SCCOHOESHSSSHSHHSSHSHOSSHSHSSSHHOHSHSHSHSOHSHSOHSHSEHSHHHCOEOCEOO Section B: Warehousing Strategy and Management ‘Automated ‘warehouses Automated warehouses employ technology to perform warehouse operations. he degree to which automation is used will vary greatly, and, for many specialized warehouses, itis a necessary feature—the only way they can accomplish certain activities or a capability that distinguishes them from competitors. Automation could include mechanized systems that support retrieval of stock from storage or provide specific instructions to warehouse personnel. It could be an automated storage and retrieval system (AS/RS), defined by the APICS Dictionary, 15th edition as “a high-density, rack inventory storage system with vehicles automatically loading and unloading the racks.” AS/RS can be used in parts of warehouses or throughout the facility. AS/RS picking equipment is discussed in Topic 6. Warehouses designed around AS/RS are essentially cubes composed of, single or double-deep rows separated by very narrow aisles. A computer- controlled crane moves on rails up and down the aisle, putting away and pulling out pallets. Pallets are fed into the systems by conveyors. The entire operation is controlled by computer. Warehouses with AS/RS are typically very high, about 150 feet (45 meters). Aisles are very narrow, about 5 feet (1.5 meters). Since they require few workers, they can operate 24/7. ‘Automated warehouses have high construction and equipment costs but probably lower labor costs. There may be other needs that drive their use. It may be safer to handle certain products with automated equipment rather than manually. It may also be easier to restrict access to stored goods. Exhibit 4-29 shows an AS/RS. Exhibit 4-29: AS/RS Warehouse Source: Westfalia Technologies, Inc, ww. Westfaia'SA.com. Used with permission (© 2016 APICS Arights reserved 481 (LTD Version 1.0, 2017 EatonModule 4: Inventory and Warehouse Management Cold etarage warehouses Bonded warehouses Hazardous materials warehouses Cold ctorage warehouses are designed and engineered to maintain inventory that would spoil at higher temperatures, such as frozen foods. ‘These warehouses are more expensive to build and operate because of increased structural, equipment (including personal equipment for workers), and energy costs. Similar to this type of warehouse are climate-controlled warehouses, which are designed and built to maintain temperature and humidity within a specified range. Inventory can include fresh produce, medicines, or sensitive electronics whose parts might be subject to corrosion at higher humidity levels. These warehouses require expensive heating, cooling, and ventilation systems to monitor and balance warehouse conditions. Bonded warehouses allow companies to produce, store, and transfer ‘goods between tax zones without having to pay taxes in both the producing, transit, and receiving locations. When the tax zones are international, these warehouses may be called foreign free-trade zone warehouses. For example, a solar panel company located in country A imports parts from country B that it includes in panels that it ships to customers in country C. By using a bonded warehouse to receive and store the parts, the company avoids having to pay import taxes on the goods in country A. The term “bonded! refers to a bond or surety that the owner of the goods or the warehouse places with the relevant taxing authority. The bond is returned when the goods leave the tax zone. Although the definition of bonded warehouses in the APICS Dictionary, 15th edition, is oriented toward the US. (“buildings or parts of buildings designated by the US. Secretary of the Treasury for storing imported merchandise, operated under U.S. Customs supervision’), they are a feature of global supply chains, Hazardous materials (hazmat) warehouses are designed to manage the risks posed by handling and storing materials that could cause environmental harm, such as radioactive, toxic, or explosive material. These buildings may have enhanced security to prevent intrusion and specialized physical features such as: * Ventilation and air pressure systems that prevent emissions outside the warehouse or from areas within the warehouse + Drainage systems to capture and contain spills, ¢ Air quality monitoring and alarm systems Advanced fire suppression systems, such as systems that remove all oxygen from a critical area ‘Special training and personal protection equipment for workers. ‘© 2016 APICS Alirignts reserved 4a2 ‘CLTD Version 1.0, 2037 Eaton 999G99989 9988999999899 98999899H999G89G89GHH9HH99G9999999990SCHOHSSHCOHSSSHSSHSHOHSHSHSHHOSSOHHOHSHSHSHSHOHOHOHOHSSCHEHSHSHECCECOEEEO Section B: Warehousing Strategy and Management. Records archives. Records archives store valuable paper and digital records. They are usually operated by third parties. Business customers use these warehouses to manage the amount of facility space dedicated to non- revenuie-producing storage for documents that must be retained for a certain number of years for tax or compliance reasons. Businesses may also maintain duplicate records at secure, off-site locations that can be accessed quickly and easily if the original on-site records are lost. This facilitates business recovery and continuity. This type of warehouse Tequires monitored access to authorized users. Paper records require physical conditions that control for dust, mold, and fire. Digital records require additional equipment to store and exchange and update data, Topic 3: Warehouse Processes Exhibit 4-30 traces the processes used to move materials through a distribution center warehouse, from the receiving of products into the ‘warehouse through the dispatch of goods out of the warehouse. Exhibit 4-30: Warehouse Processes D> sorting and asc value-added sven tine” Ay ae Ne Ly 4 Receiving, As defined by the APICS Dictionary, 15th edition, warehouse receiving is a key process in warehouse operation that ensures the correct product has been received, in the right quantity, inthe right condition, and at the right time. Shipments are coordinated, arrive, and are unloaded. The goods are moved into storage. In a consolidation or break-bulk facility, the shipments would be moved to a staging area for sorting and then directly to the dispatch area, In a cross-docking facility, the shipment would move quickly from receiving to the shipping dock. ¢ Storing/put-away. The Dictionary defines warehouse storage as “using a building or other structure as a planned space for storing goods and materials.” Goods are placed in a location designated in the slotting or warehouse location plan and entered into the inventory system. ‘There may be multiple storage areas, depending on the nature of the (© 2016 APCS 483 ‘GLTD Version 1.0, 2017 Eaton All rights reserved Q) rreton sn pte tne