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Warehousing Part Two
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Three Basic Warehouse Functions
• Movement.
• Storage.
• Information.
Movement
Warehouse
.
Receiving, putting away
Movement
Warehouse
.
Receiving, putting away
Movement
Warehouse
.
Receiving, putting awayPicking, staging, loading
Movement
Warehouse
.
Receiving, putting awayPicking, staging, loadingCross-docking
Movement
Warehouse
.
Receiving, putting awayPicking, staging, loadingCross-dockingPackaging
Movement
Warehouse
.
Receiving, putting awayPicking, staging, loadingCross-dockingPackaging
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 whichassembly workers, sometimes in a warehouse, get all thecomponent parts of what they are assembling in a singlekit so that time is not lost looking for parts.
Vendorseek.com
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Movement
Warehouse
.
Receiving, putting awayPicking, staging, loadingCross-dockingPackaging
Light assembly, blending, kittingLabeling, shrink wrapping
LabelLabel
LabelLabel
Movement
Warehouse
.
Receiving, putting awayPicking, staging, loadingCross-dockingPackaging
Light assembly, blending, kittingLabeling, shrink wrapping
Movement
Warehouse
.
Receiving, putting awayPicking, staging, loadingCross-dockingPackaging
Light assembly, blending, kittingLabeling, shrink wrappingBreakbulk, consolidation
Movement
Warehouse
.
Receiving, putting awayPicking, staging, loadingCross-dockingPackaging
Light assembly, blending, kittingLabeling, shrink wrappingBreakbulk, consolidationTransportation
Movement
Warehouse
.
Receiving, putting awayPicking, staging, loadingCross-dockingPackaging
Light assembly, blending, kittingLabeling, shrink wrappingBreakbulk, consolidationTransportation
Import, export services(also an information function)
Storage
Warehouse
.
Information
Warehouse
.
Inventory trackingOrder entry
Display building/promotions
Proof of deliveryTracing/customer service billing.
Service reporting/carrier monitoring
Site location
Real estate management
Network analysis
Systems analysis
Warehouses versus Distribution Centers:
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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Distribution centers are a type of warehouse whichhold minimum inventory of high-demand goods.
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Warehouses versus Distribution Centers:
• Warehouse
Warehouse
Warehouses versus Distribution Centers:
• Warehouse--Receives.
Warehouse
--Stores.--Picks
Warehouses versus Distribution Centers:
• Warehouse--Receives.
Warehouse
--Stores.--Picks
--Ships
Warehouses versus Distribution Centers:
• Warehouse--Receives.
--Stores.
--Picks
--Ships
• Distribution Center
WarehouseDistribution Center
Warehouses versus Distribution Centers:
• Distribution Center– Receives
Distribution Center
Warehouses versus Distribution Centers:
• Distribution Center– Receives– Ships
Distribution Center
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www.arvinmeritor.com
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Warehouses versus Distribution Centers:Other Differences
• 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
End of Program.
Go to Part Three.