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Warehousing

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Warehousing

  1. 1. WAREHOUSING By. Akhmad Suryana
  2. 2.  Storage has always been important aspect of economic development. Warehousing provides time and place utility for raw materials, industrial goods, and finished products, allowing firms to use customer service as a dynamic value-adding competitive tool.
  3. 3.  The warehouse is  Functions of where the supply chain warehousing include: holds or stores goods.  Transportation consolidation  Product mixing  Cross-docking  Service  Protection against contingencies  Smoothing
  4. 4.  Economic benefits of warehousing occur when overall logistics costs are reduced. Four basic economic benefits: 1. Consolidation and break bulk 2. Sorting 3. Seasonal storage 4. Reverse logistics
  5. 5.  In consolidation, the warehouse receives materials, from a number of sources, that are combined in exact quantities into a large single shipment to a specific destination. A break-bulk operation receives a single large shipment and arranges for delivery to multiple destinations.
  6. 6. CUSTOMER A BREAK-BULKPLANT A CUSTOMER B WAREHOUSE CUSTOMER C
  7. 7.  The basic benefit sorting is to reconfigure freight as it flows from origin to destination. Three types of assortment:  Cross-docking  Mixing  Assembly
  8. 8.  The objective of cross docking: to combine inventory from multiple origins into a prespecified assortment for a specific customer. Warehouse that perform in-transit mixing have the net effect of reducing overall product storage and minimizing transportation cost.
  9. 9.  The objective of assembly is to support manufacturing operations. Products and components are assembled from a variety of second-tier suppliers by a warehouse, often referred to as lead supplier, located in close to manufacturing plant.
  10. 10. Company A Customer A Or Plant ACompany B Or Distribution center Customer B Plant BCompany C Customer C Or Plant C
  11. 11. Customer WPlant A A B C D Customer X A B C D Transit mixing point Customer YPlant B Product D A B C Customer Z A BPlant C
  12. 12. Vendor A Lead supplierVendor B Assembly plant distribution centerVendor CVendor A RetailVendor B Retail store distribution centerVendor C
  13. 13.  Thedirect economic benefit of storage is to accommodate seasonal production or demand.
  14. 14.  Reverse logistics includes the activities to support:  Returns management  Remanufacturing and repair  Remarketing  Recycling  Disposal
  15. 15.  Returns management is designed to facilitate the reverse flow of product that did not sell. Remanufacturing and repair facilitate the reverse flow of product following its useful life. Remarketers use coordination and reverse flow to resell product. Recycling returns product following its useful life so that they can be effectively reused. When material cannot be effectively reused, it still may require reverse logistics to dispose of it in the appropriate landfill.
  16. 16. 1. Spot-stocking2. Full line stocking3. Value added services
  17. 17.  Spot stocking is typically used to support customer accommodation. Manufacturers of highly seasonal products often spot-stock. Under this concept, select inventory is spot- stocked in a local market warehouse in anticipation of responding to customer need during the critical sales period.
  18. 18.  The difference between spot-stocking and full line stocking is the degree and duration of warehouse utilization. A spot stocking strategy would temporarily warehouse a narrow product assortment in a large number of warehouse for a limited time period. The full line stocking warehouse improve service by reducing the number of suppliers.
  19. 19.  Cross dock  Order fulfillment Customer returns  Pick Home delivery  Pool distribution In transit merge  Repair Kan Ban  Returnable container Kitting  Reverse logistics Labeling  Specialty packaging Lot control  Store support Mass customization/postpon ement
  20. 20.  Handling  Handling equipment  Handling activities: ▪ Receiving ▪ In-Storage handling: Transfer and selection ▪ Shipping
  21. 21.  Storage  Stock location  Warehouse management system (WMS)  Type: ▪ Active storage: quick movement & flexibility (maintain minimal inventory in storage) ▪ Extended storage (maximum space utilization)
  22. 22. Receiving docks Storage space for high-Storage space for low- Storage space for low- volume product volume product volume product Staging and cross dock area Shipping docks
  23. 23.  Factors to consider  Throughput volume  Stability of demand  Density of market area to be served  Security and control needs  Customer service needs  Multiple use needs of the firm
  24. 24.  Typically operated by the firm owning the product. More flexibility since operating policies, hours, and procedures. Less costly The use of private warehousing is decline.
  25. 25.  Rationale for Public Warehousing  Limited capital investment  Flexibility  Economic of scale Public warehousing:  General merchandise (electronics, paper, food)  Refrigerated (chemical product, medical)  Special commodity (bulk material)  Bonded (licensed by government)  Household goods and furniture
  26. 26.  Combine characteristics of private and public. Compensation for seasonality in products. Increased geographical coverage. Ability to test new markets. Managerial expertise and dedicated resources. Less strain on the balance sheet. Possible reduction of transportation costs
  27. 27.  Site selection (warehouse location):  Service availability  Cost (land cost)  Expansion  Utilities Design:  The number of floors  Cubic capacity  utilization  Protection  Efficiency
  28. 28. Receiving area Bulk storage Rack storage area area Receiving area Receiving area Receiving areaProduct flow
  29. 29.  Product-mix analysis Expansion Material handling Layout: Sizing Warehouse management systems (WMS):  Discrete selection: a specific customer order (critical content order)  Wave selection/ batch selection: all customer order.
  30. 30. Truck Receiving Truck ReceivingSelection area Storage area Remote storage Selection from storage along line Truck Shipping Truck Shipping
  31. 31. WMS Core functionality: Advanced functionality: Receiving Yard management Put-away Labor management Cycle-count Warehouse optimization Pick Value-added service Task management Planned cross-dock Quality analysis Returns management Replenishment Pack Opportunistic cross-dock Inventory control Work order management ship Interface systems (middleware) ERP—TMS—Material handling—Supply chain planning systems
  32. 32.  Accuracy and audits: cycle counting Security  Pilferage  Damage Safety and maintenance

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