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Presentation on theme: "Warehousing."— Presentation transcript:

1 Warehousing

2 Meaning of Warehousing
A warehouse is a structure where goods are stored Warehousing is one of activities in supply chain management Warehousing is a procedure or a process of storing goods within a storage facility Warehousing involves administrative and physical functions associated with storing

3 Warehousing as an Integrating function
In supply chain integration, warehousing plays a critical role Warehousing initiatives directed towards minimising pipeline inventory Pressure points in warehousing include – accuracy and cycle time performance. Cycle time refers to the period required to complete one cycle of an operation What would the cycle time be in the context of warehousing?

4 Roles of Warehouses in Warehousing
TYPES OF WAREHOUSES Raw material & Components Warehouse Work-In-Progress Warehouse Finished Goods Warehouse Distribution Warehouse Fulfilment Warehouse Local Warehouse AROUND A MANUFACTURING FACILITY AROUND A PRIMARY DISTRIBUTION DEPOT Supports Distribution Supports Production

5 Roles of Warehouses in Warehousing (Contd…)
DISTRIBUTION CENTRE Raw Material Warehouse Hold raw materials at or near point of induction into manufacturing process FIRM Hold and consolidate products from one or several firms for combined shipment WIP Warehouse Hold partially completed assemblies and products at various points along an assembly/production line Fulfilment Warehouse Local Warehouse Receive, pick and ship small orders for individual customers Distributed in the field in order to shorten transportation distances to permit rapid response to customer demand Finished goods Warehouse Hold inventory used to balance and buffer the variation between production schedules and demand

6 Need for Warehousing Seasonal Production
Commodities like agricultural produce are harvested at a particular time period Commodities associated with festivities Seasonal Demand Commodities like woollen garments during winters and umbrellas during rainy season Large-scale Production More economical form of production for certain commodities Quick Supply Both industrial and agricultural products are produced at some specific places but consumed throughout the country Continuous Production Continuous production requires adequate supply of raw materials Price Stabilization To maintain a reasonable level of the price of the goods in the market there is a need to keep sufficient stock in warehouses

7 Functions of Warehousing
Receiving Orderly receipt of all materials coming into warehouse Providing assurance that the quantity and quality of such materials are as ordered Prepackaging When products are received in bulk from supplier and subsequently packaged in merchandisable quantities or combinations with other parts to form kits or assortments Putaway Act of placing merchandise in storage Includes material handling, location, verification and product placement Storage Physical containment of merchandise while it is awaiting demand Storage method depends on its size, quantity of items in inventory and handling characteristics of the product or container

8 Functions of Warehousing (Contd…)
Order picking A basic service provided in a warehouse Process of removing items from storage to meet specific demand Packaging and/or pricing Optional step after picking Individual items may be available for sale Pricing is current at the time of sale Prepricing at manufacture or receipt in warehouse inevitably leads to repricing activity as price lists are changed while merchandise sits in inventory Sortation This activity is undertaken when an order has more than one item and accumulation is not done in picks Sorting batch picks into individual orders and accumulation of distributed packs into orders

9 Functions of Warehousing (Contd…)
Unitising and shipping Checking orders for completeness Packaging merchandise in appropriate shipping containers Preparing shipping documents, including packing lists, address labels and bills of lading Weighing shipments to determine shipping charges Accumulating orders by outbound carriers Loading trucks (mostly carrier’s responsibility)

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