ASSIGNEMENT 1

WAREHOUSE MANAGEMENT

COMPANY CHARACTERISTICS
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What is the history of the company?

What type of company is it, what does the company offer?
Which markets does the company focus on?
Who are the companys main competitors?
How many employees does the company have? How many of these employees work in
warehousing/procurement?
Does the company use scheduling for its workforce? Please explain
How many orders are handled annually? Inbound/outbound?
How many deliveries are handled annually? Inbound/outbound?
How does the company define logistics, and what is its logistic strategy? What does the
company want to achieve with its logistics?
What are the logistics goals? Are there different logistics goals for different products or
flows?
How important is logistics for the company?
Is there any documentation on the logistics strategy?

PRODUCTION
1. Do you have production? If so, what kind of products are you producing?
2. How many different types of products do you produce?
3. What are the total product numbers approximately?
HUMAN RESOURCES
4. How many of these employees work in warehousing/procurement?
5. Describe the organizational structure.
CUSTOMER RELATIONS
1. How many customers does the company have?
2. Where are the customers located? What is the lead time to customer?
DEMAND PLANING
1. How does the company handle demand planning?
2. Do you use a technique to determine seasonal variations, and the intensity of seasonal
swings? If so, what kind of technique?
3. Do you use a technique to determine average order-size? If so, what kind of technique?
4. How accurate is the companys demand planning?
5. Has the company ever had problems due to demand planning? If so, please elaborate.
6. Is there any documentation about demand planning?
WAREHOUSING

1. How is the warehouse managed? Please explain the procedure.

2. How many warehouses does the company use? (Explain for raw material, end product,
etc.raw material, end product, etc.)
3. How did the company decide the location of the warehouse/s?
4. Is/are the warehouse/s owned, rented, leased or contracted? Why?
5. How did the company decide on the layout of the warehouse?
6. Are the stocking positions in the warehouse coded for specific products?
7. What is taken into consideration in the placement of a product in the warehouse?
8. How does your information system work?
9. Is the company using a locator address system? (Rack codes, etc.)
10. Is the company using a specific item coding system?
11. How accurate is the warehouse system? (Is it easy to find products)
12. What kind of emergency plans does the warehouse have? (Safety-stock etc.)
13. Have there been any problems with the warehouse system? Please explain
14. What kind of storage materials are being used in the warehouse? (Types of racks, drive in,
drive through, high bay racks etc.)
15. Are the activities more mechanized/manual?
16. Do you use Conveyer technology?
17. What are the means of conveyance? Do you have permanently installed systems such as
overhead conveyor systems or unattached means of conveyance such as forklifts?
GOODS RECEPTION
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4.

How are the goods checked in?

How is the scheduling for reception of goods?
How are the deviations in the shipments managed?
Have there been any problems in the reception process? Please explain

HANDLING OF MATERIAL
1. How is the handling of material managed?
2. What kind of equipment is used for handling material?
3. What is the approximate time for handling materials after they have been received? Are there
any studies about this in the company?
4. Have there been any problems in the handling material? Please explain
ORDER PICKING
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2.
3.
4.

How is the order picking managed?

In which order are goods being picked?
What is the approximate order picking time?
Have there been any problems in the order picking? Please explain

PURCHASING
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2.
3.
4.

How is purchasing managed?

How is the ordering process managed?
How is the ordering decision given?
Do the suppliers confirm orders?

5. How are the suppliers found, and how are the relations handled?
6. What is the companys strategy on supplier selection?
7. Have there been any problems in the orders? Please explain
INFORMATION SYSTEM
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2.
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4.
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Does the company use a database or any kind of ERP system? If so, what kind?
What kind of data is being saved?
Is it easy to find specific data in the system?
How is the data input handled in the system?
Is there a back-up system?
Have there been any problems with the information system? Please explain

Category
Order fulfillment

Measure
On time
delivery
Ord

er fill rate
Order accuracy
Line accuracy
Order cycle time
Perfect order completion
Inventory
management
measures

Inventory
Accuracy

Damaged inventory
Storage utilization
Dock to stock time
Inventory visibility
Warehouse
productivity

Lines per hour

Items per hour
Cost per order

Cost as a % of sales

Orders
per hour

Definition
Orders delivered
on time per
customer
requested date
Orders filled completely
on first shipment
Order picked, packed and
shipped perfectly
Lines picked, packed and
shipped perfectly
Time from order
placement to shipment
Orders delivered without
changes, damage or
invoice errors.
Actual inventory
quantity to
system- reported
quantity
Damage measure as a %
of inventory value
Occupied space (square
footage) as a % of storage
capacity (square footage)
Avg. time from carrier
arrival until product is
available for order picking
Time from physical
receipt to customer service
notice of availability
Avg. number of
orders picked
and packed per
person - hour
Avg. number of orders
lines picked and packed
per person hour
Avg. number of orders
items picked and packed
per person hour
Total warehousing costs
Fixed: space, utilities and
depreciation
Variable: labor / supplies
Total warehousing cost as
a percent of total company
sales.