SC102 New WAREHOUSE OPERATIONS MANAGEMENT2023

Republic of the Philippines
City of Olongapo
GORDON COLLEGE
Olongapo City Sports Complex, East Tapinac, Olongapo City
Tel. No. (047) 224-2089 loc. 314
College of Business and Accountancy

Program: Bachelor of Science in Customs Administration
Course Code: SC102
Course Title: WAREHOUSE OPERATIONS MANAGEMENT
Course Description:
Discussion on warehouses related to supply chain. This module will also discuss warehouse
operations and any related topics thereto.
Course Learning Outcome:
1. Understand the warehouse operations.
2. Enhancement of the supply chain including the management of the warehouse.
3. Master the operations within the warehouse and other connected topics thereto.
Grading Rubric:
Midterm Grade Final Grade
Major Exam 30% Major Exam 30%
Quizzes 40% Quizzes 40%
Recitation 30% Recitation 30%
Midterm Grade 100% Tentative Final Grade 100%
FINAL GRADE 50% (Midterm Grade)

50%(Tentative Final Grade)
This module is exclusive for Gordon College and Gordon College students only.
City of Olongapo
GORDON COLLEGE
Tel. No. (047) 224-2089 loc. 314
GRADING RUBRIC FOR SELF-ASSESSMENT QUESTIONS

CRITERIA 2PTS 3PTS 4PTS 5PTS
Writing lacks logical Writing is coherent and Writing is coherent Writing shows high
and degree of attention
organization. It logically organized.
shows some Some logically organized to logic and reasoning
Organization with of points. Unity
coherence but ideas points remain
lack misplaced and transitions used clearly leads the
between reader to the
unity. Serious errors. stray from the topic.
ideas and paragraphs conclusion and stirs
Transitions evident but to create thought regarding
not
coherence. Overall the topic.
used throughout the unity of
essay.
ideas are present.
Shows some thinking Content indicates Content indicates Content indicates

and thinking original synthesis of ideas, in
Level of depth
Content reasoning but most and reasoning applied thinking and develops
ideas are with ideas analysis and evidences
original
underdeveloped and original thought on a with sufficient and
few firm thought and support
unoriginal.
for the topic.
ideas. evidence.
Main points well Main points well

developed developed with high
Main points lack Main points are present
detailed with with quality quality and quantity
Development supporting support. Reveals
development. Ideas limited detail and
are details and quantity. high degree of critical
development. Some
City of Olongapo
GORDON COLLEGE
Tel. No. (047) 224-2089 loc. 314
vague with little critical Critical thinking.

evidence of
thinking is present. thinking is weaved
critical thinking. into points
Spelling, punctuation,
and
Most spelling, Essay has few Essay is free of
grammatical errors punctuation, spelling, distracting spelling,
Grammar & create
Mechanics and grammar correct punctuation, and punctuation, and
distraction, making allowing grammatical grammatical errors;
reading
reader to progress errors allowing reader absent of fragments,
difficult; fragments, though to comma splices,
comma
essay. Some errors follow ideas clearly. and run-ons.
splices, run-ons remain. Very
evident.
few fragments or run-
Errors are frequent. ons.
Style Mostly in elementary Approaches college Attains college level Shows outstanding
form level style; style going beyond
with little or no usage of some variety tone is appropriate and usual college level;
variety in in rhetorical devices
rhetorical devices used
sentence structure, sentence patterns, to and tone used
diction, diction, and effectively; creative
enhance content; use
rhetorical devices or rhetorical devices. sentence
of sentence structure
emphasis.
and coordination
City of Olongapo
GORDON COLLEGE
Tel. No. (047) 224-2089 loc. 314
Fails to follow format Meets format and Meets format and Meets all formal and
and assignment assignment assignment
Format
assignment requirements; generally requirements; margins, requirements and
requirements; evidences attention to
correct margins, spacing, and
incorrect margins, spacing, and indentations are detail; all margins,
spacing correct; essay is neat spacing and
indentations; essay is and correctly
and indentation; neat but may have assembled. indentations are
neatness of essay some assembly correct; essay is neat
needs attention.
errors. and correctly
assembled with
professional look.
Schedule (Week Learning Teaching and

Number and Objectives Learning
Module Topics Learning Tasks
Approximate hours) Material
Number and (most essential and Key
Resources
Title learning Concepts
competencies)
WEEK 1 CLASS ORIENTATION
✔ To know and
WEEK 2 Module 1: - History - https://www. -Answer questions
of the every module.
Approximately 3 WAREHOUS understand buildindustries.
City of Olongapo
GORDON COLLEGE
Tel. No. (047) 224-2089 loc. 314
hours E HISTORY the history warehouse com

of s
/origin-of-
warehouses.
warehouses
.
-PC/Internet
-Google
WEEK 3 Module 2: - -Answer questions

✔ To learn the
Warehouse every module.
Approximately 3 WAREHOUS functions of Functions
hours E warehouses -PC/Internet
FUNCTIONS and to
& TYPES OF differentiate -Types of
WAREHOUS various Warehouse -Google
E types of s
warehouse.
✔ To
understand
the
different
goals of
warehouse.
✔ To assess
QUIZ whether or Topics:
not the Modules 1
students &2
learn and
understand
the
previous
City of Olongapo
GORDON COLLEGE
Tel. No. (047) 224-2089 loc. 314
modules.
WEEK 4 Module 3: ✔ To learn -

and to be Warehouse
Approximately 3 WAREHOUS -PC/Internet -Answer questions
able to Manageme
hours E every module.
understand nt System
MANAGEME
NT SYSTEM the use of
-Google
the
warehouse
managemen
t system.
WEEK 5 Module 4: ✔ To -Different -Answer questions

understand warehouse every module.
Approximately 3 WAREHOUS -PC/Internet
the operations
hours E
OPERATION different
S warehouse
-Google
operations
that are
involve in
the
warehouse
processes.
WEEK 6 Module 5: ✔ To learn the - -Answer questions

different Responsibi every module.
Approximately 3 WAREHOUS -PC/Internet
job, duties lities
E
hours and
OPERATION
S responsibili
-Google
ties by the -Job Duties
MANAGERS
warehouse
operations
City of Olongapo
GORDON COLLEGE
Tel. No. (047) 224-2089 loc. 314
managers. -Skills and

qualificatio
✔ To master ns
the
responsibili
ties of the
warehouse
operations
managers.
✔ To assess
not the Modules
students 3-4
learn and
understand
the
previous
modules.
WEEK 7 REVIEW
WEEK 8 MIDTERM EXAM
WEEK 9 Module 6: ✔ To know - 7 key - -Answer questions

the 7 key warehouse every module.
Approximately 3 7 KEY
warehouse process.
hours WAREHOUS
process and -PC/Internet
E PROCESS
how
City of Olongapo
GORDON COLLEGE
Tel. No. (047) 224-2089 loc. 314
important
are they
-Google
WEEK 10 Module 7: ✔ To -Other -Answer questions

understand operations every module.
Approximately 3 OTHER -PC/Internet
hours OPERATION other
S processes
that are
-Google
involved in
the
warehouse
operations.
WEEK 11 Module 8: ✔ To make an -Other -Answer questions

understandi activities every module.
Approximately 3 OTHER -PC/Internet
ng considered
hours WAREHOUS
regarding as
E
the other warehouse
ACTIVITIES -Google
activities of activities.
the
warehouse.
✔ To assess
not the Modules
& students 6-8
learn and
RECITATION
understand
the
previous
modules.
City of Olongapo
GORDON COLLEGE
Tel. No. (047) 224-2089 loc. 314
WEEK 12 REVIEW
WEEK 13 FINAL EXAM
DETAILED LEARNING MODULE

Title: WAREHOUSE HISTORY
Module No. 1
I. Introduction
This module will be discussing the basic history of warehouses used from the very
beginning up to the 21st century.
II. Learning Objectives

After studying this module, you should be able to:
✔ To know and understand the history of warehouses.
III. Topics and Key Concepts
The Origin of Warehouses
City of Olongapo
GORDON COLLEGE
Tel. No. (047) 224-2089 loc. 314
Warehouses are used by companies to store large amounts of product inventory. Although a lot
of warehouses today are run by automation (Amazon warehouses being a prime example of this),
warehousing had a far humble beginning. Inventory storage and warehousing have been around
for thousands of years, with the first warehouses dating back to the early Roman Empire. Today
warehouses are a crucial part of our economy.
Let’s look back in history to see how warehouses developed into what they are now.
Ancient Rome
The first type of public warehouse was the Roman Horreum. Originally constructed during the
2nd century BC, these buildings were used to store grain, olive oil, wine, food items, clothing,
and marble. The biggest of these was the Horrea Galbae, which contained 140 rooms on the first
floor alone. In total, the Galbae covered more than 225,000 square feet! To help you understand
the Galbae’s size, less than half of warehouses in the U.S. are larger than 100,000 square feet.
Although these horrea (plural for horreum) were the first of their kind, they were undoubtedly
ahead of their time. When Roman emperor Septimius Severus died in 211 AD, he left the Horrea
Galbae stocked with enough food to feed all 1 million citizens of Rome for 7 years!
Additionally, ancient Roman horrea were built with ramps instead of stairs, which made
transporting goods in and out of the buildings a breeze. Horrea were built with thick walls to
reduce the chances of fire, and high windows to reduce the chance of theft. These ancient
warehouses were often located close to major shipping ports which streamlined the process of
importing and exporting goods. The Ancient Romans really thought of it all!
The Industrial Revolution

The Industrial Revolution of the 18th and 19th centuries brought new advancements to
warehouses which made them more specialized. The dramatic and sudden increase in
globalization during this period caused warehouses to emphasize product movement. This
emphasis brought forth some of the earliest large-scale supply chains.
Once the railway system began to take hold in the United States, more people began to travel and
colonize previously barren areas. This development led to the creation of several “rail
warehouses” that were conveniently located alongside railways. Rail warehouses and railways
allowed companies to transport goods over land more efficiently than ever before.
The twentieth century brought warehousing to the next stage. Machine-operated factories were
sprouting up everywhere and consumer goods were being produced at an astounding rate.
Advancements in communication and transportation technologies increased globalization and
urbanization, which led to warehouses being created all over the world.
City of Olongapo
GORDON COLLEGE
Tel. No. (047) 224-2089 loc. 314
The 21st Century

This brings us to the current period. Here in the 21st century, we are currently witnessing the
next major development in warehousing– automation. Whereas in the past when heavy boxes full
of goods would have to be moved by humans, automated machines now handle most of the
heavy lifting. These warehouses usually only require a few human operators to schedule tasks
while the machines handle the rest. Products move on automated conveyors and are organized
completely by automated machinery. Although most warehouses today are still operated
predominantly by real people, the trend of warehousing automation is growing.
It’s clear that warehousing is continuing to evolve and grow. Warehousing technology is getting
more advanced and more efficient, and it doesn’t seem to be slowing down. Since 1967, Build
Industries has been serving the warehousing and packaging needs of the San Fernando Valley
with cutting edge technology. The team at Build Industries are experts in providing state-of-the-
art efficient warehousing and packaging solutions.
LEARNING TASK FOR MODULE 1

It is time to be creative! Create a poster showing the history of warehouses.
City of Olongapo
GORDON COLLEGE
Tel. No. (047) 224-2089 loc. 314

Title: WAREHOUSE FUNCTIONS & TYPES OF WAREHOUSE
Module No. 2
I. Introduction
This module will be tackling the basic functions of warehouses. Also, this will discuss the
different types of warehouses and how they differ from each other. And lastly, this will
briefly enumerate the goals of warehouses.

City of Olongapo
GORDON COLLEGE
Tel. No. (047) 224-2089 loc. 314
✔ To learn the functions of warehouses and to differentiate various types of warehouses.
✔ To understand the different goals of the warehouse.

WAREHOUSE FUNCTIONS
⚫ Storing goods to permit the management of product flow or to accommodate longer
production runs.
⚫ Serving as a mixing point where products from different suppliers are mixed and
distributed to fulfill customer orders.
⚫ Serving as a sales branch and customer service location.
⚫ Serving as source of supply for production
⚫ Serving as a staging area for final packing and finishing.
TYPES OF WAREHOUSES
⚫ Public Warehousing
Involves the client paying a standard fee for storing merchandise.
City of Olongapo
GORDON COLLEGE
Tel. No. (047) 224-2089 loc. 314
⚫ Private Warehousing
Storage operations controlled completely by a single manufacturer.
⚫ Leased Warehousing
Is a warehouse for more stable inventory.
⚫ Contract Warehousing
Clients pay fees regardless of whether they are using the space or not. This ensures the space is
always available for the clients to use.
WAREHOUSE GOALS
✔ Maximize effective use of space
✔ Maximize effective use of equipment
✔ Maximize effective use of labor
✔ Maximize accessibility of all items
✔ Maximize protection of all items at all times
✔ Maximize effective use of information
✔ Maximize the protection of company’s assets
City of Olongapo
GORDON COLLEGE
Tel. No. (047) 224-2089 loc. 314
✔ Minimize Goods Handling
✔ Minimize the company’s operating cost
1. Name at least three companies for each type of warehouse.
2. Make three scenarios for each warehouse goal.
City of Olongapo
GORDON COLLEGE
Tel. No. (047) 224-2089 loc. 314

Title: WAREHOUSE MANAGEMENT SYSTEM
Module No. 3
I. Introduction
This module will talk about the warehouse management system, including its features,
purpose and importance.

✔ To learn and to be able to understand the use of the warehouse management system.
WAREHOUSE MANAGEMENT SYSTEM

A system which assists managers in tracking products throughout the entire storage and
distribution process. These systems span from simple computer automation systems to high-end,
feature-rich management programs that improve order picking, facilitate better dock logistics and
monitor inventory management.
⚫ A piece of software that controls, records and automates various warehouse operations
⚫ Increase the overall productivity and efficiency of a business warehousing operations
City of Olongapo
GORDON COLLEGE
Tel. No. (047) 224-2089 loc. 314
TRANSPORTATION MANAGEMENT SYSTEM (TMS)

Is a logistics platform that uses technology to help businesses plan, execute, and optimize the
physical movement of goods, both incoming and outgoing, and making sure the shipment is
compliant, proper and documentation is available.
ENVIRONMENTAL MANAGEMENT SYSTEM (EMS)

Is a set of processes and practices that enable an organization to reduce its environmental impacts and
increase its operating efficiency.
For example, a publishing company might implement an EMS framework to: manage and reduce its
paper use by switching to email-only internal communication. review and evaluate waste management
processes. create a policy for responsible disposal of used toner cartridges.
MAIN FEATURES OF WMS
⚫ Bar Code Scanning and Radio Frequency ID Tagging
⮚ helps with data input, tracking what, when, and how many products were received, as
well as how they were stored.
⚫ Order and Fulfillment Management
⮚ Reorder tools that provide accurate information related to when orders are shipped and
received.
City of Olongapo
GORDON COLLEGE
Tel. No. (047) 224-2089 loc. 314
⚫ Real-time Tracking Capabilities
⮚ Tracking assets and orders as mentioned above, as well as the projects and schedules of
your warehouse employees.
⚫ Dashboard
⮚ Allows users to view the date in an easy-to-understand manner, so they can get an
overview on incoming\outgoing shipments and employee workloads, as well as where
stock is and how much is in the warehouse.
WHO USES WMS?

Warehouse Managers oversee the warehouse management process. Therefore, it should not come
in surprise that they are the primary users of the WMS. That said, however, they are by no means
the only ones who benefit from using it. Thanks to the labor management features found in most
WMS, warehouse employees benefit from using WMS solutions as well. They can use it to view
orders that need to be processed and more importantly, they can also view their schedules so they
know what tasks they have to complete each day.
BENEFITS OF USING WMS
✔ Reduced Operating Expenses
✔ Continuous Process Optimization
✔ Enhanced Security
City of Olongapo
GORDON COLLEGE
Tel. No. (047) 224-2089 loc. 314
✔ Improved Customer and Supplier Relationships
✔ Maximizing their Labor Resources
✔ Simplifying Just-In-Time Delivery
✔ Enhancing Demand Planning
✔ Increasing Transparency to both Employees and Suppliers.
HOW DOES WAREHOUSE MANAGEMENT AFFECT SUPPLY CHAIN

MANAGEMENT?
Warehouse Management is the central link in Supply Chain Management. It is the all-important
bridge between producing a product and delivering it to customers. Warehouse Management
helps organize products to make sure that they are shipped to the right customer at the right time.
It is the most important effect on the supply chain.
If your warehouse management processes become inefficient and inaccurate, it can mess up your
entire operation, sending products to the wrong location, or sending the right products late. When
your customers get what they want when they want it, they are happy. But if they don’t , chances
are good that they will stop giving your business and start looking elsewhere.
WHAT DOES LOGISTICS MEAN IN WAREHOUSE MANAGEMENT?

Logistics in an UMBRELLA TERM for various tasks related to transportation, warehousing,
inventory, information management and more. These include the various processes in the supply
chain that happen before, during and after the warehousing.
WHAT DOES LOGISTICS MEAN IN WAREHOUSE MANAGEMENT?
City of Olongapo
GORDON COLLEGE
Tel. No. (047) 224-2089 loc. 314
It is important that the different functions of logistics work in a tandem so that your supply chain
is as efficient as possible. This means that the initial transportation of goods is scheduled so that
they arrive at the warehouse when there is room for the inventory. Additionally, it means that
those goods that leave the warehouse on time, so they arrive at the destination exactly when they
are needed to be there.
WAREHOUSE MANAGEMENT SYSTEM IMPLEMENTATIONS
The logistics businesses implement the Warehouse Management Systems for process efficiency,
improvement and transparency. A WMS implementation would normally require the four important
phases for a successful implementation per diagram below to be able to ensure the business requirements
are completely met by the IT solutions.
1. What is the use of warehouse management system (WMS)?
2. Research an example of a warehouse management system (WMS) and its uses.
City of Olongapo
GORDON COLLEGE
Tel. No. (047) 224-2089 loc. 314

Title: WAREHOUSE OPERATIONS
Module No. 4
I. Introduction
This module will discuss the processes involved in the warehouse operations. This will
also discuss further the operations and how they differ from each other.

City of Olongapo
GORDON COLLEGE
Tel. No. (047) 224-2089 loc. 314
✔ To understand the different warehouse operations that are involved in the warehouse
processes.

WAREHOUSING OPERATIONS
It is the procedure of satisfying customer needs and requirements while utilizing space,
equipment, and labor effectively.
A. INBOUND ACTIVIES
RECEIVING
1.Unloading & Checking of Shipments
2. Unpacking & Inspecting Materials
✔ Correct Item
✔ Quantity
City of Olongapo
GORDON COLLEGE
Tel. No. (047) 224-2089 loc. 314
✔ Condition
3.Completion of Receiving Report
RECEIVING PROCEDURES
⚫ Prepare to receive goods and materials
⚫ Check Temperature
⚫ Unload the product
- Manual
- Automated
⚫ Count the product
⚫ Check the product
⚫ - Quality
- Quantity
- Expiry
⚫ Check the Product
- 100 % Accept
- 100 % Check
- 10 % Sample Check
⚫ Identify the product
⚫ Mark the product
City of Olongapo
GORDON COLLEGE
Tel. No. (047) 224-2089 loc. 314
⚫ Enter the product on receipt register
⚫ Transfer the product in stage area
⚫ Enter the product in stock
⚫ Re-stack the product
RECEIVING OBJECTIVES
✔ Right Product
✔ Right Quality
✔ Right Quantities
✔ Right Weight
✔ Right Condition
✔ Right Standards
✔ Right Time
PUT-AWAY
1.Scans the Barcode & move to the given address
2. Selection of Warehouse Location
City of Olongapo
GORDON COLLEGE
Tel. No. (047) 224-2089 loc. 314
❑ Product Key
❑ Product Code
❑ Size
❑ Weight
❑ Cost
❑ Color
STACKING
⚫ Stack according to FIFO
⚫ Stack according to standards
⚫ Methods of Stacking
- Manual Stacking
- Automated Stacking
⚫ Keep stacked goods neat
⚫ Boxes to be stacked evenly
⚫ Keep Identity Sticker Visible
⚫ Keep Expiry date visible
⚫ Stack Goods in Safe way
City of Olongapo
GORDON COLLEGE
Tel. No. (047) 224-2089 loc. 314
COLD STORAGE STANDARDS

PROPER STORAGE TEMPERATURE
⚫ Dry Storage from 55 – 70 F (13-21C)
⚫ Refrigerator from 34 – 38 F (1-4C)
⚫ Freezers from 0 - -22 F ( -18 - -30C)
B. PROCESS ACTIVITIES
ORDER PICKING METHODS

1. Zone Picking – Specific Zone
2. Batch Picking – By batch
3. Wave Picking – Variation
PICKING TIME CONSUMPTION

PICKING
City of Olongapo
GORDON COLLEGE
Tel. No. (047) 224-2089 loc. 314
⚫ 50-60 % of time spent traveling
- Optimize picking overload

- Optimize workforce assignment
- Optimize Picking Routes
- Use of labor standards
⚫ Apply FIFO
⚫ Use Right picking equipment
⚫ Pick right item (Accuracy)
⚫ Picking the right quantity (Accuracy)
⚫ Keep picking area neat
⚫ Use Picking Methods
- Manual Picking
- Automated Picking
REPLENISHMENTS
⮚ Movement of inventory from upstream to downstream
⮚ Keeps inventory flowing through the supply chain by maintaining efficient order
⮚ Prevent costly inventory overstocking
STOCK ROTATION
City of Olongapo
GORDON COLLEGE
Tel. No. (047) 224-2089 loc. 314
Arrange the oldest units in inventory so they are sold before the newer units.
STOCK ROTATION METHODS
1. FIFO – First In, First Out
2. LIFO – Last In, Last Out
3. Barcode of Date of Manufacture System
C. OUTBOUND ACTIVITIES
PACKING
Minimize damage that can occur after an item has left the production line.
SHIPPING
1. Differentiate inbound activities, process activities and outbound activities.
City of Olongapo
GORDON COLLEGE
Tel. No. (047) 224-2089 loc. 314

Title: WAREHOUSE OPERATIONS MANAGERS
Module No. 5
I. Introduction
City of Olongapo
GORDON COLLEGE
Tel. No. (047) 224-2089 loc. 314
This module will tackle the warehouse operations managers, their job, duties and
responsibilities.

✔ To learn the different job, duties and responsibilities by the warehouse operations managers.
✔ To master the responsibilities of the warehouse operations managers.

WAREHOUSE OPERATIONS MANAGERS
WHO ARE THEY?
They are the one responsible for the operations of the warehouse.
RESPONSIBILITIES
Receive and store products by designing and developing product movement and storage systems,
improving operations and managing staff.
JOB DUTIES
1. Accomplishes warehouse operations human resource objectives by recruiting,
selecting, orienting, training, assigning, scheduling, coaching, counseling and
disciplining employees; communicating job expectations; planning, monitoring,
appraising and reviewing job contributions; planning and reviewing compensation
actions; enforcing policies and procedures.
2. Achieves warehouse operations operational objectives by contributing warehouse

operations information and recommendations to strategic plans and reviews; preparing
and completing action plans; implementing production, productivity, quality and
customer-service standards; resolving problems; completing audits; identifying trends.
City of Olongapo
GORDON COLLEGE
Tel. No. (047) 224-2089 loc. 314
3. Meets warehouse operations financial objectives by forecasting requirements;

preparing an annual budget; scheduling expenditures; analyzing variances; initiating
corrective actions
4. Develops warehouse design by planning layout, product flow, and product handling
systems; evaluating and recommending new equipment.
5. Develops warehouse operations system improvements by analyzing process workflow,

manning and space requirements, and equipment layout; implementing changes.
6. Maintains safe and healthy work environment by establishing, following and enforcing
standards and procedures; complying with legal regulations
7. Secures property by developing protection and access policies and procedures;

coordinating patrols with the security department.
8. Updates job knowledge by participating in educational opportunities; reading

professional publications; maintaining personal networks.
9. Accomplishes warehouse operations and organization mission by completing related

results as needed.
⚫ SKILLS AND QUALIFICATIONS
✔ Managing Processes
City of Olongapo
GORDON COLLEGE
Tel. No. (047) 224-2089 loc. 314
✔ People Management
✔ Supervision Skills
✔ Data Entry Skills
✔ Data Entry Management
✔ Data Processing
✔ Dependability
✔ Reporting Skills
✔ Analyzing Information
✔ Dealing with Complexity
✔ Dead-line Oriented
City of Olongapo
GORDON COLLEGE
Tel. No. (047) 224-2089 loc. 314

1. Summarize the job duties of the warehouse managers.
2. Explain why there should be skills and qualifications for warehouse managers.
3. Explain further all the stated skills and qualifications of warehouse managers.
City of Olongapo
GORDON COLLEGE
Tel. No. (047) 224-2089 loc. 314

Title: 7 KEY WAREHOUSE PROCESS
Module No. 6
I. Introduction
This module will discuss the seven key warehouse processes that are involved in the
warehouse operations.

✔ To know the 7 key warehouse processes and how important they are.

7 KEY WAREHOUSE PROCESSES
Are all warehouses the same in terms of key processes?
NO
But these are the key processes which most of the warehouses are the same.
1. RECEIVING
The act of handling products into a warehouse and onto a system.
Receipts may be for a single product, objects, cartons, crates or etc. The best way to receive a
product is via an ADVANCE SHIPPING NOTICE.
City of Olongapo
GORDON COLLEGE
Tel. No. (047) 224-2089 loc. 314
If the delivery matches the ASN, then the goods can be system received, but at this point they are
still at staging, ready for put-away. Some systems allow for goods to be received into inventory
at this point, whereas others require the goods to be delivered to a specific stock location before
inventory is updated. This depends entirely on the customer requirements and how the system is
set up.
LESSON: ORGANIZE ASN ON YOUR SYSTEM FOR AUTOMATIC RECEIVING AND
PUT-AWAY. USE EQUIPMENT FOR SCANNING AND UPDATING YOUR
MANAGEMENT SYSTEMS.
2. PUT-AWAY
A good system will prompt put-away staff with a note indicating that stock is staging waiting to
be transported to a storage location. The process commences when operators accept the put-away
task from the or WAREHOUSE MANAGEMENT SYSTEM (WMS) and then scan the
relevant barcode of the goods to be put-away.
If there is no barcode, then a manual entry can confirm that the goods have been identified. At
this point the system will be directing the put-away staff to deliver goods to the relevant storage
location.
Once at the location, the operator will scan the relevant storage location barcode, or manually
confirm that the correct location has been found, then place the goods into the slot before
confirming that the put-away process is complete.
LESSON: USE A SYSTEM THAT CAN DIRECT PUT-AWAY TO VACANT SLOTS

ACCORDING TO DEMAND OF THE GOODS
3. PICKING
PRIMARY PICKING
This is the first picking of the goods. In some cases, the first picking is delivered directly to a
staging area or packing bench for finalization, consigning and dispatching, thus the first picking
becomes the last picking.
City of Olongapo
GORDON COLLEGE
Tel. No. (047) 224-2089 loc. 314
SECONDARY PICKING
Some primary picks are subject to a second picking process, particularly where picked goods
must be allocated to clustered orders(bunch of orders) or discrete orders(single orders) via a
sortation process or system.
LESSON: SMART PICKING SYSTEMS AND WMS ARE A MUST FOR INCREASINGLY
COMPLEX BUSINESSES.
4. PACKING
5 RULES OF SUCCESSFUL PACKING
1. Goods picked must be traceable in terms of location from which they are picked, plus relevant
“use-by” dates and/or “batch” dates and codes.
2. Accuracy must be built into the process.
3. Goods picking from different zones within the warehouse must be easily combined and
system-managed to ensure order completeness.
4. Goods must be packed according to their size, quantity, temperature, toxicity, value, fragility,
hygiene and legislative requirements
5. Consignments must be system traceable to documents and/or invoice numbers for future
traceability.
LESSON: PACKING IS AN EXTENSION OF THE PICKING PROCESS AND MUST BE

SYSTEM-MANAGED AND TREATED WITH CARE TO ENSURE THAT ORDERS ARE
COMPLETE AND ACCURATE
5. DISPATCHING
The successful art of dispatch lies in the operation’s ability to have goods ready for departure,
just in time for carriers to load to their trucks. Goods that are ready too early, for example, will
clutter staging areas, while dispatches that are late, will delay loading and potentially cause late
deliveries.
City of Olongapo
GORDON COLLEGE
Tel. No. (047) 224-2089 loc. 314
LESSON: AVOID JAMBS AND LATE DELIVERIES BY SCHEDULING PICKING TO

ALIGN WITH CARRIER PICKING UP TIMES.
6. RETURNS
HANDLING RETURNS RULES
1. When customers return goods, they should seek, and be given Return Management
Authorization (RMA), which outlines what is being returned and why.
2. All returns must be traceable, to their order, document and invoice.
3. Companies must have a predetermined returns process that delineates what is to be done with
the goods once received back into the warehouse. Ex. Return to stock, Repair, Destroy, Discard,
Recycle, Return to manufacturer.
4. All credits must be system-recorded together with reasons why the goods are returned.
5. Inventory must be updated where goods are returned to stock, or held for further action.
LESSON: RETURNS IS A COMPLEX PART OF ANY BUSINESS. A DEFINED PROCESS

MUST BE IN PLACE THAT ACCURATELY AND RELIABLY RECORDS THE WHOLE
TRANSACTION AND CREDIT PROCESS.
7. VALUE-ADDING
This is part of the business where products are produced, kitted, assembled, re-labelled, modified
or subject to some other value-adding process. The value adding part is about performing work
on the product to make it “ready for sale”
The process of value-adding can be complex, particularly when many different items are
combined to form a new product. Complexity around handling value-adding processes and the
changing nature of the component products in and out of the shelf locations can be daunting.
City of Olongapo
GORDON COLLEGE
Tel. No. (047) 224-2089 loc. 314
LESSON: REVIEW YOUR VALUE-ADDING PROCESSES AND MAKE SURE THAT

YOUR SYSTEM CAN HANDLE THAT REQUISITE ACTIVITIES AND TRANSACTIONS

Title: OTHER PROCESSES
Module No. 7
I. Introduction
This module will let students understand what are the other processes involved in the
warehouse operations.

✔ To understand other processes that are involved in the warehouse operations..

OTHER OPERATIONS
BACK ORDERS
Under receiving operations, the stock for backorders shall be pulled. Backorders shall not
undergo a picking system. whenever possible, have receiving deliver the backorder stock to a
special place in the packing area and process them without involving picking operations
ORDER PICKING
Consider giving your warehouse the ability to print their own picking and shipping documents.
This reduces the down time caused by waiting for another department to fit printing the
documents into their own schedule.
City of Olongapo
GORDON COLLEGE
Tel. No. (047) 224-2089 loc. 314
TIME GOALS
One should set time standards for handling all functions in warehouse operations and it shall be
known by the staff of the warehouse. The goals to be set must be realistic but challenging, not
easily achieved on a daily basis.
STORAGE & PICKING CAPACITY

One should plan to increase the storage and picking capacities once you are at 80% capacity.
Once they reach 90% the plan should be implemented. When the capacity exceeds 90%, you will
use more and more labor to maintain your open locations. This is true in storage systems,
because partial pallets shall be moved and consolidated to make space for incoming stock.
ADVANCE SHIPPING NOTICE (ASN)

ASN is essentially a file containing an electronic packing list for each carton being shipped.
Scanning the products as they are packed into the shipping cartons creates the file, and it
compares the file to the original order file to ensure accuracy.
TECHNOLOGY IN GENERAL
The time has come, whether or not we like it. We should create to implement and staff a full-
time information and technology department and it would be best if this department would serve
the whole organization.
City of Olongapo
GORDON COLLEGE
Tel. No. (047) 224-2089 loc. 314

Title: OTHER WAREHOUSE ACTIVITIES
Module No. 8
I. Introduction
This module will discuss and enumerate what are activities to be considered as other
activities happening inside the warehouse.

✔ To make an understanding regarding the other activities of the warehouse.
PROPER ARRANGEMENT OF THE WAREHOUSE
City of Olongapo
GORDON COLLEGE
Tel. No. (047) 224-2089 loc. 314
City of Olongapo
GORDON COLLEGE
Tel. No. (047) 224-2089 loc. 314
DRIVER’S DUTIES
✔ Loyalty to the company is very important
City of Olongapo
GORDON COLLEGE
Tel. No. (047) 224-2089 loc. 314
✔ To implement all job description
✔ Daily checkup of cars for maintenance
✔ Complying with warehouse rules & regulations
✔ Cooperation with the colleagues and managers
✔ Act as representative in dealing customers
✔ Handling returns
KEY INVENTORY TERMS

⚫ LEAD TIME
- time interval between ordering and receiving the order.
⚫ SHORTAGE COST
- cost when demand exceeds supply.
⚫ STOCK OUT COST

- includes opportunity cost in which it is not making any sale (loss profit), lost
customer goodwill, backorders costs, lateness charges.
⚫ ORDER COST
- cost of ordering and receiving inventory.
(includes monitoring cost, order preparation, order transmittal, order receipt)
⚫ HOLDING COST
City of Olongapo
GORDON COLLEGE
Tel. No. (047) 224-2089 loc. 314
- cost to carry an item in inventory for length of time, usually a year

(includes interest, insurance, depreciation, deterioration, spoilage, pilferage, and
warehousing costs)
⚫ WAREHOUSE COSTS
- energy, space, labor, equipment security
WAREHOUSE CONTROLS
● PERSONNEL SAFETY AND HEALTH
✔ Reduce all risks
✔ Follow procedures for security risks
✔ Report all accidents
✔ Handle any accident
✔ Report any security risk
✔ Promote good housekeeping
✔ Maintain a clean, neat personal hygiene
✔ Maintain a clean workplace
✔ Work according to standards
✔ Dispose of waste in timely way
✔ Effective mark aisles and maintain their integrity
City of Olongapo
GORDON COLLEGE
Tel. No. (047) 224-2089 loc. 314
✔ Have adequate lighting
✔ Apply all rules adopted in the organization
⚫ Fire prevention and protection
⚫ Theft and Pilferage
⚫ Product damage and Contamination
⚫ Storing hazardous materials
WAREHOUSE OPPORTUNITY
⚫ TO BE IMPROVED
✔ Inventory accuracy
✔ Picking accuracy
✔ Picking & replenishment efficiency
✔ Control of products
✔ Space utilization
✔ Stock rotation
✔ Backorder handling
City of Olongapo
GORDON COLLEGE
Tel. No. (047) 224-2089 loc. 314
✔ Resource planning & scheduling
✔ Labor & equipment productivity
✔ Performance Management
⚫ TO BE REDUCED
✔ Inventory
✔ Workforce
✔ Damage
✔ Lost stock
✔ Search time
✔ Paper work \ human errors
✔ Physical inventory taking
✔ Labor, equipment and utility costs
✔ Driver\ delivery costs
✔ Workers accidents
✔ Warehousing costs
City of Olongapo
GORDON COLLEGE
Tel. No. (047) 224-2089 loc. 314
✔ Outside warehousing

SC102 New WAREHOUSE OPERATIONS MANAGEMENT2023

Uploaded by

Copyright:

Available Formats

SC102 New WAREHOUSE OPERATIONS MANAGEMENT2023

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

SC102 New WAREHOUSE OPERATIONS MANAGEMENT2023

Uploaded by

Copyright:

Available Formats

Republic of the Philippines

College of Business and Accountancy

FINAL GRADE 50% (Midterm Grade)

GRADING RUBRIC FOR SELF-ASSESSMENT QUESTIONS

Shows some thinking Content indicates Content indicates Content indicates

Main points well Main points well

vague with little critical Critical thinking.

Schedule (Week Learning Teaching and

WEEK 1 CLASS ORIENTATION

hours E HISTORY the history warehouse com

WEEK 3 Module 2: - -Answer questions

WEEK 4 Module 3: ✔ To learn -

WEEK 5 Module 4: ✔ To -Different -Answer questions

WEEK 6 Module 5: ✔ To learn the - -Answer questions

managers. -Skills and

WEEK 8 MIDTERM EXAM

WEEK 9 Module 6: ✔ To know - 7 key - -Answer questions

WEEK 10 Module 7: ✔ To -Other -Answer questions

WEEK 11 Module 8: ✔ To make an -Other -Answer questions

WEEK 13 FINAL EXAM

DETAILED LEARNING MODULE

II. Learning Objectives

III. Topics and Key Concepts

The Origin of Warehouses

The Industrial Revolution

The 21st Century

LEARNING TASK FOR MODULE 1

DETAILED LEARNING MODULE

II. Learning Objectives

✔ To learn the functions of warehouses and to differentiate various types of warehouses.

✔ To understand the different goals of the warehouse.

III. Topics and Key Concepts

⚫ Storing goods to permit the management of product flow or to accommodate longer

distributed to fulfill customer orders.

⚫ Serving as a sales branch and customer service location.

⚫ Serving as source of supply for production

⚫ Serving as a staging area for final packing and finishing.

Involves the client paying a standard fee for storing merchandise.

Storage operations controlled completely by a single manufacturer.

Is a warehouse for more stable inventory.

✔ Maximize effective use of space

✔ Maximize effective use of equipment

✔ Maximize effective use of labor

✔ Maximize accessibility of all items

✔ Maximize protection of all items at all times

✔ Maximize effective use of information

✔ Maximize the protection of company’s assets

✔ Minimize Goods Handling

✔ Minimize the company’s operating cost

LEARNING TASK FOR MODULE 2

1. Name at least three companies for each type of warehouse.

2. Make three scenarios for each warehouse goal.

DETAILED LEARNING MODULE

II. Learning Objectives

III. Topics and Key Concepts

WAREHOUSE MANAGEMENT SYSTEM

⚫ Increase the overall productivity and efficiency of a business warehousing operations

TRANSPORTATION MANAGEMENT SYSTEM (TMS)

ENVIRONMENTAL MANAGEMENT SYSTEM (EMS)