WAREHOUSE MANAGEMENT Industrial Logistics BPT 3123 Industrial Technology

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

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

Chapter Outline • • • Introduction Need for Warehousing Management Primary Functions of Warehouse

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

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

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

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 inventory b. Reduce labor cost c. Increase storage capacity d. Increase customer service e. Increase inventory accuracy

Warehouse Management Primary Functions of Warehousing 1. Trans-Shipment Point – A facility where products

Warehouse Management Primary Functions of Warehousing 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 demand 3. Production Support – A warehouse dedicated to storing parts and components needed to support a plant’s operations

Warehouse Management 4. Break-Bulk – Splitting a large shipment into individual orders and arranging

Warehouse Management 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

Warehouse Management 7. Reverse Logistics Support – The logistics needed to send products or

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 Warehouse Functions 1. Receiving and Unloading – Inbound shipments must be received

Warehouse Management Warehouse Functions 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 Management 3. Storage – Products are held, even if for only a few

Warehouse Management 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 Types of Warehouse 1. Private Warehouse – Facility that is owned and

Warehouse Management Types of Warehouse 1. Private Warehouse – Facility that is owned and operated by the firm that own the products 2. 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 Strategies • A private or contract facility may be used to cover basic

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. . .

Summary • Warehouse are more properly viewed as places where products may be stored

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