WAREHOUSE MANAGEMENT

AMIT CHETAN HARSH NUZHAT SAKET SHODHAN

By:- Kriti Group Group 5

Topics to be Covered
Introduction Types of warehouse Purpose of Warehousing Principle of warehouse layout design Cost of Operating warehouse Warehousing activities Warehouse Management Equipments Softwares

Introduction to Warehouse
Term Warehousing is referred as transportation at zero miles per hour Part of firms logistics system that stores products at and between point of origin and point of consumption. Warehousing provides time and place utility for raw materials, industrial goods, and finished products, allowing firms to use customer service as a dynamic value-

TYPE OF WAREHOUSING
Public Warehousing
Private Warehousing Contract Warehousing Multi-client Warehousing

Purpose of warehousing
The primary role of a warehouse and distribution center is to facilitate the movement of goods from suppliers to the customers and by doing so while meeting to customers demand and in a cost effective manner.
In order to achieve efficiency in supply chain, stocks have to be kept, but this is not the main role of a warehouse. Stocks may be hold for contingencies, or to enable rapid customer service, or in preparation for a new product launch. But in the most basic purpose of a warehouse, it is the transshipment area from where all the goods received are dispatched as effectively and efficiently as possible.

Functions of Warehouse
The basic function of warehouse is to provide storage facility. By ensuring storing, it provides time utility for the products. It strikes a judicious balance between the forces like demand and supply and thereby helps in building stabilized price for the product. [E.G. Buffer stock by Government]. Warehouse facilitates borrowing from banks and other financial institutions. The goods lying in the warehouse serve as security for short-term loan. It is helpful in stabilizing the prices of the product because it always tries to equate demand with supply. It provides protection to goods against fire, insects, pilferage and thefts. It helps in keeping goods away from sun, rain and dust and thereby it saves goods from deterioration.

Reasons for holding stock include the following.

As a buffer/consolidation point between two production processes To cover demand during suppliers' lead-time To enable savings to be made through bulk purchases or discounts To cope with seasonal fluctuations To provide a variety of product in a centralized location The build up/holding of anticipation stocks (for example, before a new product launch)f The build-up and holding of investment stocks

PRINCIPLES OF WAREHOUSE LAYOUT DESIGN

Use one-story facilities Move goods in a straight line Use efficient materialshandling equipment Use an effective storage plan Minimize aisle

COSTS OF OPERATING A WAREHOUSE

Capital costs
Costs of space & materials handling equipment Operating costs Cost of labor Measure of labor productivity is the number of units that an operator can move in a day

WAREHOUSE ACTIVITIES
Receive goods Identify the goods Dispatch goods to storage Hold goods Pick goods Marshal shipment Dispatch shipment

Receive goods
Accepts goods from Outside transportation or attached factory &

accepts responsibility
Check the goods against an order & the bill of loading Check the quantities Check for damage & fill out damage reports if necessary Inspect goods if required

Identify the goods

items are identified with the appropriate stockkeeping unit (SKU) number (part number) & the quantity received recorded

Dispatch goods to storage

goods are sorted & put away

Hold goods
goods are kept in storage & under proper protection until needed

Pick goods
items required from stock must be selected from storage & brought to a marshalling area

Marshal the shipment

goods making up a single order are brought together & checked for omissions or errors; order

records are updated

Dispatch the shipment

orders are packaged, shipping documents are prepared, & goods loaded on the vehicle

Operate an information system

a record must be maintained for each item in stock showing the quantity on hand, quantity

received, quantity issued, & location in the

warehouse

Warehouse Management
Warehouse management includes the control of inventory across one location or many and the associated warehouse management tasks. Benefits of Warehouse Management Provide a place to store & protect inventory Reduce transportation costs Improve customer service levels Complexity of warehouse operation depends on the

number of SKUs handled & the number of orders

received & filled. Most activity in a warehouse is material handling.

Equipments used in Warehouse

Pallet Truck

Our pallet jacks quickly transport pallets from one location to another with ease. Once under a pallet, the pallet is lifted off the ground for easy transportation. These are always used and seen in warehouses, grocery stores, and other locations.

Forklift: A forklift is a powered piece of equipment designed to lift and transport material in an industrial setting.

Gravity conveyors: Gravity conveyors use a series of roller wheels and bearings to quickly move boxes and other products from one location to another.

Warehouse Management System

WMS, 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, putaway and picking. Warehouse management systems often utilize .....Auto ID Data Capture (AIDC) technology, such as barcode scanners, mobile computers, wireless LANs and potentially Radio-frequency identification (RFID) to efficiently monitor the flow of products Objective of a warehouse management system is to provide a set of computerized procedures to handle the receipt of stock and returns into a warehouse facility, model and manage the logical representation of the physical storage facilities (e.g. racking etc.)

Radio Frequency Identification (RFID)

How RFID Works

Basically, RFID is a means of uniquely identifying an object through

wireless radio frequency identification. The identification is done by a device called the reader receiving data in form of radio frequency with its own unique identification code from a device called a tag. This method may require no direct line of sight for transaction to occur. The tag will broadcast the signal which is then received by the reader and the signal is then transferred to a computer. The computer then simply record the

reading or to look up in its database to direct further action, or to add on

additional information to the tag.

Electronic Data Interchange (EDI)

Electronic Data Interchange (EDI) is the computer-to-computer exchange of structured information, by agreed message standards, from one computer application to another by electronic means and with a minimum of human intervention. In common usage, EDI is understood to mean specific interchange methods agreed upon by national or international standards bodies for the transfer of business transaction data, with one typical application being the automated purchase of goods and services.

Voice-directed warehousing
Voice-directed warehousing (VDW) refers to the use of the voice direction and speech recognition software in warehouses and distribution centers. VDW has been in use since the late 1990s, and its use is expected to increase rapidly over the next five years due to advances in technology and decreasing costs for the voice directed software and for the mobile computers on which it runs.

In a voice directed warehouse, workers wear a headset connected to a small wearable computer, similar in size to a Sony Walkman, which tells the worker where to go and what to do using verbal prompts. Workers confirm their tasks by speaking pre-defined commands and reading confirmation codes printed on locations or products throughout the warehouse. The speech recognition software running on the wearable computer 'understands' the workers' responses