Get to know the vital terms of Logistics and Supply Chain Management.
GIGO in logistics is the tracking of goods in any facility, such as a warehouse, terminal, or distribution center, when entering or leaving the facility. The recording of the time and condition of goods at these transitions helps companies to keep current inventory records, smooth operations, and make successful deliveries within due time.
A good inventory management system must follow goods from coming into and going out of a facility. A variety of these systems keep track of goods entering a facility, typically ‘log in to the system,’ thereby updating stocks on hand. When goods go out, their removal is similarly monitored for the same reason: to make sure that inventory data is always current and over stockings and stock outs will never occur due to failures in tracking goods. To meet and confirm that the goods are going out at the correct time, GIGO helps track delivery schedules.
GIGO is critical to the process of operations optimization since it involves real-time visibility of goods flow. The information obtained from GIGO enables companies to optimize planning, optimize storage within warehouses, and eliminate any delays. It plays a crucial role in large-scale logistics where the movement of goods does not stop at any point, hence the need for accurate and efficient tracking systems.
One of the good policies used in managing inflow and outflow in logistics is GIGO, or Gate In Gate Out. This policy keeps proper records of inventory. Via entry and exit points, one monitors the flow of product, thereby ensuring deliveries are timely, optimizes warehouse operations, and maximizes overall efficiency.