International Trade Logistics Material Handling & Storage Systems

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By :
Prof. Amit Kumar

07/06/10 2
“Logistics has advanced from warehousing and
transportation to boardrooms of the successful leading
companies across the world. Due to increasing
importance of business logistics, it becomes necessary
for the student pursuing management education from
IILM- Graduate School of Management, to understand
logistics, its basic framework and practical utility.”
IILM-GSM
Importance of this course
International Trade Logistics

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Course: International Trade Logistics
1. Logistics - At the Centre of World Trade
2. Supply Chain Management
3. Warehousing: A Role Beyond Storage
4. Material Handling & Storage System
5. Transportation: Backbone of Logistics
6. Logistics Packaging
7. Logistics Information System
8. Global Logistics & Outsourcing
IILM-GSM
International Trade Logistics

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IILM-GSM
International Trade Logistics Material Handling & Storage System

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Contents
• Role of Material Handling in Logistics
• Material handling Equipment and Systems
 Manual System, Mechanized System
 Semiautomatic & Automatic System
 Case: Material Handling at Steel Stockyard- SAIL
• Storage Principles
• Storage Design- Benefits
• Storage Methods
 Block Storage
 Racking System, Shelving System
 Pallets, Containers
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Material handling can not be avoided in logistics, but can
certainly be reduced to a minimum level. The
productivity potential in logistics can be exploited by
selecting right type of handling equipment.
In fact, the investment in material handling system will be
a total waste if it is not compatible with the warehouse
layout plan. The layout could create obstacles for the
free movement of equipment and the goods resulting
in poor equipment productivity.
Introduction
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Material Handling System Decisions
IILM-GSM
Material
Handling
System
Decisions
Productivity
Potential for goods
being handled
Hygiene &
humane safety
Cost
Implication
Compatible to
storage system
and warehouse
layout
Minimum dead
weight to pay load
ratio

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“ Improving your material handling system fuels a
stunning return on your investment. It makes
more sense that almost anything you can do”.
- John Wagner
Introduction
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• For moving a material in and out of warehouse, various
kinds of equipment and systems are used depending on
the type of products and volumes to be handled.
• These equipments are used for the movement of goods
over a short distance for the purpose of loading and
unloading operations.
Role of Material Handling in Logistics
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In warehouse, the material handling operation is performed
at the following stages:
1. Unloading the incoming material from transport vehicles;
2. Moving the unloaded material to the assigned storage place in
the warehouse;
3. Lifting the material from its storage place during order picking;
4. Moving the material for inspection and packing;
5. Loading the packages, boxes or cartons on the transport
vehicles.
Role of Material Handling in Logistics
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There are various material handling systems in use, right
from fully manual to the fully automatic ones. However, the
selection of a particular system depends on factors such as:
• Volumes to be handled
• Speed in handling
• Product Characteristics (weight, size, shape)
• Nature of the product (hazardous, perishable, crushable)
Material Handling Equipment and Systems
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There are various material handling systems,
1. Manual System
2. Mechanized System
3. Semiautomatic System
4. Automatic System
Major criteria for selection of the right system are units
moved and the distance of movement covered. Higher
volumes moved over large distance call for more
sophisticated systems, which attract higher investment.
Material Handling Systems
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1. Manual System:
• Manual system is the cheapest and most common
method of material movement.
• Limitations are low volume, slow speed, physical
characteristics of the product and the distance.
• Investment in equipment is not justified in such case.
In a warehouse where cartons are weighting not more
than 20 kilogram and volumes handled are not too
large, material loading and unloading and movement
are done manually.
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2. Mechanized System:
• The mechanized equipment requires the space for the
free movement across the warehouse.
• One of the important benefits of mechanization is to
transfer the fatigue from human to machine. It enhances
the system productivity.
• The mechanized system need not be a powered
equipment. A wheeled trolley with handle can be driven
manually.
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The mechanized system includes a large variety of handling
equipments.
1. Wheeled trolley
2. Forklift
3. Pallet truck
4. Tractor-trailer device
5. Conveyors
6. Cranes
7. Carousels
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The criteria for choosing a machine for material movement in
the warehouse should be:
• Improving space utilization
• Reducing the time for the material movement
• Speeding up the overall material flow
• Reducing the material damages during handling
• Should be safe for human beings to operate
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Out of 52 stockyards (warehouses) of SAIL spread over the
country, the one which is located at Kalambori in Navi
Mumbai is spread over 40 cares of land. It caters to the
customer needs in Maharashtra.
Materials such as plates, angles and channels are stacked
in open place while cold rolled coil, galvanized coils,
electric grade sheets in shaded area.
Material Handling at Steel Stockyard
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For handling such heavy products they are using, push-
pull trolley (1 MT capacity), forklift trucks (up to 5
MT), portable cranes (up to 30 MT-outsourced) and
overhead crane.
90% of the material dispatches from SAIL plants to steel
stockyards and to the strategic customers, such as L&T,
Bamler lawry and Godrej, through rail transport.
Material Handling at Steel Stockyard
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3. Semiautomatic System:
• In this system, all mechanized handling equipments may be
used but the specific handling requirement for a particular
warehouse operation many be performed automatically.
• The automation is done in parts, that is the individual
equipment may be fully automatic with computerized
system, but the other equipments in the warehouse are
mechanized with manual.
This system is a mix of mechanized and automatic
handling equipment.
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These are the various types of automated equipments in
semiautomatic warehouse system.
• Sorting device (used along with powered conveyors)
• Robotics (robots are human-like machines with
microprocessor used for performing a series of activity
like break bulk and consolidation operation)
• Automatic guided vehicle system ( AVGS is a
mechanized material handling equipment without an
operator.)
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These are the various types of automated equipments in
semiautomatic warehouse system.
Automatic guided vehicle system
• AVGS is a mechanized material handling equipment without an
operator.
• The vehicle moves on a fixed magnetic or optical path.
• The vehicle reaches to the destination tracing the assigned
path covering the pickup and drop stations without operator.
• They operate at the speed of 150-250 feet per minute, which is
slower than the typical forklift truck at 300-350 feet per minute.
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4. Automatic System:
• Human factor is minimized and restricted to programming
and controls.
• Advantages are speed and accuracy, which enhance
productivity.
• Main disadvantages are high investment, complexity in
development and absence of flexibility
• The system is connected to the computer for programming
the equipment operations, material pickup route, packing
and loading instructions.
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4. Automatic System:
ITC Bhadrachalam uses unmanned automated storage and
retrieval system at its plant in Bhadrachalam, installed by
Godrej- Eface. This system can, using automatic stacker
crane, move 3500 pallets of size 600 to 1400 mm at the
rate of 25-40 pallets per hour. A conventional system, by
contrast, can handle maximum 6-8 pallets an hour.
Material Handling Automation
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In general following rules are followed for designing and
effective storage system:
• Minimize the travel distance
• Maximize the utilization of available space
• Provide easy and quick access to the stored goods
• Facilitate easy tracking of the material
• Provide security against fire, damage and theft
• Prevent contamination and deterioration of the goods
Storage Principles
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Storage Methods
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Block Storage:
• Simplest type of storage method and does not attract any
financial investments.
• Boxes, cartons or sacks containing the material are stored
in the spread or stacks formed in the area assigned for
storage.
• Stacking is done on the floor or on the wooden platform.
• Public warehouses normally adopt this type of storage
method due to a wide variety of products they are storing.
Food grains sacks are normally block stacked.
Storage Methods
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Block Storage:
Block stacking has limitations on the stack height due to
following reasons:
• Load bearing capability of the package ( boxes, carton,
container) at the bottom of the stack
• Sensitivity of the product inside the pack to load
• Ease of loading and unloading
Storage Methods
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Racking System:
• Racks are used for storage of items longer in length, small
containers and boxes and pallets etc.
• As the weights of these unit loads are beyond human
handling capacity, the mechanical material handling
equipments are normally used for storage and retrieval
operations.
• Racks may further be divided into two types such as
stationary and portable.
Storage Methods
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Shelving System:
• Shelving systems are in use for non-palletized or non-
uniform type of loads.
• The material is stored and retrieved in the shelf manually.
• These shelves are close or open type depending on the
product configuration.
• The structure can be easily modified to suit the desire
functionality. Shelving is the most flexible and cost-effective
storage structure.
Storage Methods
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Pallets:
• Pallets are specially designed platforms for storage of
goods with a view of moving the whole load by forklift,
wherever it is required.
• Pallets are made out of wooden, metal or plastic. Most
common is wooden. The standard size of the pallets in use
are 40* 48 Square Inches.
• Pallets can be broadly classified into two groups:
1. Sturdy multiple reusable pallets
2. One-way non-returnable pallets
Storage Methods
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Containers:
• The container is basically a cubical construction with one
(top) side open for depositing and removal of the material.
• Most commonly used in manufacturing plants for in-process
material handling application.
• Different types commonly in use are:
1. Welded Wire Containers
2. Corrugated Metal Containers
3. Plastic Containers
Storage Methods
IILM-GSM

International Trade Logistics Material Handling & Storage Systems

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