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WAREHOUSE MANAGEMENT

OBJECTIVE

Maximum utilization of storage space. Higher labour productivity Maximum asset utilization Reduction in material handling Reduction in operating cost. Increased inventory turnover Reduced order filling time

Private Warehouse: - A firm producing or owning the goods owns private warehouses, Located near big markets for convenience of distribution. Advantages: Better control over the movement and storage of products. Less occurrence of error. Disadvantages: Higher operation cost than public warehouse.

WAREHOUSE LOCATION:-

Factors governing the warehouse locations


Availability of services Land cost Availability of transport linkages for example, to a rail siding Availability of utilities of water and power Taxes and insurance cost Expansion space availability And soil strength and lay off land for drainage

Types of warehouse storagesystems

1. Pallet rack

Material handling storage aid system designed to store materials on pallets or skids.

ADVANTAGE OF WAREHOUSE

Protection and Preservation of goods Regular flow of goods Continuity in production Convenient location Easy handling Useful for small businessmen Creation of employment Facilitates sale of goods Availability of finance Reduces risk of loss

Important factors

Customer service level. Size of market. Number of product marketed. Size of the product. Material handling system used. Production lead time. Office area in warehouse. Types of rakes and shelves used

Inventory Handling

Types of warehousing procedures Receipt Procedure Inspection Procedure Outbound Procedure Shipment Procedure Definition of activities by procedure Activities for Receipt procedure (Example) whinh3412m000 Print Goods Receive Note (o) whinh3520m000 Receipts (m) whinh3201m000 Generate Inbound Advice (m) whinh3415m000 Print Storage List (o) whinh2515m100 Confirm Storage List (o) whinh3203m000 Put Away Inbound Activities for Outbound procedure (Example) whinh4201m000 Generate Outbound Advise(m) whinh4202m000 Release Outbound Advice (m) whinh4415m000 Print Picking List (o) whinh2525m100 Confirm Picking List (o) whinh3522m000 Approvals (o) Definition of warehouse order types

Packaging
Interest in packaging is widespread Logistics Warehousing Transportation Size Marketing Production Legal

The Role of Packaging


Identify product and provide information Improve efficiency in handling and distribution Customer interface Protect product

Bar Coding
Standard markings that can be read by automatic or handheld scanners that allow for labour saving logistical activities for all supply chain members. Bar Codes contain information regarding: Vendor Product type Place of manufacture Product price

Designing a Warehousing System

Products flow from factories to customers through a long wide chain of multiple tires of warehouses and multiple tires of marketing intermediaries. In designing a warehousing system, following questions poise due consideration: How many warehouses should a company have? Where should these warehouses be located? What should the size / capacity of these warehouses be?

Various elements in the warehouse designing system Land and Building: Design should be in line with the overall distribution policies of the company. The architecture design should take into consideration the type of product, volume, dimensions, nature of labour used (manual /automated) etc. Equipments: Design should keep in mind the heavy / light equipment to be carried in the warehouse. Example: Fork lift trucks, small vans, horizontal and vertical operating machines, conveyers etc.

Where to locate warehouses


The overall success or failure of a warehouse will depend upon the location selected. Following points need to be considered: The geographic location of the warehouses should be close to the major market / dealer / distributor. After the rough geographic location is fixed; other factors such as the environment near the location in terms of infrastructure, rail, road connections, rules of local authorities etc. have to be considered. Fiscal and tax related aspects: In or outside the octroi limits, tax rebates, zones etc. are the next to be dealt with. Other physical aspects: Town planning restriction, drain age water levels, quality of soil, height etc.

Factors affecting the location decisions


Service level: Lead time, to reach distributors. Coverage of the market. Product mix to be maintained. Product characteristics like fragile / perishable. Cost of transportation. Competitors approach

Various elements in the warehouse designing system


Computers and software: Some warehouses carry hundreds of items with a variety of different features. This needs computers and software's etc. Operating methods and procedures: The size, area etc. will depend on the quantum of inventory to be carried in the warehouse. The minimum order level, orders per hour, skilled / unskilled personnel etc. need due consideration. Management and staff: Overall efficiency will depend upon the type of staff performing various functions.