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WAREHOUSE MANAGEMENT
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WAREHOUSE MANAGEMENT

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  1. WAREHOUSE MANAGEMENT Industrial Logistics (BPT 3123) Industrial Technology Management Programme Faculty of Technology

  2. Chapter Outline • Introduction • Need for Warehousing Management • Primary Functions of Warehouse • Types of Warehouse • Warehousing Strategies • Warehousing Functions

  3. Lesson Outcomes • Understand warehouse management concept or approach • Explain the role and major activities of warehouses and distribution centers

  4. 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

  5. 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: • Reduce inventory • Reduce labor cost • Increase storage capacity • Increase customer service • Increase inventory accuracy

  6. Warehouse Management Primary Functions of Warehousing • Trans-Shipment Point • A facility where products are received, sorted, sequenced and selected into loads consistent with the customers’ needs • Stockpiling • The storage of inventories in warehouses to protect against seasonality either in supply or demand • Production Support • A warehouse dedicated to storing parts and components needed to support a plant’s operations

  7. Warehouse Management • Break-Bulk • Splitting a large shipment into individual orders and arranging for local delivery to customers • Warehouse Consolidation • Combining shipments from a number of sources into one larger shipment going to a single location • Cross-Docking • Combines break-bulk and consolidation warehouse activities

  8. Warehouse Management

  9. Warehouse Management • 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 • 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

  10. Warehouse Management Warehouse Functions • 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 • 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

  11. Warehouse Management • Storage • Products are held, even if for only a few minutes in a storage area • Order-Picking • The products are removed from storage and assembled into appropriate quantities and assortments to fill customer orders • Staging • The assembled orders are moved to an area in the warehouse in readiness for loading into a transportation vehicle bound for customer locations • Shipping • Involves verifying that the assembled orders are correct and the actual loading of the transportation vehicles

  12. Warehouse Management Types of Warehouse • Private Warehouse • Facility that is owned and operated by the firm that own the products • 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 • 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

  13. Warehouse Strategies • 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 ......

  14. 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