Your SlideShare is downloading. ×
Warehousing
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Introducing the official SlideShare app

Stunning, full-screen experience for iPhone and Android

Text the download link to your phone

Standard text messaging rates apply

Warehousing

22,493
views

Published on

Published in: Education

29 Comments
32 Likes
Statistics
Notes
No Downloads
Views
Total Views
22,493
On Slideshare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
1
Comments
29
Likes
32
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Logistics Management
    Warehousing:
    A ROLE BEYOND STORAGE
    Composed by:
    Anum Arshia(08IN115)
  • 2. Logistics Management
    Objective
    Role of Warehousing in logistics.
    Warehouse Functions & options.
    Strategic decisions in Warehousing(site, layout, type, storage).
    Warehousing Strategies.
    Warehousing performance measures.
  • 3. Logistics Management
    Order Fulfillment
    Occupancy
    Warehousing
    (Source of logistical competency)
    Productivity
    Timely Shipments
    Inventory turns
    Damage free delivery
    Documentation
    Operating costs
  • 4. Logistics Management
    Introduction
    Storage to Flow.
    Inventories at rest to inventories at motion.
    Switching facility rather than storage facility.
    “Because of the value of strategic storage was not well understood, warehouses were often considered ‘necessary evils’ that added cost to the distribution process.”
    Donald J. Bowersox
  • 5. Logistics Management
    Warehousing:
    A logistical challenge
    A warehouse acts as a supporting function for logistics and plays a key role in attaining the overall objectives of the firm’s logistical supply chain system.
    The performance of a warehouse is judged by its productivity and cost performance, to achieve objectives of customer satisfaction and lower cost of operation.
  • 6. Logistics Management
    Warehousing systems
    One of the most important steps in the selection of a logistical network is deciding on a;
    Centralized warehouse system: it ensures tight control on inventories and can operate on economies of scale resulting in lower operating cost.
    Decentralized warehouse system: it operates with multiple distribution centres ensure the best services to the customers.
  • 7. Logistics Management
    Necessities of Warehousing
    Looking at the warehouse objectives of profit improvement through cost reduction and enhancing customer service level for gaining a competitive edge, the following needs to be taken care of:
    Maximum utilization of storage space(floor and cubic space)
    Higher labour productivity
    Maximum assets utilization
    Reduce material handling
    Reduce operating cost
    Increased inventory turnover
  • 8. Logistics Management
    Warehousing functions
    A warehouse is a service function that plays a pivotal role in the supply chain of the company and it has the following functions;
    Material Storage Function
    Material Handling Function
    Information Handling Function
  • 9. Logistics Management
    Warehousing functions(contd…)
    Material storage function
    Since the manufacturing and consumption cycle never match, the manufactured material has to be stored somewhere till the demand for the same is generated and delivery is confirmed. The storage facilities are designed around the following functions.
    Cross-Docking
    • Mixing
    Postponement
    Packing
  • 12. Logistics Management
    Hold:
    Finished goods warehouse
    Manufacturing plant
    Customer
    Warehouse
    (Finished goods)
    Consolidation:
    Consolidation warehouse
    Vendor 1
    Buyer 1
    Warehouse
    (Finished goods)
    Vendor 2
    Buyer 2
    Buyer 3
    Vendor 3
  • 13. Logistics Management
    Break-Bulk:
    Customer 1
    Break-bulk warehouse
    Manufacturing plant
    Break-bulk Warehouse
    Customer 2
    Mixing:
    Customer 3
    Mixing warehouse
    Plant A
    ( Ingredient 1)
    Customer 1
    Mixing
    Warehouse
    Plant B
    ( Ingredient 2)
    Customer 2
    Customer 3
    Plant C
    ( Ingredient 3)
  • 14. Logistics Management
    Warehousing functions (contd..)
    Material handling function
    The handling function is designed around the following functions.
    • Loading and Unloading
    • 15. Material Movement ( To and From the Storage Area)
    • 16. Order Filling
  • Logistics Management
    Warehousing functions (contd..)
    Information handling function
    Information is required on the following:
    Information is the power and it helps in taking a speedy decision in a highly competitive environment for building a competitive edge over the rival. Hence, a proper warehouse information system can considerably enhance the quality of customer service to both internal and external customers of the organization leading to customer satisfaction.
  • 23. Logistics Management
    Warehouse options:
    A strategic decision
    • Private Warehouse
    • 24. Public Warehouse
    • 25. Contract Warehouse
  • Logistics Management
    Warehouse options:
    A strategic decision
  • 26. Logistics Management
    21st century warehouse trends
    The following are some warehouse trends for the next century:
    Focusing on the customer
    Compression of operations and time
    Continuous flow
    Cross-docking
    Electronic transactions
    Customized warehousing
    Third-party warehousing
    The incredible shrinking order
    Automation
    The human factor
  • 27. Logistics Management
    Warehouse site selection
    The considerations of warehouse site selection revolve around two major factors;
    The other factors affecting site selection are:
    Infrastructure
    Market
    Access
    Primary transportation cost
    Availability
    Product
    Regulations
    Local levies
  • 29. Logistics Management
    Warehouse layout design
    The evaluation of alternative layouts of a warehouse is done based on the following guidelines normally followed in an industry:
    Item turnover
    Space utilization
    Product configuration
    Product characteristics
    Good housekeeping
    Safety and security
  • 30. Warehouse Decision model
    Product Type
    Product Characteristics
    Objectives
    Resources
    Warehouse Network(Numbers & Locations)
    Private
    Contract
    Public
    Warehouse Facility Planning Decision
    Tactical
    Strategic
    Operational
    • Work allocation
    • 45. Job scheduling
    • 46. Performance monitoring
  • Logistics Management
    Warehouse costing
    • The elements of warehousing cost normally accounted for are;
    Transportation.
    Storage.
    Administration.
    • The inventory carrying cost is not included in warehousing cost.
    • 47. The warehousing cost includes;
    Fixed cost elements.
    Variable cost elements.
  • 48. Logistics Management
    Warehousing strategies
    Warehousing network plays a major role in the success of the physical distribution of products. It is observed that the leading firms adopt and implement the following warehousing strategies;
    Capacity Switching.
    Hub Networking.
    Cobbling.
    Outsourcing.
  • 49. Logistics Management
    Virtual Warehouse
    The concept of virtual warehousing surfaced due to emerging networking and communication technologies in the 1980s.
    It is defined as a single storage system located at a convenient place to take care of worldwide requirements of products and services.
    The concept is still in its early stages of development and application.
  • 50. Logistics Management
    Warehouse charter
    Majority of the firms do not give importance to warehousing operations. A warehouse is treated as a place for storage of goods till they are shipped.
    Hence, it is wiser for the warehouse management to have a charter to avoid errors, perform better and meet customer satisfaction.
    A warehouse is a strategic link in the customer_value chain, it has an important role to play, which may be performed with clear-cut guidelines in the form of warehouse charter.
  • 51. Logistics Management
    Performance parameters
    The most common parameters that indicate the efficiency and effectiveness of warehouse operations are discussed below;
    Stock Turn-Over Ratio
    Warehouse Cost-to-Sales Ratio
    Warehouse Cost per Unit Handled
    Occupancy Rate of Warehouse Space
  • 52. Logistics Management
    Thank you…