Exception handling within the supply chain refers to the process of identifying, analyzing, and responding to unplanned events or deviations from standard operations. These exceptions can disrupt the flow of goods, information, or services and may include issues like delayed shipments, inventory shortages, quality problems, or system failures.
The goal of exception handling is to minimize the impact of these disruptions, restore normal operations, and prevent similar issues in the future.
What are Common Types of Supply Chain Exceptions?
Exceptions can stem from a variety of sources, such as internal process failures, external disruptions like weather, ERP and WMS system integration issues, or human error.
Common examples include:
- Inventory exceptions (stockouts, overages, inaccurate records)
- Transportation exceptions (delivery delays, shipment damage, customs hold)
- Order management exceptions (incomplete orders, cancelled orders, pricing issues)
- Supplier exceptions (late deliveries, quality non-conformance, capacity restraints)
Several challenges affect how well businesses can address exception handling. Lack of visibility across the supply chain, poor data quality, delayed detection of issues, and lack of automated systems are just a few.
How Does Exception Handling Work?
Exception handling works by monitoring deviations in normal operations and implementing automated responses that reduce negative impacts. Automated responses used in exception handling can include:
- Real-time monitoring
- Automated alerts
- Data analysis
- Root cause diagnosis
- Corrective actions
- Documentation
What are the Benefits of Automating Exception Handling?
Exceptions can happen at any point within the supply chain and require a fast, effective response to minimize disruptions to the operation and maintain customer confidence. Benefits include:
- Reduced delays
- Process improvements
- Fewer costs from rerouting, penalties, and damaged goods
- Better collaboration across the supply chain
- Increased efficiency and responsiveness
- Improved customer satisfaction
How Does Numina Group Address Exception Handling?
Numina Group recommends that businesses invest in end-to-end warehouse automation systems to handle exceptions.
One particular example of this is Numina Group’s Pakt™ automation system. The Pakt automation system is designed to automate exceptions and includes the “QC Exception Lane,” a physical lane where cartons are automatically sent for further quality control if they fail quality control checks.
Failure criteria can be assigned if cartons are outside expected weight thresholds or fail other automated checks, like scan, weigh, and vision audits.
Pakt was developed to accommodate operations of all sizes, but is ideal for warehouses shipping 2,000+ pre-packed cartons and full case parcels daily. It consists of 10 zones designed for 70% labor reduction, 500% throughput improvement, and to achieve ROI within 12-18 months.
The system can be integrated with other automated tasks such as sorting, void fill, labeling, and documentation.
Website: Reduce Warehouse Labor 70% with Pakt™ Pack & Ship Automation
Article: Stop Manually Packing and Shipping – Discover Pakt™