Warehousing Management

WAREHOUSING
MANAGEMENT
Part of firms logistics system that stores
products at and between point of origin and point
of consumption.
Warehousing provides time and place utility for
raw materials, industrial goods, and finished
products, allowing firms to use customer service
as a dynamic value-adding competitive tool.
ROLE OF THE WAREHOUSES IN

THE LOGISTICS SYSTEM
warehouse is where the supply chain
holds or stores goods.
Functions of warehousing include
Transportation consolidation
Product mixing
Docking
Service
Protection against contingencies
DESIGN CONSIDERATION
Ideal Facility for Pure

Supplier Consolidation
(Full Pallet Movement)
Warehouse Space
Requirements
OBJECTIVES OF EFFICIENT
WAREHOUSE OPERATIONS
Provide timely customer service.
Keep track of items so they can be
found readily & correctly.
Minimize the total physical effort &
thus the cost of moving goods into &
out of storage.
Provide communication links with
Benefits of Warehouse Management

Provide a place to store & protect inventory
Reduce transportation costs
Improve customer service levels
Complexity of warehouse operation depends on
the number of SKUs handled & the number of
orders received & filled.
Most activity in a warehouse is material handling.
COSTS OF OPERATING A WAREHOUSE

Capital costs
Costs of space & materials
handling equipment
Operating costs
Cost of labor
Measure of labor productivity is the
number of units that an operator
can move in a day
WAREHOUSE ACTIVITIES
Receive goods
Identify the goods

Dispatch goods to
storage
Hold goods
Pick goods
Dispatch shipment
Operate an information
system
Receive goods
Accepts goods from
Outside transportation or attached
factory & accepts responsibility
Check the goods against an order &
the bill of loading
Check the quantities
Check for damage & fill out damage
reports if necessary
Identify the goods
items are identified with the

appropriate stock-keeping unit
(SKU) number (part number) & the
quantity received
Dispatch
goods recorded
to storage
goods are sorted & put away
Hold goods
goods are kept in storage & under
proper protection until needed
Dispatch the shipment

orders are packaged, shipping
documents are prepared, & goods
loaded on the vehicle
Operate an information system
a record must be maintained for
each item in stock showing the
quantity on hand, quantity received,
quantity issued, & location in the
To Maximize productivity &

minimize cost, warehouse
management must work with
Maximize
use
of
space
the following:
space is the largest capital cost
Effective use of labor & equipment
labor is the largest operating cost
material handling equipment is
the second largest capital cost
FACTORS INFLUENCING
EFFECTIVE USE OF
Cube utilization
WAREHOUSES
and accessibility
Stock location
Order picking and assembly
Physical Control & Security Elements
Cube utilization and

accessibility
Goods stored not just on the floor,
but in the cubic space of the
warehouse; warehouse capacity
depends on how high goods can be
stored
Accessibility means being able to
get at the goods wanted with a
minimum amount of work
Cube utilization and

accessibility continued
Stock
Location
Objectives
To provide the required
customer service
To keep track of where items
are stored
To minimize effort to receive,
put away, and retrieve items
Locate working stock and
Order Picking
and Assembly
When an order is received, items
must be obtained from the
PHYSICAL
warehouse,CONTROL
grouped, & &
prepared
SECURITY
for shipment.
Good part numbering system
Simple, well-documented
transaction system
Identify the item
Verify the quantity
Warehouse Automation
Some warehouses are completely
automated, and require only operators to
work and handle all the task.
Pallets and product move on a system of
automatedconveyors,cranesand
automated storage and retrieval systems
coordinated by
programmable logic controllers and
computersrunninglogistics automation
software.
These systems are often installed in

refrigeratedwarehouses where
temperatures are kept very cold to
keep product from spoiling.
where land is expensive, automated
storage systems can use vertical space
efficiently.
High-bay storage areas are often more
than 10 meters (33feet) high, with
some over 20 meters (65feet) high.
Warehouse Management
System
It is a key part of thesupply chainand primarily

aims to control the movement and storage of
materials within awarehouseand process the
associated transactions, including shipping,
receiving and picking.
The systems also direct and optimize stock
putaway based on real-time information about the
status of bin utilization
warehouse management involves the receipt,
storage and movement of goods, (normally
finished goods), to intermediate storage locations
or to a final customer.
Warehouse management systems often

utilizeautomatic identification and data
capturetechnology, such asbarcode
scanners,mobile computers,wireless LANsand
potentially radio-frequency identification(RFID)
to efficiently monitor the flow of products.
Once data has been collected, there is either a
batch synchronization with, or a real-time
wireless transmission to a central database.
The database can then provide useful reports
about the status of goods in the warehouse.
Third party Warehouse providers are the firms
that provide service to its customers of
outsourced.
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WAREHOUSING

ROLE OF THE WAREHOUSES IN

Ideal Facility for Pure

Benefits of Warehouse Management

COSTS OF OPERATING A WAREHOUSE

Identify the goods

Identify the goods

items are identified with the

Dispatch the shipment

To Maximize productivity &

Cube utilization and

Cube utilization and

These systems are often installed in

It is a key part of thesupply chainand primarily

Warehouse management systems often

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