Professional Documents
Culture Documents
Marketing Logistics
Advance manually to begin.
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Warehousing
The storing of products, including raw materials, parts, goods-in-process, finished goods at and between point-oforigin and point-of-consumption. Provides information on status of goods.
Distribution centers are a type of warehouse which hold minimum inventory of high-demand goods.
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Physical supply
Distribution
Warehouse
Warehouse
Transportation Economies
Economies of scale
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Supplier
Warehouse
Transportation Economies
Economies of scale
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Supplier
Warehouse
Warehouse
Assembly line
To overcome time and space differentials between producers and consumers. To minimize logistics costs while meeting customer service goals. To support just-in-time inventory programs.
Movement
Receiving, putting away
Warehouse
Movement
Receiving, putting away
Warehouse
Movement
Receiving, putting away Picking, staging, loading
Warehouse
Movement
Receiving, putting away Picking, staging, loading Cross-docking
Warehouse
Movement
Receiving, putting away Picking, staging, loading Cross-docking Packaging
Warehouse
Movement
Receiving, putting away Picking, staging, loading Cross-docking Packaging Light assembly, blending, kitting *
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Warehouse
Vendorseek.com
Movement
Receiving, putting away Picking, staging, loading Cross-docking Packaging Light assembly, blending, kitting *
*Kits are how some manufacturers sell parts. By selling the . in a kit, the manufacturer gains economies of scale in parts things like transportation costs. It also saves administrative costs because rather than billing for and keeping track of each part, the manufacturer only has to keep track of the kit. Warehouse Kitting is also a light manufacturing technique in which assembly workers, sometimes in a warehouse, get all the component parts of what they are assembling in a single kit so that time is not lost looking for parts.
Vendorseek.com
Movement
Receiving, putting away Picking, staging, loading Cross-docking Packaging Light assembly, blending, kitting Labeling, shrink wrapping
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Warehouse
Movement
Receiving, putting away Picking, staging, loading Cross-docking Packaging Light assembly, blending, kitting Labeling, shrink wrapping
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Warehouse
Movement
Receiving, putting away Picking, staging, loading Cross-docking Packaging Light assembly, blending, kitting Labeling, shrink wrapping Breakbulk, consolidation
Warehouse
Movement
Receiving, putting away Picking, staging, loading Cross-docking Packaging Light assembly, blending, kitting Labeling, shrink wrapping Breakbulk, consolidation Transportation
Warehouse
Movement
Receiving, putting away Picking, staging, loading Cross-docking Packaging Light assembly, blending, kitting Labeling, shrink wrapping Breakbulk, consolidation Transportation
Storage
Warehouse
Information
Inventory tracking Order entry Proof of delivery Tracing/customer service billing. Service reporting/carrier monitoring Site location
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Warehouse
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Warehousing
The storing of products, including raw materials, parts, goods-in-process, finished goods at and between point-oforigin and point-of-consumption. Provides information on status of goods.
Distribution centers are a type of warehouse which hold minimum inventory of high-demand goods.
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Distribution Center
Warehouse
Distribution Center
www.perotdevelopment.com
www.arvinmeritor.com
www.arvinmeritor.com
Warehousing.
Part Three.
Uses of Warehouses:
Support manufacturing. Mix products from multiple production facilities to a single customer. Break bulk. Consolidate small shipments into large shipments.
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Logistics Concepts
S u p p l i e r
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Inbound Logistics
Outbound Logistics
C u s t o m e r
Supplier A
Supplier B
Warehouse Supplier C
Supplier D
4
Customer W 1 2 3 4
Plant B, Product 2
Customer X 1 2 3 4
Plant C, Product 3
Plant D, Product 4
Customer Y 1 2 3 4
Customer W 1 2 3 4
Plant B, Product 2
2 2
3 4 4
Mixing Warehouse
Customer X 1 2 3 4
Plant C, Product 3
Plant D, Product 4
Customer Y 1 2 3 4
Plant A
Plant B
Consolidation Warehouse
Customer
Plant C
Plant D
Customer
Breaking bulk
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Customer 2
Plant
Breakbulk Warehouse
Customer 3
Types of Warehousing
Direct store delivery. Private warehousing.
XYZ Company Warehouse
Advantages: Control Flexibility in design and operation Long-term cost Better use of human resources. Tax benefits: depreciation. Intangibles: image of stability.
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Disadvantages
Fixed costs, especially if built for peak seasons. Investment. Return may be better if money is placed elsewhere.
Types of Warehousing
Direct store delivery. Private warehousing. Public warehousing.
Advantages: Conservation of capital. Able to increase capacity when needed. Reduced risk of obsolesence. Flexibility Tax advantages: some states have no inventory taxes for products in public warehouses. Specific knowledge of costs.
Disadvantages
Incompatible communications systems. Lack of specialized services..
May be unavailable when needed. Economies of scale due to warehouse companys investment
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Warehouse Characteristics
Increase the number of warehouses and the average size of warehouses decreases. Factors influencing the number of warehouses:
Cost of lost sales. Inventory costs. Warehousing costs. Transportation costs.
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Warehouse Locations
Market-based nearest the final customer. Production positioned collection points or mixing facilities. Intermediate positioning between producer and final customer.
Factory
Warehouse
Customer
Cross-docking:
Movement from an inbound dock directly to an outbound dock Movement directly from an inbound dock to a sorting process to an outbound dock.
Outbound Inbound Outbound
Outbound
Inbound Inbound Outbound
Sorting area
End of Program.