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Introduction To Warehousing in Supply Chain Management

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Dhaval Bakliwal
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36 views

Introduction To Warehousing in Supply Chain Management

Uploaded by

Dhaval Bakliwal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Introduction to

Warehousing in
Supply Chain
Management
Warehousing is a critical component of the supply chain, involving
the storage, handling, and distribution of goods. It plays a crucial
role in ensuring the timely and efficient delivery of products to
customers.
SS
by Sidharth Dahiwal SYBBA
Importance of
Warehousing in Supply
Chains
1 Cost Reduction 2 Inventory Management
Warehousing optimizes Warehouses serve as buffers,
transportation costs by allowing businesses to hold
consolidating shipments and sufficient inventory to meet
enabling bulk buying, leading fluctuating demand and avoid
to lower overall expenses. stockouts.

3 Improved Customer 4 Supply Chain Resilience


Service
Warehouses act as safety
Warehouses enable faster nets, providing a backup for
delivery times and increased unexpected disruptions and
product availability, ensuring continuity of
enhancing customer operations.
satisfaction and loyalty.
Importance of
Warehousing in Supply
Chains
1 Cost Reduction 2 Inventory Management
Warehousing optimizes Warehouses serve as buffers,
transportation costs by allowing businesses to hold
consolidating shipments and sufficient inventory to meet
enabling bulk buying, leading fluctuating demand and avoid
to lower overall expenses. stockouts.

3 Improved Customer 4 Supply Chain Resilience


Service
Warehouses act as safety
Warehouses enable faster nets, providing a backup for
delivery times and increased unexpected disruptions and
product availability, ensuring continuity of
enhancing customer operations.
satisfaction and loyalty.
Types of Warehouses and Their Functions
Distribution Centers Cross-Docking Warehouses Cold Storage Warehouses

Large-scale facilities designed for Fast-paced facilities where goods Specialized facilities maintained at
efficient product movement and are received, sorted, and shipped low temperatures for storing
distribution to multiple locations. out quickly without being stored for perishable goods like food and
extended periods. pharmaceuticals.
Warehouse Design and
Layout Considerations
Space Optimization Traffic Flow
Maximizing storage capacity by Ensuring smooth and efficient
utilizing vertical space, movement of goods and
implementing efficient shelving personnel within the warehouse
systems, and minimizing aisle by designing clear pathways
widths. and minimizing congestion.

Safety and Ergonomics Environmental


Considerations
Prioritizing employee safety by
implementing safety Implementing sustainable
procedures, providing proper practices like energy-efficient
equipment, and designing lighting, waste management
ergonomic workstations. programs, and reducing carbon
footprint.
Inventory Management
Strategies in Warehousing
1 First In, First Out (FIFO)
Ensures that the oldest inventory is shipped out first, minimizing spoilage and wa

2 Last In, First Out (LIFO)


Ships out the newest inventory first, suitable for non-perishable items but
can lead to higher costs.

3 Just-In-Time (JIT)
Inventory is received and shipped out only when needed, minimizing
storage costs but requiring accurate forecasting.

4 ABC Inventory Classification


Categorizes inventory based on value and importance, allowing for
focused management of high-value items.
Warehouse Automation
and Technology
Automated Guided Vehicles (AGVs)
Robot-controlled vehicles that transport materials
autonomously, enhancing efficiency and reducing labor
costs.

Conveyor Systems
Automated systems for moving goods throughout the
warehouse, streamlining operations and reducing manual
handling.

Warehouse Management Systems (WMS)


Software solutions that manage inventory, track orders,
and optimize warehouse operations for enhanced
efficiency.
Warehouse Performance Metrics and KPIs
Metric Description

Inventory Turnover Measures how quickly inventory is sold and replaced.

Order Fulfillment Rate Percentage of orders shipped on time and in full.

Warehouse Space Utilization Percentage of warehouse space occupied by inventory.

Picking Accuracy Percentage of orders picked correctly.


Challenges and Trends in
Warehousing

E-commerce Growth Automation and Robotics


The rise of online shopping has led to The adoption of automation
increased demand for warehousing technologies is transforming
space and efficient fulfillment warehousing operations, enhancing
processes. productivity and reducing labor
requirements.

Globalization and Supply Cloud-based Solutions


Chain Complexity
The use of cloud-based warehouse
Businesses are increasingly operating management systems is growing,
across global networks, requiring providing flexibility, scalability, and
sophisticated warehousing solutions to cost-effectiveness.
manage complex supply chains.

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