Warehousing

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Supply Chain Management

• Warehousing

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Supply Chain Management

• Warehouse
• A warehouse is a commercial building for storage
  of goods.
• Warehouses are used by manufacturers,
• Wholesalers, retailers, importers,
• exporters, customs etc.
• They are usually large plain buildings
• in industrial areas of cities and towns.
• Today warehouses are not used to store things but
  rather to
• receive, breakdown, repackage and distribute
  components to
• a manufacturing location or finished products to
  customers

3
Supply Chain Management

• Warehouses
• Some warehouses are completely automated, with
  very few workers working inside.
• The pallets and product are moved with a system
  of automated conveyors and automated storage and
  retrieval machines coordinated by programmable
  logic controllers
• The direction and tracking of materials in the
  warehouse is coordinated by the WMS, or Warehouse
  Management System, a database driven computer
  program.
• The WMS is used by logistics personnel to improve
  the efficiency of the warehouse by directing
  putaways and to maintain accurate inventory by
  recording warehouse transactions.

4
Supply Chain Management

• FUNCTIONS OF A WAREHOUSE

• Receiving, Storing, switching, change SKU size,
• Allows stock rotation (FIFO, LIFO),
• Buffer stock for customers retail or
  commercial,
• Command and control centre inventory control,
• Enables off-the-shelf (JIT) for customers,
• Provides a more-local 'Market Presence'.

5
Supply Chain Management
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Supply Chain Management

• MAIN ECONOMIC BENEFITS
• Groupage (Consolidation)
• Goods from a number of suppliers are grouped
  together for single delivery points,
• A range of goods from single suppliers are
  grouped together for each customer.

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Supply Chain Management
Plant 1
Store A
Consolidation Warehouse
Plant 2
Store B
Store C
Plant 3
8
Supply Chain Management

• Break Bulk
• Receives customer orders from manufacturer and
  delivers to different customers.

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Supply Chain Management
Store A
Break-Bulk Warehouse
Plant
Store B
Store C
10
Supply Chain Management

• CROSS-DOCK
• No storage(?)
• Cross-dock (from multiple suppliers)
• goods sorted as they arrive,
• goods moved across dock and loaded onto trailers,
• benefits - optimal vehicle use and low handling
  costs,
• requires sophisticated planning techniques.

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Supply Chain Management

• Sainsbury's distribution timetable
• Early evening - Goods arrive at warehouse from
  supplier.
• Overnight - Sorted and packed.
• Early morning - Despatched.
• 7.30am - On store floor.

12
Supply Chain Management

• Warehousing Functionality
• Consolidation and Break-Bulk
• Assortment (Cross Docking, Mixing)
• Postponement (Packaging, Labelling)
• Stockpiling (Seasonal, Bulk-Buy)
• Reverse Logistics

13
Supply Chain Management

• Warehouse Ownership Classification
• Private (Ownership or Lease)
• Public (Standardized service)
• Contract (Customized, mutual benefits)

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Supply Chain Management

• Warehouse Planning
• Site selection
• Design
• Product mix
• Future expansion

15
Supply Chain Management

• Warehouse Security
• Pilferage protection (Theft,)
• Product deterioration (Damages)

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Supply Chain Management

• Safety and Maintenance
• Health and safety
• Incidents
• Environment

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Supply Chain Management

• Warehouse management System (WMS)
• Computer software designed to manage the storage
  and movement of items throughout the warehouse.

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Supply Chain Management

• Home Assignment
• Role of Barcodes, RFIDs and Voice
• picking technology
• in Warehouse

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Supply Chain Management

• End of Topic