warehouse

Detailed view of warehouse activities and it's functions & virtual warehouse.

1. WAREHOUSE

2. CONTENTS What is warehouse? importance of warehouse. Types of warehouse Logistical challenges in warehousing Functions of warehouse Warehousing strategy - virtual warehouse

3. Warehousing and inventory storage - not a modern concept. It has been in existence since 2600 B.C. Traditionally – Receiving, storage, shipping

4. warehousing place where goods and products are stored prior to it being distributed, sold or used. act of re-position of material

5. IMPORTANCE OF WAREHOUSE

6. Warehouse Private Warehouse Public Warehouse contract Warehouse Bonded Warehouse Co-operative Warehouse Raw material & Component Warehouse Work-in progress Warehouse Finished goods Warehouse DistributionWarehouse Fulfilment Warehouse Local Warehouse Value added service Warehouse

7. Logistical Challenges in Warehouse

8. Inventory Inaccuracy Inaccurate inventory causes problems such as: Maintaining improper stock levels. Buildups of obsolete inventory. Inaccurate information Leading to inefficient processes. Lowered productivity. Increased expenses. Corresponding lost revenue.

9. Example: Looking for a product That product is available Order placed But in warehouse that product is out of stock Assume that you're ordering a product in a online shopping platform. Solution : Automated systems: Accurate information. Managing inventory in a warehouse. Increase Productivity. Reduces unnecessary expenses. Growth in revenue .

10. Redundant Processes Redundancy in warehouse processes can greatly harm how well your inventory system works. As much as possible, you want to reduce inventory clutter that can increase your cost of operations.

11. Example : Think about how many trips a picker takes across a warehouse to pack each order. Solution: Barcode technology Automated systems Th e major things that you can do to eliminate redundancies. PICKING PACKING

12. Poor Warehouse Layout Inadequate storage space . I nefficient use of available storage poor facility layout. Poorly configured warehouses.

13. Example: The following areas must be perfectly defined when designing a layout: A. Loading and unloading areas B. Reception area C. Storage area D. Picking area E. Dispatch area

14. Example: C. Storage area Think that layout of storage area is not design properly and it was always a messy storage area where all the goods stored randomly without any planning like how and where to store. This will result in time waste, unnecessary labour cost, product will get damaged, etc,.

15. Solution: Considers both the floor and the vertical space , Maximisies u se of equipment and labour, Maximisies a ccessibility to all items, Maximisies t he security of all items, Maximisies safety of staff , Employing forklifts , Highest-selling inventory is easily accessible, S treamlining dock-to-stock processes .

16. Erratic Demands Fluctuations in demand are posing serious challenges for warehouse managers. M ajor cost problems for warehouses due to I ncreased inventory levels on some levels , while on others PPE suppliers suddenly found themselves scrambling to fulfil. T he problem highlights the challenge of managing fluctuations in demand due to external forces beyond the warehouse’s control.

17. Example: Assume the in a warehouse where they brought a product (X) in bulk quantity . The product is ready for delivery and suddenly covid hits. Because of covid pandemic they can't transport the product (X) to the distributor. So the warehouse has to store the product(X) for more days than they expected . Solution: Managing seasonality in demand requires timely and accurate information Information gaps distributor to monitor and respond to changes in demand effectively. Rearranging the products to match changes in demand

18. High Labor Costs High labor costs in an intensive labor environment will lower productivity These costs can constitute about 65% of the operating budgets of most warehouses Use expensive equipment and employ large labor forces, presenting a challenge in warehouse

19. Example: Receiving Put-away Storage Picking Packing Shipping These are the working processes in warehouse Has large workforce than other department Solution: The major strategies to solve labour-related problems Maximising available labour Replacing labour with automated systems Developing the right workforce planning

20. Picking Optimisation Picking is where majority of problems occurs. This problem is a result of poor receiving and put-away process. Disturbs inventory control system. Struggling to improve operational efficiency.

21. Example: Miscounted units Unloading Stored with error Order placed Picking task Time & Money waste Solution: Standardize processes. Including pick routes. Invest in appropriate automation. Dedicated attention to master data. Imagine that you are a manager in a warehouse

22. Quality Control Workers in charge of quality control also do the picking, packing and shipping of inventory items. Many errors never get found until they arrive at the customer. This is especially prevalent in a pandemic environment where warehouses are trying to ship more with less staff available.

23. Example: Assume that a warehouse management just bypasses the quality control in favor of quick fulfillment. What are the issues they will face. Wrong or defective inventory shipped. Poor stock rotation. Manual errors. Automation system program errors. Poor inventory management. Solution: Dedicated quality control team. Separate level of authority. record vendor accuracy. Improve stock rotation Reduce the manual processing.

24. WAREHOUSE DECISION MODEL MEANING: The warehouse decision model helps in identifying the strategic, tactical and operational needs of a warehouse system to fit into the overall objectives of a supply chain

25. WAREHOUSE DECISION MODEL: PRODUCT PRODUCT CHARACTERISTICS OBJECTIVES RESOURCES SOLID, LIQUID, GAS VALUE DENSITY,LOGISTICAL REACH,PERISHABILITY,HAZARDOUS COST REDUCTION , TURNOVER, CUSTOMER SERVICE,PRODUCTIVITY FINANCE,SYSTEM,WORKFORCE

26. PRODUCT CHARACTERISTICS: For any product, the value density (unit price per unit weight or volume of a product) and logistical reach will influence decision making on investing in a warehouse facilities For example, investment in a storage facility is justified for products such as computers, jeweler , luxury goods where the unit price is high, the logistic reach is wide and distribution centers are limited in numbers. Due to high margins and shorter payback period the heavy investments are justified.

27. Objectives have to be clearly defined. Volumes will justify private warehouses while seasonality will justify public or contract storage places. For customer satisfaction through reliable delivery,investment in material handling and information processing system is justified. WAREHOUSE OBJECTIVE:

28. LAYOUT HANDLING EQUIPMENTS STORAGE SYSTEM STRATEGIC DECISIONS ARE SOLELY DEPENDENT ON THE OBJECTIVES,AVAILABLE FINANCIAL RESOURCES,ROI AND PAYBACK PERIOD THESE DECISIONS WILL HAVE A LONG-TERM EFFECT AND HELP IN DEVELOPING COMPETITIVE ADVANTAGES STRATEGIC DECISIONS:

29. STORAGE ALLOCATION ORDER PICKING PACKING Tactical decisions will have an effect on the warehouse. performance parameters such as. Reduction in the order processing cycle Efficiency in material handling Packaging to reduce product damages Reducing customer complaints and enhancing the customer satisfaction level. TACTICAL DECISION:

30. OPERATIONAL DECISION: WORK ALLOCATION JOB SCHEDULING PERFORMANCE MONITORING Operation decision will bring efficiency in the warehouse operations will help in reducing the operation cost

31. WAREHOUSE FUNCTIONS

32. FUNCTIONS OF A WAREHOUSE Receiving: This includes tasks related to the receipt of all incoming products at the warehouse, ensuring that the quality and quantity of the received products are as ordered, and then transfer the products to storage. Pre-packing (if required): This happens when products are received in bulk from the supplier and are required to be packaged individually in merchandisable quantities.

33. Transporting to the appropriate storing place: This is also referred to as put away. This includes material handling , storage location identification and placement. Storage: The primary function of a warehouse is to provide storage space for inventory. Order picking: This task involves physical picking of the product from the storage place to meet the demand.

34. Packaging: Each customer order is required to be handled individually and it is to be ensured that each order is complete and accurate according to the needs of customers. Sorting: This includes the shipment of products as per their packaging and destination. Shipping: Moving and loading assembled orders physically on some transport carriers to their destination. Includes preparing shipping documents. Claim settlements: Any transit damage material and material rejection claim settlements are done in the warehouse to control shrinkage. Retrieval System Case Picking System Broken Case Picking System Put-Away Material Handling Sorting Receiving Cross Docking Shipping

35. OTHER BASIC FUNCTIONS Safeguarding of Goods: This includes protecting products from natural factors, such as heat, wind and rain. It helps reduce spoilage during storage. Risk bearing: After handing over the products to the warehouse, the responsibility of these products, including any losses on account of shrinkage, theft or damage , is responsible by the warehouse operator. Financing: When products are deposited in a warehouse, the depositor gets a receipt and/or a warrant. This warrant or warehouse receipt can be used by the trader as collateral to take a loan from a financial institution. Processing: Certain commodities require some processing to make them consumable. For example , wood is seasoned and fruits are ripened . At times, warehouses perform such activities at the behest of the owner.

36. Transportation: This facility is provided by some warehouses to certain depositors. It collects the product from the point of origin and delivers it to the desired location at the behest of the depositor. Easy handling: Mechanical equipment in modern warehouses enables easy handling of products including loading and unloading. Provide regular flow: This includes commodities, such as rice and wheat, which are produced during a particular season, but are consumed throughout the year. Cycle counting: A small sample of inventory is counted inside the warehouse at any particular place and this sample represents the count of all items in the store.

37. WAREHOUSING ACTIVITIES Warehousing has an important role to play in the logistics system of organizations. Product movement can be deemed as shifting goods while undertaking various warehousing activities in which goods are moved from one place to another. The four main activities involved in the product movement are     Warehousing Activities Information Transfer Product Storage Product Movement PRODUCT MOVEMENT

38. THEPRODUCT STORAGE Activity refers to the accumulation of inventory for a time period. In warehouses, inventory storage may happen for different lengths of time and in different storage locations, depending on the purpose of storage. INFORMATION TRANSFER Managers need to have timely , precise information and free from errors. It may then be presented to the higher management for the purpose of making more informed and better decisions. Improving their means, speed and accuracy of information transfer by using modern and computerized processes, such as pre-packing bar codes, Electronic Data Interchange (EDI) systems.

39. HIGH SPEED SORTATION SYSTEM INVENTORY MANAGEMENT: Barcode, RFID, Optical systems. WAREHOUSE MANAGEMENT SYSTEM: WMS is automation software that streamlines everyday operation in warehouse. FULFILLMENT CENTERS: Pick and pack order, focus on delivering the order quick as possible. VALUE ADDED SERVICES : Processing , Branding etc .

40. Warehouse strategy

41. Objective of warehousing strategy to  provide value-added services such as product customization   Products to consumer asap

42. Physical warehousing

43. Problems with physical warehousing

44. SUPPLIER PARK AND JOINT WAREHOUSE

45. DISADVANTAGE

46. What is virtual warehouse? According to the Science Direct, a virtual warehouse is “ a state of real-time global visibility for logistics assets such as inventory and vehicles .” Simply put, it is software that provides a comprehensive view of assets and materials for logistics and fulfillment purposes .

47. VIRTUAL WAREHOUSE Inventory information on the materials provided by the suppliers can be stored together. Supplier can access and update about its inventory

48. VIRTUAL WAREHOUSE

49. better operational performance

50. VW OF RETAILERS distribution centers / fulfillment centers are considered as a network When an order arrives, the network is consulted, irrespective of where the product is stored, to identify the best possible way to fulfill the order as quickly as possible.

51. Example RETAILER

52. BENEFITS

53. BENEFITS

54. CENTRALISED INVENTORY INFORMATION