Warehouse Management - meaning and types

Meaning and types of warehouses

1. 1 Warehouse Management

2. 2 Meaning & Types of Warehouses Smart Warehouse Benefits QnA / Wrap-up

3. Meaning & Types 3 Warehouse

4. Warehousing – Meaning Receiving goods from suppliers. Putting them away in racks or shelves. Storing until needed. Picking items when an order comes. Packing and shipping them to customers. 4 A warehouse is a place where goods are stored before they are sold or used Traditionally, warehouses were manual – people did most of the work, with the help of paper lists or simple barcode scanners

5. Warehousing – Importance 5 Ensures uninterrupted supply of goods. Helps in maintaining stock for future demand. Provides safety and security to goods. Supports value-added services like packaging, labeling, and grading.

6. 6 Type of Warehouse Example/Description 1. Bonded Warehouse A. Amazon Robotics-powered facility in Hyderabad. 2. Cold Storage Warehouse B. Food Corporation of India godown for rice and wheat. 3. Government Warehouse C. Stores imported goods at JNPT until customs duty is paid. 4. Distribution Center D. Snowman facility for storing dairy products and vaccines. 5. Co-operative Warehouse E. CWC offering storage to businesses. 6. Hazardous Goods Warehouse F. Flipkart Fulfillment Center for quick deliveries. 7. Automated Warehouse G. Indian Oil depot for petroleum and chemicals. 8. Public Warehouse H. Agricultural co-operative storage for farmers’ produce. Activity

7. Types of Warehouses 7 Private Warehouses A) Purpose: Store goods of the owner (manufacturer, wholesaler, retailer). Ensure smooth supply chain and inventory control. B) Features: Owned & financed by the company. Customized according to product needs. High control over operations but high investment cost. C) Example: Reliance Retail’s warehouse in Jamnagar for consumer goods. Tata Steel warehouses for raw materials and finished steel. Public Warehouses A) Purpose: Provide storage facilities to the general public, traders, small businesses, and exporters/importers. B) Features: Licensed and regulated by government authorities. Rent-based, flexible, accessible to all. Suitable for seasonal and small businesses. C) Example: Central Warehousing Corporation (CWC) warehouses across India. State Warehousing Corporations providing regional storage.

8. Types of Warehouses 8 Bonded Warehouses A) Purpose: Store imported goods until customs duty is paid. Help importers defer payment of taxes. B) Features: Supervised by customs officials. Secure facilities with documentation and compliance. Useful for exporters/importers in global trade. C) Example: Customs Bonded Warehouses at JNPT (Mumbai) and Chennai Port. Multinational importers like IKEA use bonded storage for imports. Government Warehouses A) Purpose: Store essential goods for public welfare and food security. B) Features: Owned, managed, and funded by government. Store grains, fertilizers, essential commodities. Used for price stabilization and public distribution system (PDS). C) Example: Food Corporation of India (FCI) godowns for rice and wheat. State Civil Supplies Warehouses for ration supplies.

9. Types of Warehouses 9 Co-operative Warehouses A) Purpose: Provide affordable storage for members of co-operative societies, especially farmers and small traders. B) Features: Community-driven, non-profit oriented. Storage charges are low and based on mutual benefit. Helps avoid middlemen exploitation. C) Example: Co-operative Sugar Factories in Maharashtra maintaining warehouses. Agricultural Co-operatives in Punjab for wheat and paddy storage. Distribution Centers A) Purpose: Focus on fast movement of goods rather than long-term storage. Critical for e-commerce and retail supply chains. B) Features: Located near urban markets. Support order processing, packaging, labeling, and same-day delivery. Use advanced inventory systems. C) Example: Flipkart Fulfillment Centers in Bengaluru, Hyderabad. Amazon Distribution Hub in Delhi-NCR.

10. Types of Warehouses 10 Cold Storage Warehouses A) Purpose: Store perishable goods like fruits, vegetables, meat, fish, dairy, pharmaceuticals, and vaccines. B) Features: Temperature and humidity controlled. Reduces spoilage and extends shelf life. Often near production or consumption centers. C) Example: Snowman Logistics and Coldman Logistics in India. COVID-19 vaccine cold chain warehouses globally. Smart Warehouses A) Purpose: Digitally manage stock using IoT sensors, RFID, AI, and big data. B) Features: Real-time tracking, predictive maintenance, automated reordering. Reduce shrinkage, improve SC visibility. Integrates with ERP and e-commerce systems. C) Example: DHL Smart Warehouse in Singapore. Maersk digital warehouses with IoT tracking.

11. Types of Warehouses 11 Overseas Warehouses A) Purpose: Help exporters store goods near their target markets abroad for faster delivery. B) Features: Reduce delivery lead time. Avoid customs delays for international buyers. Improve global competitiveness. C) Example: Indian exporters maintaining warehouses in Dubai and Singapore. Alibaba’s overseas warehouses for cross-border e-commerce. Hazardous Goods Warehouses A) Purpose: Safe storage of dangerous chemicals, fuels, or explosive items. B) Features: Fireproof structures, safety equipment, proper ventilation. Compliance with environmental and safety laws. C) Example: Indian Oil Corporation depots for petroleum storage. Chemical storage hubs in Gujarat industrial areas.

12. Meaning 12 Smart Warehouse

13. 13 What makes a warehouse smart? Automation Robots Barcodes RFID Sensors Machine vision IoT AI Dashboards Predictive analytics WMS Warehouse Execution System Warehouse Control System Cloud computing 5G / Wi-Fi Sustainability Real-time data Digital twin Voice Picking Inventory accuracy Speed Efficiency Safety Traceability Customer satisfaction

14. 14 Industry 1.0 Industry 2.0 Industry 3.0 Industry 4.0 Steam Power Mechanization Electrical Energy Division of Labour IT Systems Electronics Maturity Timelines 1800 1900 2000 Mass Production IoT, ML Human-Robot Collaboration Mass Customization 2010 2020++ Industry 5.0 Industry X.0

15. 15 A Smart Warehouse uses modern technology to make work faster, easier, and more accurate.

16. 16 Smart Warehouse A smart warehouse enhances traditional warehousing processes by automating tasks, streamlining operations, and providing critical data to ensure an efficient inventory flow Reduces human errors and saves costs. Key features of a smart warehouse: Uses machines and robots to move goods. Uses sensors, barcodes, and RFID tags to track goods automatically. Uses special software to manage inventory in real-time. Uses AI (Artificial Intelligence) to predict demand and optimize storage. Provides real-time data dashboards to managers. Example: In an Amazon fulfillment center, robots bring shelves to workers instead of workers walking long distances.

17. 17

18. 18 Role of Smart Warehouse in Business A smart warehouse plays a significant role in modern business operations, particularly in managing inventory and supply chain operations. Implementing smart warehouse technologies offers myriad benefits, including real-time inventory tracking, reduced labor costs, and improved customer service. Unlike a traditional warehouse, a smart warehouse integrates warehouse management software, automated inventory control platforms, and other smart technologies to efficiently manage operations. Warehouse managers can monitor inventory, track picking processes, and gain insights from the data visibility provided by smart warehousing solutions. A smart warehouse is a space where human labor and smart technology intersect to optimize efficiency, accuracy, and productivity.

19. 19 Technologies Used in Smart Warehouses A) Identification & Tracking Barcodes & QR Codes (Quick Response Codes): Printed labels on goods scanned with a handheld device to track inventory. RFID (Radio Frequency Identification) Tags: Tiny chips that send signals to a reader. They do not need to be scanned one by one. Sensors: Devices that measure temperature, humidity, weight, or movement. Useful for food, medicines, and fragile goods.

20. 20 Technologies Used in Smart Warehouses B) Automation & Robotics Conveyors: Belt or roller systems that move goods from one area to another. AMRs (Autonomous Mobile Robots) / AGVs (Automated Guided Vehicles): Robots that carry goods across the warehouse without human drivers. AS/RS (Automated Storage and Retrieval System): A machine system that automatically stores and picks items from racks. Pick-to-Light & Voice Picking: Pick-to-Light: Lights guide workers to the correct shelf and quantity. Voice Picking: A headset gives voice instructions to workers on what to pick.

21. 21 Technologies Used in Smart Warehouses C) Software WMS (Warehouse Management System): Software that manages inventory, locations, and daily warehouse tasks. WES (Warehouse Execution System): Software that plans and controls work like picking, packing, and labor balancing in real time. WCS (Warehouse Control System): Software that controls machines such as conveyors, sorters, etc..

22. 22 Technologies Used in Smart Warehouses C) Data & Connectivity Cloud Systems: Online platforms that store and share warehouse data anytime, anywhere. 5G / Wi-Fi (Wireless Fidelity): Fast wireless networks that help connect robots, scanners, and sensors. AI (Artificial Intelligence) & Analytics: Systems that learn from data to optimize inventory placement, forecast demand, and reduce errors.

23. Benefits & Steps for Implementation 23 Smart Warehouse

24. 24 Benefits of a Smart Warehouse Operational speed & flow — fewer walking trips, faster picking and putaway Accuracy & quality — fewer wrong items, fewer returns and chargebacks Labor productivity — do more per hour with less fatigue and variability Inventory visibility — real-time stock levels; fewer stockouts & overstock Space efficiency — denser storage; better slotting saves floor space Cost savings & ROI — lower cost per order, lower returns, optimized assets Customer service — faster deliveries, fewer errors, higher customer trust Safety & ergonomics — robots handle heavy lifts; fewer injuries Sustainability — less energy per order, smarter packing (less waste)

25. 25 Steps by Implementation Step 1: Assess Current Operations Before transforming into a smart warehouse, a business must comprehensively examine its current operations. It is key for decision-makers to understand the workflow, pinpoint inefficiencies, and identify areas that could benefit from automation or smart technologies. This step also should involve gathering and analyzing critical warehouse data, such as inventory flow, retrieval process, and labor costs.

26. 26 Steps by Implementation Step 2: Define Your Goals Once you understand your current operations, define what you want to achieve with your smart warehouse. This could be improving customer service, increasing inventory accuracy, or reducing overall costs. Clear goals will guide your choice of technologies and strategies, ensuring that your smart warehouse aligns with your business objectives.

27. 27 Steps by Implementation Step 3: Choose the Right Technologies The next step involves choosing intelligent technologies to help you achieve your goals. This could be anything from automated guided vehicles for material handling to warehouse management systems for better inventory control or IoT devices for real-time tracking and data visibility. When choosing a technology, consider its compatibility with your existing systems, ease of use, scalability, and potential return on investment.

28. 28 Steps by Implementation Step 4: Implementation After selecting the right technologies, the next phase involves implementing them in your warehouse. This could include retrofitting your warehouse space to accommodate new equipment, integrating new software with existing systems, or installing IoT devices. Remember, implementing new technology is a significant change, so it’s crucial to plan it carefully to minimize disruption to your operations.

29. 29 Steps by Implementation Step 5: Training and Support Implementing new technologies is only half the battle – ensuring your staff can effectively use and manage these systems is equally important. Invest in professional training to help your team understand how to operate new equipment, use new software, and follow updated processes. In addition, make sure you have access to ongoing technical support to address any issues that may arise with your new systems.

30. 30 Steps by Implementation Step 6: Review and Optimize Finally, after your smart warehouse is up and running, take the time to review its performance regularly. Use the data gathered by smart systems to gain insights into operations, identify areas for further improvement, and make necessary adjustments. This continual review and optimization process is critical to ensuring your smart warehouse remains efficient and effective in the long run.