1. Warehouse Management

2. “Managers today have to do more with less, and get better results from limited resources, more than ever before... A manager’s job is to provide the environment where individuals are internally motivated to do the very best job possible, in the very best spirit possible, to make the very best contribution possible.” --- Brian Tracy

3. Job Description and Core Accountabilities of Warehouse Managers
Ability to negotiate
Information technology skills
Basic Finance
Ability to make good business decisions
People management skills
Ability to motivate and lead large numbers of employees through communication and engagement

4. Job Description and Core Accountabilities of Warehouse Managers
Cost-efficient warehouse operation
Leadership responsibility
Ensure warehouse is capable of volume requirements of the business
Continuous improvement in cost- efficiency
Long-term vision for future volumes and customer service

5. Job Description and Core Accountabilities of Warehouse Managers
Safeguard the human and physical assets of the warehouse
Management of projects
Introduction of new initiatives
Maintain/Form strong relationships with suppliers
Develop/Manage relations within warehouse environment

6. Job Description and Core Accountabilities of Warehouse Managers
Develop and maintain programs for hiring, training, and professional development
Match skill and background of personnel to work required

7. Job Description and Core Accountabilities of Warehouse Managers
Communication and motivational techniques to supervise, counsel, and discipline associates
Performance evaluation system for promotions, wage increases, terminations

8. What is the most valuable asset of the warehouse?
Question:
What is the most valuable asset of the warehouse?

9. Answer:
People

10. Six Basic Tenets of Warehouse Management
Accuracy
Cost control
Cleanliness
Efficiency
Safety
Security

11. Warehouse Management Trade-offs

12. Warehouse Management Trade-offs
Increased throughput vs. reduction in labor costs
Storage density vs. quicker pallet extraction
Manual vs. automation

13. Warehouse Management Trade-offs
Inventory holding costs vs. cost of stock outs
Increased pick rates vs. accuracy
Speed vs. safety

14. Challenges of Warehouse Managers
Nearly 3,000 hours per year are lost in warehouses and distribution centers through inefficient processes
80% of managers are tasked with finding cost savings in existing operations
On average, managers are tasked with finding nearly 20% of cost savings in their organizations

15. Challenges of Warehouse Managers
The majority of managers suggested the most inefficient areas are:
Inventory Control (53%)
Picking (47%)
Putaway and replenishment (45%)
1 in 6 managers will not review workflow processes until a customer complains.

16. Challenges of Warehouse Managers
Pressure to reduce operating costs
Reduce costs but increase customer service
Achieving the perfect order
Key Performance Indicator (KPI) used to measure the perfect order:
Perfect order – delivered on time, in full, in perfect condition, and with the correct paperwork

17. Challenges of Warehouse Managers
Shorter order lead times and stock availability
Order lead time – the length of time between placing of an order and the receipt of the item by the customer
Low involvement purchases = high likelihood of switching & search for lowest cost
Competitive advantage gained from fast, timely, and accurate delivery

18. Challenges of Warehouse Managers
Delivery through multiple channels

19. Challenges of Warehouse Managers
Smaller, more frequent orders
Just-in time methods
Increasing Internet sales

20. Challenges of Warehouse Managers
Smaller, more frequent orders
Efficient consumer response (ECR)

21. Challenges of Warehouse Managers
Greater fluctuations in demand
Caused by consumer power > manufacturer power
Seasonality (e.g. Black Friday, Cyber Monday, Xmas, etc.)
Companies have to run lean during slow times and ramp up during peak periods

22. Challenges of Warehouse Managers
Increases in stock-keeping units
Proliferation of product variants
Variations in packaging, sizes, etc.

23. Challenges of Warehouse Managers
Increases in stock-keeping units
Generic retailer brands increasing
Postponement strategy
– holding stock of basic product and adding ‘extras’ when orders are received. (i.e. bundling) (e.g. loading software onto computers post-purchase, adding memory to smart devices, etc.)

24. Challenges of Warehouse Managers
Environmental Issues
Reducing energy consumption
Reducing waste
Data and information transfer
Track and trace information
Data security to prevent hacking

25. Challenges of Warehouse Managers

26. Warehouse operations are generally not lean.
Lean Warehousing
“Lean” means to remove any activity that uses resources but doesn’t create any additional value.
Warehouse operations are generally not lean.
Cross-dock centers and fulfillment centers can be lean.
Moving stock quickly is key

27. Wasting Space Wasting Time Lean Warehousing
Pallet stacking at half-height or quarter-height
Part pallets of same product spread throughout warehouse
Obsolete stock taking up space
Wasting Time
Defects (time spent correcting errors as misspicks)
Inventories (congestion at inbound and outbound areas)
Waiting time (bottlenecks at pick locations)
Overprocessing (unnecessary processing steps such as labeling and checking)

28. Wasting Energy Lean Warehousing
Transportation (Driving empty forklift)
Idling vehicles (Due to operator or wait times)
Inefficient machines (Due to maintenance issues or obsolescence)

29. Question: Of these wastes, which is the most expensive one?
Lean Warehousing
Question: Of these wastes, which is the most expensive one?

30. Lean Warehousing

31. The 5S concept: Lean Warehousing
Sort – remove any unnecessary items from work area
Straighten – efficient and effective placement of necessary items in the work area
Shine – clean the area and keep it clean
Standardize – create standards and display them within work area
Sustain – ensure continuous improvement and don’t fall back into old habits.

32. Discussion Questions
Explain why warehouse managers need the ability to negotiate.
What are some ways a manager can safeguard the human assets of a warehouse?
Why are relationships with suppliers important in warehouse management?
What is the most valuable asset of the warehouse? Why?

33. Discussion Questions
Explain why high customer service, low cost, and low inventory are trade-offs in warehouse management.
What are three major inefficient areas in warehouses?
What is the “perfect order”?
Explain ‘delivery through multiple channels’. Give examples in your country.
Explain ‘ECR’.
Explain the concepts of lean warehousing.
Explain the 5S concept.