WarehousingWarehousing provides time and place utility (primarily time) for raw materials, industrial goods, and finished products, allowing firms to use customer service as a dynamic value-adding competitive tool.
Basic Warehousing Decisions Ownership Public versus private Centralized or Decentralized Warehousing How many Location Size Layout What products where
Public Warehousing The warehouses which are run to store goods of the general public are known as public warehouses. Any one can store his goods in these warehouses on payment of rent. Rationale for Public Warehousing Limited capital investment Flexibility
Basic Warehouse Operations Movement Receiving Put-away Order picking Shipping Storage Stock location Warehouse Management System (WMS)
Warehouse Layout and Design Develop a demand forecast. Determine each item’s order quantity. Convert units into cubic footage requirements. Allow for adequate aisle space for materials handling equipment Provide for the transportation interface. Provide for order-picking space. Provide storage space. Provide recouping, office, and miscellaneous spaces.
Warehouse Layout and Design Basic needs: Receiving Basic storage area Order selection and preparation Shipping
Packaging Unless otherwise specified, the manner in which customer products are packaged for shipment is appropriate for the destination, method of shipment and weight / size of the carton. Customer Packaging Standards All customer- specified packaging standards and guidelines are followed. Labeling All customer-specified labeling requirements are followed.
The Role of Packaging Identify product and provide information Improve efficiency in handling and distribution Customer interface Protect product
What Is Packaging? Consumer (interior) packaging Marketing managers primarily concerned with how the package fits into the marketing mix. Industrial (exterior) packaging Logistics managers primarily concerned with efficient shipping characteristics including protection, ability to withstand stacking when on a pallet, cube, weight, shape and other relevant factors.
Bar Coding Standard markings that can be read by automatic or handheld scanners that allow for labor saving logistical activities for all supply chain members. Bar Codes contain information regarding: Vendor Product type Place of manufacture Product price