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GLOBAL LOGISTIC MANAGEMENTLECTURE 6: WAREHOUSE MANAGEMENT... Warehouse management is a key part of the supply chain and primarily aims to control the movement and storage of materials wi

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GLOBAL LOGISTIC MANAGEMENT

LECTURE 6: WAREHOUSE MANAGEMENT

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1 What is warehouse management ?

2 Functions of warehouse

3 Objectives of warehouse management

4 Benefits of warehouse management

5 Decisive factors in warehouse management

6 Value-added warehousing

7 Summary

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1 What is warehouse management ?

Warehouse management is a key part of the supply chain and primarily aims to

control the movement and storage of

materials within a warehouse and process the associated transactions, including

shipping, receiving, placing and picking

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2 Functions of warehouse

 The basic warehousing functions

traditionally have been considered to be

as follows:

 receiving;

 identification and sorting;

 dispatching to storage;

 placing in storage;

 storage;

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2 Functions of warehouse

 retrieval from storage;

 order accumulation;

 packing;

 shipping

 record keeping

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3 Objectives of warehouse

management

In designing warehousing systems, it is desirable to maximize:

 space utilization;

 equipment utilization;

 labor utilization;

 accessibility of all materials;

 protection of all materials

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4 Benefits of warehousing

 Warehouse benefits consolidation

 Warehouse benefits distribution

assortment

 Warehouse benefits break bulk operation

 Warehouse benefits in-transit mixing

 Warehouse benefits manufacturing

support

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Logistics in Supply Chain Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The McGraw-Hill Companies, Inc All rights reserved.

WAREHOUSE BENEFITS

CONSOLIDATION

Plant

A

Plant B

Plant

C

Consolidation

A B C

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Logistics in Supply Chain Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The McGraw-Hill Companies, Inc All rights reserved.

WAREHOUSE BENEFIT DISTRIBUTION ASSORTMENT

Plant A

Plant B

Plant C

Distribution Center

Customer A

Customer B

Customer C

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Logistics in Supply Chain Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The McGraw-Hill Companies, Inc All rights reserved.

WAREHOUSE BENEFIT

BREAK BULK OPERATION

Warehouse

Customer

A

Customer

B

Customer

C

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Logistics in Supply Chain Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The McGraw-Hill Companies, Inc All rights reserved.

WAREHOUSING BENEFITS

IN-TRANSIT MIXING

Plant A

Plant B

Plant C

Warehouse Transit Mixing Point

Product D

Customer W

A-B-C-D Customer X A-B-C-D Customer

Y A-B-C Customer Z

A-B

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Logistics in Supply Chain Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The McGraw-Hill Companies, Inc All rights reserved.

WAREHOUSING BENEFITS

MANUFACTURING SUPPORT

Vendor

A

Vendor

B

Vendor

C

Manufacturing Warehouse

Assembly Plant

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5 Important factors in warehouse management.

In order to be effectively operating,

warehouse management needs to take care of:

 Information system

 Control

 Product characteristics

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Information system

 Communication capabilities

 System compatibility

 Handling technologies

 Application of advanced warehousing software

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 Policy and procedures

 Temperature

 Secrecy

 Lot control and recall

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Product characteristics

 Handling characteristics

 Storage characteristics

 Speed of movement

 Flexibility

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6 Value-added warehousing

 Packaging

 Refined unitization

 Production specialization

 Product climatization

 Recall capability

 Market confidentiality

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7 Summary

 Warehouse management plays an

important role in supply chain

management

 Warehousing has many benefits

 Warehouse management should consider important factors such as information

system, control and products

characteristics

 Value-adding warehouse must be acheived

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