SUPPLY CHAIN ICA2
Storage systems used in
Warehouse/Distribution centres
Group Members:
Azfar
Amanda
Jaswee
Rachel
Weiyang
WAREHOUSE
• Stores products at and between point of origin
and point of consumption.
• Provides the desired service level for
customers in a cost-effective way.
Distribution Centre
• Building, structure or group of
units used to store goods and
merchandise that are to be redistributed to retailers,
to wholesalers or directly to
consumers.
• Usually thought of as being
"demand driven".
Uses of Warehouses and Distribution
Centre
• Manufacturing Support: Hold receipts of
shipments such as raw materials and
automobile parts from suppliers.
• Product Mixing: combination of various
products that form an entire product line and
are produced by different plants.
Uses of Warehouses and Distribution
Centre
• Outbound Consolidation: Small load
shipments from a number of manufacturing
plants transported to the consolidation
warehouse.
• Break-Bulk: Receives large shipment from
manufacturing plant. When these shipments
arrive, they are broken down into smaller
shipments.
Types of Storage System in
Warehouse and Distribution Centre
• Block Stacking: Storing large quantities of
palletized or boxed products on top of
each other in stacks without racks used.
• Racking: common technique, pallet
racking utilizes racks so that goods can be
stored in multiple levels above the ground.
Types of Storage System in
Warehouse and Distribution Centre
• Bin-shelving: Store small parts in
individual compartments adding to
organization of the operation.
• Mezzanine storage systems: Structural,
roll formed, and rack or shelf-supported
and generally made from steel,
fibreglass, or aluminium.
Automated Storage and Retrieval
System [ASRS]
• System that utilizes computers to
store and recall materials by storage
location.
• Computer-controlled, it requires less
manpower.
• Expensive to install than other
storage systems, plus it involves high
maintenance costs relating to the
ASRS operation.
Warehouse Management System
[WMS]
• Aims to manage information transfer into an
integrated process that drives warehouse
operations and efficiencies.
• Benefits: Helps to reduce the dependencies on
direct labour practices, resulting in reduced
training costs and lower error rates.
Ways to store products
Randomized Storage/Floating Slot Storage
• Items of the same height grouping are stored
together regardless of their uses, to achieve
maximum storage density and the highest degree of
storage flexibility.
• Only works in a computer-controlled environment.
• Requires lesser storage space.
Dedicated Storage
• Storage policy in which a warehouse located is
dedicated to house a specific Stock Keeping Unit.
• Stored in the same locations and efficient space is
always available for all items in replenishment
batches.
• High space requirements and consequent low space
utilization.
Storage by Complementary
• Placed in the same area that results in more
efficient use of space and more efficient material
handling.
• Storing them too close together might result in
order picking and shipping errors.
• High cost as the layout needs to be precise.
Storage by Popularity
• High turnover items should be located as close as
possible to the point of usage.
• By storing the popular items together, items still
have to be sorted into orders which require time
and may also lead to error.
• Helps save cost, as it helps maximises space and
high turnover items can be easily accessed.
Storage by Compatibility
• Practically located next to each other.
• Contact between certain individual harmless
materials, can result in extremely hazardous
reactions or product damage, when placed
together
• High cost, as the warehouse layout needs to be
precise