Warehousing Part Two

1
Warehousing Part Two

• Advance manually to next slide.

2
Three Basic Warehouse Functions

• Movement.
• Storage.
• Information.

3
Movement
Receiving, putting away
.
Warehouse
4
Movement
Receiving, putting away
.
Warehouse
5
Movement
Receiving, putting away
Picking, staging, loading
.
Warehouse
6
Movement
Receiving, putting away
Picking, staging, loading
Cross-docking
.
Warehouse
7
Movement
Receiving, putting away
Picking, staging, loading
Cross-docking
Packaging
.
Warehouse
8
Movement
Receiving, putting away
Picking, staging, loading
Cross-docking
Packaging
Light assembly, blending, kitting

Kits are how some manufacturers sell parts. By
selling the parts in a kit, the manufacturer
gains economies of scale in things like
transportation costs. It also saves
administrative costs because rather than billing
for and keeping track of each part, the
manufacturer only has to keep track of the kit.
Kitting is also a light manufacturing technique
in which assembly workers, sometimes in a
warehouse, get all the component parts of what
they are assembling in a single kit so that time
is not lost looking for parts.
.
Warehouse
Vendorseek.com
9
Movement
Receiving, putting away
Picking, staging, loading
Cross-docking
Packaging
Light assembly, blending, kitting
Labeling, shrink wrapping
.
Warehouse
Label
Label
Label
Label
10
Movement
Receiving, putting away
Picking, staging, loading
Cross-docking
Packaging
Light assembly, blending, kitting
Labeling, shrink wrapping
.
Warehouse
11
Movement
Receiving, putting away
Picking, staging, loading
Cross-docking
Packaging
Light assembly, blending, kitting
Labeling, shrink wrapping
Breakbulk, consolidation
.
Warehouse
12
Movement
Receiving, putting away
Picking, staging, loading
Cross-docking
Packaging
Light assembly, blending, kitting
Labeling, shrink wrapping
Breakbulk, consolidation
.
Transportation
Warehouse
13
Movement
Receiving, putting away
Picking, staging, loading
Cross-docking
Packaging
Light assembly, blending, kitting
Labeling, shrink wrapping
Breakbulk, consolidation
.
Transportation
Warehouse
Import, export services (also an information
function)
14
Storage
.
Warehouse
15
Information
Inventory tracking
Order entry
Proof of delivery
Tracing/customer service billing.
Service reporting/carrier monitoring
Site location
.
Warehouse
Real estate management
Network analysis
Systems analysis
Display building/promotions
16
Warehouses versus Distribution Centers

17
Warehousing
.
.
.

• The storing of products, including raw materials,
  parts, goods-in-process, finished goods at and
  between point-of-origin and point-of-consumption.
• Provides information on status of goods.

Distribution centers are a type of warehouse
which hold minimum inventory of high-demand goods.
.
.
.
.
.
.
18
Warehouses versus Distribution Centers

• Warehouse

Warehouse
19
Warehouses versus Distribution Centers

• Warehouse
• --Receives.

--Stores.
--Picks
Warehouse
20
Warehouses versus Distribution Centers

• Warehouse
• --Receives.

--Stores.
--Picks
--Ships
Warehouse
21
Warehouses versus Distribution Centers

• Warehouse
• --Receives.
• --Stores.
• --Picks
• --Ships

• Distribution Center

Warehouse
Distribution Center
22
Warehouses versus Distribution Centers

• Distribution Center
• Receives

Distribution Center
23
Warehouses versus Distribution Centers

• Distribution Center
• Receives
• Ships

Distribution Center
24
.
www.perotdevelopment.com
25
.
www.arvinmeritor.com
26
Warehouses versus Distribution CentersOther
Differences

• Warehouses
• --Minimal adding of value.
• --Data collection in batches.
• --Aim at minimizing shipping costs.

• Distribution Centers
• --Maximum adding of value (including final
  assembly).
• --Real-time data collection.
• --Aim at maximizing profit of demand

27
End of Program.

• Go to Part Three.