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Introduction To Supply Chain Management > Week 8 - Warehousing & Distribution > Flashcards

Week 8 - Warehousing & Distribution Flashcards

1
Q

What is transportation?

A

Is the planning and the undertaking of the movement of goods by a carrier to points in a cost-effective manner that achieves the times and conditions specified by the shipper

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2
Q

Transportation management system

A

Inbound —> Internal processing —> Outbound

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3
Q

Key drivers of loading/unloading (4)

A
  • Number of items
  • Time
  • Packaging
  • Not always symmetric
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4
Q

Key drivers of line haul (4)

A
  • Distance
  • Impacted by network
  • Congestion
  • Connectivity
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5
Q

Features of transportation (8)

A
  • Transportation entities
  • Types and models
  • Tracking and vehicle maintenance
  • Fuel costing and impact
  • Routing and mapping
  • Communications
  • Carrier selection and management
  • Cost drivers
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6
Q

What are the different transportation entities? (5)

A
  • Freight carriers - e.g hauliers, trucking companies, train companies, airlines, shipping companies
  • Freight forwarders - company that leases bulk space from other carriers to be resold to firms making smaller shipments
  • Carriers - immediate delivery of products
  • Integrators - offer a seamless (I.e integrated) end-to-end service from consign or to consignee
  • Agencies - companies combine buying power to gain reduced freight transportation rates
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7
Q

Features of third-party logistics (3)

A
  • Holistic service provision - I.e loading, collection, unloading & delivery etc
  • Improved delivery speed & reduced risk of unreliable transportation of goods
  • Usage of latest freight tracking technology such as EDI, RFID satellite to keep customers informed about driver & deliveries
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8
Q

Features of fourth party logistics (2)

A
  • Lead logistics providers which facilitates freight sharing
  • Are asset light players who take on the responsibility for logistics whilst not actually carrying out any of the physical logistics duties themselves
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9
Q

Models of transportation (6)

A
  • Airfreight - air transportation
  • Road transformation (motor carrier, trucks)
  • rail transportation
  • Water transportation
  • Pipeline
  • Intermodal
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10
Q

What are the three types of transportation?

A
  • Land - I.e road, rail, pipelines
  • Water - I.e cargo ships
  • Air - airfreight
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11
Q

Advantages of airfreight (3)

A
  • Makes up lost time
  • Perishable products
  • Urgent deliveries
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12
Q

Disadvantages of airfreight (6)

A
  • Expensive
  • Line-haul cost of airfreight service
  • Transportation cost
  • Transit time
  • Increase handling costs
  • Increasing loss and damage
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13
Q

Advantages of motor carrier (2)

A
  • Flexibility

* Ability to deliver the product

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14
Q

Disadvantages of motor carrier (3)

A
  • Limitations by highway weight and size
  • Speed limitations and hours of service (HOS) rules
  • Highway congestion
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15
Q

Types of cargo ships (2)

A
  • Bulk carriers - are designed to transport unpackaged bulk cargo such as cement, ore and coal
  • Container ships - carry intermodal containers that can be carried by land
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16
Q

Features of rail transport (4)

A
  • Move commodities over large distances
  • High fixed costs in equipment and facilities
  • Scheduled to maximise utilisation
  • Transportation time can be long
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17
Q

Rail types of freight (3)

A
  • Bulk unit train
  • Mixed carload
  • Intermodal (container, trailer and automobile)
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18
Q

Features of bulk unit trains (3)

A
  • Moves very high volumes of a single commodity
  • Coal, grain, minerals and waste
  • One way (shipper to receiver)
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19
Q

Features of mixed carload (2)

A
  • Moves a diverse range of commodities

* Chemicals, food products, forest products, metal auto parts, waste and scrap

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20
Q

Features of intermodal (3)

A
  • Moves truck trainers
  • Almost anything that can be pack in a truck or container like: finished consumer goods, refrigerated foods, tools and parts for manufacturing and raw materials
  • Two way
21
Q

Advantages of railroad (5)

A
  • Adds transportation system capacity and reduces highway costs
  • Promotes economic development, productivity and supports international trade
  • More fuel efficient and generates less air pollution per ton mile than trucks
  • Rail road improves safety and security by offering a naturally selected right-of-way for freight
  • Reduces truck travel, congestion’s and highway costs
22
Q

Disadvantages of railroad (2)

A
  • Unless a manufacturing facility has a direct connection to the railroad rest of the trip must be handles by truck
  • Rail shipment sometimes cannot meet the rapid and flexible demand of an industry
23
Q

Features of pipeline transport (4)

A
  • High fixed cost
  • Primarily for crude petroleum, redefined petroleum products, natural gas
  • Best for large and stable flows
  • Pricing structure encourages use for predictable component of demand
24
Q

Reasons for warehousing (6)

A
  • Achieve transportation and production economies of scale
  • Take advantage of quality purchase discounts and forward buys
  • Maintain source of supply
  • Support the firm’s customer service policies
  • Meet changing market conditions: seasonality, demand fluctuations and competition
  • Provide temporary storage of materials to be disposed of or recycled
25
Q

Roles of warehousing (4)

A
  • Buffer
  • Consolidation center
  • Cross-docking
  • Value-added-processing
26
Q

Buffer - roles of warehousing:
• Typical sources/examples of system variation (2)
• Typical sources of random variation (2)
• Typical economies of scale

A

• Typical sources/examples of system variation:

  • Product seasonalities
  • Cyclical/batched production due to large setup costs

• Typical sources of random variation:

  • Variation in transportation times due to weather, traffic congestion
  • Variation in production times due to unreliable operations and unreliable suppliers

• Typical economies of scale involved:
- Price breaks in bulk purchasing

27
Q

Consolidation Center - role of warehousing

A

• Consolidation allows to control the overheads of transportation operations by:

  • Allowing the operation of the carriers to their capacity and therefore, the more effective amortising of the fixed transportation costs
  • Reducing the number of shipping and receiving operations
28
Q

Cross-docking - roles of warehousing (2)

A
  • Consolidation without staging

* Warehousing can be manufacturer to retailer or manufacturers to consolidator to retailers

29
Q

Feature of Value-added-processing (VAP) - role of warehousing (4)

A
  • Pricing and labelling
  • Kitting (I.e repackaging items to form a new item)
  • Light final assembly (e.g. assembly of a computer unit from its constituent components, delivered by different suppliers
  • Invoicing
30
Q

What are the two Inbound processes in major warehousing operations

A

• Receiving: Makes up 10% of warehouse operating costs

  • Receipt of all materials coming into the warehouse
  • Providing the assurance that the quality and quantity of such materials are as ordered
  • Disturbing materials to storage or to other organisational functions requiring them

• Put-away (15% of warehouse operating costs):

  • Determine and registering actual storage locations
  • Transportation
  • Placement
31
Q

What are the outbound processes in major warehouse operations? (6)

A
  • Processing customer order
  • Order-picking (55% of warehouse operating costs)
  • Checking
  • Packing
  • Shipping
  • Others
32
Q

Processing customer order - outbound processes in major warehousing operations

A

Typically done by the computerised warehouse management system of facility

33
Q

Order-picking (55% of warehouse operating costs) - outbound processes in major warehousing operations

A

The set of physical activities involved in collecting from the storage area the materials necessary for the fulfilment of the various customer orders

34
Q

Checking - outbound processes in major warehousing operations

A

Checking orders for completeness (and quality of product)

35
Q

Packaging - outbound processes in major warehousing operations

A

Packaging the merchandise in appropriate shipping containers, and attacking the necessary documentation/labels

36
Q

Shipping - outbound processes in major warehousing operations (3)

A
  • Preparing the shipping documents (packaging list, address label, bill of lading
  • Accumulating orders to outbound carrier
  • Loading trucks (although may be the carriers responsibility )
37
Q

Others - outbound processes in major warehousing operations (2)

A
  • Handling returns

* Performing the additional value added processing supported by contemporary warehouses

38
Q

3 types of warehouses

A
  • Public
  • Private
  • Other (bonded, cooperative)
39
Q

Features of public warehouses (5)

A
  • Serve all legitimate users
  • Bonded storage warehouses (special commodities)
  • A bonded warehouse (sometimes referred to as a customs warehouse) - is a warehouse tightly regulated by customs, where imported goods that are intended for export can be stored in the uk without actually entering the uk market
  • Refrigerated warehouses
  • Bulk storage warehouses
40
Q

Features of Private warehouses (4)

A
  • Owner or occupied on a long-term lease
  • Offers control to owner
  • Assumes both sufficient demand volume and stability so that warehouse remains full
  • High fixed costs
41
Q

Types of cargo unification (7)

A
  • Boxes
  • Pallets
  • Euro pallets
  • Pallet boxes
  • Roll pallets
  • Bags
  • Injuries
42
Q

3 types of storage policies

A
  • Dedicated storage - every SKU gets a number of storage locations, exclusively allocated to it
  • Randomised storage - each unit from any SKU can be stored in any available location
  • Class-based storage - SKU’s are grouped into classes with each class being assigned a dedicated storage area, but SKUs within a class and stored according to randomised storage logic
43
Q

What is used to determine storage equipment? (4)

A
  • Space utilisation
  • Access
  • Speed of operation
  • Costs
44
Q

3 warehouse systems

A
  • Storage racks
  • Cantilever racks
  • Pallet racks
45
Q

Ways or reducing warehouse running costs (6)

A
  • Training
  • Process improvement
  • Utilities management
  • Use of technology
  • Damage reduction
  • Use of tools such as six sigma, kaizen, ABC classification
46
Q

3 Trends in distribution centres

A
  • Local distribution structure
  • Centralised distribution structure
  • Growing importance of regional distribution
47
Q

What is the difference between warehouse and distribution centre?

  • Storage
  • Flow/movement of goods
  • value adding activities
  • data
  • emphasis
A
  • Warehouse store all products where as distribution centres hold minimal inventory and high demand items
  • Warehouse: receive > store > pick > ship distribution centres: receive > pick > ship
  • Warehouse have minimal value adding activities but distribution centres use many value adding activities
  • Warehouses have their data in batches and have real time data
  • Warehousing emphasis storage of products and distribution centres emphasis sets rapid mov,emf of products throughout the facility
48
Q

What is cross docking?

A

Is the activity whereby goods are received out a warehouse or DC and dispatched without putting them away in storage

49
Q

When is cross docking appropriate? (8)

A
  • With perishable products requiring immediate shipment
  • With high quality items that do not require extensive quality checks during receipt
  • Pre-tagged, pre ticketed and ready for sale products
  • Items for promotional events and initial products launches
  • Products with continuous, consistent demand, such as “staple” items like milk, toilet paper etc
  • Product moving from one retail store to another
  • Pre-picked, pre-packaged orders from another facility
  • Back-ordered items

Introduction To Supply Chain Management (7 decks)

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