Module 1-6 Random questions Flashcards
Importance of Warehousing in a Logistics System
Better Inventory Management
More efficient Packing and Processing
Superior Customer Service
Ensure Price Stabilization
Improved Risk Management
Most warehouses provide the equipment and supplies you need to store, move package and process orders from customers.
More efficient Packing and Processing
Warehousing allows for timely delivery and optimized distribution, leading to increased labor productivity and greater customer satisfaction
Superior Customer Service
Warehouse provide centralized location for the goods, making it easier to track and manage inventory
Better Inventory Management
Warehouses provides safe storage of perishable products; helps extend the product’s shelf life and ensures customer satisfaction
Improved Risk Management
warehouse allows you to store your products for a later date when the demand is high. This helps ensure price stabilization and reduces revenue losses.
Ensure Price Stabilization
Advantages of Warehousing
Improved Inventory Accuracy
Reduced Overhead Cost
Better Staffing Levels
Protection of Goods
Central Location
Superior Flow of Goods
Functions of warehousing
Storage
Price stabilization
Risk Bearing
Financing
Grading and packing
person keeping the goods in the warehouse
Bailor
warehouse keeper
Bailee
Types of warehouse
Private Warehouses
Public warehouses
Bonded warehouses
Other types of warehouses
What are the other types of warehouses?
Special Commodity Warehouse
Cold Storage or Refrigerated Warehouse
Institutional Warehouse
constructed and owned by the business enterprises in order to store the products produced by them; Exclusively owned and used by the producers themselves and are not meant for other manufacturing or business units
Private Warehouses
Used for imported goods which are not granted clearance on account of non-payment of customs duty by the importer of these goods; Situated near the ports
Bonded warehouses
Also known as duty paid warehouses; One which is open for public at large; May be owned by an individual or some agency whose main object is to provide storage facilities to people for certain fees or charges.
Public warehouses
Different institutions and bodies have their own warehouses on account of the nature of their operations; example, Banks, Railways, Food Corporation of India etc. has their own warehouses for conducting their activities
Institutional Warehouse
Constituted for storing a particular type of commodity; Ex: tobacco, cotton, wheat etc.
Special Commodity Warehouse
Used for storing perishable commodities like eggs, butter, fruits, vegetables, fish, meat, etc.
Cold Storage or Refrigerated Warehouse
10 Factors to Consider while Selecting a Warehouse
Location
Access
Client Profile
Storage Area
Association Membership
Experiences
Employees
Process
Risk
Technology
Roles of Warehouse
Raw material storage
Intermediate, postponement, customization or sub-assembly facilities
Finished Goods Storage
Consolidation centres and transit warehouses
Transhipment or break-bulk centres
Cross-dock centres
Sortation Centres
Fulfillment centres
Reverse Logistics centres
Public Sector Warehousing
Store raw materials and components either close to the point of extraction or close to the manufacturing point.
Raw material storage
Postponement and sub-assembly activities
*Specific packaging or labeling being changed or added, e.g for store ready items or printing in different languages
*Computer assembly to include different graphics cards, memory chips, software, etc;
*Product bundling for promotional activity
*country -specific items being added such as electrical plugs; and
*Special messages being added, eg stencilling of greeting messages on mobile phones.
Store products ready for sale, on behalf of manufacturer, wholesalers and retailers
Finished Goods Storage
Receive products from different sources and amalgamate them for onward delivery to the customer or onto a production line; Include just in time centers
Consolidation centres and transit warehouses
Receive products in large quantities from suppliers and break them down into manageable quantities for onward delivery to various location.
Transhipment or break-bulk centres
Used in the main by letter, parcel and pallet distribution companies
Sortation Centres
Warehouse designed and equipped specifically to manage large volume of small orders
Fulfillment centres
Reasons for holding stocks
*Uncertain and erratic demand patterns
*Trade-off between transport and shipping costs, justifying larger shipments
*Discounts via bulk buying
*Distance between manufacturer and the end consumer
*Cover for production shutdowns
*Ability to increase products runs
*To manage seasonal production
*High seasonality
*Spare parts storage
*Work-in-progress storage
*Investment stocks
*Document storage
Used in faster moving operations, particularly in order picking by case and layout unit
Wide, narrow and very narrow aisle racking
Buildings must first be constructed with mobility in mind, as the building needs substantial steel runners set flush into the insulated cold-store floor surface; Popular with smaller companies that have higher volumes to store but also need accessibility for range and stock rotation.
Mobile racking
Used for bulk pallet storage and more frequently for longer term storage, to suit seasonal production and supply peaks or production/packaging operations to meet different packing formats
Drive-in racking
More common in continental Europe; These are very economical for customers if volume related, and best attached or contracted to a high-volume production plant
Automated storage
specific processes can be found in the temperature controlled sector
Traceability
Temperature checks
Products checks
Segregation
Date codes
Product spills
stores need to be fitted with temperature monitoring equipment that is checked on a shift or am/pm basis and records kept for regulatory and operational analysis
Temperature checks
all damaged or unfit product should be labeled or marked and removed to ensure it cannot move further down the food chain
Segregation
products should be checked on intake to ensure that the product is sound and to specification
Products checks
codes need particular attention to ensure correct rotation and 100% acceptance of retail RDC or other final delivery point
Date codes
need quick response to avoid crushed and packaging from spreading across the working space, and ingestion into the working parts of equipment.
Product spills
Pallet dimension of North America
1219 x 1016 mm
48.00 x 40.00 ich
Pallet dimension of UK and Asia
1000 x 1200mm
39.37 x 47.24 ich
Pallet dimension of Europe
800 x 1200mm
31.50 x 47.24 ich
Pallet dimension of Australia
1165 x 1165 mm
44.88 x 44.88 ich
Pallet Dimension of Asia
1100 x 1100 mm
43.30 x 43.30 ich
pallet dimension of most countries
1067 x 1067 mm
42.00 x 42.00 ich
a process where products are moved directly from goods-in to the dispatch bays
cross docking
80% of effects come from 20% of causes.
Pareto’s law or the 80/20 rule
Examples of the 80/20 rule in relation to the warehouse
*80% of sales come from the top 20% of the product lines
*80% of sales come from 20% of the customers.
*80% of profits come from the top 20% of products.
*80% of the inventory value is in 20% of the products.
*80% of the problems come from 20 percent of your suppliers.
*80% of the complaints come from the 20 % of the customers:
*80% of staff problems come from 20% of your workforce.
ABC classification, 35% of items producing 15 percent of sales
B
ABC classification, 20% of products producing 80% of sales
A
ABC classification, 45% items producing only 5% of sales
C
Only provides a snapshot of the current situation based on one parameter – the level of sales by product.
ABC Classification
A tool that calculates the optimum location for products within a warehouse.
Slotting
The route followed by the picker when assembling the order
- The pick instruction will have each pick sequenced as per the most effective route beginning at the front of the racking nearest the dispatch bays.
- Heaviest items are picked first.
- The picker should be able to pick from both sides when moving up and down the aisles.
- Shortcuts are programmed into the system to minimize travel.
- The picker ends up as close to the dispatch area as possible.
- Multiple pick locations for the most popular items need to be set up to avoid congestion at the pick bays.
4 types of Pick Requirement within a Warehouse
- Piece, each, unit, item or broken case pick;
- Full-case or carton pick
- Layer pick; and
- Full pallet pick
3 categories of Pick strategies
- Picker to goods
- Goods to picker
- Automated picking
Order-picking methods
*Paper pick lists
*pick by label
*Pick by voice
*Barcode scanning
*Radio frequency identification
*Pick by light/pick to light
*Put to light
*Automated picking
Detail the order number, location, product code, description and quantity to be picked.
Paper Pick List
Pick list are a series of labels on sheet
Pick by label
Picker have a headset and a microphone
Pick by voice
Picker have a headset and a microphone
Pick by voice
Series of vertical bars
Barcode scanning
Identifying an item using radio waves
Radio frequency identification
Uses light indicator or LED to identify the item
Pick by light/Pick to light
Requires orders consolidation and a batch pick of products
Put to light
Picker takes one order or part of an order
Pick to order
Used with conveyors, where a tote containing multiple orders diverts into a pick zone
Cluster picking
Pick products for a number of orders at the same time, these orders are consolidated with one pick list and once picked are later broken down
Batch picking
Products are picked from define area
Zone picking
Orders are combine and release at specific area
Wave picking
