Govindgowda Supply Chain

8/14/2019 Govindgowda Supply Chain

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WAREHOUSING AND LOCATION DECISION

IN

SUPPLY CHAIN MANAGEMENT

Presented

By

Govinda Gowda.H.G


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INTRODUCTIONWarehouse is a location to store inventory with adequate facilities. Every company

stores its goods while they wait to be sold. Thus, the ability to meet customerdemand by getting the right products to the right place, at the right time, and in

the right condition is an essential competency with bottom-line implications.


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Location decision crucial element in logistics planning.

High costs associated with property acquisition

and facility construction

facility location or relocation is strategicinvestments.

The location decision is meant to adapt thedynamic changes in business environmentssurrounding the firm's supply - chainoperations.


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Importance of warehouse &

location decision

A Warehouse is typically viewed as a place to storeinventory, However in many logistical system designs,the warehouse is more properly viewed as a switchingfacility as contrasted to a storage facility.

While effective distribution systems should not bedesigned to hold inventory for an excessive length oftime, there are occasions when inventory storage is

justified.


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Potential warehouse locations

1. It is important to identify potential locationsfor new warehouse. Typically these locationsmust satisfy a variety of conditions.

Geographical & infrastructure conditions Natural resources & labour availability

Local industry & tax regulations

Public interest

An optimum location satisfy this four criteriato the maximum extent.


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Most of the firms using 3PL

Technique for warehousing

What is 3PL(Third-party logistics) A third-party logistics provider (abbreviated 3PL) is a

firm that provides outsourced or "third party"logistics services to companies for part, orsometimes all of their supply chain managementfunction. Third party logistics providers typicallyspecialize in integrated warehousing and

transportation services that can be scaled andcustomized to customers needs based on marketconditions and the demands and delivery servicerequirements for their products and materials.


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BDP InternationalThe Bender GroupBig C.H. RobinsonCardinal LogisticsCaseStack

Caterpillar LogisticsCEVA LogisticsCOGISTICSComprehensive Logs.Corporate TrafficCRST LogisticsCT Logistics

CTSIDog LogisticsBNSF LogisticsDSC LogisticsDupre Transport

Echo GlobalEGL Eagle GlobalElite Supply ChainEvans DistributionExel/DHLExpeditors

FedEx Global SCForeway

GENCOGreatwide Logistics

3P Delivery

A.N. Deringer

Access Logistics

AFN

Agility

AIMS Solutions

AmeriCold Logistics

APL Logistics

Artisan/NLM

Aspen Alliance

`ATC Logistics

ADS

Averitt

TBB Global Logistics

TLCTMSi Logistics

Transfreight

TransGroup Worldwide Logs. Transplace

Tucker Company


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http://www.southshorecompanies.com/http://www.ssaglobal.com/


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3PL warehouse management

system helps companies to

- Optimize resource utilization and reduce laborcosts

- Lower supply chain costs- Reduce working capital- Gain visibility and accuracy in warehouseinventory- Enhance customer service- Improve revenue


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Role &Operations of 3PL Warehousing

firms

Receiving goods

Identifying goods

Sorting goods

Dispatching goods Holding goods

Dispatching goods Preparing records &

advices


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Cost Associated with 3PL Warehousing

Handling costs:

This include labour & utility coststhat are proportional to annual flow through thewarehouse.

Fixed costs:

Capture cost components that are notproportional to the amount of material that flows

through the warehouse. The fixed cost is typicallyproportional to warehouse size (capacity).

Storage costs:

Represent inventory holding costs,which are proportional to average positive inventorylevels .


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Types of Warehouse

Firms either own private warehouses or rent

space in public warehouses or both. Both have

their own merits & demerits. Owning a private

warehouse brings more control, ties up capital,

and is less flexible if locations change.

On the other hand, public warehouses charge

for rented space, provide additional services

for inspecting, packaging, shipping and

invoicing goods but at a cost, and offer wide

choice of locations and warehouse types


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Continues.General merchandise: are designed to handle general

package commodities such as paper, small appliances,and house hold supplies.

Refrigerated: handle & maintain food, medical items &chemical products.

Special commodity: are designed to handle bulk

material or items with special handling considerations,such as tiers or clothing.

Bonded: are licensed by the government to store goodsprior to payment of taxes or duties.

Household goods: these are designed to handle and

store large , bulky items such as appliances & furniture

Contract warehouse: This combines the bestcharacteristics of both private & public operations.


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Who should be the right

In-Charge for The Warehouse?

Whether they are happy about it or not, it is becomingmore and more common for purchasing professionals tobe made responsible for management of the warehouse.Therefore, do not be surprised if warehouse managementis added to their scope of responsibilities in the near

future. To prepare for this trend, lets explore thesimilarities between purchasing and warehousemanagement.

Like Purchasing, warehouse management has many bestpractices. A couple of best practices recommend the use

of effective slotting tools and bar coding.


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Continues. Effective slotting tools include the placement of high-volume items close to the

point of shipping, use of clear slotting information under each item on the shelf,using the same slotting information on pick documents, and sorting the slotnumbers into a sequence that supports a no-backtrack path for the picker.

Bar codes can help in ensuring the right incoming product put in the right placeand that the right outgoing product is picked in the right quantities. By using barcode picking, not only one can pick faster, but he can also pick with virtually 100%accuracy. In this method bar code implementations pay for themselves within sixmonths, which leads to the most attractive aspect of warehouse management forpurchasing professionals that offers the opportunity for cost savings.


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conclusion

Warehousing & location

facilities help in better

storage & provides

greater accuracy.

The storage in

warehouse should be for

a short period of time &

occationally for

optimizing the costs.


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The End Thank You

Govindgowda Supply Chain

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