Introduction Need for Warehousing Management Primary Functions of Warehouse Types of Warehouse...
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Transcript of Introduction Need for Warehousing Management Primary Functions of Warehouse Types of Warehouse...
WAREHOUSE MANAGEMENT
Industrial Logistics (BPT 3123)Industrial Technology Management Programme
Faculty of Technology
Chapter Outline• Introduction• Need for Warehousing Management• Primary Functions of Warehouse• Types of Warehouse• Warehousing Strategies• Warehousing Functions
Lesson Outcomes• Understand warehouse management concept or
approach• Explain the role and major activities of
warehouses and distribution centers
Introduction
• Nowadays, warehouse are more properly viewed as places where products may be stored and assortments of products created in accordance with customer requirements
• Distribution Center term are being used to emphasize the difference between the storage activity and the strategic role of warehouses
• For an ideal logistics system – storage is held to a minimum and inventory moves continuously throughout the supply chain on its destination to fill customer needs
Warehousing Management• Primary purpose of a warehousing management is
to control the movement and storage of materials within an operation and process the associated transactions.
• Warehousing is viewed as a place to store inventory as well as a facility for switching the inventory.
• Need for warehousing management:a. Reduce inventoryb. Reduce labor costc. Increase storage capacityd. Increase customer servicee. Increase inventory accuracy
1. Trans-Shipment Point– A facility where products are received, sorted,
sequenced and selected into loads consistent with the customers’ needs
2. Stockpiling– The storage of inventories in warehouses to protect
against seasonality either in supply or demand3. Production Support– A warehouse dedicated to storing parts and
components needed to support a plant’s operations
Warehouse ManagementPrimary Functions of
Warehousing
4. Break-Bulk
– Splitting a large shipment into individual orders and arranging for local delivery to customers
5. Warehouse Consolidation
– Combining shipments from a number of sources into one larger shipment going to a single location
6. Cross-Docking
– Combines break-bulk and consolidation warehouse activities
Warehouse Management
Warehouse Management
7. Reverse Logistics Support– The logistics needed to send products or
packaging materials back to disassembly, reclamation or disposal sites
– Returned products can be remanufactured or updated for resale
8. Value-Added Services– Any work that creates greater value for
customers– Services may change the physical features or
configuration of products so they are presented to customers in a unique or customized manner
Warehouse Management
1. Receiving and Unloading– Inbound shipments must be received and unloaded
from the transportation vehicles– Part of this activity may also involve checking the
shipment for the correct quantities and for potential damage to products
2. In-Storage Handling– Once unloaded the goods must be moved to the
desired destination within the facility, whether this is an actual storage location or a shipping area in the case of a cross-dock facility
Warehouse ManagementWarehouse
Functions
3. Storage– Products are held, even if for only a few minutes in a
storage area
4. Order-Picking– The products are removed from storage and
assembled into appropriate quantities and assortments to fill customer orders
5. Staging– The assembled orders are moved to an area in the
warehouse in readiness for loading into a transportation vehicle bound for customer locations
6. Shipping– Involves verifying that the assembled orders are
correct and the actual loading of the transportation vehicles
Warehouse Management
1. Private Warehouse– Facility that is owned and operated by the firm
that own the products2. Public Warehouse– A firm that offers warehouse services to the public
for a fee based on the amount of spaced used and the number of shipments into or out of the facility
3. Contract Warehouse– Companies offer to build, own and operate
warehouse facilities for the benefit of clients who do not want to undertake those responsibilities themselves
Warehouse Management Types of
Warehouse
• A private or contract facility may be used to cover basic year round requirements
• Public facilities are used to handle peak seasons• Public and contract warehouse have
demonstrated more responsiveness as they offer location flexibility
• Public and contract warehousing increases the potential for industry synergy
• Public and contract warehouses are able to design operations and facilities to meet higher volumes of multiple clients
• Public warehousing facility can provide complete logistical support ......
Warehouse Strategies
Summary• Warehouse are more properly viewed as places
where products may be stored and assortments of products created in accordance with customer requirements
• Warehouses perform several functions over and above storage. It also provide benefits through consolidation, break-bulk, cross-docking and assortment activities