WAREHOUSE MANAGEMENT PPT FOR BBA AND MBA STUDENTS

WAREHOUSE PPT FOR BBA AND MBA STUDENTS

1. Warehouse Management Pooja Gupta Singla

2. Contents:- Reasons for warehousing Benefits Warehouse operating principles Types of Warehouse Warehousing strategies Warehouse location strategies Site selection Transport

3. W arehousing:- Warehousing refers to the process of storing goods and materials in a designated facility, known as a warehouse, before they are distributed to customers or further processed in the supply chain. Warehousing plays a crucial role in logistics and supply chain management, facilitating the efficient storage, handling, and movement of goods.

4. Introduction Warehousing means holding and preservation of goods from the time of their production or purchase and until their sale or use. It involves decision making suitable and effective arrangement for goods in proper condition. It is a place used for storage of surplus goods. It may defined as an establishment that assumes responsibility for the safe custody of goods. Warehousing enable business to produce goods throughout the year and sell them whenever there is adequate demand. Its creates time utility by bringing the time gap between production and distribution.

5. Any firm can choose to either have its own dedicated network of warehouses or share space with other in third party operated warehouses. The former offers greater flexibility in design to meet product characteristics and storage needs, greater control over warehouses operations, effective market feedback and lower cost per unit as opposed to third party arrangement. However, third party warehouses require no fixed investment by the firm. Also flexibility in location and space utilization make this an attractive alternative. Customer service can be improve significantly through this approach. These are also called distribution centers. Weather a firm uses its own or a third party warehouse , it has to take following decision: 1. Number of warehouses and their location. 2. Level of customer service required to provided to gain a competitive edge. 3. Cost of distribution 4. Technology to deployed- automated warehousing is now the order of the day.

6. Integrated Supply Chain Management Order Fulfillment Purchasing/Supplier Partnering Customer Analysis Inventory Management & Control Warehouse & Transportation Demand & Lead Time Management Materials Management Manufacturing/ Re-manufacturing / Assembly

7. F unctions of warehousing Storage: Warehouses provide storage space for goods, materials, and inventory. They offer a secure and organized environment to store products before they are needed for production or shipment to customers. Storage capacity in warehouses allows businesses to maintain adequate stock levels to meet demand fluctuations and seasonal variations. Inventory Management: Warehouses play a central role in inventory management by monitoring stock levels, tracking product movements, and optimizing inventory turnover. They facilitate the receipt, inspection, counting, and recording of incoming goods, as well as the picking, packing, and shipping of outbound orders. Effective inventory management in warehouses helps businesses minimize stockouts , reduce excess inventory, and improve order fulfillment rates. Consolidation and Break-Bulk: Warehouses enable consolidation and break-bulk operations, where multiple smaller shipments are combined into larger units for transportation or distribution. This process increases efficiency by reducing transportation costs, minimizing handling, and optimizing storage space utilization. Order Fulfillment: Warehouses serve as distribution centers for fulfilling customer orders. They receive, process, and ship orders to customers or other distribution channels, ensuring timely delivery and accurate order fulfillment. Warehouses may also offer value-added services such as kitting, labeling, packaging, and customization to meet specific customer requirements.

8. Cross-Docking: Warehouses facilitate cross-docking operations, where incoming goods are transferred directly from inbound to outbound docks without storage in between. This streamlined process reduces handling and storage costs, shortens order cycle times, and improves supply chain responsiveness. Product Mixing: Warehouses allow for product mixing or assorting, where different products or SKUs are combined into customized assortments or packages. This flexibility enables businesses to offer diverse product selections to customers, optimize shipping efficiency, and support marketing strategies such as product bundling or promotions. Value-Added Services: Warehouses may offer value-added services such as labeling, repackaging, assembly, customization, quality control, and product testing. These services add value to products, enhance customer satisfaction, and differentiate warehouses from competitors. Reverse Logistics: Warehouses handle reverse logistics processes, including product returns, exchanges, repairs, and recycling. They provide facilities for inspecting, sorting, and refurbishing returned goods, as well as managing inventory disposition and disposal in an environmentally responsible manner.

9. Risk Management: Warehouses help mitigate risks associated with loss, theft, damage, and spoilage of goods by implementing security measures, inventory controls, and safety protocols. They provide a secure environment for storing high-value or sensitive products and ensure compliance with regulatory requirements and industry standards. Information Management: Warehouses serve as hubs for managing information related to inventory levels, stock movements, order status, and logistics activities. Modern warehouse management systems (WMS) and technology solutions enable real-time tracking, monitoring, and reporting of warehouse operations, enhancing visibility, accuracy, and decision-making across the supply chain. Overall, warehousing plays a critical role in optimizing supply chain performance, enhancing operational efficiency, and meeting customer demand effectively. By performing these key functions, warehouses contribute to the success and competitiveness of businesses in today's dynamic marketplace.

10. Types of Warehousing Public Warehouses : Public warehouses are operated by third-party logistics (3PL) providers and offer storage and distribution services to multiple clients on a contract or pay-per-use basis. These warehouses are suitable for businesses seeking flexible storage options without the need for long-term commitments or large capital investments. Private Warehouses : Private warehouses are owned and operated by individual companies to store their own inventory and manage distribution operations. These warehouses offer greater control, security, and customization options for businesses with high-volume or specialized storage needs. Contract Warehouses : Contract warehouses are operated by 3PL providers under long-term agreements with specific clients. These warehouses are dedicated to serving the needs of a single client or a group of clients under a customized contract that outlines service levels, pricing, and terms of engagement. Distribution Centers : Distribution centers are specialized warehouses designed to efficiently manage the receipt, storage, and distribution of goods to customers or retail stores. They are strategically located near major transportation hubs and serve as central points for order fulfillment and logistics operations.

11. Temperature-Controlled Warehouses : Temperature-controlled warehouses, also known as cold storage facilities, are equipped with refrigeration or climate control systems to maintain specific temperature and humidity conditions for storing perishable goods, such as food, pharmaceuticals, and chemicals. Bonded Warehouses : Bonded warehouses are authorized by customs authorities to store imported goods under bond, without payment of duties or taxes, until they are cleared for entry into the country or re-exported. These warehouses facilitate international trade and provide storage solutions for imported goods awaiting customs clearance. Automated Warehouses : Automated warehouses utilize advanced technology, robotics, and computerized systems to automate various aspects of warehouse operations, including inventory management, order picking, packing, and shipping. These warehouses offer increased efficiency, accuracy, and productivity, particularly in high-volume or high-speed distribution environments. E-commerce Fulfillment Centers : E-commerce fulfillment centers are specialized warehouses designed to handle the unique requirements of online retailing. They are equipped with systems for order processing, picking, packing, and shipping to fulfill customer orders quickly and accurately, often with same-day or next-day delivery options.

12. Factors effecting selection of warehouse Location : The location of the warehouse is one of the most important factors to consider. It should be strategically situated to minimize transportation costs, reduce lead times, and optimize distribution networks. Factors such as proximity to suppliers, customers, transportation hubs (ports, airports, rail terminals, highways), and major markets influence location decisions. Accessibility : Warehouse accessibility refers to ease of access for transportation vehicles, such as trucks, trailers, and container ships. The warehouse should have good connectivity to major highways, roads, and transportation networks to facilitate inbound and outbound logistics operations. Adequate parking and loading/unloading facilities are also essential. Transportation Infrastructure : The availability and quality of transportation infrastructure in the vicinity of the warehouse influence its selection. Factors such as road conditions, traffic congestion, rail connectivity, port facilities, and airport access impact transportation costs, transit times, and overall logistics efficiency. Inventory Profile : The nature, volume, and characteristics of the inventory being stored affect warehouse selection decisions. Warehouses should have the capacity, facilities, and equipment to handle the specific requirements of the inventory, such as temperature-controlled storage for perishable goods, hazardous materials handling for chemicals, or high-security storage for valuable merchandise.

13. Storage Capacity and Layout : The storage capacity and layout of the warehouse should align with the business's inventory management needs and operational requirements. Factors such as total storage space, ceiling height, rack configurations, aisle widths, and storage density influence the warehouse's suitability for storing different types of products and managing inventory efficiently. Handling Equipment and Technology : The availability of handling equipment (e.g., forklifts, pallet jacks, conveyor systems) and technology (e.g., warehouse management systems, barcode scanners, RFID technology) in the warehouse affects its operational capabilities and productivity. Modern warehouses equipped with advanced technology and automation solutions offer greater efficiency, accuracy, and scalability. Costs and Pricing : Warehouse costs, including rent or lease rates, utilities, taxes, insurance, and additional fees, impact the overall logistics budget. Businesses need to evaluate the total cost of occupying and operating the warehouse and compare it with the expected benefits and value-added services offered by the facility. Regulatory Compliance : Warehouses must comply with local, state, and federal regulations governing zoning, building codes, safety standards, environmental requirements, and labor laws. Businesses should ensure that the selected warehouse meets regulatory requirements and maintains necessary certifications and permits for safe and legal operations.

14. Scalability and Flexibility : The warehouse should offer scalability and flexibility to accommodate future growth, seasonal fluctuations, and changing business needs. Businesses should assess the warehouse's ability to expand or contract space, adjust operating hours, and adapt to evolving market conditions without significant disruptions to operations. Reputation and Reliability : The reputation, track record, and reliability of the warehouse operator or 3PL provider are crucial considerations. Businesses should evaluate the provider's experience, industry expertise, service quality, customer references, and track record of on-time delivery and performance to ensure a successful partnership. By carefully evaluating these factors and conducting thorough due diligence, businesses can select a warehouse that aligns with their logistical requirements, operational objectives, and strategic goals, ultimately enhancing supply chain efficiency and customer satisfaction.  

15. Benefits / Importance of warehousing:- Inventory Management : Warehousing allows businesses to store goods in anticipation of future demand, enabling them to maintain optimal inventory levels. This helps reduce stockouts , minimize excess inventory, and improve overall inventory management efficiency. Facilitates Production : Warehousing provides a buffer between production and distribution, allowing manufacturers to produce goods in bulk and store them until needed for distribution. This enables smoother production schedules and cost savings through economies of scale. Customer Service : Warehousing facilitates faster order processing and fulfillment, enabling businesses to meet customer demand more efficiently. With strategically located warehouses, businesses can offer shorter delivery times, improved product availability, and better customer service. Risk Mitigation : Warehousing helps mitigate risks associated with supply chain disruptions, such as transportation delays, natural disasters, or supplier issues. By storing goods in multiple locations, businesses can diversify their supply chain risk and ensure continuity of operations.

16. Seasonal Demand Management : Warehousing allows businesses to manage seasonal fluctuations in demand by storing excess inventory during peak seasons and releasing it as needed. This helps balance supply and demand, reduce stockouts , and capitalize on sales opportunities. Cost Savings : Efficient warehousing practices can lead to cost savings in various areas of the supply chain. These include reduced transportation costs through consolidation and optimization, lower inventory carrying costs, and economies of scale in storage and handling. Value-Added Services : Warehouses often offer value-added services such as kitting, labeling, packaging, and assembly. These services add value to products, enhance customization options, and differentiate businesses in the market. Market Expansion : Warehousing enables businesses to expand into new markets by establishing distribution centers closer to target customers. This reduces transportation costs, shortens delivery times, and improves market reach and competitiveness.

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