Fundamentals of Data Warehousing
Module 5
Warehouse Management System
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The control of the day-to-day operations of a warehouse, such as the shipping, receiving,
put-away and picking of goods.
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Facilitate management in their daily planning, organizing, staffing, directing, and
controlling the utilization of available resources, to move and store materials into, within,
and out of a warehouse, while supporting staff in the performance of material movement and
storage in and around a warehouse.
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Usually represents the central unit in the software structure of a warehouse.
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Receives orders from the overlying host system, mostly an ERP system
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Manages these in a database and, after appropriate optimization, supplies them to the
connected conveyor control systems.
Warehouse Management Functions
1. Planning
Finalizing the daily plan for receiving dock activity, selecting the workload to be
processed in the day or shift, calculating an estimate of the labor and vehicles required to
pick and ship the orders to ensure the staffing is appropriate, and to notify carriers regarding
to load and depart to meet customer requirements.
2. Organizing
Sequencing the orders to be picked. Organizing orders for picking can be accomplished in
many ways, meeting the needs of the user. The initial way of organizing was called wave
planning or wave picking, with two objectives;
a. to minimize need for dock staging space
b. to create an order of flow that will support monitoring the progress through the day
and reduce last minute requests for overtime or delay of carrier departure.
3. Staffing
Assign staff to work functions and areas, by wave, to minimize staging.
4. Directing
Ensuring the documented processes and procedures are embedded in the WMS and are
consistently applied, used and appropriate for the nature of the work and service level
intentions of the company.
5. Controlling
Providing milestones for management to monitor progress through the day, providing
the opportunity to respond to problems in a timely way, and report data for performance
analysis.
Advantages of using a Warehouse Management System (WMS)
A WMS will enable you to analyze current procedures and performance, and implement
improvement that will:
1. Reduce picking errors
Picking errors are costly at any stage of the process, if they are spotted before dispatch, there
are the labor costs of re-picking. If incorrect items are shipped to the customer, not only is it
expensive to accept the return and process the replacement, but there is the hidden cost of
damage to the customer relationship.
2. Optimize stock control
There must be a balance between having stock available for customers, and trying up too
much capital.
3. Maximize use of space
The right proportion of floor storage, vertical storage, racks and pallets for your warehouse
will depend on the types of good stored and the patterns of distribution.
4. Improve worker productivity
Your workforce is likely to be your biggest cost. How much would you save if you improved
productivity?
5. Ensure compliance with Health and Safety regulations
WMS can guide workers through risk assessments and flag up warehouse safety
requirements, protecting your company, workers and customers alike.
Dis-Advantages of Warehouse Management System (WMS):
1. Many processes are integrated into a system
An error in one place entails errors in others. In this way, a human error can cause the whole
system to be inaccurate. To prevent such situations, there are certain operations that the
system will not allow you to perform (e.g. issuing more goods than what is available in the
warehouse).
2. Risk of choosing incorrect parameters before use
If the designed modules, categories, and processes are not well-tailored to your company, the
system will gather data in an inefficient way. This may mean that your solution will not work
as it was supposed to. To avoid this scenario, we ensure you get our support not only while
we build the software but also during the implementation and post-implementation stages.
3. Granting unsuitable levels of authorization to employees within the system
In the case of custom solutions, it is the client who decides which users will be able to view,
edit, add, or delete data. Granting authorization to wrong people may prevent your processes
from running smoothly.
4. Potentially unsuccessful implementation.
Like every investment, also this one entails certain risk. To avoid unsuccessful
implementation, it is important to make a detailed analysis of your needs, choose a
competent software house, consult your project with your employees in terms of how the
application should look like, as well as commit time to properly train your staff on how to
use the application. Working with our clients, we pay attention to each of these elements so
that you get a guarantee of the success of the project.
Warehouse Value-Adding Roles
Value-Adding Roles
Trade-Off Areas
Consolidation
Transportation
Product Mixing
Order filling
Service
Lead times
Contingency protection
Stockouts
Smooth operation
Production
Basic Warehouse Decisions: A Cost Trade-off Framework:
1. Ownership
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Public versus contract versus private
2. Centralized or Decentralized Warehousing
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How many
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Location
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Size
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Layout
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What products where
The Ownership Decision:
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Public warehousing costs mostly all variable.
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Private warehousing costs have a higher fixed cost component. Thus, private warehousing
virtually requires a high and constant volume.
The Ownership Decision – factors to consider:
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Throughout volume
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Stability of demand
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Density of market area to be served
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Security and control needs
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Customer service needs
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Multiple use needs of the firm
Public Warehousing
1. Rationale for Public Warehousing
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Limited capital investment
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Flexibility
2. Public Warehousing Services
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Bonded warehousing
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Field warehouse
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Public warehousing regulation:
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Liability
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Receipt
3. Public Warehousing Rates Based Upon:
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Value
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Fragility
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Potential damage to other goods
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Volume and regularity
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Weight density
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Services required
Contract Warehousing
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Up 23% per year in 2000 to $20.4 billion.
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Compensation for seasonality in products.
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Increased geographical coverage.
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Ability to test new markets.
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Managerial expertise and dedicated resources.
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Less strain on the balance sheet.
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Possible reduction of transportation costs.
The Number of Warehouses
1. Factors affecting the number of Warehouses
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Inventory costs
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Warehousing costs
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Transportation costs
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Cost of lost sales
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Maintenance of customer service levels
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Service small quantity buyers
Fundamentals of Data Warehousing
Module 6
Storage
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Storage and stores procedures are an integral part of any food and beverage control system.
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The purpose of efficient storage condition is to maintain materials or commodities in the
condition in which they are purchased and for them to be safe until they are issued to the
appropriate department for the use or sale to the customer.
Store Room Requirements
1. Location
The ideal location of a storeroom is near if not immediately adjacent to the receiving station
and the kitchen. If not possible, then additional equipment and manpower would be required
or alternative is use of conveyor belt for carrying the luggage.
2. Physical Properties
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Well Ventilated
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Not hot water and steam pipes
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No A.C Duct inside the store room
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No Drainage
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High temps play havoc with canned food
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Strict sanitation methods to be used to keep food free from vermin
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Shelving made of stainless steel with adjustable shelves depth- 18 inch. Items used
frequently should be placed near the exit door.
3. Layout
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One door entry and exit
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Neat and clean moving are for staff and food items
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The size of the storeroom depends upon its location
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One counters issuing items
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No to unauthorized entry
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Door should have heavy secure locks and windows bared as a preventive measure
against burglary.
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Liquor stores, wine cellars will need extra physical security systems due to high value
of liquor stocks.
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Security Features
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Some large establishments used closed circuit television surveillance techniques for
this purpose.
4. Equipments
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Large scale (weighing machine)
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Small scale
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Stout ladder
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Trolleys
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Cabinet
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Heavy work tables
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Ultraviolet rays lamp or sunlamps for helping in quick ripening of fruits and
vegetables and aging of meat.
5. Storeroom Hours
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There should be locked Dutch doors
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One Shift or 24 hour operations
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All staff should be informed about the opening hours
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Emergency procedure must also exist for the issuing of stores
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Key Log Book
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There are generally two keys maintained are may be kept with the lobby manager
during the night shifts.
6. Correct Storage Requirements of Commodities
a. Meats
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All sides, quarters or whole carcasses of meat should be hung in cold room at
a temperature of 0-1.c with a space between them to allow free circulation of
air with drip trays placed underneath in order to collect any blood ( to avoid
the formation of rigor mortis)
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According to the type of meat this period will vary from 2-10 days, permitting
a chemical change to take place to produce more tender meat.
b. Poultry and Game
Poultry should be stored on slatted shelves at 0-1.c game placed on metal trays at the
same temperature.
c. Fish
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Wet fish should be stored in a separate, special type of refrigerator with
perforated non- rust trays allowing the fish to drain and permitting easy
cleaning of refrigerator.
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The fish should be placed on crushed ice on a wet cloth, covered with another
cloth and crushed ice being stored at a temperature of 1c.
d. Fresh Fruits and Vegetables
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All types of fresh fruits and vegetables need careful storage properly in a room
where there is no sunlight. The room should be dry cool and well ventilated
with bins for root vegetables.
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Fruits and vegetables deteriorate quickly and space should therefore be
available to enable easy stock rotation.
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Soft fruits and melons should be refrigerated at 1-2.c.
e. Dairy Products
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Most dairy products with the expectation of cheeses should be stored in a
refrigerator or cold room at a temp of 0-4.c.
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Milk should be stored in a container in which it is delivered and kept covered
because it will absorb strong smell.
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Butter and eggs also acquires smell of fish, onions and cheese.
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Cheese should be stored in a cool place which is dry and well ventilated.
Because of its strong smell, cheese should be kept away from other items. If
whole cheese is to be stored for a period of time, they should be rotated
occasionally.
f.
Frozen Foods
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There is a great variety of frozen foods in either an uncooked or cooked state
and these should be stored at a temperature of at least 15.c to 18c.
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Foods should be kept on plastic coated trays in upright deep freezers and in
plastic type baskets in the chest type of deep freezer.
g. Tinned Foods
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It should be stored in a dry, well- ventilated store to prevent them from
rusting.
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Blown tins caused by gases should be discarded or returned to the supplier as
oxidation has taken place of either bacteria or tin plating being attacked by
the food.
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Dented tins should be used immediately before they rust.
h. Dry Goods
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Sugar, flour pulses, preserved foods such as jams, pickles, dried fruits, tea,
coffee. Conditions of storage for the same are dry, cool and well ventilated.
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They could be kept in bins with the lids on. Some dry goods require airtight
lids such as tea and coffee.
i.
Cleaning Materials
A separate store is necessary for all cleaning materials because of its strong smell and
also possibility of confusion/mistakes being made.
Stock Taking
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It is the process of physically counting all stock items in the store room, and kitchen.
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It is carried out by the F & B control department of the hotel.
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In the case of food stores, it is done once a month.
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Housekeeping item once in two months.
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Alcoholic beverage and Bar once in 24 hours.
Purpose of Stock Taking
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To determine the value of goods held in stock
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To compare the value of goods actually in stores with the book value of the stock at the
particular time
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To list slow moving items
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To compare usage with sales to assess food percentage as a deterrent against loss of pilferage
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To determine the rate of stock turnover
Types of Stock Taking
1. Perpetual Stock Taking
In this system, goods received or issued are immediately recorded on a stock taking sheet
and compiled at the end of the day. In this system, at any given time you know the value of
stock in hand.
2. Monthly Stock Taking
The stock is calculated at the end of the month.
Fundamentals of Data Warehousing
Module 7
Warehouse Receiving Process
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The purpose of receiving is to ensure that the food and supplies delivered match the
established quantity and quality specifications.
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The receiving personnel must have knowledge of food quality standard.
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The point at which food service operations inspect and take legal ownership and physical
possession of the items ordered.
1. Unloading and checking the shipment:
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The number of containers or packages of materials unloaded from the carrier’s
vehicle is checked against the carrier manifest.
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All containers or packages of materials are inspected for external damage.
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Failure to follow this procedure before accepting a shipment or delivery can relieve
the carrier of all liability.
2. Unpacking and inspecting the material
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First, he or she checks the material received against the supplier’s packing slip and
against a copy of the firm’s purchase order.
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Finally, the clerk reviews the condition of the material to determine whether there is
external damage.
3. Completion of the receiving report
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The paperwork system used varies significantly from company to company.
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At Southwest Electric, the shipping clerks utilize a computerized purchasing/
inventory system.
4. Delivery of the material
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The receiving department is usually responsible for delivery of the material to the
shop.
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Upon delivery of the materials, the supervisor customarily bills the material to the
job, relieving the receiving clerk of further responsibility for the material.
Fundamentals of Data Warehousing
Module 8
Shipping Instructions
1. Instructions to suppliers, as integral parts of orders:
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Terms of purchase: FOB, CFR, CIP (specify the port/ airport)
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Method of dispatch: ocean freight, airfreight, container.
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Packing required, shipping marks and addresses
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Name of forwarded to contact, if applicable
2. Instructions to forwarders or suppliers as such:
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Documents required, how many copies (recommend 3 original B/L, for example)
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To whom documents must be distributed
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Transportation charges payable by the buyer
3. Information on recommended routing:
The decision on routing should not be left to chance, but be taken by the buyer, often with
feedback and advice from the freight forwarder and/or from the receiving end.
4. Instructions or information on insurance coverage:
Instructions should specify either that coverage is not required the consignment will not be
commercially insured, or will be insured by the agency or that insurance arrangements are to
be made, and in that case, specify the risks to be covered.
5. When in doubt on the method of dispatch:
For many orders there is no doubt about the method of dispatch, for example due to the size,
weight or urgency, they are scheduled for surface or air and sent accordingly. There are
frequent cases, however, when it is not known at the time of placing the order whether
surface or air should be selected. Considering the high cost of transit and on-forwarding
charges.
International Trade and Transport Documents
1. Air waybill
2. Truck bill of lading
3. CMR transport document
4. Bill of Lading
5. Air waybill AWB
6. International commercial invoice
7. Proforma invoice
8. Packing list
9. Delivery note
10. Certificate of origin
11. The shipper’s letter of insurance
Types of shipping containers
Be resistant:
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To withstand
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Shipment
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Storage
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Handling
Container Service Types
1. Full Container Load (FCL)
This is when the full container is used by a single customer for his cargo.
2. Less than Container Load
This is when the same container is used for cargoes belonging to multiple shippers and
consignees.
Types of Shipping Documents
1. Bill of lading
The BOL is a contract between the owner of the goods and the carrier.
2. Commercial Invoice
The invoice is the bill for the goods from the seller to the buyer. It can be used to determine
the true value of goods when assessing the amount of customs duty.
3. Certificate of Origin
The COO is a signed statement which identifies the origin of the export item.
4. Inspection Certificate
This document may be required by the customer to certify the goods have been inspected or
tested and the quality of the goods is acceptable.
5. Export License
This license is a government document that authorizes the export of goods in specific
quantities to a specific destination.
6. Shipper’s Export Declaration
The SED is used for export statistics.
7. Export packing list
This is a detailed packing list that itemizes each item in the shipment.