Backflushing

CIOP is an end-to-end supply chain certification program that focuses on practical aspects in addition to the theoretical concepts. For example, a typical supply chain certification may teach what is cycle counting and how to do the ABC classification. CIOP starts with these fundamental concepts and goes on to teach the participants to develop the cycle counting policy of an organisation, 10+ criteria used in ABC classification, multi-criteria ABC classification and cycle counting best practices to increase the efficiency and effectiveness. In case of CIOP, you learn the concepts and will be ready to implement in your day-to-day job in supply chain. The pedagogy is structured such a way that all the concepts are explained with industry examples, which makes CIOP as the preferred training and certification program for supply chain within the industry.

In traditional backflushing this process occurs as soon as an order is received, the product is placed on the shelf and the inventory is checked. If there are any items in stock that have not been purchased and placed on the shelves or in storage, then the system simply kicks the order "out of the queue" so to speak, without actually receiving, placing or selling the inventory. This results in inventory that is both obsolete and out of date meaning that the business is unable to place and receive new orders for the items it holds.

There are many different forms of backflushing which include reproduce backflushing, postproduct backflushing, material backflushing and even contract manufacturing backflushing. Preproduct backflushing occurs as a part of the pre-ordering process where the manufacturer requests that their products are checked for quality before they are sold. Once this check is done the manufacturing operations proceed as normal, however the company must forward the pre-sale inventory details along with all pertinent order processing information to the distribution and fulfillment firms. The distribution firm then places the requested products into the racks at the distribution center once the check is received. Once this operation is complete, all inventory checks shall return to the manufacturing department and the product is "out of stock" meaning that the business is not able to receive new orders for the items it holds.

Postproduct Backflushing as its name implies, occurs after the product is completed and in most cases the warehousing firms will also place the products on the shelf or in storage awaiting shipment and/or pick up. When a firm places an order with a fulfillment company for backload manufacturing they are not purchasing anything specific to the manufacture of the product, but rather the product's stock is turned over to the fulfillment firm for storage until the order is complete. Once the manufacturing operations complete, the product is "out of stock" once again meaning that the company is not able to receive new orders for the same items held in inventory. Because of this situation, the distribution firms are not obligated to purchase the inventory held in storage when they place the final order with the manufacturer. In addition, these firms do not have to pay for the space the product occupies since the product is removed from the warehouse and placed in storage until it is received by an order holder who signs for the goods.

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