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  1. Warehouse Designs
  2. Warehouse Operations
  3. Consolidation and Break-Bulk Warehousing
  4. Break-bulk
  5. Site Selection
  6. Traditional view:
  7. Strategic warehousing can provide both economic and service benefits
  8. Full line stocking
  9. Storage Alternatives Two classes:
  10. Contract Warehousing
  11. Sorting: Assembly
  12. Handling must optimize movement continuity and efficiency
  13. Extended Storage:
  14. Handling and Storage Efficiency
  15. Warehousing types evolved to accommodate dynamic aspects of logistics
  16. Active Storage:
  17. Contract
  18. The basic benefit of sorting is to reconfigure freight as it is being transported from origin to destination.
  19. Service Benefits of Warehousing
  20. Warehouse operations involve two major activities:
  21. Sorting: Mixing
  22. Spot-stocking
  23. Network deployment strategy requires answering two questions
  24. Evolution of Strategic Warehousing
  25. Strategic Warehousing
  26. Successful cross-docking is highly dependent on information technology
  27. Value-added services
  28. Sorting: Cross-docking
  29. Reverse logistics include activities supporting
  30. Private
  31. Inventory accuracy
  32. Warehouse Ownership Arrangements
  33. Audits
  34. Consolidation
  35. The Changing Role of the Warehouse
  36. Contemporary view:
  37. Typical List of Value-Added Services
  38. Public
  39. Storage
  40. Types of Warehouses
  41. Security
  42. when warehouse utilization is not full throughout the year
  43. Seasonal Storage
  44. Warehouse Management Systems
  45. Slotting determines specific locations for the product based on:
  46. Network Deployment
  47. Warehousing Value
  1. a -Contract warehousing combines elements of private and public operations
    -Usually a long-term relationship or contract between a firm and the warehousing operator

    -Long-term cost savings compared with public warehousing
    -Often a firm's employees will work alongside the contract warehouse's employees (e.g., "man-in-the-plant" concept)

    -Example: Novartis Pharmaceuticals contracted with DHL/Exel Logistics since 2008 for a dedicated facility to handle all finished product US warehousing & distribution
  2. b Pros:
    Full control over warehouse activities
    Flexible scheduling based upon business needs
    Not operated for profit, greater visibility to cost drivers

    Cons:
    May not be a company's core competency
    Company may not benefit from economies of scale
    Potential for less flexibility in facility configuration
  3. c -Spot-stocking
    -Full line stocking
    -Value-added services
  4. d -Safety and maintenance issues must also be considered when planning warehouse designs
    -Accident prevention
    Comprehensive safety programs and training, accident investigation and follow up
    Environmental protection
    Spill kits and spill plans
    Maintenance
    Scheduled maintenance of building, material handling equipment, and collision damage prevention
  5. e -Use private or contract warehouse to cover 75 percent requirement
    -Public facilities used to accommodate peak demand
  6. f include any work that creates a greater value for customers.
  7. g Storage for basic inventory replenishment
    Focuses on quick movement
    Includes flow-through or cross-dock distribution
  8. h -Warehouses were once viewed as a necessary evil, used to coordinate product supply with customer demand
    -The explosion of the consumer economy after WWII saw the rise of distribution networks for consumer goods
    -Warehousing shifted from passive storage to strategic assortment
  9. i occurs when a warehouse receives a single large shipment and then breaks the shipment down into individual deliveries to multiple destinations
  10. j Velocity: how fast the goods move
    Weight: how heavy is the product
    Special Storage Requirements: how large or small, does it require rack or bin storage
  11. k Warehousing contributes value in the logistics process
    -Traditional view
    -Contemporary view
  12. l provides one-stop shopping capability for goods from multiple suppliers
  13. m -Private: Warehouse operated by the firm owning the product
    Building may be owned or leased

    -Public: Service company owns warehouse and hires out space and services
    Usually classed as
    General merchandise
    Refrigerated
    Bonded
    Special commodity
    Household goods and furniture
  14. n -Distribution centers
    -Consolidation terminals
    -Break-Bulk facilities
    -Cross-docks
  15. o 1.)Traditional Warehouses: Receiving, Put-away, Storage Operations, Picking and Shipping
    2.)Distribution Centers: Scheduled Cross-docking, Special Handling, Kitting Operations, Returns Handling, "Postponed" Manufacturing Steps and Other value added
    3.)Fulfillment Centers:
    Dynamic Cross-docking, Mixed Mode Fulfillment, Multi-channel including On-line Fulfillment, Distributed Order Management and Green Operations (e.g., end of product life disposition, recycling, reclamation)
  16. p Consolidation and Break-Bulk reduce transportation cost by increasing the size of the shipments.
  17. q Storage for inventory held in excess of period for normal replenishment
    e.g., seasonal, speculative, or even commodities
  18. r Mixing combines inventory from multiple origins (like cross-docking) but also adds items that are regularly stocked at the mixing warehouse
  19. s Strategic warehousing offers manufacturers a way to reduce dwell time of parts and materials
    -Warehousing is integral to just-in-time (JIT) and stockless production strategies
    Requires strategically located warehouses across the globe

    An important goal in warehousing is to maximize flexibility
    -Respond to ever-changing customer demand
    Product assortments
    Value-added services
  20. t Warehouse decisions that determine handling and storage efficiency:

    -Identify broad geography where an active warehouse meets service, economic and strategic requirements
    -Selection and number of retail outlets drives location of support warehouses
    -Final selection should be preceded by extensive analysis
  21. u a place to hold or store inventory
  22. v -Receiving — Unloading the arriving vehicles

    -In-Storage — Moving goods within the warehouse for storage (transfer) or order selection (picking). Items may be moved to a staging area in preparation for shipping

    -Shipping — Verifying the order and loading the departing vehicles

    Typically, these activities require the use of material handling equipment, e.g., lift trucks, conveyors, etc.
  23. w -Returns Management: Recalls or product that did not sell
    -Remanufacturing and Repair: Repairing/refurbishing equipment
    -Remarketing: Selling used equipment
    -Recycling: Returning product following its useful life with the objective of decomposing it into it component materials so they can be effectively reused
    -Disposal: for materials which cannot effectively be reused.
  24. x Handling and Storage
  25. y are common to maintain safety, assure compliance to regulations and help improve procedures
  26. z is typically maintained by annual physical counts or counting portions of inventory on a planned basis
    Cycle counting is the audit of selected inventory on a cyclic schedule
  27. aa Public
    Private
    Contract
  28. ab Pros:
    May attain lower operating costs than private facilities due to economies of scale
    More flexibility in number and size of warehouses

    Cons:
    Potential for loss of some control over day-to-day activities
    Do not work as well for products requiring very customized storage conditions
  29. ac -Products are received, selected, repackaged, and loaded for shipment w/o storage
    -Used with general merchandise & food
    -Enabled by conveyors & sortation equipment
    -Used in large distribution centers (800K to 1,200K sq.ft.)
  30. ad Warehouse decisions that determine handling and storage efficiency
    -Site Selection
    -Design
    -Product Mix
    -Expansion
    -Material Handling
    -Layout
    -Sizing
    -Warehouse Management System
    -Accuracy and Audit
    -Security
    -Safety and Maintenance
  31. ae Warehouse Management Systems (WMS) integrate procedures and software support to standardize storage and handling work procedures

    -Discrete selection is when a specific customer's order is selected and prepared for shipment as a single work assignment
    -Wave or batch selection is when orders are processed through zones of the warehouse assigned to specific employees
  32. af Assembly supports manufacturing operations

    -Assembly occurs when products or components from 2nd Tier suppliers are assembled by a warehouse located near the manufacturing plant
    -Common assembly processes are packaging and color customizing
  33. ag Three basic types sorting:
    -Cross-docking
    -Mixing
    -Assembly
  34. ah Objective is to:
    -Efficiently receive inventory
    -Store it as required
    -Assemble it into complete orders
    -Make a customer shipment

    Operations will therefore emphasize product flow
  35. ai -the warehouse functions to mix inventory assortments to meet customer requirements
    -Storage of products is held to a minimum
    -Storage of inventory is waste in the LEAN warehouse
  36. aj Storage plans should consider product velocity as a major factor in determining the warehouse layout.
    It is essential that products be assigned a specific locations in the warehouse called slots
  37. ak -Network deployment is the combination of private, public and contract facilities used by a firm
  38. al Storage provides direct benefit by accommodating seasonal demand and/or production:
    -Accommodates seasonal demand such as lawn furniture and toys
    -Accommodates seasonal production such as agricultural products

    Storage provides and inventory buffer, which allows production efficiencies within the constraints imposed by material sources and consumers.
  39. am Cross-docking combines inventory from multiple origins into a pre-specified assortment for a specific customer
  40. an -How many warehouses should be established?
    -Which warehouse ownership types should be used in specific markets?
  41. ao issues involve protection from pilferage and damage
  42. ap Active storage and extended storage
  43. aq Pros:
    Control over warehouse activities, while leveraging warehousing expertise from the provider

    Cons:
    Due to nature of integration, cost of exit can be high
  44. ar Economic benefits of warehousing occur when overall logistics costs are reduced:
    -Consolidation and break-bulk
    -Sorting
    -Seasonal storage
    -Reverse logistics

    Service benefits are justified by sales improvements that more than offset added cost
    -Spot-stocking
    -Full line stocking
  45. as is the positioning of inventory for seasonal or promotional demand
  46. at -Cross-docking
    -Customer returns
    -Home Delivery
    -In-transit
    -Kan Ban
    -Kitting
    -Labeling
  47. au occurs when a warehouse receives materials from a number of sources and combines them into exact quantities for a specific destination