•
•
•
•
•
•
Introduction
Need for Warehousing Management
Primary Functions of Warehouse
Types of Warehouse
Warehousing Strategies
Warehousing Functions
• Understand warehouse management concept or
approach
• Explain the role and major activities of warehouses and
distribution centers
• Nowadays, warehouse are more properly viewed as
places where products may be stored and assortments of
products created in accordance with customer
requirements
• Distribution Center term are being used to emphasize
the difference between the storage activity and the
strategic role of warehouses
• For an ideal logistics system – storage is held to a
minimum
and
inventory
moves
continuously
throughout the supply chain on its destination to fill
customer needs
• Primary purpose of a warehousing management is to
control the movement and storage of materials within an
operation and process the associated transactions.
• Warehousing is viewed as a place to store inventory as
well as a facility for switching the inventory.
• Need for warehousing management:
a. Reduce inventory
b. Reduce labor cost
c. Increase storage capacity
d. Increase customer service
e. Increase inventory accuracy
Primary Functions of Warehousing
1. Trans-Shipment Point
– A facility where products are received, sorted,
sequenced and selected into loads consistent with
the customers’ needs
2. Stockpiling
– The storage of inventories in warehouses to protect
against seasonality either in supply or demand
3. Production Support
– A warehouse dedicated to storing parts and
components needed to support a plant’s operations
4. Break-Bulk
– Splitting a large shipment into individual orders and
arranging for local delivery to customers
5. Warehouse Consolidation
– Combining shipments from a number of sources into
one larger shipment going to a single location
6. Cross-Docking
– Combines break-bulk and consolidation warehouse
activities
7. Reverse Logistics Support
– The logistics needed to send products or packaging
materials back to disassembly, reclamation or
disposal sites
– Returned products can be remanufactured or
updated for resale
8. Value-Added Services
– Any work that creates greater value for customers
– Services may change the physical features or
configuration of products so they are presented to
customers in a unique or customized manner
Warehouse Functions
1. Receiving and Unloading
– Inbound shipments must be received and unloaded from
the transportation vehicles
– Part of this activity may also involve checking the
shipment for the correct quantities and for potential
damage to products
2. In-Storage Handling
– Once unloaded the goods must be moved to the desired
destination within the facility, whether this is an actual
storage location or a shipping area in the case of a crossdock facility
3. Storage
– Products are held, even if for only a few minutes in a
storage area
4. Order-Picking
– The products are removed from storage and assembled into
appropriate quantities and assortments to fill customer
orders
5. Staging
– The assembled orders are moved to an area in the
warehouse in readiness for loading into a transportation
vehicle bound for customer locations
6. Shipping
– Involves verifying that the assembled orders are correct and
the actual loading of the transportation vehicles
Types of Warehouse
1. Private Warehouse
– Facility that is owned and operated by the firm that
own the products
2. Public Warehouse
– A firm that offers warehouse services to the public for
a fee based on the amount of spaced used and the
number of shipments into or out of the facility
3. Contract Warehouse
– Companies offer to build, own and operate
warehouse facilities for the benefit of clients who do
not want to undertake those responsibilities
themselves
• A private or contract facility may be used to cover basic
year round requirements
• Public facilities are used to handle peak seasons
• Public and contract warehouse have demonstrated more
responsiveness as they offer location flexibility
• Public and contract warehousing increases the potential
for industry synergy
• Public and contract warehouses are able to design
operations and facilities to meet higher volumes of
multiple clients
• Public warehousing facility can provide complete
logistical support ......
• Warehouse are more properly viewed as places where
products may be stored and assortments of products
created in accordance with customer requirements
• Warehouses perform several functions over and above
storage. It also provide benefits through consolidation,
break-bulk, cross-docking and assortment activities