Warehouse

1. Warehouse Management

2. Contents:-
Reasons for warehousing
Benefits
Warehouse operating principles
Types of Warehouse
Warehousing strategies
Warehouse location strategies
Site selection
Transport
3. Warehousing:-
Storage or warehousing provides the place utility as part of logistics for any business and along with Transportation is a critical component of customer service standards.
4. CustomerAnalysis
Purchasing/SupplierPartnering
Order Fulfillment
Integrated Supply Chain Management
Inventory Management & Control
Warehouse &Transportation
Manufacturing/ Re-manufacturing / Assembly
Demand &Lead TimeManagement
MaterialsManagement
5. Reasons for warehousing:-
To support the companys customer policy.
To maintain a source of supply without interruptions.
To achieve transportation economies.
To support changing market conditions and sudden changes in demand.
To support any JIT programs.
To provide customers with the right mix of products at all times and all locations.
To ensure least logistics cost for a desired level of customer service.
6. Benefits of warehousing:-
Consolidation.
7. Consolidation Warehouses:-
Customers
PlantA
ConsolidationWarehouses
A
C
B
PlantB
PlantC
Consolidation.
Break bulk warehouse.
9. Break bulk Warehouses:-
Customers
A
Break bulkWarehouses
B
PlantA
C
Consolidation.
Break bulk warehouse.
Processing / Postponement.
Stockpiling.
Service benefits.
11. Warehouse Operating Principles:-
Three Principles are:
Design criteria:
a) Number of stories in the facility,
b) Height utilization,
c) Product flow
12. Warehouse Operating Principles:-
2) Handling technology
Movement continuity,
Movement scale economies.
3) Storage plan
13. Types of warehouses:-
It includes:
1) Private warehouses,
2) Public warehouses,
3) Contract warehouses
14. Warehousing Strategy
An integrated warehouse strategy focuses on two questions.
1) The 1st concerns how many warehouses should be employed.
2) The 2nd question concerns which warehouse types should be used to meet market requirements.
15. Warehousing Strategy:-
Many firms utilize a combination of private, public, and contract facilities.
A private or contract facility may be used to cover basic year round requirements, while public facilities are used to handle peak seasons.
In other situations, central warehouses may be private, while market area or field warehouses are public facilities.
Full warehouse utilization throughout a year is a remote possibility.
As a planning rule, a warehouse designed for full-capacity utilization will in fact be fully utilized between 75 to 85 % of the time.
Thus from 15 to 25 % of the time, the space needed to meet peak requirements is not utilized.
In such situations, it may be more efficient to build private facilities to cover the 75% requirement and use public facilities to accommodate peak demand.
It may be more efficient to build private facilities to cover the 75 % requirement and use public facilities to accommodatepeak demand.
Other qualitative factors that should be considered include:
1) presence synergies: Inventory located nearby in a building that is clearly affiliated with the enterprise.
2) industry synergies: Refer to the operating benefits of collocating with other firms serving the same industry.
3) operating flexibility: Refers to the ability to adjust internal policies and procedures to meet product and customer needs.
19. Contd
4) location flexibility: Refers to the ability to quickly adjust warehouse location and number in accordance with seasonal or permanent demand changes.
5) scale economies: Refer to the ability to reduce material-handling and storage through application of advanced technologies.
20. Qualitative Decision Factors:-
PrivateContract Public
Presence synergies
Industry synergies
Operatingflexibility
Location flexibility
Scale economies
21. TheWarehouse location strategies:-
1) Market positioned:
a) Order Cycle time
b) Transportation cost
c) Sensitivity of the product
d) Order sizes
2) Product positioned:
a) Perishability of the raw materials
b) Number of products in the product mix
c) Assortments ordered by the customers from the product mix
d) Transportation consolidation rates
3) Intermediately positioned:
22. Site Selection:-
Location of the major markets.
Nature of the products being distributed.
Quality & Variety of carriers serving the proposed site.
Quality & Quantity of labouravailable.
Cost of industrial land.
23. Contd
Potential for expansion.
Local tax structures.
Cost of construction.
Cost & availability of utilities .
Any local govt. tax concessions or incentives.
24. Product-Mix Coiderations:-
Each product should be analyzed in terms of annual sales, stability of demand, weight, and packaging.
It is also desirable to determine the total size and weight of the average order processed through the warehouse.
Expansion:-
Well-managed organizations often establish five- to ten-year expansion plans.
Such expansion considerations may require purchase or option of a site three to five times the size of the initial structure.
25. Warehouse Layout:-
Layout of a warehouse depends on the proposed material handling system and requires development of a floor plan to facilitate product flow.
If pallets are to be utilized, the first step is to determine the pallet size.
Pilferage Protection:-
Protection against theft of merchandise has become a major factor in warehouse operation
As standard procedure, only authorized personnel should be permitted into the facility and surrounding grounds.
26. Product Deterioration:-
The most obvious form of product deterioration is damage from careless transfer or storage.
Another major form of deterioration is non-compatibility of products stored in the same facility.
Product deterioration from careless handling within the warehouse is a form of loss that cannot be insured against and constitutes a 100 percent cost with no compensating revenue.
27. TRANSPORT
28. Transport Fundamentals:-
Transport involves
Equipment
People
Decisions
When deciding the transport mode for a given productthere are several things to consider:
Mode price
Transit time and variability (reliability)
Potential for loss or damage.
29. Single-mode Service Choices and Issues:-

30. Rapidly growing segment of transportation industry 31. Lightweight, small items 32. Quick, reliable, expensive 33. Rail 34. Low cost, high-volume 35. Improving flexibility 36. intermodal service

Warehouse

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Transcript of Warehouse