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WAREHOUSING

© Krishnan Subramaniam
Packagin
g
A & B Items

Componen
ts

© Krishnan Subramaniam
WAREHOUSING

• Part of a logistics system that


• stores products
• at and between point-of-origin and point
of consumption,
• provides information to management of
the status and condition of items being
stored.
• The management of materials while
they are in storage.

© Krishnan Subramaniam
OBJECTIVES OF WAREHOUSING

• Maximize User Service


• Minimize Costs
• Guarantee Safety

© Krishnan Subramaniam
Sub-Objectives of Warehousing

• Effective Space Utilization


• Ready Access to All Items
• Quick Receiving of Materials
• Complete Inspection
• Coordination with Other Divisions
• Efficient Material Handling
• Maximum Protection of Materials
• Good Housekeeping.

© Krishnan Subramaniam
Functions in the Warehousing cycle

Process
purchase Receive
orders materials

Store
materials Issue goods…..

© Krishnan Subramaniam
Discuss
warehousing process
in your Workplace

© Krishnan Subramaniam
Warehousing Functions

• Receiving
• Identification, Checking and Sorting
• Dispatching to and placing in Storage
• Storage
• Order Picking
• Order Accumulation
• Packing
• Shipping

© Krishnan Subramaniam
WAREHOUSE FUNCTIONS

Secondary
Sorting

V
E
N Goods Reserved Order
Replenishment Collate/ Packing
D Receiving Storage Picking
O
C
R U
S
T
Sorting & Cross-Docking Dispatch
O
M
E
R

Flow Of Goods

© Krishnan Subramaniam
MOVE-STORE ACTIVITES

RECEIVING Put-Away
• Schedule Carrier For Unloading
Input • Unload Vehicles
• Identify Product
• Identify Storage Location
• Inspect for Damage • Move Product
• Compare To Purchase Order • Update Records

Order Picking Storage/ Binning


• Information • Material Handling Equipment
• Walk & Pick • Stock Location
• Order Picking • Fast Moving
• Batch Picking • Unit Size
• Automated Storage • Cube size
& Retrieval Process (AS/R)

Collating
• Packaging SHIPPING/DISPATCH
• Labeling • Schedule Carrier For Loading
• Staging • Load Vehicles
• Lorry Receipt (LR)/
Output
WAREHOUSING Consignment Note (C/N)
• Compare To Purchase Order
PROCESSES© Krishnan Subramaniam
WAREHOUSING - ROLES

q Warehousing Serves Several Value-Adding Roles in the


Supply Chain

Value-Adding Roles Trade-Off Areas

ü Consolidation ü Transportation
ü Product Mixing ü Order Filling
ü Service ü Lead Times
ü Contingency Protection ü Stock Outs
ü Smooth Operations ü Production

q Warehousing Involves Costs But Often Adds More Value


q Warehousing of Goods Recommended Only If Trade-Off
Possible in Other Areas
© Krishnan Subramaniam
TRANSPORT CONSOLIDATION
Physical Supply System
Supplier
Volume
Supplier
Distribution
Shipment
Plant
Warehouse
Supplier

Supplier
LTL for TL for
Short Distances Larger Distances

TL – Truck Load Rates – Lower


CL –Car Load Rates – Lower
LTL – Less-Than-Truck Load Rates – Higher
q Consolidating Small Inbound Into Larger Outbound Shipments
q Reducing Transport Cost By Consolidating Shipments at the
Distribution Warehouse

© Krishnan Subramaniam
TRANSPORT CONSOLIDATION
Physical Distribution System
Plant Retailers
Distribution
Volume Warehouse Retailers
Plant
Shipment
Distribution
Plant Warehouse Retailers

TL for LTL for


Larger Distances Short Distances

TL – Truck Load Rates – Lower


FCL – Full Car Load Rates – Lower
LTL – Less-Than-Truck Load Rates – Higher

§ Product Mixing/ Bundling


§ Preparing Floor-Ready Merchandise
• Ticketing/ Labelling
• Marking - Apparel on Hangars
© Krishnan Subramaniam
DISTRIBUTION CENTRE (DC)

Product Mixing/ Bundling

Plant 1 Customer
Products 1
C
A&B AB
Customer
FG 2
Plant 2 BC
Products Distribution
AG
B&C Warehouse Customer
3
A
Plant 3 B
C
D
Products E Customer
D&E 4
SC
Plant 4 TL
(Small Carriers)
Products (Large Trucks)
F&G
© Krishnan Subramaniam
CROSS-DOCKING DC

Plant Inbound Outbound


Retailer 1
Dock Dock
DC
Plant Cross Docking Retailer 2
(DC)
DC
Plant Retailer 3

• Cross Docking Justified By Reduction in Transportation Costs & Time for


Product Mixing
• Supplies Packed & Invoiced as Per Retailers’ Orders at Suppliers’ End
• Supplies From Different Sources Combined as per Retailer-Orders at
• Cross-Docking DC & Sent To Respective Retailer-DC in Shorter Time/ Cost
• Goods Transferred Directly from Inbound to Outbound Docks
• No Storing in Cross-Docking DC
• Goods Along with Respective Invoices Leave DC Within 24 Hours
© Krishnan Subramaniam
SUPPLY MIXING WAREHOUSE

Raw
Material A

Raw
Material B
Supply Mixing A B C D
LTL
Warehouse Plant
TL
Vendor
Source C

Vendor
Source D

Consolidation of Supplies from Different Sources


© Krishnan Subramaniam
WAREHOUSING SYSTEM

• Storage Functions
• Accumulation of Inventory Over Time
• Depending on Purpose of Storage & Different Lengths of
• Time a Product Required to Remain in the Warehouse
• Different Locations in Warehouse Chosen for
• Storing Product Based on Purpose of Storage

• Material Handling Functions


• Loading & Unloading Activities
• Moving Products To and From Various Locations Within the
Warehouse
• Order Picking

© Krishnan Subramaniam
STORAGE FUNCTIONS
• Holding (Providing Protection & Orderly Holding of Inventory)
• Holding Time/Storage Requirement Drives Store Configuration/ Layout
• Long-Term Specialized Storage (Ageing Liquors/ Wines)
• General-Purpose Merchandise Storage (Seasonal Goods)
• Temporary Holding of Goods (Truck Terminal)

• Consolidation
• Transportation Rate Structure/Breaks Influences Use of Storage Facilities
• Collection Point (Warehouse/ Freight Terminal) Used for Small
• Shipment-Consolidation To Avail More Economical TL Rates

• Bulk-Breaking (Opposite of Consolidation)


• TL Supplies Received from Long Distance Factory Broken into
• LTL Loads (Order) & Sent To Short-Distance Retail Outlets
• Distribution/ Terminal Warehouses Used to Break-Bulk

• Mixing
• Products From Different Suppliers Mixed to Assemble Retailer’s Orders
• For Delivering to Different Short-Distance Retail Outlets
© Krishnan Subramaniam
STORAGE EXAMPLES

Tote Box Pallet

Storage/ Binning

Storing & Retrieval Using Reach Truck


© Krishnan Subramaniam
MATERIALS HANDLING FUNCTIONS
q Loading & Unloading
• On Arrival at Warehouse Goods Are Unloaded from Trucks
• Packed Goods are Loaded on Outgoing Trucks
• Often Special Equipment are Required for these Operations
• Involves Various Activities of Checking Order Contents/ Order Sequencing etc.

q Movement Within Warehouse


• From Unloading Point to Storing Area
• Storing Area to Picking Area
• Picking to Staging Area
• Staging to Packing Area
• Packing to Docking Area

q Order Filling/ Picking


• Selection of Stocks From Storage Areas To Build Customer Order
• Order Selection May Take Place Directly From Semi-Permanent/ Bulk Storage
Area (Order Picking Areas)
• Often the Most Critical Material Handling Activity due to Small-Volume Orders

© Krishnan Subramaniam
LOADING/ UNLOADING

Dockside Counter Balance Truck


© Krishnan Subramaniam
SEMI MECHANIZED PICKING

© Krishnan Subramaniam
WAREHOUSING DECISION TREE
Ownership

Private Public

How Many

Centralized Decentralized

What Size

Where (Warehouse Location)

Warehouse Layout

What Products Where


(Product Location)

Warehousing Decisions Made in a Trade-Off Framework


© Krishnan Subramaniam
WAREHOUSING OBJECTIVES
• Achieve Maximum Efficiency in Organizing and Handling Flows at
Minimum COST
• Balance COST/ Utility by Adjusting Following Variables
• Number of Warehouses in the System
• Warehouse Building Size
• Width & No. of Aisles for Easy Movement of Material/ Men/ Equipment
• No. & Size of Shelves
• Internal/ External Material Handling Equipment
• Computer Systems
• Manpower
• Design Layout/ Equipment/ Organisation/ Systems to Facilitate
• Savings on Labour & Time
• Increase Speed of the 3 Flows

• No. of Warehouses Decided in Trade-Off With Logistics Costs


• As Number of Warehouses Increase
• Cost of Transportation & Lost Sales Decline
• Cost of Warehousing & Inventory Increases
© Krishnan Subramaniam
Warehousing:The Ultimate Impact

Delivery of ….
• the right product
• in the right quantity
• in the right condition
• at the right place
• at the right time
• for the right customer
• at the right cost

© Krishnan Subramaniam
WMS - Current trends

• RFID – Radio frequency Identification


• Voice picking
https://www.youtube.com/watch?v=yy53EMEmx_c

• Vision picking
https://www.youtube.com/watch?v=I8vYrAUb0BQ

• Robots
https://www.youtube.com/watch?v=quWFjS3Ci7A

© Krishnan Subramaniam