Chapter 14 The operation of a warehouse Chapter

Chapter 14 The operation of a warehouse Chapter 11: Strategic Leadership

Outline This chapter covers the following topics: • Processes in a facility • Errors in operation • Stock management • Types of warehouses and facilities • Cross-dock operations • Efficiency in a warehouse Chapter 11: Strategic Leadership

Outline (continued) • Processes and operations • Delivery and transport operations • Bar coding and scanning • The challenge of managing continuous change • Safety in operation Chapter 11: Strategic Leadership

Processes in a facility • There are 13 fundamental processes in every facility. • They all influence the stock – either the physical amount or the recorded amount. • Poor stock management immediately reduces the efficiency of the operation. Chapter 11: Strategic Leadership

Processes in a facility (continued) Chapter 11: Strategic Leadership

Errors in operation Errors: • Occupy time • Reduce efficiency • Cause four times the effort to rectify • Influence stock, so there is an ongoing problem Chapter 11: Strategic Leadership

Stock management • Correct stock in the correct location is the cornerstone of the operation. • Inbound operations must be done correctly. • Outbound operations must be done correctly. • Auditing processes must continuously remove potential problems. Chapter 11: Strategic Leadership

Types of warehouses and facilities • Manufacturer’s warehouse • Distribution centre • Cross-dock - Requires a different operational focus Chapter 11: Strategic Leadership

Cross-dock • Removes the storage element from the supply chain. • Introduces potential for any operation upstream to bottleneck and restrict downstream processes, reducing efficiency. • Requires correct choice of products: - Continuous flow - Reliable suppliers - No unpredictable supply fluctuations - Uniform handling methods Chapter 11: Strategic Leadership

Cross-dock (continued) • Supply chain must meet following criteria: - Integration, including systems - Reliable, accurate and high-quality vendors - Frequent loads delivered - Simple loads are better • Types of cross-dock: - Cross-dock-managed load (CML) - Joint-managed load (JML) - Supplier-managed load (SML) • Cross-dock processes – TOC better than JIT Chapter 11: Strategic Leadership

Principles of efficiency in facilities • Goods at rest within the boundaries of the facility but outside a designated storage area reflect an inefficient operation. • The location of goods within the boundaries of the facility must be known. • People will perform the operation only if they are trained to do each job in the best way, and are given sufficient time to do the job without errors. Chapter 11: Strategic Leadership

Continuous change • World-class competency is a managed result. • Must focus on: - Strategy - Measurement - Integration - Agility Chapter 11: Strategic Leadership

Safety • OHSA requirements • Cost of accidents in terms of money, time and morale is not acceptable Chapter 11: Strategic Leadership