Oracle WMS Cartonization Transformation Eliminates Chargebacks

About the Client

The client is a retail leader specializing in distributing consumer goods. To meet customer expectations and maintain compliance, the organization needed to revamp its warehouse operations and cartonization logic.

Similar supply chain modernization themes have been successfully implemented in other projects, such as our Advanced Label Printing Solutions for Modern Warehouse Supply Chain, where operational accuracy and automation played a key role.

The Challenges

The client's existing warehouse management system used a standard cartonization process that packed multiple SKUs into a single carton based on weight and dimensions. All the customers requirement is to use mixed SKU in a single carton to optimize the space and reduce the cost. But this specific customer is looking for "One SKU, One Carton" due to their warehouse compliance policy.

Key Challenges:

Mixed SKUs in a carton: Customers had to spend excessive time separating items during receiving.
Chargebacks from customers: Non-compliance with "One SKU, One Carton" requirements led to penalties.

This is a scenario similar to non-standard process violations we addressed in our Oracle ERP & SCM Finance/Procurement Integration project.

Reduced receiving efficiency: Manual sorting slowed operations, frustrating downstream customers.
Operational inefficiency: Picking and packing rules were not aligned with customer expectations.

These inefficiencies created financial losses, compliance risks, and strained customer relationships.

The Solution

We designed and implemented a custom cartonization process in Oracle WMS to meet the "One SKU, One Carton" requirement.

Key Solution Elements:

Redefined Picking Rules
- Configured rules to prioritize picking full master cases from bulk areas.
- Remaining quantities were picked from the pick face, ensuring clean allocation.
Custom Cartonization Logic
- Developed a PL/SQL-based cartonization program to enforce "one SKU per carton."
- Eliminated mixed-SKU cartons by aligning carton assignment logic with customer compliance rules.

This level of customization is similar to our work in Oracle Dry Goods Planning Automation, where tailored planning logic optimized efficiency.

Seamless Integration with WMS
- Integrated the custom program with Oracle ERP WMS, ensuring cartons were auto-assigned correctly during order execution.

A similar integration strategy was used in our Oracle Fusion-EBS Coexistence Supply Chain story, enabling two systems to function as one unified flow.

Scalability & Compliance
- Designed logic that could handle both bulk and pick-face processes, ensuring scalability across order volumes.

The approach echoes the multi-site scalability achieved in Workspace Manufacturer Wood Optimization, where complex material scenarios were handled seamlessly.

Elfonze continues to help global supply chain and retail leaders modernize their logistics and warehouse systems with Oracle-powered automation. Discover more real-world transformations in our Success Stories hub

Business Impact

The transformation delivered measurable operational and compliance improvements:

Drastic reduction in chargebacks, saving thousands of dollars in penalties

Manual receipt correction fees decreased significantly, with only 3 issues reported out of 8,200+ cartons in April

Non-compliance dropped to just 24 instances across 119 POs, compared to hundreds earlier

Mixed SKU carton issues nearly eliminated, with only 1 reported instance in April and none in May

Receiving efficiency improved, reducing customer effort and accelerating throughput

Overall performance rating reached 84.79%, trending toward the 95% compliance goal

What the Client said......

“ This is fantastic news! As we continue working toward our 95% goal, I'd appreciate a bit more insight into the POs that did not meet the on-time expectations. Understanding the root causes behind these opportunities will help us to identify any reoccurring challenges and determine where additional support or process adjustments may be needed.”

VP Operations, Distribution Centers