Final essay subject warehouse & im (fiata

To achieve this goal, good warehouse management ensures all warehouse processes run as efficiently and accurately as possible.. Warehouse management systems are important because they el

MÔN ĐẠIHỌC Ministry of Education and

Hoa Sen University

Faculty of LGTMQT

FINAL ESSAY SUBJECT: WAREHOUSE & IM

(FIATA)

Last name and name: Vu Thanh An

MSSV: 2198668

Class: 0100

Semester: 2131

Contents

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What is warehouse management?

Warehouse management refers to the supervision of operations in a warehouse This includes receiving, tracking and storing inventory, as well as training staff, managing

shipping, planning workloads, and tracking the movement of goods

Warehouse Management Benefits

Warehousing operations are generally invisible to customers, but they play an important role behind the scenes in ensuring on-time delivery To achieve this goal, good warehouse management ensures all warehouse processes run as efficiently and accurately as possible The benefits of good warehouse management — namely, fast, high-quality service at low cost — can spread to the entire supply chain, strengthening relationships with suppliers as well as customers

What is a warehouse management system?

A warehouse management system (WMS) is software designed to optimize processes operating in warehouses By implementing WMS, you have the ability to fully display real-time inventory and storage levels, employee productivity, demand forecasts, and inventory fulfillment processes Warehouse management systems are important because they eliminate manual processes and conjectures, instead streamline processes, save time, and provide more accurate snapshots of what's going on inside the facility without conducting constant warehouse inspections Each warehouse management system may have different functions deployed depending on the area of business it

serves.

Warehouse management principles

Know your purpose A warehouse business must first know its goals

Total control Warehouse management involves coordinating complex processes

involving multiple moving parts: people, equipment, orders, and inventory Warehouse

managers need to be able to monitor each process to ensure the process works smoothly and solve problems that inevitably occur Quality control is critical to

ensuring orders are executed correctly

Flexibility and resilience Warehouse managers must be able to change plans immediately, whether it's due to damaged incoming materials or extreme weather delaying shipments whether that involves rearranging warehouse space or re-

envisioning the selection processes

Key customers On-time delivery, with the nght product, is one of the most important metrics when it comes to service and customer satisfaction

Decision-making is based on data Even if every process in the warehouse seems to

be running without a hitt, that doesn't mean the processes are working as efficiently as possible WMS can help you identify and analyze areas for improvement

5 necessary warehouse management processes

Warehouse management is an aspect of supply chain management It affects the fulfillment of retail orders, storage, inventory management, shipping and distribution

Inventory tracking

Inventory tracking is inventory level tracking so you know you have any SKU in stock

and the exact location where you store them or whether they're being shipped from the

manufacturer or on the way to the store

Ad space management lets you know how many products are ready to be shipped if a

customer orders an item right now, as well as when you should place more orders

based on the expected volume

As you grow, you'll likely move inventory faster, expand to new locations, and increase your product lines This makes the accuracy of the inventory and tracking it all the more important

Select and pack

Retrieving and packing are two core functions performed in the warehouse A

warehouse management system should create a pick-up list for each picker to pick up the goods in the most efficient way This may include selecting the region, selecting

the wave, or selecting the series

For each new order, the picker will receive a packing slip for the ordered items and the

location stored at the warehouse Selecters will collect the ordered products from their respective locations

Once the order is selected, it will be delivered to a packer, who is responsible for safely placing items in a box or multiple parcels, adding any necessary packaging material and putting shipping labels on tt

Pick up and queue

Any warehousing business must be able to pick up inventory or transport goods from trucks at the loading terminal and then put them in storage locations The warehouse

management system needs to be able to scan in each box to receive the amount of

inventory it has

It will then be taken to a short- or long-term inventory storage location, where it will

be scanned again Warehouse management software needs to provide clear instructions for each user so that they know how to receive, open packages, pick, select, pack, and ship inventory

Ship

Based on the delivery options and shipping services you offer to customers, carriers such as DHL, USPS, FedEx, and UPS will take orders from warehouses to ship packages to their next destination

Once the order is shipped, your warehouse management system will be able to automatically send e-commerce order tracking information back to your store so your customers can track their shipments

Report

Warehouse management systems should provide inventory and operations reports across the entire warehouse This can include accuracy in order fulfillment (total number of wrong picks, wrong packages, etc.), total orders made by the hour to measure employee efficiency, Orders are delivered on time and beyond

There are also reports related to people's activities including inventory forecasts to understand labor and personnel management needs With a warehouse management tracking system, you can quickly find out which employees have completed safety training and who have the licenses and certificates to operate certain equipment and other regulatory requirements that you must meet to operate a safe warehouse

Warehouse management example

It can be said that Amazon's warehouse system has many highlights and special

from the scale to the arrangement and operation

e This is the largest warehouse system in the world A total of 175 modern

warehouses are scattered throughout the country, and the United States accounts for 64

e Each Amazon warehouse spans more than 28 football fields, with 11 people re-entering

e These warehouses also have the ability to connect closely from manufacturer, distributor to customer

® In particular, Amazon's warehouse is fully tinted Accordingly, all stages are the simplest such as taking the goods down from the price or the order of

packing, waiting, unloading on the car, All are highly focused and closely monitored through this intelligent system

® In addition, at this warehouse there are many other interesting things such as: Goods are not in any order, the management process is extremely simple; All goods are taken down by AI robots

What is the EOQ model?

The number of economic orders in English 1s called economic order quantity

Economic order quantity (EOQ) is the ideal order number that a company should buy for its inventory at a production cost, a certain proportion of demand, and other variables The EOQ model aims to ensure the right amount of inventory 1s ordered in batches so that a company does not have to fulfill orders too often and without excess inventory It assumes that there is a balance between inventory retention costs and Inventory setup costs, and that total inventory costs are minimized when both setup and retention costs are minimized

Formula for calculating the number of economic orders (EOQ)

Q=

In it:

D = The amount of demand for materials for the year

Q = Order volume per time

S = One-time order limb

H = Cost of material reserves for the year

How to calculate the number of economic orders (EOQ)

To calculate the EOQ for ad space, you must know the setup cost, demand ratio, and holding cost

Setup costs refer to all the costs associated with actually ordering inventory, such as packaging, delivery, shipping, and processing costs The demand ratio 1s the number

of inventory that a company sells each year

Holding costs refer to all costs associated with holding additional inventory Those costs include warehousing and logistics costs, insurance costs, material handling costs, inventory write-offs, and depreciation

Ordering large amounts of inventory increases a company's holding costs while

ordering smaller amounts of inventory more often will increase the company's setup costs The EOQ model seeks to minimize both types of costs

Advantages of EOQ model

This is a simple model, easy to apply widely in every workshop In addition, thanks to this model, businesses can strictly control the types of costs such as orders or warehousing goods Thereby improving the efficiency of inventory management in the

enterprise

Disadvantages of Using Economic Order Quantity

(EOQ)

The basis for the EOQ formula assumes that consumer demand is constant The calculation also assumes that both the cost of ordering and holding costs are

constant These assumptions make the calculation of unpredictable business events,

such as changing consumer demand, seasonally changing inventory costs, lost sales revenue due to inventory shortages, or purchase discounts that a company can receive when purchasing inventory in larger quantities

How do emerging IoT (Internet of Things) affect warehouse management ?

What is the Internet of Things?

loT is a system of devices connected to the internet embedded with sensors, software and other technologies It is capable of transmitting data over a network without

human manipulation, or even human-computer interactions

How is the Internet of Things affecting warehouse management?

About "smart" warehouse management

loT devices can help minimize errors, manual labor, speed up processing and overall warehouse efficiency loT sensors are being used to monitor and track the movement

of materials and other assets in their facilities The use of these sensors in store shelves

1s important for tracking and transmitting inventory data in real time The Internet of Things supports warehouse management to reduce costly and time-consuming errors, ensuring inventory levels and device locations are known and tracked

Warehouse management solutions

loT devices help manage warehouses with location, packaging, shipping and delivery data in real time What's the best thing about this? You will not lose track of assets as they are constantly updated and this can also be applied to human assets, knowing the personnel position in real time

Smart inventory ma nagement

With Internet of Things devices, devices for a smarter warehouse are made possible, use racking sensors that allow people to find and manage inventory, and can even take preventive actions in case of an emergency in the form of notifications when an item has run out Stock loT warehouse management equipment manages asset warehouses

for transportation or return of goods

Reduce labor costs

loT enables the development of automation for warehouse management, allowing

vehicles to be guided automatically or even by material handling robots Manual Intervention is no longer necessary, only in specific tasks, and this is actually

revolutionizing operations in warehouses.