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  1. 1. A warehouse is a building for storing goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. They are usually large plain buildings in industrial parks on the outskirts of cities, towns or villages. They usually have loading docks to load and unload goods from trucks. Sometimes warehouses are designed for the loading and unloading of goods directly from railways, airports, or seaports. They often have cranes and forklifts for moving goods, which are usually placed on ISO standard pallets loaded into pallet racks. Stored goods can include any raw materials, packing materials, spare parts, components, or finished goods associated with agriculture, manufacturing, and production.
  2. 2.  Better Inventory Management  More Efficient Packing and Processing  Superior Customer Service  Ensure Price Stabilization  Improved Risk Management
  3. 3. Warehousing is when you purchase goods from a manufacturer and store them before they are shipped to another location for fulfillment.
  4. 4.  Storage  Price Stabilization  Risk bearing  Financing  Grading and Packing
  5. 5.  Improved Inventory Accuracy  Reduced Overhead Cost  Better Staffing Levels  Protection of Goods  Central Location  Superior Flow of Goods:
  6. 6. (a) Warehouses constructed by farmers/producers near their fields/places of work. (b) Warehouses owned and managed by wholesalers and retailers close to their selling centers. (c) Warehouses constructed by manufacturers near their production units. (d) Warehouses taken on rent by retail stores. (e) Retailers may have several regional warehouses to cater the needs of their stores. (f) Warehouses owned/leased by a wholesaler where it stores and distributes.
  7. 7. a. Customs Bonded Warehouse  Customs Bonded Manufacturing Warehouse  Garment/Textile Manufacturing Bonded Warehouse  Miscellaneous Manufacturing Bonded Warehouse  Common Bonded Manufacturing Warehouse b. Public/Private Bonded Warehouse c. Customs Bonded Trading Warehouse d. Multinational Regional Bonded Warehouse
  8. 8. Warehousing in the supply chain
  9. 9.  Raw materials storage These warehouses store raw materials and components either close to the point of extraction or close to the manufacturing point. Raw materials must be held in order to ensure continuous production. These materials include plastics, precious metals, sand, aggregates, etc.
  10. 10.  Intermediate, postponement, customization or sub- assembly facilities These warehouses are used to store products temporarily at different stages in production. These centres are also used to customize products before final delivery to the customer.
  11. 11.  specific packaging or labelling being changed or added, eg for store ready items or printing in different languages;  computer assembly to include different graphics cards, memory chips, software, etc;  product bundling for promotional activity;  country-specific items being added such as electrical plugs; and  special messages being added, eg stencilling of greetings messages on mobile phones.
  12. 12.  Finished goods storage These warehouses store products ready for sale, on behalf of manufacturers, wholesalers and retailers. They provide a buffer or safety stock for companies, enabling them to build up stock in preparation for new product launches, expected increases in demand and to deal with seasonality.
  13. 13.  Consolidation centres and transit warehouses Consolidation centres receive products from different sources and amalgamate them for onward delivery to the customer or onto a production line. This can include just-in-time centres where automotive parts are delivered to a warehouse where they are brought together and sequenced for delivery onto the production line. They can also be retail stock consolidation warehouses where products from different suppliers are consolidated for onward delivery to the stores.
  14. 14.  Transhipment or break-bulk centres Transhipment centres receive products in large quantities from suppliers and break them down into manageable quantities for onward delivery to various locations.
  15. 15.  Cross-dock centres Cross-dock centres are seen as being the future for warehousing. Efficient consumer response and quick response within retail require operations to be able to move goods quickly through the supply chain. Cross docking requires deliveries into these centres to be already labelled and ready for onward delivery.
  16. 16.  Sortation centres Sortation centres are used in the main by letter, parcel and pallet distribution companies. Goods are collected from all parts of the country, delivered into hubs or sortation centres, sorted by zip or post code, consolidated and delivered overnight to their respective distribution areas for onward delivery.
  17. 17.  Fulfilment centres The growth of e-retailing has seen an increase in the number of customer fulfilment centres. These warehouses have been designed and equipped specifically The Role of the Warehouse 11 to manage large volumes of small orders. The video shows the fulfilment operation of an internet retailer called (Dematic Corp)
  18. 18.  Reverse logistics centres a number of warehouses have been set up specifically to deal with returned items. Third-party contractors are providing a service to retailers where customers return unwanted or defective items to the stores; the items are then consolidated and sent to the returns centre, where they are checked and either repackaged, repaired, recycled or disposed of. Other reverse logistics processes include the return of reusable transit packaging equipment such as roll cages, barrels, kegs, pallets, tote boxes and trays. When used in the food industry added services include washing and sanitizing the items before they re-enter the supply chain.
  19. 19.  Public sector warehousing Outside the commercial world there are also warehouse operations which support the public sector, armed forces and the third sector. Other public sector warehouses will store supplies for local government facilities such as schools and offices. Products will include stationery, uniforms, furniture, computer hardware and software, etc.
  20. 20. a. Uncertain and erratic demand patterns b. Trade-off between transport and shipping costs, justifying larger shipments c. Discounts via bulk buying d. Distance between manufacturer and the end consumer e. Cover for production shutdowns f. Ability to increase production runs g. To manage seasonal production h. High seasonality i. Spare parts storage j. Work-in-progress storage k. Investment stocks l. Document storage
  21. 21.  Wide, narrow and very narrow aisle racking  Used in faster-moving operations, particularly in order picking by case and by unit. These suit secondary distribution layouts, where access to a wide range of stockkeeping units (SKUs) is required, and delivery lead times are short. Often reserve stock is held in a national or primary distribution centre (NDC or PDC). Wide Narrow Very narrow aisle racking
  22. 22.  Drive-in racking. Used for bulk pallet storage and more frequently for longer-term storage, to suit seasonal production and supply peaks or production/packaging operations to meet different packing formats.
  23. 23.  Mobile racking. Buildings must first be constructed with mobility in mind, as the building needs substantial steel runners set flush into the insulated cold-store floor surface. Popular with smaller companies that have higher volumes to store but also need accessibility for range and stock rotation.
  24. 24.  Automated storage. More common in continental Europe, although recent developments on behalf of multinational food processors in the United Kingdom have seen two further high bay stores built and commissioned for primary/national pallet storage and distribution. These are very economical for customers if volume related, and best attached or contracted to a high-volume production plant. However, they are totally dependent on design and WMS software for operational capability and capacity/speed, and these demand high standards of presentation within the design pallet gauge. Reliability is key, with benefits in low manpower and energy costs.
  25. 25.  Energy management and plant maintenance- Energy is a large proportion of operating costs, ranging from 12 to 30 per cent on average. The actual amount will depend first on the age and condition of the building, relative thermographic integrity and the age and management of refrigeration plant, and second on equipment management and maintenance.
  26. 26. The focus on energy and carbon reduction has resulted in significant research in techniques by which to generate even greater improvement. These include:  ● a reduction in cooling demand by ensuring that product enters at the correct temperature;  ● improved plant design;  ● improved operational management and maintenance;  ● recovery of heat to use elsewhere in the business – hot water, space heating, etc;  ● examination of the use of CHP (combined heat and power) – tri- generation; and  ● consideration of low carbon electricity – wind, wave or hydro-electric.
  27. 27. In addition, there are more radical approaches; with more positive and closer store management attention. These are as follows:  ● carefully review the cold-store room layout and thereby change the temperature flows;  ● raise refrigeration evaporating temperature for a potential 11 per cent or more cost saving;  ● reduce refrigeration condensing temperature;  ● seasonally adjust refrigeration to take account of external ambient temperature;  ● where fitted, split cold-store and blast-freezer refrigeration systems;  ● install and use variable-speed drive fans; and  ● focus on and manage more closely door opening design and operations.
  28. 28. Safety and risk assessment: There are two different types of refrigerants used in temperature-controlled stores. These are either Hydro Chloro Carbon (HFC/HCFC) or ammonia based, with sometimes a brine or Freon secondary refrigerant, to minimize the ammonia charge. HFC based refrigerants are currently being phased out, as a consequence of legislation following the adoption of the Montreal Protocol, to reduce Ozone Depleting Substances (ODS) or those with high Global Warming Potential (GWP).
  29. 29.  Stock management and housekeeping: - Traceability -Temperature checks - Product checks - Segregation - Date codes - Product spills
  30. 30.  Health and safety issues Specific hazards: ● accidental lock-in risk, requiring alarms and quick-release equipment; ● the effect of cold on people and use of PPE require specific advice and training for staff to wear appropriate thermal clothing, drink lots of water, protect bare skin (particularly fingers, noses and ears), taking greater care if smokers or drinkers; ● accidental release of refrigerant, particularly ammonia; ● use of materials-handling equipment in slippery floor areas where ice build-up may occur, particularly around door openings. Slip and trip hazards are ever present along with the risk of skidding and overturning;
  31. 31. ● ice build-up on panels present an ice-fall hazard, and can, if left, cause roof panels to fall, risking injury to operators below; ● product falls from pallet racks, due to displaced product; ● working at heights: the use of non-integrated platforms using forklift trucks has effectively been eliminated from all stores other than in sub-zero temperatures, and the use of mechanized elevating working platforms (MEWPs) is obligatory. However, these items of equipment are not equipped for sub-zero temperatures. Here the practice is closely scrutinized as agreed between the industry and the Health and Safety Executive. ● The Food Storage and Distribution Federation, British Frozen Foods Federation and Health and Safety Executive have worked together to deliver a Supplementary Guidance (PM 28) during 2010 to help manage these risks.