1. WAREHOUSING
MANAGEMENT
Supply Chain I - Ms. Biba S. Kavass

2. Objectives Discuss the role of warehousing in a logistics system
Examine various types of warehouses
Explore warehouse operations
Analyze select considerations when designing warehousing facilities
Examine prominent operational issues in warehousing
Design a warehouse layout – build warehouse

3. Warehouse
“A warehouse is a facility that, along with storage racks, handling equipment and personnel and management resources, allows us to control the differences between the incoming flow of goods (received from suppliers, production centers, etc.) and the outgoing flow of goods (goods being sent to production, sales, etc.).”
Source: Interlake Mecalux

4. Role of Warehousing in a Logistics System
Warehouse: A commercial building emphasizing storage of products
Facilitates regrouping function in a supply chain – involves rearranging the quantities and assortment of products as they move through supply chain
Accumulating or Bulk-Making: bringing together similar stocks from different sources (ex. Department store buying men’s suits from different producers)
Allocating or Bulk-Breaking: breaking larger quantities into smaller quantities (ex. Department store re-distributes men’s suits to individual stores)
Assorting: building up a variety of different products for resale to particular customers (ex. Department store supplies individual stores with different sizes of men’s suits)
Sorting Out: separating products into grades and qualities desired by different target markets (ex. Department store sells $1,000 suits in more affluent areas - $500 suits in less affluent areas)

5. Difference Between a Warehouse and a Distribution Center
Distribution Center: set up to distribute goods with a shorter storage time (about a week).
Products and supplies constantly move from
being received, used to fill orders and shipped out as new products arrive.
Warehouse: Accommodate long-term storage of goods

6. Model Warehouse – Rite Hite

7. Case Study: Cookware Company Stirs Up a Sizzling Supply Chain
When sales of cast-iron cookware heat up, a well-known brand prepares a solution to expand manufacturing
capacity and warehouse space.
Cast-iron cookware, a kitchen staple for generations, is surging in popularity.
Industry experts attribute a 50-percent jump in sales this decade to millennials
and others who appreciate cast iron's value and versatility. Home cooks can
prepare nearly any recipe in cast-iron skillets and pots on the stovetop or in the oven.

8. Types of Warehouses
Retail Distribution Center: typically supplies product to retail stores, such as Wal-Mart or Target. The immediate customer of the distribution center is a retail store. Service Parts Distribution Center: most challenging of facilities to manage – hold spare parts for expensive capital equipment, such as automobiles, airplanes, computer systems, or medical equipment. Catalog Fulfillment or E-commerce Distribution Center: typically receives small orders from individuals by phone, fax, or the Internet. Orders are typically small, for only 1–3 items, but there may be many such orders, and they are to be filled and shipped immediately after receipt. 3PL Warehouse: one to which a company might outsource its warehousing operations. Perishables Warehouse: may handle food, fresh flowers, vaccines, or other product requiring refrigeration to protect its very short shelf life.

9. Virtual Reality – Warehouse Tours
Toyota VR / 360° Factory Tour

10. https://learn.sketchup.com/track/sketchup-fundamentals-part-1

11. Parts of a Warehouse
The simplest warehouses normally have access doors, an open area for maneuvering and verification, a storage area where the goods are located, a management office for controlling operations, and toilets and changing rooms for personnel.

12. Flow of Units
A product is handled in smaller and smaller units as it flows down the supply chain.

13. Warehouse Operations Receive: product arrival and unloading
Put-Away: product placed in appropriate storage area
Order Picking: Receipt of customer order – required items pulled down from storage
Pack, Ship: check accuracy or order, pack in appropriate containers, and ship product out to customer

14. Warehouse Operations - Receiving
Receiving - in most large warehouses/distribution centers, incoming vehicle loads are booked in advance so that the appropriate resources can be allocated to the activity
Receiving Process:
Inbound trucker phones warehouse to get a delivery appointment and provides
information about the cargo
Warehouse receiving verifies the Advance Shipping Notice (ASN) and confirms it with information from inbound trucker
Trucker arrives and is assigned to a specific receiving door
Vehicle is safely secured at the dock
Seal is inspected and broken in presence of carrier representative
Load is inspected and either accepted or refused
Merchandise is unloaded
All unloaded material is staged for count and final inspection
Proper documentation is made of damaged, missing or incorrect material
Load is positioned for storage in an assigned location

15. Warehouse Operations – Receiving Documents
Standard Product Delivery Documents Bill of Lading: receipt from the carrier to the shipper for the goods received for transportation Carrier Freight Bill: invoice presented by the carrier to the shipper, as a demand for payment for services rendered Delivery Receipt: document, issued by the carrier, which the consignee signs as proof of receipt Air Waybill: airfreight industry’s equivalent of the trucking industry’s bill of lading

16. Receiving Documents – Bill of Lading
Primary Purposes:
Receipt from the carrier to the shipper for the goods received for transportation
Contract of carriage – contract between carrier of goods and consignee
( person whom goods will be delivered to at place of delivery)
Presumption of title to the goods
Types of Bills of Lading:
Straight Bill of Lading: a non-negotiable bill of lading used where the goods have been paid
for or do not require payment. The shipping company will deliver the shipment to its consignee upon confirmation of identification. This is also known as a consignment bill of lading.
Order Bill of Lading: a document that is issued to the order of a shipper or consignee for the delivery of goods. This bill of lading can be transferred by endorsement to third parties.
Negotiable Bill of Lading: a negotiable BOL can be transferred by its consignee to a third party through signing (endorsement) and delivering it to another consignee. The new consignee can
transfer the document again, and so on. In order to issue a negotiable BOL, it must be written
“to order” of the consignee and must be clean.
Claused Bill of Lading: a BOL that shows there has been damage to the delivered goods. If
something is missing or goods are damaged, the carrier may have difficulty receiving payment.
Electronic Bill of Lading: a paperless version of the bill of lading.

17. Activity: Complete a Bill of Lading

18. Customs Declaration Forms

19. Commercial Invoice - Sample

20. Personal Protective Equipment (PPE)
Employers are required to train ALL employees on the proper use of PPE to include:
When PPE is necessary
What PPE is necessary
How to properly put on, take off, adjust, and wear PPE

21. Equipment Safety Features
Restraints – used to secure
trucks at loading docks
Communication Lights –
function like lights, usually
green and red
Interior Communication
Lights – register if a vehicle is present at the loading dock
Capacity Rating – different
types of equipment may
have capacity limits based
on volume or weight
standards. Exceeding these
standards could cause
damage.
Audible Alarms – some doors sound alarms when they are
about to open or close
Kill Switch – safety mechanism to shut off equipment quickly
Overhead Guards – used on
forklifts to protect operator
from falling loads
Emergency Shut Off – to stop handling equipment completely

22. Loading Dock Safety

23. Activity: Federal Safety Organizations and Requirements
Several agencies play an important role in ensuring that companies adhere to safety requirements. Research each of the following agencies and prepare a spreadsheet with the following information:
Agency
Acronym
Purpose
Website
US Department of Transportation
Federal Aviation Administration
Federal Motor Carrier Safety Administration
Federal Railroad Administration
Environmental Protection Agency
National Institute for Occupational Safety and Health
Food and Drug Administration
Pipeline and Hazardous Materials Safety Administration

24. OSHA – Occupational Safety and Health Act
The federal Occupational Safety and Health Act (OSHA) requires employers to provide a safe
working environment for employees. Companies are also required to properly train and supervise employees.

25. OSHA Storage Requirements
For safety reasons, certain items in
the manufacturing/warehouse facility
should be stored in designated
locations. Some of those items
include:
Chemicals
Flammable Materials
Maintenance Material
Pesticides
Paint Thinners

26. ANSI - American National Standards Institute

27. Hazardous Material

28. Key Issues Affecting How Products Are Stored
Mass, measurement and space
Volume, density and size – greatest impact – determines
whether deal with pallets, cases/cartons or individual items
Depth, containment and process
Weight, configuration and delivery
Volume
How much of any 1
item.
Velocity – how much is being stored at
any one time but
also how much is
retrieved for
shipment within a
given period of time.
Density
Greater the volume- the greater the
desired density
Size
Usually comes into play with individual items

29. Project: Del Monte Foods, Inc.
In order to prepare newly hired forklift operators, all Distribution Warehouse
Supervisors have been tasked with
preparing a presentation about Del
Monte and its product lines, the daily
operations at the Central States
Distribution Warehouse, and specific job instructions for the efficient loading of Del Monte Product onto pallets for
truck and train distribution.

30. Order Picking Techniques
Individual order picking: An order picker picks a complete, individual order on each circulation through the store/order picking area.
Batch picking: An order picker chooses products for several orders at the same time on one
circulation of the stores area and then to sort
them by customer order. The sort may take
place immediately (e.g., the picker may have a
cart with separate compartments, each
compartment holding one order), or the sorting may take place in a separate order assembly
area.
Zone picking: This system is typically used in
warehouses that have a large inventory range
and where the throughput is high. Each picker
is responsible for a small section and orders
flow from section to section, until the order has been completed.

31. Case Study/Activity: Amer Sports – Order Picking

32. Docks
Purpose – to provide a point of access for the receipt/delivery of goods into and out of warehouses, distribution centers and
final points of destination.
Flush Docks – most common – outside
wall of building is flush with face of dock – truck backs up and is secured against
the seal.
Open Docks – least expensive – consists
of platform that extends out from exterior of building wall – all unloading/loading
takes place on platform outside of building – safety is concern during bad weather.
Enclosed Docks – provide most security
from theft and protection from weather –
Entire truck and trailer loading area is
completely inside the building

33. Process of receiving product and shipping it out the same day or overnight without putting it into storage.
________________________
Key Benefits:
Improved service thru faster delivery
Reduced inventory carrying costs
Cross-Docking

34. Warehouse Operations

35. Queuing theory: A body of knowledge about waiting lines Waiting line (queue): Items or people in a line awaiting service

36. Activity: Minnetonka Warehouse Queueing Theory Practice
Wayne Schuller managed a warehouse in Minnetonka, Minnesota. His major concern was the number of workers to assign to his single unloading dock. After he began contracting with motor carriers for deliveries, he found they were assessing him stiff penalties if their trucks had to wait to be unloaded. Wayne started adding larger crews at the unloading dock, but often they seemed idle because there were no trucks to unload. Wayne recalled from college that queueing theory might be applicable to such a problem.