Introduction to Warehousing Supply chain and stock control

Objectives By the end of this session will be able to: Describe key roles in the supply chain. Explain the importance of knowing what goods are due and when. Explain the importance of correctly preparing the receiving area for goods. State the importance of checking the quality and quantity of goods received. Explain the methods and conditions for storing goods Explain the purpose of an effective stock control system

What is a warehouse? Bonded Tea Warehouse, Liverpool - DSC00752" by Rept0n1x - Own work. Licensed under CC BY-SA 3.0 via Wikimedia Commons

Warehouse A warehouse is a commercial building for storage of goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs and retailers. Warehousing in its simplest form is holding goods until they are needed.

The functions of a warehouse 1.Receive the goods from the source 2.Store the goods until they are required 3.Pick the goods from the storage area when they are needed 4.Ship the goods to the appropriate user

The supply chain There are several stages to getting products from a manufacturer to the retailers to ensure they have the right products at the right time. It’s called the supply chain. A supply chain is a system of organisations, people, activities, information, and resources involved in moving a product or service from supplier to customer.

Logistics Logistics, also known as distribution, covers the management and organisation of the whole supply chain, from producer to retailer. It includes transporting, sorting, packaging and storing products. Warehouses are the heart of any logistics network.

The internal supply chain As well as the external supply chain, that includes suppliers, retailers and logistics, all companies have internal supply chains that contribute to the overall supply chain. This is an example of an internal supply chain: PickerPackerLoaderDispatcher

Warehouse storage "Modern warehouse with pallet rack storage system" by Axisadman - Own work. Licensed under CC BY-SA 3.0 via Wikimedia Commons

Arrow style

Warehouse layout Horseshoe style. Image courtesy of

Personal Protective Equipment (PPE) 1.High Visibility 2.Gloves 3.Safety footwear

Goods In First phase of internal supply chain: Checking in deliveries Putting goods into storage Deliveries will arrive on a regular basis and it is important to know what goods are due and when.

Delivery times Many logistics warehouses have regular delivery days and times from suppliers, whilst many others have their own distribution depots and delivery vans. Some operate and trade 24 hours a day and will employ ‘twilight shift’ staff.

Why is it important to know what is being delivered and when? To ensure there is sufficient staff available deal with delivery quickly and safely. To ensure all the staff have the appropriate training on handling equipment and hygiene. To ensure that there is room for the goods to be stored correctly. To prepare the ‘Goods In’ area for unloading.

Checking at ‘Goods In’ Begin receiving orders by: Confirming the number of cartons match the quantity on the paperwork. Examining the containers for signs of damage, including leaks, tears or broken seals. Verify that the weight matches the amount charged, if necessary.

True or false? The delivery note is from All You Need Stores. The delivery is to Brassington Park Depot. The product identifier code for washing soda is TROP BREE could mean Tropical Breeze. The goods arrived at the store at ten to two. Three containers were not received. Three pallets of spray starch are supposed to be on this shipment. Two containers of Summer Meadow Fabric Softener are supposed to be on this shipment. This is the first page on the delivery note. Ambient means that products must be kept cold.

Quality checks

Why is it important to check the quality of goods when they arrive? To ensure customer satisfaction and warehouse reputation by identifying any faults before they get to customers. To ensure that any poor quality items can be reduced in price and sold. Once the paperwork is signed the goods become the responsibility of the retailer. Not identifying problems at this stage can result is financial losses.

Methods of storing goods All logistics and warehouse operations must ensure that all goods are monitored and maintained so that the goods arrive at the customer in perfect condition. You must know what stock is being stored and how it can be maintained.

Storage methods for different stock For each of these types of stock, which storage method would be best and why? Hazardous Perishable Fragile High value Bonded

Stock control Any business that sells products needs to carry the right amount of stock at any given time.

Why is an effective stock control system important? Ensures that the correct levels of stock are maintained in the warehouse at all times Goods don’t go to waste Profits are maintained Customer satisfaction

Too much stock The consequences of too much stock can be: A negative effect on the company’s profits. Cash flow is affected. A company is unable to order other products due to lack of funds. Products go to waste as their shelf life expires. Products can’t be sold because they are out of season/fashion. Company has to reduce stock to clear through lines.

Too little stock The consequences of too little stock can be: Internal and external customers can’t get the goods they want Lost sales revenue Lost customer goodwill Lost custom Lost profit

MHE Reach truck Counterbalance Forklift Truck Trolley

Introduction to Warehousing Supply chain and stock control