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![Warehouse
• According to Logistics Bureau [1], Warehouse can be defined as
planned space for the efficient storage and handling of goods and
materials
• A warehouse is a dynamic operation and can deliver a more
profitable return on investment than many people realise.
• Only 26% of company managers view warehouses and distribution
centers as an asset which can drive growth for their business [2]
• 34% of businesses ship late because products are sold which are not
actually in stock [3]
1. https://www.logisticsbureau.com/about-warehousing/
2. https://www.zebra.com/content/dam/zebra_new_ia/en-us/solutions-verticals/vertical-solutions/warehouse-management/vision-study/2024/warehouse-vision-study-
en-us.pdf
3. https://www.peoplevox.com/hubfs/Fulfilment%20Survey%202017/2017%20Peoplevox%20E-Commerce%20Fulfilment%20Report.pdf](https://image.slidesharecdn.com/ptlf7warehouseandstorage-230905044248-3890c663/85/PTLF_7-Warehouse-and-Storage-pptx-4-320.jpg)
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PTLF_7 Warehouse and Storage.pptx
- 1. STI601 Warehouse and Storage KK: ProductionEngineering and Supply Chain Management Industrial Engineering Faculty of Industrial Technology Universitas Islam Indonesia
- 2. Learning Objective(s) Understand the conceptof warehouse Understand the warehouse management system Understand the concept of storage Recognize type of facility storages
- 3. Contents • Warehouse • Challenges •Warehouse in Industry 4.0 • Warehouse Management System • Storage • Function of storage • Type of storage equipment
- 4. Warehouse • According toLogistics Bureau [1], Warehouse can be defined as planned space for the efficient storage and handling of goods and materials • A warehouse is a dynamic operation and can deliver a more profitable return on investment than many people realise. • Only 26% of company managers view warehouses and distribution centers as an asset which can drive growth for their business [2] • 34% of businesses ship late because products are sold which are not actually in stock [3] 1. https://www.logisticsbureau.com/about-warehousing/ 2. https://www.zebra.com/content/dam/zebra_new_ia/en-us/solutions-verticals/vertical-solutions/warehouse-management/vision-study/2024/warehouse-vision-study- en-us.pdf 3. https://www.peoplevox.com/hubfs/Fulfilment%20Survey%202017/2017%20Peoplevox%20E-Commerce%20Fulfilment%20Report.pdf
- 5. Why do CompaniesNeed Warehouses? • Protection and Preservation of goods • Regular flow of goods • Continuity in production • Convenient location • Easy handling • Useful for small businessmen • Facilitates sale of goods • Availability of finance • Reduces risk of loss
- 6. Warehouse in Supplychain RICHARDS, Gwynne. (2014). Warehouse Management : a complete guide to improving efficiency and minimizing costs in the modern warehouse 3rd ed. Publishing Place: Kogan Page.
- 7. Type of WarehouseOperation • Raw material • Intermediate, postponement, customization, or sub-assembly facilities • Finished goods storage • Consolidation centers and transit warehouse • Automotive parts warehouse and brought together to the production line • Transshipment or break-bulk centers • Cross-dock centers • Fulfilment centers
- 8. Trade-offs In Warehouse High Customer servicelevel Lower Inventory Cost Reduction
- 9. Warehouse Challenges RICHARDS, Gwynne.(2014). Warehouse Management : a complete guide to improving efficiency and minimizing costs in the modern warehouse 3rd ed. Publishing Place: Kogan Page.
- 10. https://www.youtube.com/watch?v=ccscy06nuiQ A warehouse shouldbe viewed as a temporary place to store inventory and as a buffer in supply chain
- 11. Warehouse in Industry4.0 Galindo, L.D. (2016). The Challenges of Logistics 4.0 for the Supply Chain Management and the Information Technology.
- 12. Warehouse ownership arrangements •Private—warehouse operated by the firm owning the product • Building may be owned or leased • Public—service company owns warehouse and hires out space and services • Usually classed as • General merchandise • Refrigerated • Special commodity • Household goods and furniture
- 13. Contract warehousing combineselements of private and public operations • Usually a long-term relationship or contract between a firm and the warehousing owner/operator • Long-term cost savings compared with public warehouse • Often a firm’s employees will work alongside the contract warehouse’s • Example is Kraft Foods who has contracted with AmeriCold Logistics since the late 1990’s https://id.wikipedia.org/wiki/Berkas:Kraft_logo.svg https://www.ramw.org/news/americold-keeps-your-drinks-cool-us-open-new-armstrong-stadium
- 14. Site selection isdriven by service availability and cost factors • Identify broad geography where an active warehouse meets service, economic and strategic requirements • Selection and number of retail outlets drives location of support warehouses • Final selection should be preceded by extensive analysis https://www.nationsonline.org/oneworld/map/usa_map.htm
- 15. Network deployment isthe combination of private, public and contract facilities used by a firm • Network deployment strategy requires answering two questions • How many warehouses should be established? • Which warehouse ownership types should be used in specific markets? • For example, when warehouse utilization is not full throughout the year • Use private or contract warehouse to cover 75 percent requirement • Public facilities used to accommodate peak demand https://www.google.com/maps/place/Amerika+Serikat/@23.9179528,- 88.8760991,7z/data=!4m5!3m4!1s0x54eab584e432360b:0x1c3bb99243deb742!8m2!3d37.09024!4d-95.712891
- 16. Warehouse Management Systems •Warehouse management systems (WMS) integrate procedures and software support to standardize storage and handling work procedures • WMS encourage best practices • One main use of WMS is to coordinate order selection • Discrete selection is when a specific customer’s order is selected and prepared for shipment as a single work assignment • Wave or batch selection is when orders are processed through zones of the warehouse assigned to specific employees
- 17. Warehouse Planning Issues •Inventory accuracy is typically maintained by annual physical counts or counting portions of inventory on a planned basis • Cycle counting is the audit of selected inventory on a cyclic schedule • Audits are common to maintain safety, assure compliance to regulations and help improve procedures • Security issues involve protection from pilferage and damage
- 18. Safety and MaintenanceIssues • Accident prevention • Comprehensive safety programs and training, accident investigation and follow up • Environmental protection • Spill ( leak ) kits and spill plans • Maintenance • Scheduled maintenance of building, material handling equipment, and collision damage prevention
- 19. Basic Warehouse Problems 1.Redundant Processes • Handle a product several times 2. Poor Facility Layout • Narrow aisles • High-elevation situations 3. Seasonality in Demand • Layout and picking 4. High Labor Costs • 65% of the operating budgets of most warehouses 5. Inaccurate Inventory • Improper stock levels and buildups of obsolete
- 20. Warehouse Manager’s Challenges •Nearly 3,000 hours per year are lost in warehouses and DCs through inefficient processes. • 80 per cent of managers have been tasked with finding cost savings in existing operations. • On average managers have been tasked with finding nearly 20 per cent cost savings across their organizations. • The majority of managers suggested the following areas were most inefficient: ✔Inventory control (53 %); ✔Picking (47 %); ✔Put-away and replenishment (45 %).
- 21. RICHARDS, Gwynne. (2014).Warehouse Management : a complete guide to improving efficiency and minimizing costs in the modern warehouse 3rd ed. Publishing Place: Kogan Page. Warehouse Activities
- 22.
- 23. Warehouse Two MajorActivities – Handling and Storage • Objective is to • Efficiently receive inventory • Store it as required • Assemble it into complete orders • Make a customer shipment • Operations will therefore emphasize product flow
- 24. Warehouse decisions thatdetermine handling and storage efficiency • Site Selection • Design • Product-Mix Analysis • Expansion • Materials Handling • Safety and maintenance • Layout • Sizing • Warehouse management system • Accuracy and audit • Security
- 25. Handling • Handling mustoptimize movement continuity and efficiency • Receiving—Unloading the arriving vehicles • In-Storage—moving goods for storage (transfer) or order selection (picking) • Shipping—verifying the order and loading the departing vehicles
- 26. Storage • Storage plansshould make product velocity a major factor • Slotting determines specific locations for the product based on • Velocity—how fast the goods move • Weight—how heavy is the product • Special Characteristics—how large or small, does it require rack or bin storage https://airspeed.ph/blog/warehouse-storage-systems/
- 27. Two Classes ofStorage • Active Storage—storage for basic inventory replenishment • Focuses on quick movement • Includes flow-through or cross-dock distribution • Extended Storage—storage for inventory held in excess of period for normal replenishment • E.g. seasonal, speculative, or even commodities
- 28. Pre-Receiving Challenge: To ensure thatthe supplier presents the products to the warehouse in the most appropriate way.
- 29. Thinking Point: • Sizeand type of cartons; • Type of transit packaging – cardboard, plastic, totes, metal stillages, • Roll cages, pallets; • Palletized or non-palletized delivery of product; • Size (length, width and height) and type of pallets • Specific labelling such as product description, barcode and quantities; • Position of label on carton and pallet; • Carton quantities (inner and outer carton quantities, for example); and • Mode of transport, delivery quantity and frequency of delivery
- 30. Receiving The correct product The right condition The right time Theright quantity Receiving
- 31. Inspection Inspections should becompleted within a reasonable amount of time or as specified in the purchase document Time to check Put-away
- 32. Inspection challenges: • Todecide whether they need to be checked before put-away • Random check or 100% check • Time consumed • Technology used Speed Accuracy
- 33. Cross Docking • Shareresources • Inspection time vs increasing throughput rates • System required • Availability of receiving space RICHARDS, Gwynne. (2014). Warehouse Management : a complete guide to improving efficiency and minimizing costs in the modern warehouse 3rd ed. Publishing Place: Kogan Page.
- 34. Put-away Process • Tasks •Move goods storage locations • Facility • Pallet truck • Lift truck • Etc. • Decisions • Where • When • Equipment • Cost ~ 15% https://pindahlubang.com/8527-cara-kerja-forklift/
- 35. Thinking Point: • Size,weight and height of palletized goods; • Results of an ABC analysis or slotting, where fast-moving goods are placed closest to the dispatch area; • Current order data; • Family product groups; • Actual sales combinations; • Current status of pick face for each product; • Size of pallet locations; and • Weight capacity of racking.
- 36. Thinking Point: Distance ofthe locations from the receiving and dispatch areas https://www.pressebox.de/pressemitteilung/witron-logistik-informatik-gmbh/Sobeys-Kanada- Vollautomatische-Kommissionierung-im-Frische-und-Tiefkuehlbereich/boxid/788662
- 37. Storage Purpose: “Storing andAssorting the finished goods at maximum time utility at minimum cost”
- 38. “Storage involves propermanagement for preserving goods from the time of their production or purchase till actual use”
- 39. Storage Activities • Tasks •Hold inventory • Methods • Floor, floor stacking • Pallet rack • Gravity flow rack, push back • Bin shelving, etc • Objectives • Space utilization • Response • Labor cost • Decisions • Floor, equipment, slotting, • How to measure the efficiency of storage?
- 40.
- 41. Storage Type • Blockstacking • Racked storage • Wide aisle or selective pallet racking • Double-deep racking • Narrow aisle racking • Drive-in/drive-through racking • Pallet flow/live storage • Push-back racking • Mobile racking • Satellite or shuttle racking • Shuttle technology with a difference
- 42. Which One isBetter ? Depend on: • The configuration of the building, • The type of MHE currently in use • The budget available
- 43. Storage Option • Blockstacking • Racked storage • Wide aisle or selective pallet racking • Double-deep racking • Narrow aisle racking • Drive-in/drive-through racking • Pallet flow/live storage • Push-back racking • Mobile racking • Satellite or shuttle racking • Shuttle technology with a difference
- 44. Block stacking Application: • Thewarehouse height is reasonably low • Products and packaging are robust • Limited budget Disadvantages • Access, hard forklift maneuver • Damage, crushed by the weight • Stock rotation, only be dispatched on a LIFO • Space utilization Advantages • No storage equipment is required • Items must be able to support the weight: • special packaging may be required • Can achieve good space utilization with limited SKUs https://thistlesystems.co.uk/block-stacking-warehouse-semi-automated-racking/
- 45. Wide Aisle orSelective Pallet Racking Application: • This racking is present in the majority of warehouses worldwide • No need for any specialized handling equipment • The beam heights can be configured • Access is also quick and easy Disadvantage • Wider aisle for forklift maneuver • The use of reach trucks • Material handling problems https://www.primeworkspacesolutions.co.uk/product/wide-aisle-pallet-racking
- 46. Double-deep racking Disadvantages: • Requirespecialist equipment • Slightly wider aisles • Speed of access is slower. Application & Advantages: • Allows pallets to be stored two deep in the racking thus eliminating an aisle • a highly space-efficient storage system • LIFO applies Source: https://www.stow-group.com/en-US/solutions/double-deep-racking
- 47. Narrow aisle racking Application& Advantages: • Maximizing the capacity • Maximum storage utility Disadvantages: • Requires the use of narrow aisle or turret trucks to deposit and access pallets • Narrow aisle racking requires a very flat floor • Restricts the speeds https://www.nutech.co.id/product/Very-Narrow-Aisle-Rack
- 48. Drive-in/drive-through racking Application &advantages: • Mass quantity per each product • Good for fragile or unstable product to be stacked • No requirement for aisles • High floor space storage usage efficiency 70-80% • Suitable for large quantities of single SKUs Disadvantages: • The pallets have to be stronger than for normal • Low work efficiency • Increased potential for damage • low speed of put-away and retrieval https://royalandalas.com/p/rak-gudang-sistem-drive-in/
- 49. Dynamic or pallet-flowracking • Dynamic racking systems utilize inclined rails or rollers to allow pallets or boxes to slide towards the picking direction. • These racking systems are also referred to as gravity flow systems. • Dynamic rack includes pallet flow, carton flow and push back systems Source: https://pacificbendinc.com/dynamic-pallet-flow-racking-system-facilitates-fifo-methodology/
- 50. Pallet Flow/Live Storage Application& Advantages: • Pallet-flow racking is driven by gravity • No need driving device • Short distance in the lane when picking • High floor space usage efficiency 70-80% • High handling capacity of receipt/delivery per lane • Perfect for fast-moving product • FIFO stock rotation Disadvantages: • Each run also requires the same product • Unfavorable multi rack stacking because lane slope • Difficult maintenance and repair for roller and brake • High investment cost • Product damage happen when brake defect Source: https://pacificbendinc.com/dynamic-pallet-flow-racking- system-facilitates-fifo-methodology/
- 51. Push-back Racking Application &advantages: • Easily accessible LIFO inventory • Push back offers more versatile storage • Variety of SKUs can be stored • Maximum 4 deep stacking available • High storage efficiency Disadvantages: • Limited height of forklift mast due to push-back pressure • Require trolley device at each storage cell • First-in-last-out • Difficult storage work http://www.asrs-systems.com/sale-11241359-warehouse-push-back-racking-system- industrial-first-in-last-out-operation-process.html
- 52. Mobile Racking Application &Advantages • Very compact • Floor space is being saved at the expense of a slowing down in the load-retrieving operation • Small quantity variety product, preferable to individual • Receipt/delivery requested product. • High floor space storage usage efficiency over 70% Disadvantages • Low handing capacity in case simultaneous receipt/delivery • Limited rack height • Safety device for pedestrian • Floor rail require https://www.stow-group.com/en/products/pallet-racking/mobile-racking
- 53. Satellite Racking Application &Advantages: • Large quantity in small variety product • Automatic warehouse at the existing Building • Satellite system is similar to drive-in racking • The shuttles are controlled remotely via a radio frequency • Operate with FIFO • Each level of racking is assigned to a specific product • Floor space efficiency is very high as over 80% • Storage capacity increase more that double Vs manual pallet rack • Automation of receipt/delivery and data/inventory management • High handling capacity by simultaneous working of each shuttle at each stack • Easy manufacturing/installation by small size & light weight shuttle & satellite Disadvantages: https://www.colby.com.au/satellite-rack
- 54. Storage Type Comparison RICHARDS,Gwynne. (2014). Warehouse Management : a complete guide to improving efficiency and minimizing costs in the modern warehouse 3rd ed. Publishing Place: Kogan Page.
- 55. Thinking point: ❑ Ensurethat you have booked arrival slots for the majority of your suppliers. ❑ Reduce the amount of checking required on inbound deliveries. ❑ Have a system in place to prioritize inbound goods, e.g. prioritize low-stock items and promotional items. ❑ Plan your put-away meticulously and ensure product is located accurately and efficiently. ❑ Cross dock as much as possible
- 56. Individual Assignment • Findjournal paper and make a summary/discussion regarding: • Warehouse • Warehouse Management • IoT application in Warehouse
- 57. Lessons Learned Understand the conceptof warehouse Understand the warehouse management system Understand the concept of storage Recognize type of facility storages
- 58. References • Gwynne Richards,2014, Warehouse Management: A Complete Guide to Improving Efficiency and Minimizing Costs in the Modern Warehouse, Kogan Page • Stuart Emmett, 2005, Excellence in Warehouse Management_ How to Minimise Costs and Maximise Value, Wiley and Sons • Tompkins, J. A. White, Y. A. Bozer, E. H. Frazelle, J. M. A. Tanchoco, and J. Trevino, , 2003, Facilities Planning 4th Ed., Wiley • Galindo, L.D. (2016). The Challenges of Logistics 4.0 for the Supply Chain Management and the Information Technology. • https://www.logisticsbureau.com/about-warehousing/ • https://www.zebra.com/content/dam/zebra_new_ia/en-us/solutions- verticals/vertical-solutions/warehouse-management/vision- study/2024/warehouse-vision-study-en-us.pdf • https://www.peoplevox.com/hubfs/Fulfilment%20Survey%202017/2017%20Pe oplevox%20E-Commerce%20Fulfilment%20Report.pdf
- 59.