HOW WAREHOUSES WORK.

1. Warehouse operations
-PRIYANKA SINGH

2. WAREHOUSEING
• Warehousing is the process of storing goods which are to be distributed later. A
warehouse is defined as any place which is used in the accumulation of goods.
• Why is warehousing important?
• Warehousing is important for businesses that import, export, transport and manufacture
goods. Having a central location for your products gives you control over your products
and helps you ensure that your customers receive their orders on time. Keeping everything
organized in one place can also save you money and boost your productivity.
• Fulfill your orders efficiently
• Add value to your operation
• Reduces the risk to your products

3. Warehousing processes
• The exact warehousing process depends on the magnitude of the warehouse
operation, the type of warehouse and storage, the company
culture, the temperature of the products, any applicable legislative requirements,
and the volume of goods moving through the facility. However, every
warehousing operation has 5 key processes in common. They are:
• Receiving
• Receiving is one of the most important processes in warehousing. It involves a lot of
activity, and any disruption in this step can have an impact throughout the entire
operation. First, the goods received are checked with the supplier’s packing
document. Then the goods are inspected for damage. If there is any physical damage, a
thorough investigation of all of the goods in the shipment is carried out. After inspection,
the goods are taken to the putaway area.

4. Warehousing processes Cont..
• Putaway
• Putaway is the process of moving the goods from the receiving area to the place where they will be
stored. This process involves calculating the resource and space requirements for each item. Goods
that are similar to each other are usually stored together so that they can be located and distributed
easily. The operators handling the putaway process confirm that the correct storage location has
been found and place the goods into their assigned slot before confirming the completion of the
process.
• Picking
• Picking consists of collecting articles according to a customer’s order before shipping them. Picking
uses a huge amount of resources and usually takes 60% or more of the warehouse’s staff to perform
the process. This means that it has a significant influence on your supply chain’s productivity.
• Packing
• Packing consists of combining all the items in a sales order together and getting it ready for
shipment. This process involves packing the items in a suitable container, weighing the packed
order, printing relevant labels, and selecting the right courier service to complete your delivery.

5. Warehousing processes Cont..
• Shipping
• Shipping is the process of
dispatching your orders to
their respective customers.
The shipped goods are
packed early to avoid
cluttering in the staging
areas which will lead to late
deliveries and confusion.
The process is aligned with
the carrier pick up times.

6. Types of warehouses
• Government Warehouses
These warehouses cater to the government’s own storage needs but can also be
used by the general public through rental. However, if a business is unable to pay
their dues on time, the government has the authority to recover their rent by selling
off their goods. These warehouses are owned, managed, and operated by
governments or public authorities.
• Characteristics and benefits of these kinds of warehouses are as follows:
• Supply storage for local government facilities such as schools and offices.
• Strategically placed to provide storage for disaster supply kits during disasters such as
earthquakes, floods, droughts, etc.
• Affordable rent rates charged by the government.

7. Types of warehouses cont…
• Bonded Warehouses
• Bonded warehouses can store imported dutiable goods for a fixed amount of time without
paying duties. When the goods are released for consumption, the payment of import duties,
taxes, and other charges are collected by the proprietor who holds the liability. But when the
goods are exported, drafted to be used in international traffic, or destroyed under the Customs
and Border Protection’s supervision, liability is canceled, and no duties are collected.
• Characteristics and benefits of these kinds of warehouses are as follows:
• In case the goods don’t get any local demand, they can be exported and be exempted from paying duties.
• As charges are not collected until the goods are released, it reduces the financial burden on the business
for a period.
• A wide range of products can be accommodated.
• Most of the warehouses have alliances with freight forwarding companies, eliminating the hassle of
managing the distribution and shipping logistics for the products.

8. Types of warehouses cont…
• Cross-Dock Warehouses
• A cross-dock warehouse involves the
transfer of goods from an inbound
carrier to an outbound carrier, with little
to no storage time. When goods arrive
at a cross-dock warehouse, they
directly go through the sorting process
instead of getting stored. The large
deliveries are broken up into groups
according to their destination, usually
the retail store, to be transported by a
single truck. Without cross-docking,
multiple trucks would need to deliver all
the goods destined for one location.
See the image below for a graphical
explanation.

9. Types of warehouses cont…
• Characteristics and benefits of these kinds of warehouses are as
follows:
• Favorable shipping prices due to consolidated shipping, which eliminates the
reliance on multiple shipping partners
• Lower inventory costs, as goods are shipped without their being stored in the
warehouse.
• Faster delivery and lowers travel costs
• Reduced material handling costs and lower risk of product damage as goods
are not passed through multiple warehouse stages

10. Types of warehouses cont…
• Temperature-Controlled and Climate-Controlled Warehouses
• The terms “temperature-controlled warehouse” and “climate-controlled warehouse” are
often used interchangeably, but these two types of warehouses are slightly different.
• Temperature-controlled warehouses maintain the temperature within a set range so that
the quality of the goods remains intact. These warehouses utilize strategically placed
cooling or heating units, and the requirement can vary depending on factors such as
seasons and characteristics of products stored.
• Characteristics and benefits of these kinds of warehouses are as follows:
• Follow strict quality control processes to maintain the characteristics of sensitive products
• Preserve goods against extreme temperatures

11. Types of warehouses cont…
• Climate-controlled warehouses differ from temperature-controlled
warehouses in that they have the ability to maintain airflow, temperature range,
and humidity levels to preserve very sensitive products. These facilities are
equipped with high-quality HVAC systems (heating, ventilation, and air
conditioning), dehumidifiers, customizable thermostats, and heavy-duty
insulation to ensure superior environmental quality. Usually, these warehouses
are limited and expensive.
• Characteristics and benefits of these kinds of warehouses are as follows:
• Eliminate the growth of mold and mildew that can damage goods made of wood and
fabric
• Protect electronics and expensive paintings from extreme heat, cold, and humidity
• Deter invasion of any kind of dust or pest because they are well insulated from the
outside environment

12. Types of warehouses cont…
• Hazardous Material Warehouses
• These warehouses ensure high safety standards for storing and handling hazardous
materials (HAZMAT), such as explosives, gases, chemicals, toxic, and radioactive
substances. They employ highly trained and HAZMAT-certified employees who use
personal protective equipment (PPE) to minimize exposure to hazards that can cause
serious workplace injuries and illnesses. These types of warehouses are located away
from densely populated areas, as they can pose a risk to public safety, property or the
environment.
• Characteristics and benefits of these kinds of warehouses are as follows:
• Take protective measures to protect cargo by conducting risk assessments
• Materials usually kept in specially designed storage units to prevent them from coming into contact
with one another

13. Warehouse layout design
Listed below are some potential references or needs for the design of our warehouse and which will depend on the type of product or the characteristics of the company:
• Access to the highest number of references on pallets.
• Direct access to small references.
• Possibility of constant relocations according to the season.
• Possibility of grouping of lines.
• Maximum speed of the picker.
• No interference of the picker with other pickers.
• No interference with replacements.
• No stock depletion.
• Stock in real time.
• Visibility of the product and references.
• Maximum storage capacity.
• Ergonomics of the racking systems and handling equipment.
• Physical locations that enable placement of the products according to their stock depletion (high, medium or low).
• Controlled cost.
• Adequate return on investment.
• Profitable maintenance.
• Enabling shift work.
• Extendible and modifiable based on future premises (more references, more pallets, more picking units, etc.)

15. Case study: Supply chain module for the
covid vaccine
• What according to your information, consists in suppychain of covid
vaccine.
• Discuss….

19. Lesson learnt Producing and
Distributing COVID-19 Vaccines
• Effective collaboration is essential – for all supply chains
• Supply chains must be flexible to meet unique challenges
• Digitalization of the supply chain supports those requirements

20. • Lessons Supply Chains Can Learn From the COVID Vaccine Rollout
• 1. Complexity isn’t going away. As vaccine manufacturers and distributors have
discovered, supply chains are increasingly complex systems that generate their own
unique challenges. Components need to be stored, shipped and delivered at low
temperatures for millions of vaccine doses that need to be administered – and then
administered again to achieve the right efficacy. These complexities of supply chains are
not going to disappear, no matter what strategies enterprises adopt to manage the risks
that complexity brings with it.
• 2. Supply chain collaboration is more important than ever. Across all tiers of the
supply chain, effective and efficient collaboration is essential. To cope with new problems
and break down the silos that tend to develop across enterprises, the role of a supply
chain management software platform becomes crucial given its ability to orchestrate the
elements harmoniously.
• 3. Flexibility is a critical supply chain capability. This is driven by a mindset of
innovation and creativity, as seen in how companies looked to new avenues for the
necessary cold-chain equipment. Flexibility is also enabled by supply chain software,
which is helping enterprises identify potential bottlenecks and execute solutions. And that
will make them more resilient to future disruptions.