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WAREHOUSING
OPERATIONS
Sohail AhmedVighio
13IN101
WAREHOUSING - Definitions:
• Robert Hughes has defined it in following
words, "Warehousing is a set of activities that are involved
in receiving and storing of goods and preparing them for
reshipment.“
• Keeping in view the various definitions we may say that
warehousing is not only concerned with storage facility it is
also involved in various other activities like receiving,
identifying, holding, assembling and preparing available to
meet the demand.
Warehousing Operations involve three
Major Activities :
• INBOUND ACTIVITIES
• PROCESS ACTIVITIES
• OUTBOUND ACTIVITIES
INBOUND ACTIVITIES
• RECEIVING
• PUT-AWAY
RECEIVING
• Unloading and checking the shipment. The number of containers or
package of materials unloaded from the carrier's vehicle is checked
against the carrier's manifest (freight bill or delivery order) to ensure
that all the full consignment or order has been delivered.
• Unpacking and inspecting the material. A receiving clerk is held
responsible for three verification. First, he or she checks the material
received against the supplier's packing slip and against a copy of the
firm's purchase order to verify that the correct items have been
shipped. Second, the quantity of the shipment is verified in the same
manner. Finally, the clerk inspects the general condition of the
material to determine whether any external damage was incurred
during shipment.
RECEIVING – Cont.
• Completion of the receiving report. When the receiving
clerk has finished the inspection, he or she completes the
form by recording the quantities of the items received,
indicating those that are still open, and noting any other
useful information on the form. Regardless of the system
used, four operating groups generally require notification
that the material has been received: the requisitioner , the
purchasing department, the accounting department, and the
inspection department if technical inspection is required.
RECEIVING- Cont.
UNLOADING
COUNTING
Identifying
Marking
Registering Goods
PUT-AWAY
During put-away process the warehouse staff scans the bar code
from the pallet (carton) and according to instructions moves it on
given address. The second put-away method enables to let the
selection of warehouse location on warehouse staff who only by
scanning the address from the rack notifies the system where the
goods has been stored. Also in this case the defined rules for put-
away are checked.
PUT-AWAY
 PRODUCT CATEGORY
• Product key
• Product code
• Size
• Weight
• Cost
• color
 STORAGE / PALLETIZING
PROCESS ACTIVITIES
• ORDER PICKING
• REPLINISHMENT
• STOCK ROTATION
ORDER PICKING
 Order picking is the process of pulling items from inventory
to fill a customer order. It is seen as the most labour
intensive activity within a warehouse.
• Different order picking methods:
• There are many order picking methods. These include:
• Zone picking
• Batch picking
• Wave picking
METHODS OF ORDER PICKING
 ZONE PICKING:
• Each order picker is assigned a specific zone and will only
realise order picking within this zone.
 BATCH PICKING:
• An order picker is assigned and picks batch wise orders.
 WAVE PICKING:
• A variation of zone and batch picking. Rather than orders
moving from one zone to the next for picking, all zones are
picked at the same time and the items are later sorted and
consolidated into individual orders/shipments
REPLINISHMENT
• Replenishment is the movement of inventory from
upstream to downstream.
• The purpose of replenishment is to keep inventory flowing
through the supply chain by maintaining efficient order.
The process helps prevent costly inventory overstocking.
STOCK ROTATION
• To rotate stock means to arrange the oldest
units in inventory so they are sold before
the newer units.
• For example, a grocery store will restock
its shelves by putting the oldest units in the
front part of the shelves. The newest units
will be placed in the back of the shelves.
The hope is that the customer will select
the most convenient (older) units from the
front of the shelf.
It is important to rotate stock in all areas:
retail display area, warehouse, factory, etc.
The reason to rotate stock is to reduce the
losses from deterioration and
obsolescence.
Stock Rotation Methods
 FIFO - First In, First Out
 LIFO - Last In, First Out
 Bar Code OR Date Of Manufacture System
• RFID Chip Inventory Systems
• Radio frequency identification (RFID) chips are the newest
technological innovation in inventory control. RFID chips are tiny
microchips embedded in a product that send out a signal so the
product can be tracked. RFID chips offer real-time access to
inventory data and solve many of the deficiencies of bar code
inventory control systems, but they are still relatively expensive.
OUTBOUND ACTIVITIES
• Packing
• Shipping
Packing
Packing
• The primary task for packing is to minimize damage that could
occur after an item has left the production line.
• In the warehouse the item is subject to a variety of situations
where damage could occur.
• Forklifts can drop materials, they can fall from conveyor belts, or
fall from broken pallets. In each of these instances, the packing
has to be designed so that it will protect the item from damage, but
light enough so that is does not increase the weight of the finished
good so much that the shipping costs are significantly increased.
• In addition the packing must protect the item from environmental
damage, such as extreme temperature, water damage,
contamination with other goods, or damage from static, which is
important for electronic items.
Shipping
• Confirmation
• Invoicing
• Sealing
• Staging
• Loading
WAREHOUSING OPERATIONS: INBOUND, PROCESS, OUTBOUND ACTIVITIES

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WAREHOUSING OPERATIONS: INBOUND, PROCESS, OUTBOUND ACTIVITIES

  • 2.
  • 3. WAREHOUSING - Definitions: • Robert Hughes has defined it in following words, "Warehousing is a set of activities that are involved in receiving and storing of goods and preparing them for reshipment.“ • Keeping in view the various definitions we may say that warehousing is not only concerned with storage facility it is also involved in various other activities like receiving, identifying, holding, assembling and preparing available to meet the demand.
  • 4. Warehousing Operations involve three Major Activities : • INBOUND ACTIVITIES • PROCESS ACTIVITIES • OUTBOUND ACTIVITIES
  • 5.
  • 7. RECEIVING • Unloading and checking the shipment. The number of containers or package of materials unloaded from the carrier's vehicle is checked against the carrier's manifest (freight bill or delivery order) to ensure that all the full consignment or order has been delivered. • Unpacking and inspecting the material. A receiving clerk is held responsible for three verification. First, he or she checks the material received against the supplier's packing slip and against a copy of the firm's purchase order to verify that the correct items have been shipped. Second, the quantity of the shipment is verified in the same manner. Finally, the clerk inspects the general condition of the material to determine whether any external damage was incurred during shipment.
  • 8. RECEIVING – Cont. • Completion of the receiving report. When the receiving clerk has finished the inspection, he or she completes the form by recording the quantities of the items received, indicating those that are still open, and noting any other useful information on the form. Regardless of the system used, four operating groups generally require notification that the material has been received: the requisitioner , the purchasing department, the accounting department, and the inspection department if technical inspection is required.
  • 13. PUT-AWAY During put-away process the warehouse staff scans the bar code from the pallet (carton) and according to instructions moves it on given address. The second put-away method enables to let the selection of warehouse location on warehouse staff who only by scanning the address from the rack notifies the system where the goods has been stored. Also in this case the defined rules for put- away are checked.
  • 14. PUT-AWAY  PRODUCT CATEGORY • Product key • Product code • Size • Weight • Cost • color  STORAGE / PALLETIZING
  • 15. PROCESS ACTIVITIES • ORDER PICKING • REPLINISHMENT • STOCK ROTATION
  • 16. ORDER PICKING  Order picking is the process of pulling items from inventory to fill a customer order. It is seen as the most labour intensive activity within a warehouse. • Different order picking methods: • There are many order picking methods. These include: • Zone picking • Batch picking • Wave picking
  • 17. METHODS OF ORDER PICKING  ZONE PICKING: • Each order picker is assigned a specific zone and will only realise order picking within this zone.  BATCH PICKING: • An order picker is assigned and picks batch wise orders.  WAVE PICKING: • A variation of zone and batch picking. Rather than orders moving from one zone to the next for picking, all zones are picked at the same time and the items are later sorted and consolidated into individual orders/shipments
  • 18. REPLINISHMENT • Replenishment is the movement of inventory from upstream to downstream. • The purpose of replenishment is to keep inventory flowing through the supply chain by maintaining efficient order. The process helps prevent costly inventory overstocking.
  • 19. STOCK ROTATION • To rotate stock means to arrange the oldest units in inventory so they are sold before the newer units. • For example, a grocery store will restock its shelves by putting the oldest units in the front part of the shelves. The newest units will be placed in the back of the shelves. The hope is that the customer will select the most convenient (older) units from the front of the shelf. It is important to rotate stock in all areas: retail display area, warehouse, factory, etc. The reason to rotate stock is to reduce the losses from deterioration and obsolescence.
  • 20. Stock Rotation Methods  FIFO - First In, First Out  LIFO - Last In, First Out  Bar Code OR Date Of Manufacture System • RFID Chip Inventory Systems • Radio frequency identification (RFID) chips are the newest technological innovation in inventory control. RFID chips are tiny microchips embedded in a product that send out a signal so the product can be tracked. RFID chips offer real-time access to inventory data and solve many of the deficiencies of bar code inventory control systems, but they are still relatively expensive.
  • 23. Packing • The primary task for packing is to minimize damage that could occur after an item has left the production line. • In the warehouse the item is subject to a variety of situations where damage could occur. • Forklifts can drop materials, they can fall from conveyor belts, or fall from broken pallets. In each of these instances, the packing has to be designed so that it will protect the item from damage, but light enough so that is does not increase the weight of the finished good so much that the shipping costs are significantly increased. • In addition the packing must protect the item from environmental damage, such as extreme temperature, water damage, contamination with other goods, or damage from static, which is important for electronic items.
  • 24. Shipping • Confirmation • Invoicing • Sealing • Staging • Loading