Warehousing/Distribution Flashcards
A support function for logistics and plays an important role in attaining the overall objectives of an organization’s supply chain system.
Warehousing
A place where inventory is stored.
Warehouse
Involves a thorough understanding of how the basic warehouse management functions impact the supply chain
Successful warehouse management
Collection of activities.
Receiving
This is done in the case when products are received in bulk from a supplier and repacked into single consignments
Pre packing
Putting away the inventory received to complement order picking. It can be explained as the physical holding of merchandise while it awaits demand.
Storage
Physical selection of the products from their locations after receiving the customer orders.
Order picking
This is basically optional which may be done after the picking process.
Packaging and / or pricing
When a warehouse stores multiple products, this activity is done.
Sortation and / or accumulation
Performance of tasks related to dispatching an order.
Packing and shipping
Choosing the best mode of transportation for inflow and outflow.
Traffic management
Refers to the overall reduction in the logistical costs by utilizing one of more benefits.
Economic
Material from a number of manufacturing plants destined to a particular customer on a single shipment are consolidated and received by the consolidating warehouse which results in reduced transportation cost.
Consolidation
Break bulk warehouse sorts or splits individual orders and delivers them locally.
Bulk Breaking
This facility is similar to bulk breaking but involves multiple manufacturers.
Cross Docking
A warehouse with facilities for light manufacturing activities like packaging and labeling can enable postponement of final production until the exact demand is known.
Postponement
Stocks piled in the warehouse act as buffer inventory which help to tide over situations of material constraints and customer demands.
Stock Piling
A selected amount of a firm’s product line is placed in a warehouse to fulfill customer orders during a key period of maximum seasonal sales.
Spot Stocking
Various product combinations are stocked in an assortment warehouse in anticipation of customer orders.
Assortment
Similar to the bulk breaking process with an exception that various different manufacturer shipments are involved.
Mixing
Provide a constant supply of and materials for assembly units.
Support in production
Refers to having the entire facility under the financial and administrative control of the firm.
Private warehouse
Complete decision-making authority over all activities in the facility.
Control
Operation policies and procedures can be formulated and altered to suit individual needs.
Flexibility
The basic objective of this warehouse is not profit – making, thus the cost aspects are less compared to public warehouses.
Cost
An intangible benefit is a marketing advantage over other firms.
Marketing
These are similar to private carriers in transportation service. Services are provided to others by firms that have warehousing space, storage facility, and material handling equipment for their own use and are used a lot in logistical systems.
Public Warehouse
Major advantage of a public warehouse.
Provide financial flexibility and economies of scale.
Combine features of both public and private warehouses.
Contract Warehouse
Deal in all commodities except specialized or commodity items. These can either be public or private
General Merchandise warehouses
Used for storing perishable items, which are kept at low temperatures to preserve quality.
Refrigerated/Cold Storage warehouses
A special type of warehouse whereby distributors can produce, transfer and store products without paying excise taxes and duties on them.
Bonded warehouses
Bring in imported merchandise, store as well as display the merchandise in shops, which sell for export or sell merchandise, which is directly exported.
In – bond warehouses
These are specialized and handle a specific or a bulk commodity.
Special commodity warehouses
Warehouses, which combine all the above facilities.
Combination warehouses
Incurred irrespective of how much or how little throughput is experienced.
Fixed costs
Vary with the throughput.
Variable costs
This influences the number and location of warehouses.
Nature of product
The efficiency of the warehouse operations improves with the availability of suitable infrastructure like roads, utilities water, electricity, communication etc, and labor, the unavailability of which will increase the transportation cost
Infrastructure
Warehouse is located at a place where there is little accessibility, the transportation costs will escalate.
Access
The availability of warehouse space.
Availability
To offer better service to customers, warehouses need to locate in proximity to consumption centers so that frequent deliveries by customers in small quantities can be organized at a limited time.
Market
To offer better service to customers, warehouses need to locate in proximity to consumption centers so that frequent deliveries by customers in small quantities can be organized at a limited time.
Market
Government regulations guide the site selection for certain hazardous chemicals, explosives etc.
Regulations and local taxes
The product mix is directly related to the design and operation of a warehouse. Considerations such as product sales, demand, weight, bulk, packaging etc. needs to be made.
Product – Mix Consideration
The product mix is directly related to the design and operation of a warehouse. Considerations such as product sales, demand, weight, bulk, packaging etc. needs to be made.
Product – Mix Consideration
Considerations to be made while planning the layout and operation are:
A. Deciding on the receiving and shipping locations.
B. Identify minimum paths for movement of equipment and people, for speedy storage and retrieval.
C. Classifying items as slow, medium and fast and then allocating separate area for these.
D. Placing the material handling systems at their assigned location
Determination of warehouse space and design:
a) A sales forecast or total tonnage expected is used to estimate the final size of the warehouse required.
b) Warehouse designing is a specialty planning activity usually done by an architect. Specifications like size of warehouse, lay – out, path of material – handling equipment, are required.
This is a software solution to control movement and storage of materials within a warehouse, transportation management, order management, and a complete accounting system.
Warehouse Management Systems
Factors to be considered while initiating warehouse operations:
- While stocking the warehouse, a complete list of inventory needs to be obtained.
- Hiring and training of personnel is an important issue.
- The management must ensure that work procedures are developed and also understood by personnel.
- Protection against theft of merchandise must be ensured. Adequate security measures to be undertaken by allowing only authorized.
- Product deterioration arises from careless storage and non – compatibility among products stored in the same facility.
- When firms handle a large number of products it is economical to utilize computers for billing and inventory control.
- Accident prevention is an important consideration.
Functions like addition of a new purchase order, palletisation, receipt of goods, putting away received goods etc.
Inbound
Transferring inventory, holding and adjusting inventory, awareness of inventory balances etc.
Inventory Management
Tasks such as creating an order of shipment, shipping multiple orders, allocation of orders, shipping order status etc.
Outbound
