The document provides an overview of warehousing and strategic warehousing. It discusses how warehouses have evolved from passive storage facilities to strategic distribution centers. Modern warehouses aim to minimize inventory storage and maximize flexibility to quickly meet changing customer demand. The document outlines different types of warehouses and their functions. It also discusses important warehouse decisions around site selection, design, layout, and the role of technology like barcode and RFID in improving warehouse operations and inventory management.

1. WELINGKAR INSTITUTE OF MANAGEMENT DEVELOPMENT & RESEARCH
Year of Submission : Dec 2016
Ware Housing – An Overview
SUHAS D RAHATE
ROLL NO : HPGD/JA15/1075
SPECIALIZATION : SUPPLY CHAIN MANAGEMENT

2. WAREHOUSING OVERVIEW
• Strategic warehousing
• Warehouse operations
• Warehouse ownership
arrangements
• Warehouse decisions

3. WAREHOUSING CONTRIBUTES VALUE IN THE
LOGISTICS PROCESS
• Traditionally viewed as a
place to hold or store
inventory
• Contemporary view is the
warehouse functions to mix
inventory arrangements to
meet customer requirements
• Storage of products is held
to a minimum

4. EVOLUTION OF STRATEGIC WAREHOUSING
Warehouses were once viewed as a
necessary evil, used to coordinate
product supply with customer
demand
The explosion of the consumer
economy after WWII saw the rise of
distribution networks for consumer
goods
Warehousing shifted from passive
storage to strategic assortment

5. WAREHOUSING TYPES EVOLVED TO ACCOMMODATE
THE DYNAMIC ASPECTS
•Distribution centers
•Consolidation terminals
•Break-Bulk facilities
•Cross-docks

6. STRATEGIC WAREHOUSING OFFERS MANUFACTURERS A WAY
TO REDUCE DWELL TIME OF PARTS AND MATERIALS
Warehousing is integral to just-in-
time (JIT) and stockless production
strategies
Requires strategically located
warehouses across the globe
An important goal in warehousing is
to maximize flexibility
Respond to ever-changing
customer demand

7. STRATEGIC WAREHOUSING CAN PROVIDE BOTH ECONOMIC
AND SERVICE BENEFITS
• Economic benefits of warehousing
occur when overall logistics costs are
reduced
Consolidation and break-bulk
Sorting
Seasonal storage
Reverse logistics
• Service benefits are justified by
sales improvements that more than
offset added cost
Spot-stocking
Full line stocking
Value-added services

8. CONSOLIDATION AND BREAK-BULK REDUCE TRANSPORTATION COST
• Consolidation occurs when a
warehouse receives materials from a
number of sources and combines
them into exact quantities for a
specific destination
• Break-bulk occurs when a
warehouse receives a single large
shipment and arranges for delivery
to multiple destinations

9. SUCCESSFUL CROSS-DOCKING IS HIGHLY DEPENDENT ON
INFORMATION TECHNOLOGY
Products are
received, selected,
repackaged, and
loaded for
shipment w/o
storage

10. ASSEMBLY SUPPORTS MANUFACTURING OPERATIONS
Assembly occurs when
products or components from
second-tier suppliers are
assembled by a warehouse
located near manufacturing
plant
Common assembly processes
are packaging and color
customizing

11. REVERSE LOGISTICS PROCESSING
Reverse logistics include activities supporting
•Returns management
•Recalls or product that did not sell
•Remanufacturing and repair
•Repairing/refurbishing equipment
•Remarketing
•Selling used equipment
•Recycling
•Disposal

12. SERVICE BENEFITS OF WAREHOUSING
Spot-stocking is the
positioning of inventory for
seasonal or promotional
demand
Full line stocking provides
one-stop shopping
capability for goods from
multiple suppliers
Value-added services
include any work that
creates a greater value for
customers

13. WAREHOUSE OPERATIONS INVOLVE TWO MAJOR
ACTIVITIES – 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

14. HANDLING
Handling must optimize
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

15. STORAGE PLANS SHOULD 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

16. WAREHOUSES MUST MANAGE TWO CLASSES OF
STORAGE
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

17. WAREHOUSE DECISIONS THAT DETERMINE HANDLING AND
STORAGE EFFICIENCY
•Site Selection
•Design
•Product-Mix Analysis
•Expansion
•Materials Handling
•Layout
•Sizing
•Warehouse management system
•Accuracy and audit
•Security
•Safety and maintenance

18. SAFETY AND MAINTENANCE ISSUES MUST ALSO BE
CONSIDERED WHEN PLANNING WAREHOUSE DESIGNS
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. WAREHOUSE MANAGEMENT SYSTEMS &
FUNCTIONS
Manages warehouse inventory, space, equipment, and labor
resources to direct the flow of materials and information from
receiving and putaway to light assembly, order picking, value-
added processing and shipment
Receiving
•Blind
•ASN/EDI
•Conventional or Automatic
Putaway
•Dedicated, Random or Hybrid
•Location Selection: System or Operator
•Put Confirmation
Picking and Shipping
•Pick by Order, Batch, Wave
•Pick Confirmation
•Shipping Check Lists
•Manifests, Bills of Lading

20. FORMS OF INVENTORY & FUNCTIONS
• Raw Materials and Purchased Parts
• Work In Process
• Finished Goods
• MRO Items
• Resale Items
Roles of Inventory
Transit or Pipeline Inventories
Cycle Inventories
Buffer/Safety Stocks
Anticipation Inventories
Decoupling Inventories

21. ABC CLASSIFICATION
Concentrates efforts in the areas of
highest payoff
Reduces paperwork and managerial
effort, but maintains a high
service coverage
Steps:
1. Calculate purchase value (unit price
x number of units)
2. Classify the purchase value of each
item into groups of high annual
purchase value (A), medium value
(B), low value (C)
3. Concentrate time and effort on A &
B items versus on C items

22. BAR CODE TECHNOLOGY
•It is an automatic identification
technology
•Bar code is a predefined format of
dark bars and white spaces
•Structured to contain a specific
piece of information
•It allows real-time data to be
collected accurately and rapidly
•Combination of barcode technology
with computer and application
software improves performance,
productivity and profitability

23. RFID
RFID = Radio Frequency Identification.
An ADC (Automated Data Collection)
technology that:
uses radio-frequency waves to transfer data
between a reader and a movable item to
identify, categorize, track..
Is fast and does not require physical sight or
contact between reader/scanner and the
tagged item.
Performs the operation using low cost
components.
Attempts to provide unique identification
and backend integration that allows for wide
range of applications.
Other ADC technologies: Bar codes, OCR.

24. RFID TAGS
Tags can be attached to almost anything:
Items, cases or pallets of products, high value goods
vehicles, assets, livestock or personnel
Passive Tags
Do not require power – Draws from Interrogator Field
Lower storage capacities (few bits to 1 KB)
Shorter read ranges (4 inches to 15 feet)
Usually Write-Once-Read-Many/Read-Only tags
Cost around 25 cents to few dollars
Active Tags
Battery powered
Higher storage capacities (512 KB)
Longer read range (300 feet)
Typically can be re-written by RF Interrogators
Cost around 50 to 250 dollars

25. Thank you