MODULE 7-9 Flashcards
traditionally thought of as a place to hold or store inventory.
warehousing
traditionally viewed as basic functions that collectively support the handling, identification, and protection of product.
Materials Handling & Packaging
fueled by the advent of e-commerce
has become a very large and strategic investment for
many firms.
Materials handling
has become strategic in nature,
taking into consideration significant complexities to efficiently meet customer requirements.
Warehousing functionality
has continued to evolve, simultaneously incorporating both commercial marketing related elements, as well as traditional industrial handling considerations.
Packaging
What are the reasons for Strategic Warehousing?
- Uncertainty in demand, supply, and/or lead time.
- Manufacturing economies: production smoothing.
- Transportation economies: volume discounts.
- Customer service support.
It exist to lower total cost or improve customer service. It also specialize in supply- or demand-facing services.
Warehouses
Facilities used for inbound materials are
supply-facing warehouses
Facilities used for customer accommodation are
facing warehouses
are different based on facilities
support role.
* Procurement.
* Manufacturing.
* Customer accommodation.
Functionality and justification
Warehousing Fundamentals – What are the benefits?
operational strategy to add value within the supply chain process.
Service benefits
Warehousing Fundamentals – What are the benefits?
operational strategy to save money
by using a storage point.
Economic benefits
are meant to add value for the customer.
Service benefits
- Spot stock near customer (usually seasonal)
- Full-line stocking (inventory in anticipation of orders)
- Stocking to support production facility
Stocking strategies
- Packaging/kitting.
- Changing product form (example, paper cutting).
- Sequencing.
- Drop-shipping (orders shipped directly to customer).
- Postponement (example, HP printers).
Value-added services (greater value creation)
- Consolidation and break-bulk.
- Sorting (cross-dock).
- Seasonal storage.
- Reverse logistics.
Warehousing – Economic Benefits
Inventory from multiple locations is received and combined for shipments to customers.
Consolidation
Large shipments are broken down for smaller deliveries to multiple
customer destinations.
Break-bulk
Product from multiple sources is mixed to form orders shipped to multiple customers.
Cross-dock
One major difference with a mixing facility is the addition of product
already sitting in the warehouse, such as Product D.
In-transit Mixing
Accommodates either seasonal production or seasonal demand.
seasonal storage
produced year-round, sold in short
window
Patio/lawn furniture
produced in season, sold year-
round.
Agricultural products
Reverse Logistics Processing (study)
- Returns management.
- Remanufacturing or repair.
- Remarketing.
- Recycling.
- Disposal.
- Hazardous materials and government regulation.
- Product recalls.
typically operated by the firm owning the product.
- control
- flexibility
- cost
- intangibles
Private
outsourced warehousing
operations on a pay-for-service basis.
* General merchandise.
* Refrigerated.
* Special commodity.
* Bonded.
* Household goods & furniture.
Public
operated by “niche experts” providing customized service with
long-term relationships.
- (done correctly, combines best of both public and private.)
Contract
At low volumes, public warehouses, which can operate on a per unit basis, are generally more economical.
true or false
true
To achieve the basic benefits of a warehouse, a detailed analysis considering the _______ of the facility must be determined.
size, type, and shape
Proper planning can ensure desired
warehouse efficiencies. (study)
Proper planning can ensure desired
warehouse efficiencies.
* Site selection.
* Design.
* Product-Mix analysis.
* Expansion.
* Handling.
* Layout.
* Sizing.
Warehousing – Impact of More
Warehouses (study)
Improve service level due to reduction of average service time to customers.
- Increase overhead and set-up costs.
- Reduce transportation costs in a certain range.
- Reduce outbound transportation costs.
- Increase inbound transportation costs.
Increase inventory costs due to a larger safety stock.
* Portfolio Effect / Square Root Law.
what are the Storage practice (slotting)
- First available.
- Fixed area
- ABC
what are the picking the product.
- FIFO (first-in-first-out).
- LIFO (last-in-last-out).
Warehouses can be extremely complex operations.
t or f
t
include product handling and storage. Numerous product handling considerations exist to support
a given warehouse application.
Primary functions
are also of significant importance to
the success of a given warehouse operation.
Secondary functions