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Warehousing

The document discusses warehousing and its role in logistics systems. It outlines the need for warehouse management to reduce inventory and costs while improving storage capacity, customer service, and inventory accuracy. Warehouses provide strategic storage and economic/service benefits. Different warehouse functions, designs, handling technologies, and storage plans are described to efficiently handle material flow. Types of warehouses include private, public, contract, and alternative strategies.

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Yogesh Verma
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77 views

Warehousing

The document discusses warehousing and its role in logistics systems. It outlines the need for warehouse management to reduce inventory and costs while improving storage capacity, customer service, and inventory accuracy. Warehouses provide strategic storage and economic/service benefits. Different warehouse functions, designs, handling technologies, and storage plans are described to efficiently handle material flow. Types of warehouses include private, public, contract, and alternative strategies.

Uploaded by

Yogesh Verma
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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WAREHOUSING

TOPIC-5
EVOLUTION

MRP-I

MRP-II

ERP

WAREHOUSE
FOCUSED ERP
NEED FOR WAREHOUSE
MANAGEMENT
• 1. TO REDUCE INVENTORY
• 2. TO REDUCE LABOUR COSTS
• 3. TO INCREASE STORAGE CAPACITY
• 4. TO INCREASE CUSTOMER SERVICE
• 5.TO INCREASE INVENTORY
ACCURACY
ROLE OF WAREHOUSING IN
LOGISTICAL SYSTEM
• 1. PROVISION FOR STRATEGIC STORAGE
• 2. PROVISION OF ECONOMIC & SERVICE BENEFITS

ECONOMIC BENEFITS

CROSS-DOCK STOCKPILING
CONSOLIDATION

BREAK-BULK POSTPONEMENT
CONSOLIDATION

PLANT A
CONSOLIDATION CUSTOMER
PLANT B
WAREHOUSE

A B C
PLANT
C

BENEFITS: LOWEST TRANSPORTATION RATE


REDUCTION OF CONGESTATION AT CUSTOMER’S
DOCK
BREAK-BULK

CUSTOMER A

PLANT A BREAK BULK WAREHOUSE


CUSTOMER B

CUSTOMER
BREAK BULK OPERATIONS C

RECEIVES COMBINED CUSTOMER ORDERS


CROSS DOCKING

CUSTOMER W
PLANT A WAREHOUSE TRANSIT
A B C D
MIXING POINT
PLANT B
CUSTOMER X
PRODUCT D
PLANT A B C D
C
CUSTOMER Y
A B C
CUSTOMER Z
INTRANSIT MIXING & RELEASE
A B
MANUFACTURING SUPPORT

VENDOR A
MANUFACTURING
ASSEMBLY
VENDOR B WAREHOUSE
PLANT

VENDOR
C
PROCESSING/POSTPONEMENT
• FRESH VEGETABLES CAN BE CANNED BUT MAY BE LABELED
LATER TILL CUSTOMER IS IDENTIFIED
• -RISK IS MINIMIZED BECAUSE THE FINAL PACKAGING IS NOT
DONE

• A WAREHOUSE WITH PACKAGING & LABELLING CAPABILITY


ALLOWS POSTPONEMENT
STOCKPILING
• SEASONAL STORAGE FOR SELECT BUSINESSES

• -BLANKETS
• KNITTING WOOL PRODUCED ALL THE YEAR TO BE SOLD IN
SOME SPECIFIC MONTHS

• AGRICULTURE PRODUCTS HARVESTED IN SPECIFIC PERIOD


BUT CONSUMED ROUND THE YEAR

• PROVIDES FOR A BUFFER INVENTORY- BALANCE BETWEEN


AVAILABILITY OF MATERIALS & MARKET DEMAND
PRINCIPLE OF WAREHOUSE
DESIGN
• THREE BASIC PRINCIPLES:
• 1. DESIGN CRITERIA
• 2.HANDLING TECHNOLOGY
• 3. STORAGE PLAN
• IDEALLY, THE WAREHOUSE DESIGN
SHOULD BE LIMITED TO SINGLE STORY
DESIGN OF A TYPICAL
WAREHOUSE

RECEIVING AREA

BULK RACK STORAGE


STORAGE AREA
AREA

ORDER PICKING AREA

PACKAGING OR UNITIZING AREA


STACKING AREA

FINISHED PRODUCT FLOW


HANDLING TECHNOLOGY
• FOCUSSES ON THE EFFECTIVENESS
& EFFICIENCY OF MATERIAL
HANDLING TECHNOLOGY
STORAGE PLAN BASED ON
PRODUCT MOVEMENT

Low vol products


Low vol products
High vol

Primary
aisle
TYPES OF WAREHOUSES

ALTERNATIVE WAREHOUSING
STRATEGIES

CONTRACT
PRIVATE ASSUMES
ES BY
PUBLIC I TI TOTAL
C IL I E S E D LOGISTICS
S
I SE F A
DIT N S D
D E O
NED A N IO
N
M
O I C
G
O
W D H T M , L
O E C A D
A S ER E R CO E D
O
L
LE M IG AL ND H
N . R I O V E
E F E C B S
G RE P O U
S G O
H
WAREHOUSE FUNCTIONS

WAREHOUSE

MOVEMENT
STORAGE

RECEIVING SHIPPING
PLANNED EXTENDED
IN-STORAGE STORAGE STORAGE
HANDLING

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