Warehousre and Material Handling

Warehousing and Material
Handling
PURPOSE OF WAREHOUSES
 definition of warehouse
A WAREHOUSE is any location where

stocks of material are held on their journey
through supply chains.
As well as storage, warehouses can be used

for a number of other activities
definition of warehouse
 When we talk about warehouses storing materials, this is
really only part of the story. Many organizations are
using warehouses as convenient locations for doing a
range of related jobs.
 For example, labeling, packaging, making products
‘store ready’ for retailers, doing other aspects of
postponement, servicing vendor managed inventories,
and so on.
 The overall trend is for warehouses to do more tasks
Fitting into the logistics strategy

Important factors you have to consider when
choosing size for warehouse:
 the number of products using the warehouse
 the type of demand for each product, how much it
varies, average order size, and so on
 physical features of the products, particularly size
and weight
 special storage conditions, such as climate

control, packaging, and so on
 target customer service level
 lead times from suppliers and promised to
customers
 economies of scale
 type of material handling equipment
 layout of storage and related facilities.
ACTIVITIES IN WAREHOUSE
Basic activities
 receiving goods from upstream suppliers
 identifying the goods, matching them to orders and
finding their intended use
 unloading materials
 doing checks on quantity, quality and condition
 labelling materials (usually with bar codes)
 sorting goods as needed
 moving goods to bulk storage area
 holding them in stock until needed
Basic activities
 moving materials from bulk storage to a
smaller picking store
 picking materials from this store to meet
orders
 moving the materials to a marshalling area
 assembling materials into orders
 packing and packaging
 loading delivery vehicles and dispatching
the order
 controlling all communications and related
systems
other activities
 sorting materials,
 packing
 consolidating deliveries.
YOU KNOW WHAT?
A computer manufacturer, for example,

might collect in a central warehouse a
keyboard from Brazil, software from the
USA, a monitor from the UK, speakers from
Taiwan and the main box from Japan, and
so on. The warehouse assembles the
components into final systems and delivers
them to customers.
other activities
•The consolidation can go further than simply

bringing together materials from different sources. It
might add the final packing and packaging to
present a single product, or even do a limited
amount of final manufacturing. This is the basis of
postponement
 Warehouses are increasingly places for

sorting and doing work on materials rather
than storing them. In the extreme they do
these associated jobs, but the materials are
never put into storage. This is the basis of
cross-docking.
OWNSHIP
 Private warehouses are owned or leased by an

organization as part of its own supply chains. The
organization runs its own warehouses to support its main
operations. This gives greater control over a central part
of logistics, and allows integration of warehousing with
the broader activities of logistics
10.3 OWNSHIP
 A public warehouse is run as an independent business,
which makes money by charging users a fee. There are
many types of public warehouse, including bonded
warehouses, cold stores, bulk storage, tankers and
various specialty stores.
 Comparison:
Private warehouses have higher fixed costs but lower
unit operating costs, while public warehouses have low
fixed costs but potentially higher variable costs,
10.3 OWNSHIP
 The move towards contracting out
warehousing means that the most common
arrangement for warehousing is probably a
mixture of private and public. An organization
uses private warehouses for basic, core needs.
 a warehouse with enough capacity to meet
peak demand will only work at full capacity for
75–85% of the time. So :
 private warehouse :75–85% of the time, public
warehouses : the rest of the time.
MATERIALS HANDLING
 What is materials handling?
 MATERIALS HANDLING is concerned with the

movement of materials for short distances generally
within a warehouse, or between storage areas and
transport.
MATERIALS HANDLING
Aims of materials handling?
 moving materials around a warehouse as required

 moving materials quickly, reducing the number and length
of movements
 increasing storage density, by reducing the amount of
wasted space
 reducing costs, by using efficient operations
 making few mistakes, with efficient material management
systems..
MATERIALS HANDLING
3 kind of warehouse for materials handling
 Manual warehouses
 Mechanized warehouses
 Automated warehouses
MATERIALS HANDLING
 Manual warehouses: People go
around and pick items from the
shelves, and put them into some
sort of container for movement –
like a supermarket trolley.
 Mechanized warehouses replace

some of the muscle power of
manual warehouses by machines.
Typical examples of mechanized
equipment are:
MATERIALS HANDLING
MATERIALS HANDLING
Automated warehouses
● storage areas that can be accessed by automatic
equipment; these often use narrow aisles up to, say, 40 m
tall to get a high density of materials and minimize the
distances moved.
● equipment to move materials around the warehouse; these
are usually automated guided vehicles (AGVs) which use
guide wires in the floor, but might include conveyors,
tractors, or a range of other moving equipment.
● equipment to automatically pick materials and put them into
storage, including high-speed stacker cranes that can
reach any point in the narrow aisles very quickly.

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Warehousing and Material

A WAREHOUSE is any location where

As well as storage, warehouses can be used

Fitting into the logistics strategy

 special storage conditions, such as climate

A computer manufacturer, for example,

•The consolidation can go further than simply

 Warehouses are increasingly places for

 Private warehouses are owned or leased by an

 MATERIALS HANDLING is concerned with the

 moving materials around a warehouse as required

3 kind of warehouse for materials handling

 Mechanized warehouses replace

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