Professional Documents
Culture Documents
Warehousing
A role beyond storage
Definition
Warehouse
Computerization
Development of an Integrated
Perspective of Warehousing
MANAGING INVENTORY
AND INFORMATION
(The new mission)
Warehouse
Equipment
Automation
Inbound
Receiving
Quality
assurance
Putaway
Outbound
Storage
Replenish
Picking
Loading/
Shipping
Inventory
management
Sortation and/or
accumulation
Packing and shipping
(checking, packaging,
weighing, accumulating,
loading)
Cross-docking (optional)
Replenishment (reserve
storage, optional)
Warehouse Functions
Stock holding
Consolidation
Break bulk
Cross docking
Postponement
Assortment
Mixing / assembling
Packaging & labelling
Material handling
Order filling
Information handling
Types of Warehouses
Private warehouse
Public warehouse
Contract warehouse
Storage Alternatives
Private
WH
Public
WH
Contract
WH
V.high
None
V. Less
Controls
High
Low
Medium
Operation
Flexibility
High
Low
Medium
Inversely
related to
volumes
Low
Inversely
related to
volumes
Low
High
Medium
FACTORS
Investment
RACK /BIN
STORAGE
PLACE
Warehousing Trends
Focusing on the customer
Warehouse adds value by keeping products available
Develop partnership by information sharing, joint planning, and
win-win agreements for future
Consolidation
Competitive advantage with reduced supplier base
Fewer distribution centers allow economies of scale that can
reduce operating costs, including inventory, space, equipment and
labor
Warehousing Trends
Value-added services
Labeling, customized packaging, servicing vendor-managed inventories,
and electronic data interchange
Information technology
Bar coding, radio frequency data communication, warehouse
management system
Space compression
Greater emphasis on throughput results in more docks, staging, buffer,
and sortation system space
Time compression
Better, cheaper , and faster battle cry of the future
Increase service levels with same-day shipments with reduced SKUs and
space requirements
Warehousing Trends
Distribution requirements planning
MRP, MRP II, DRP, ERP
Dynamic distribution action plan
Interchange information using networks and radio
frequency devices
Reverse logistics
Process of receiving returned goods, determining
product status, crediting customers and deliver
recyclable material to manufacturing
Warehousing Trends
Leadership
One individual with proactive role to take charge of
warehouse
Dissociate from operational issues and concentrate on
tactical and strategic issues.
Cross docking
Preplanning incoming and out going shipments to move
goods directly from receiving to shipping
Information processing systems must track and
coordinate product movement
Warehousing Trends
EDI &Internet
EDI communication by direct link
Warehousing Trends
Vendor managed inventory
POS system and integrated production operations to
manage inventories and high level of customer service
Suppliers to track and replenish inventories
Paperless warehouse
Product movement tracked electronically
Delivery challans, replenishment tickets, pick tickets
replaced by electronic data capture and display devices
Warehousing Trends
Supply chain management
Partnering with suppliers and customers
In depth sharing of information
Willingness to invest in maintaining relationship
Third-party warehousing
Warehousing Trends
Customized warehousing
Customizing generic products
Compliance labeling, ticketing, bagging, and
palletization.
Value addition to the product or service
in
Quantitative variables :
Qualitative variables
(b) More difficult to understand and to measure. Customer service levels
Assumptions are
A Cross docking:
Helps to reduce the amount of finished goods
inventory that is required to be maintained as
safety stock.
Constraints of Cross Docking
Requires a strong IT base and real time
information sharing facilities e.g. Bar codes
on cartons.
Appropriate for products with large, and
predictable demands.
B. Milk Runs :
A milk run is a route in which a truck either
delivers product from a single to multiple
retailers or goes from multiple suppliers to a
single retailer.
Retail Store 2
Retail Store 3
Retail Store 4
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Retail Store 6
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Retail Store
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