not resolve the human error.
Picking
The next operation that directly affects the customer is the picking process. The picking process incorporates the repack (either pick-to-light CAPS, or pick-to-paper systems), case pack (conveyable), or non-conveyable order filling functions.
In the case pack and non-conveyable process, the picker is to look at the labels that are pre-printed, go to the proper location, and retrieve the carton from that location. The picker then places the label onto the carton and either places it onto the moving conveyor, or places it onto the pallet or trailer being moved through the module. The problem occurs when the label that the picker is carrying is placed onto a carton that does not contain the items listed on the label. There are two reasons for this, either the picker selected a container from the wrong location, or the replenishment driver placed a pallet of merchandise into the wrong slot. In either case, training and auditing needs to occur to ensure that what the customer ordered is actually being shipped. The laser scanners only read the label and transmit the data through the radio frequency (RF) system. As far as the system can tell, the correct item is inside of the carton that the label is placed onto.
Pick-to-light systems, also known as computer aided picking systems (CAPS), are found in the repack department. This is where less than case lots of merchandise are placed into repack containers. The picker swipes his card at the beginning of the module, and enters the information from the labels being carried. These labels will be placed on each container after it is filled, and will be used in sequential order.
A light turns on at the slot where the merchandise is to be ‘picked’ from. The quantity to be picked is identified by the number being shown on the LED panel next to the light. When the picker is finished picking that item, the picker presses the ‘finished’ button. The next light down the module lights up, and so on. If a carton becomes full, the picker pushes the ‘carton full’ button, telling the system that the label is being placed onto the full carton. The system is now able to identify what should be in this particular carton. This process continues until the picker reaches the other end of the module, or the LED says END.
The most common way that an error occurs here is because the ‘slotter’ (the person putting the open cartons into the slots to be picked from) puts the merchandise into the wrong slot. There are many reasons why this may occur, but the best way to protect against this happening is to include a description of the item on the label that is placed just below the slot. This allows the slotter to identify where to place the replenishment items via location and description.
The Merge
The next area that most closely affects the customer’s inventory integrity is the merge area. All containers that are sent to the shipping docks via conveyor travel through the merge. This area routes the containers through a scanner that ‘reads’ the information on the label. This means that the labels must be facing either up or to one side, and must be properly placed onto the container (i.e. not folded, or damaged). The ‘reader’ (a laser) tells the system which lane to send the package down so that it gets into the correct trailer. If the system is not able to read the label, the package goes down an error lane and is hand sorted and put on a flat to be delivered to the correct trailer. The responsibility for placing the container onto the belt with the label facing up is the pickers.
Loading
If the package gets placed onto the wrong trailer, and is shipped to the wrong store, then both the store that was to have received the package and the store that did receive the package now have an inventory imbalance. This causes shrink for the store that was supposed to have received the merchandise. If the store that receives the merchandise does not confirm the order they receive upon receipt, they may not know for some time that they have extra stock on hand. As you can see, enough of this mis-shipping can create chaos within your network. Even if you identify the error at the destination, the customer (the store) is inconvenienced in some way. You may even have to arrange for a reverse logistics process just to deal with these errors. On items in short supply, this type of error will directly affect the end consumer, usually in a negative way.
Another aspect of the loading function that directly affects the customer is how you load the trailer. If not done properly, damages will result. This will also add to the shrinkage numbers that are so closely watched for you and your customer. (For more information, please see my article on loading techniques)
Advance Shipping Notice
The final area where errors can occur, and an area that directly affects your customer's inventory, is the notification sent to them from your distribution center telling them what is in their next shipment. If you have identified an error, and fail to correct your computer system, you will still be sending misinformation to your customer. Integrity checks are necessary, no matter how secure you might think your procedures are. The best way to ensure you are telling your customer the truth, is to perform trailer audits on a selective basis. Your security team should be tasked with overseeing this process, which entails unloading the entire trailer and rescanning each box's label and comparing what it says it should be, to what it really is. Then, and only then, can you be sure your systems integrity is acceptable.
In Conclusion
As you can see, there are many aspects to customer service within the distribution center environment. Never forget that communication with your customer is the key to success. If you have discovered a problem, if you decide to check the order for accuracy and the load will be late, or if you have received an emergency request from your customer, communicate with them. A store manager would rather know of the problem or situation up front, than be surprised. Use the phone whenever possible. A phone call is that personal touch that is necessary to keep the lines of communication from breaking down. Email only to follow up a phone call. Most managers are barraged with email, so use it sparingly. Have consideration for your store manager's time and they will come to consider your distribution center as a part of their team.
About TML Business Services LLC
TML Business Services LLC has over 27 years of logistics operations experience. We have been providing risk analysis and process engineering services to business and government agencies since 1998 and are available to discuss your needs with you. No two engagements are alike and using our proven methodology, we can provide the level of service your company is seeking. Contact us today and get started on a path to realizing your company's vision!
