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.