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GLOBAL LOGISTIC MANAGEMENT
GLOBAL LOGISTIC MANAGEMENT
LECTURE 6: WAREHOUSE MANAGEMENT
Agenda
Agenda
1 What is warehouse management ?
2 Functions of warehouse
3 Objectives of warehouse management
4 Benefits of warehouse management
5 Decisive factors in warehouse management
6 Value-added warehousing
7 Summary
1 What is warehouse management ?
1 What is warehouse management ?
Warehouse management is a key part of
the supply chain and primarily aims to
control the movement and storage of
materials within a warehouse and process
the associated transactions, including
shipping, receiving, placing and picking.
2 Functions of warehouse
2 Functions of warehouse
The basic warehousing functions
traditionally have been considered to be
as follows:
receiving;
identification and sorting;
dispatching to storage;
placing in storage;
storage;
2 Functions of warehouse
2 Functions of warehouse
retrieval from storage;
order accumulation;
packing;
shipping
record keeping.
3 Objectives of warehouse
3 Objectives of warehouse
management
management
In designing warehousing systems, it is
desirable to maximize:
space utilization;
equipment utilization;
labor utilization;
accessibility of all materials;
protection of all materials.
4 Benefits of warehousing
4 Benefits of warehousing
Warehouse benefits consolidation
Warehouse benefits distribution
assortment
Warehouse benefits break bulk operation
Warehouse benefits in-transit mixing
Warehouse benefits manufacturing
support
Logistics in Supply Chain Management, First Edition , Bowersox, Closs, and Cooper
Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
WAREHOUSE BENEFITS
CONSOLIDATION
Plant
A
Plant B
Plant
C
Consolidation
Warehouses
Customers
A B C
Logistics in Supply Chain Management, First Edition , Bowersox, Closs, and Cooper
Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
WAREHOUSE BENEFIT
DISTRIBUTION ASSORTMENT
Plant A
Plant B
Plant C
Distribution Center
Customer A
Customer B
Customer C
Logistics in Supply Chain Management, First Edition , Bowersox, Closs, and Cooper
Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
WAREHOUSE BENEFIT
BREAK BULK OPERATION
Plant A
Break Bulk
Warehouse
Customer
A
Customer
B
Customer
C
Logistics in Supply Chain Management, First Edition , Bowersox, Closs, and Cooper
Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
WAREHOUSING BENEFITS
IN-TRANSIT MIXING
Plant A
Plant B
Plant C
Warehouse Transit
Mixing Point
Product D
Customer
W
A-B-C-D
Customer X
A-B-C-D
Customer
Y
A-B-C
Customer Z
A-B
Logistics in Supply Chain Management, First Edition , Bowersox, Closs, and Cooper
Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
WAREHOUSING BENEFITS
MANUFACTURING SUPPORT
Vendor
A
Vendor
B
Vendor
C
Manufacturing
Warehouse
Assembly Plant
5 Important factors in warehouse
5 Important factors in warehouse
management.
management.
In order to be effectively operating,
warehouse management needs to take
care of:
Information system
Control
Product characteristics
Information system
Information system
Communication capabilities
System compatibility
Handling technologies
Application of advanced warehousing
software.
Control
Control
Policy and procedures
Temperature
Secrecy
Lot control and recall
Product characteristics
Product characteristics
Handling characteristics
Storage characteristics
Speed of movement
Flexibility
6 Value-added warehousing
6 Value-added warehousing
Packaging
Refined unitization
◦
Adjust pallets
◦
Change containers
Production specialization
Product climatization
Recall capability
Market confidentiality
7 Summary
7 Summary
Warehouse management plays an
important role in supply chain
management
Warehousing has many benefits
Warehouse management should consider
important factors such as information
system, control and products
characteristics
Value-adding warehouse must be acheived
