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Warehousing, Part One.

Warehousing, Part One. Marketing Logistics Advance manually to begin. Warehousing . . . . The storing of products, including raw materials, parts, goods-in-process, finished goods at and between point-of-origin and point-of-consumption. Provides information on status of goods.

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Warehousing, Part One.

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  1. Warehousing, Part One. Marketing Logistics Advance manually to begin.

  2. Warehousing . . . • The storing of products, including raw materials, parts, goods-in-process, finished goods at and between point-of-origin and point-of-consumption. • Provides information on status of goods. Distribution centers are a type of warehouse which hold minimum inventory of high-demand goods. . . . .

  3. Warehousing: Storage of inventories all through logistics process. • Raw materials, components, parts. • Finished goods. • The storing of products, including raw materials, parts, goods-in-process, finished goods at and between point-of-origin and point-of-consumption. • Provides information on status of goods. Physical supply Distribution Warehouse Warehouse

  4. Inventory in a Warehousing Context • Achieves transportation economies.

  5. Transportation Economies Economies of scale Transportation carriers usually give discounts for bigger loads. . Warehouse Supplier

  6. Transportation Economies Economies of scale . Warehouse Supplier

  7. Inventory in a Warehousing Context • Achieves transportation economies. • Achieves production economies.

  8. Achieves Production Economies Economies of scale Warehouse Assembly line

  9. Inventory in a Warehousing Context • Achieves transportation economies. • Achieves production economies. • Quantity purchased discounts, forward buy discounts. • Maintain source of supply. • Support customer service policies. . .

  10. Inventory in a Warehousing Context . . . • To meet changing market conditions. • Seasonality. • Demand fluctuations. • Competition. • To overcome time and space differentials between producers and consumers. • To minimize logistics costs while meeting customer service goals. • To support just-in-time inventory programs.

  11. End of Part One. Scroll Down to Part Two.

  12. Warehousing Part Two

  13. Three Basic Warehouse Functions • Movement. • Storage. • Information.

  14. Movement Receiving, putting away . Warehouse

  15. Movement Receiving, putting away . Warehouse

  16. Movement Receiving, putting away Picking, staging, loading . Warehouse

  17. Movement Receiving, putting away Picking, staging, loading Cross-docking . Warehouse

  18. Movement Receiving, putting away Picking, staging, loading Cross-docking Packaging . Warehouse

  19. Movement Receiving, putting away Picking, staging, loading Cross-docking Packaging Light assembly, blending, kitting * . Warehouse Vendorseek.com

  20. Movement Receiving, putting away Picking, staging, loading Cross-docking Packaging Light assembly, blending, kitting * *Kits are how some manufacturers sell parts. By selling the parts in a kit, the manufacturer gains economies of scale in things like transportation costs. It also saves administrative costs because rather than billing for and keeping track of each part, the manufacturer only has to keep track of the kit. Kitting is also a light manufacturing technique in which assembly workers, sometimes in a warehouse, get all the component parts of what they are assembling in a single kit so that time is not lost looking for parts. . Warehouse Vendorseek.com

  21. Movement Receiving, putting away Picking, staging, loading Cross-docking Packaging Light assembly, blending, kitting Labeling, shrink wrapping . Warehouse Label Label Label Label

  22. Movement Receiving, putting away Picking, staging, loading Cross-docking Packaging Light assembly, blending, kitting Labeling, shrink wrapping . Warehouse

  23. Movement Receiving, putting away Picking, staging, loading Cross-docking Packaging Light assembly, blending, kitting Labeling, shrink wrapping Breakbulk, consolidation . Warehouse

  24. Movement Receiving, putting away Picking, staging, loading Cross-docking Packaging Light assembly, blending, kitting Labeling, shrink wrapping Breakbulk, consolidation . Transportation Warehouse

  25. Movement Receiving, putting away Picking, staging, loading Cross-docking Packaging Light assembly, blending, kitting Labeling, shrink wrapping Breakbulk, consolidation . Transportation Warehouse Import, export services (also an information function)

  26. Storage . Warehouse

  27. Information Inventory tracking Order entry Proof of delivery Tracing/customer service billing. Service reporting/carrier monitoring Site location . Warehouse Real estate management Network analysis Systems analysis Display building/promotions

  28. Warehouses versus Distribution Centers:

  29. Warehousing . . . • The storing of products, including raw materials, parts, goods-in-process, finished goods at and between point-of-origin and point-of-consumption. • Provides information on status of goods. Distribution centers are a type of warehouse which hold minimum inventory of high-demand goods. . . . . .

  30. Warehouse --Receives. --Stores. --Picks --Ships Distribution Center Warehouses versus Distribution Centers: Distribution Center Warehouse

  31. Distribution Center Receives Ships Warehouses versus Distribution Centers: Distribution Center

  32. . www.perotdevelopment.com

  33. . www.arvinmeritor.com

  34. . www.arvinmeritor.com

  35. Warehouses --Minimal adding of value. --Data collection in batches. --Aim at minimizing shipping costs. Distribution Centers --Maximum adding of value (including final assembly). --Real-time data collection. --Aim at maximizing profit of demand Warehouses versus Distribution Centers:Other Differences

  36. End of Part Two. Scroll Down for Part Three.

  37. Warehousing. Part Three.

  38. Uses of Warehouses: • Support manufacturing. • Mix products from multiple production facilities to a single customer. • Break bulk. • Consolidate small shipments into large shipments. .

  39. Logistics Concepts S u p p l i e r C u s t o m e r Inbound Logistics Outbound Logistics . . . .

  40. Manufacturing Support (inbound logistics) Carload or truckload shipments Supplier A Supplier B Warehouse Supplier C Supplier D . .

  41. Mixing Warehouse (outbound logistics) 1 2 3 4 Customer W Plant A, Product 1 1 2 3 4 Plant B, Product 2 Customer X 1 2 3 4 Plant C, Product 3 Customer Y Plant D, Product 4 1 2 3 4 .

  42. Mixing Warehouse (outbound logistics) Customer W Plant A, Product 1 1 1 1 1 2 2 3 3 4 4 Plant B, Product 2 2 2 Customer X Mixing Warehouse 1 1 2 2 3 3 4 4 Plant C, Product 3 3 3 Customer Y Plant D, Product 4 4 4 1 1 2 2 3 3 4 4

  43. ConsolidationWarehouse (outbound logistics) Customer Plant A Plant B Customer Consolidation Warehouse Plant C Customer Plant D

  44. Breaking bulk . .

  45. BreakbulkWarehouse (outbound logistics) Customer 1 Customer 2 Breakbulk Warehouse Plant Customer 3

  46. Types of Warehousing • Direct store delivery. • Private warehousing. XYZ Company Warehouse Advantages: Disadvantages Control Fixed costs, especially if built for peak seasons. Flexibility in design and operation Long-term cost Investment. Return may be better if money is placed elsewhere. Better use of human resources. Tax benefits: depreciation. Intangibles: image of stability. . . . . . . . . .

  47. Types of Warehousing • Direct store delivery. • Private warehousing. • Public warehousing. ABC Public Warehouse XYZ Company Warehouse Advantages: Disadvantages Conservation of capital. Incompatible communications systems. Able to increase capacity when needed. Lack of specialized services.. Reduced risk of obsolesence. May be unavailable when needed. Economies of scale due to warehouse company’s investment Flexibility Tax advantages: some states have no inventory taxes for products in public warehouses. Specific knowledge of costs. . . . .

  48. Types of Public Warehousing General merchandise ABC Public Warehouse Refrigerated or cold storage Bonded warehouses. Household goods, furniture. Special commodity . . . . .

  49. Types of Public Warehousing General merchandise ABC Public Warehouse Refrigerated or cold storage Bonded warehouses. Household goods, furniture. Special commodity Bulk storage. Cross-docking facilities (3PL concept). Contract warehousing (can be used in 3PL). . . . . .

  50. Warehouse Characteristics • Increase the number of warehouses and the average size of warehouses decreases. • Factors influencing the number of warehouses: • Cost of lost sales. • Inventory costs. • Warehousing costs. • Transportation costs. .

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