Warehouse Objectives and Activities

CONTENTS
PART I: INTRODUCTION OF WAREHOUSE OBJECTIVES

1.1. Introduction of Warehouse major group activities
1.2. Warehouse objectives and primary functions
1.3. Warehouse activities breakdown cost
PART II: WAREHOUSE MAJOR ACTIVITIES
2.1. IDENTIFICATION
2.2. INSPECTION
Lectuer: Pham Le Dung (MIB) 2.3. RECEIVING
ledungpham1109@gmail.com 2.4. PUT-AWAY
2.5. STORAGE
2.6. ORDER SELECTION/ PICKING
2.7. PACKAGING
2.8. DISPATCH
1
2
PART I: INTRO OF WAREHOUSE OBJECTIVES

CONTENTS
1.1. INTRODUCTION TO WH . MAJOR GROUP ACTIVITIES
1.1. Introduction of Warehouse major group activities • Warehousing provides the firm's customers with a certain level of service
1.3. Warehouse activities breakdown cost as specified by customers.
2.1. IDENTIFICATION • The obvious role of warehousing is to store products, break bulk/
2.2. INSPECTION onsolidation and information services.
2.3. RECEIVING
2.4. PUT-AWAY
2.5. STORAGE
2.7. PACKAGING
2.8. DISPATCH
3
PART I: INTRO OF WAREHOUSE OBJECTIVES

1.1. INTRODUCTION TO WH. MAJOR GROUP ACTIVITIES
• Receiving
• Storing - Identify the goods/

Dispatch goods to storage /
Hold goods
• Order generation -
Processing / picking/
packing
• Dispatch
1
PART I: INTRO OF WAREHOUSE OBJECTIVES PART I: INTRO OF WAREHOUSE OBJECTIVES
1.2. WAREHOUSE OBJECTIVES & PRIMARY FUNCTIONS 1.2. WAREHOUSE OBJECTIVES & PRIMARY FUNCTIONS
Warehouse Objectives:  Primary functions of warehouse: Analysis

 Movement
 Storage Information
 Information transfer
Storage
Receiving Putaway Data Picking Shipping
Base
Data Stock-taking
Maintenance
System for Warehouse Information Flow
PART I: INTRO OF WAREHOUSE OBJECTIVES PART I: INTRO OF WAREHOUSE OBJECTIVES

1.2. WAREHOUSE OBJECTIVES & PRIMARY FUNCTIONS 1.2. WAREHOUSE OBJECTIVES & PRIMARY FUNCTIONS
Warehouse activities breakdown cost:
The breakdown of warehousing operating costs is: Maximize productivity & minimize cost, warehouse
management must work with the following:
15% • Maximize use of space
50%
15% – space is the largest capital cost.
• Effective use of labor & equipment
Order picking – labor is the largest operating cost.
Storage
Shipping – material handling equipment is the second largest capital cost.
Receiving
20%

CONTENTS
1.1. Introduction of Warehouse major group activities
1.3. Warehouse activities breakdown cost
2.1. IDENTIFICATION
2.2. INSPECTION
2.3. RECEIVING
2.4. PUT-AWAY
2.5. STORAGE
2.7. PACKAGING
2.8. DISPATCH
11
2
PART II: WAREHOUSE MAJOR ACTIVITIES PART II: WAREHOUSE MAJOR ACTIVITIES
2.1. IDENTIFICATION
 Identification  Packaging and marking
 Inspection  Staging and consolidation • Items arriving at the warehouse will have some form of document.
 Receiving and unloading  Loading and shipping • Seldom does the warehouse need to identify the goods.
 Put-away  Documentation
• In case there are unidentified parts, these should be quarantined and
 Storage  Housekeeping
 Replenishment of order-picking  Maintenance of material handling highlighted to purchasing or to end-user.
location equipment
 Order selection (picking)  Assist in stocktaking
 Unitizing and Shipping
2.2. INSPECTION 2.3. RECEIVING
Receiving Goods:
There must be a very clear policy to cover the inspection process.
Receiving is the first stage of the warehousing process.
• Blind count (đếm thực tế) • Types of receipts.
• Physically accepting material verifying quantity and condition of the
• Visual Inspection (kiểm trực quan) material against documents.
• Method of unloading.
• Batch Inspection (kiểm hàng loạt) • Discrepancy management.
• 100% Inspection (kiểm 100%) • Check the goods against an order & the bill of loading.
• Check the quantities.
• Laboratory Test Inspection (kiểm tra trong phòng thí nghiệm) • Check for damage & fill out damage reports if necessary
• Inspect goods if required.
• Orders can be generated in different ways: fax, mail, telephone or
electronically (EDI).
2.3. RECEIVING 2.3. RECEIVING
Receiving Orders:
The kind of order refers to:  Reception
• Supply
• Reception of goods  Receiving area
• Storing
• Order picking  Discharge location and provisions
• Labeling
• Packaging
• Dispatch, Distribution
• International transport of part loads or complete loads, etc
3
2.3.1. Reception: 2.3.1. Reception (cont.):
o Main activities during reception time:
 Discharging supplied goods.
o Inspection:
 Inspection of goods as they enter the warehouse.  Quantitative control
 Storage preparation for the goods. • Quantity of goods (related to the procurement order)
 Qualitative control
Take photos • Condition of the packaging
Bad • Contents of the packaging
Good
Inbound
Load
Goods arrived Discharge goods Inspection Sign off POD

Move goods to the
receiving area
2.3.1. Reception (cont.): 2.3.2.Receiving area:
o In case of any irregularities: o The location, size and arrangement of the receiving are
Record irregularities on the transport documents (POD). determined by:
Move impacted goods to the designate area (on hold a portion of • Means of transport
the goods / an entire batch/ one part of the goods/ etc.).
• Goods Quantity
Goods owner to indicate:
• Need an expert to judge the extent of the damages. • Frequency of delivery
• Perform Specific duties, e.g. repacking, scrap. • Type of goods
Be accurate to record status / location of the goods. • Discharge equipment
• Building location / environment
• Intermediate storage
2.3.3. Discharge Location and Provisions: 2.3.3. Discharge Location and Provisions:
− Discharge equipment:
• Goods that arrive at a warehouse should be placed somewhere. A
specific area is usually allocated for this purpose, i.e. the discharge  Loading pits
location.  Loose or assembled loading boards
• The discharge location may have been provided with a variety of items  Lifting tables
to simplify the process of discharging. These items may take the form of  Mobile ramps
loading boards, lifting tables and mobile ramps.  Dock shelter
 Dock leveler
Discharge location and provisions (tt)
4
2.3.3. Discharge Location and Provisions (cont.): 2.3.3. Discharge Location and Provisions (cont.):
− When the discharge location is provided with these above (equipment) − During discharge, a height difference between the warehouse floor and
items, it could imply a number of advantages and disadvantages: the loading platform of the truck should be abridged. This height
o Advantages: difference can be overcome in many ways.
 immediate and efficient discharge will be possible; − It can be achieved with a loading platform and/or by using other supplies,
the items that were provided will allow discharge to be performed such as:
without the assistance of any external means of transport; • loading pits;
the discharge activities can be performed under improved • loose or assembled loading boards;
circumstances; • lifting tables;
the risk of goods being damaged during discharge, is smaller. • (mobile) ramps.
o Disadvantages:
financial support will be required in order to provide the items;
the items do not always suit all means of transport.
2.4. PUT AWAY 2.5. STORAGE
• Transfer the cargo from staging area to the storage locations 2.5.1.Preparing Goods for Storage
• Location accuracy & picking productivity 2.5.2 Storage
• Ensure physical storage location of cargo is the same as the location
captured in the WMS (system location)
• All cargo ready for putaway to storage should be putaway into storage
location on the same day
2.5. STORAGE 2.5. STORAGE
2.5.1.Preparing Goods for Storage: 2.5.1.Preparing Goods for Storage (cont.):
 Necessary information:
• Item code: brief, straightforward description of an item; numbers or/

and letters. Labels with Labels
handling indicating
• Storage location.
instructions danger
• Handling instructions: Pictograms are used to clarify specific handling
instructions.
5
2.5.1.Preparing Goods for Storage (cont.): 2.5.2. Storage:
a. Identify the goods
o The storage method depends on:
Items are identified with the appropriate stock-keeping unit (SKU)
number (part number) & the quantity received recorded. • The type of goods
b. Dispatch goods to storage
• The flow of goods
Goods are sorted & put away.
c. Hold goods o It is defined as the depositing of goods in a facility for safekeeping.
Goods are kept in storage & under proper protection until needed.
o There are criteria for locating parts:
d. Pick goods
Items required from stock must be selected from storage & brought to a • Rate and frequency of movement
marshalling area. • Size
2.5.2. Storage (cont.): 2.5.2. Storage (cont.):
o Information of the goods should be gathered relating to:  Random Location System
 Measurement (small, large?) • Most popular and most economic.
 Format and condition (general or bulk goods?) • When goods arrived, goods are placed in vacant compartment.
 Form (liquid, solid, gas?)
• There higher utilization of storage space.
 Nature (Weight, Height)
 Quantity • Cost is relatively lower.
 Supply / Dispatch frequency  Fixed Location System
 Stock rotation speed • Each item has a fixed storage space for the life cycle.
 Supply / Dispatch Method • Space allocated cannot be used for other items.
 Particular features • Good for static growth companies.
• Cost is higher.
 Stock Location:  Stock Location (cont.):
• Objectives: o Fixed Location
– To provide the required customer service – SKU assigned a permanent location, & no other items are stored there
– To keep track of where items are stored – Fixed-location systems usually have poor cube utilization
– To minimize effort to receive, put away, and retrieve items – Usually used in small warehouses; throughput is small, & there are few
• Basic Stock Locating Systems: SKUs
– Group functionally related items together o Floating (Random) Location
– Group fast-moving items together
– Goods stored wherever there is appropriate space
– Group physically similar items together
– Advantage is improved cube utilization
– Locate working stock and reserve stock separately
– It requires accurate and up-to-date information
– Warehouses using floating-location systems are usually computer-based
6
 Stock Location (cont.):  Stock Location (cont.):
Two other systems sometimes used are Point-of-use storage, and Two other systems sometimes used are Point-of-use storage, and
Central storage. Central storage.
o Point-of-use storage o Central storage
− Inventory stored close to where it will be needed − Contains all inventory in one central location
− Used in repetitive manufacturing & JIT systems  Advantages of Central Storage:
 Advantages of Point-of-use Storage: – Ease of control
− Materials are readily accessible to users – Inventory record accuracy is easier to maintain
− Material handling is reduced or eliminated – Specialized storage can be used
− Central storage costs are reduced – Reduced safety stock, since users do not need to carry their own
− Material is accessible all the time safety stock
2.6. ORDER PICKING 2.6. ORDER PICKING
− Warehouses may use Goods Issue (GI) or Delivery Noted (DN) document as
an authoritative document to enable picking and packing. This document is
usually traced to the user’s instructions.
Order dropping Pick List Creation Picking Scanning Packing
− The key points to observed are:
• Strict discipline should be enforced to ensure that no person other than
Order Processing, Order Picking warehouse personnel is to have access to this area.
• A significant factor in efficient order picking is the proper layout of the
warehouse, with sufficient aisle space, and sufficient space for
collection by production.
Stock Replenishment Financial Support Shipping Docs

Shipping Security Check
Preparation
PICKING TECHNIQUES RULES GOVERNING PICKING:
− There are 4 basic picking techniques:
• FIFO Principle or FEFO Principle or LIFO principle
• Discrete (Man to Goods, or goods to man)
• Observance Of Rules On Handling
• Batch
• Correct Issue
• Pick & Pass
• Wave
7
RULES GOVERNING PICKING: RULES GOVERNING PICKING:
• FIFO Principle or FEFO Principle or LIFO principle: • FIFO Principle or FEFO Principle or LIFO principle:
FIFO (First in First out – Vào trước Ra trước): Với phương pháp này, các lô LIFO (Last in First Out – Vào sau Ra trước): Ở phương pháp này, các hàng
hàng đầu tiên của hàng hoá nhập vào nhà kho sẽ là hàng hoá đầu tiên được hoá được nhập vào kho gần nhất sẽ được xuất ra đầu tiên. Hàng hoá mới được
xuất ra khỏi kho – từ đó được gửi vào các cửa hàng hoặc gửi trực tiếp đến sử dụng trước, dùng ưu tiên hơn hàng hoá cũ. Phương pháp này được áp dụng
khách hàng. Phương pháp này được áp dụng cho các sản phẩm dễ hư hỏng trong trường hợp sản phẩm không có hạn sử dụng.
hoặc sản phẩm quần áo thời trang (để đảm bảo không bị tồn hàng lỗi thời).
RULES GOVERNING PICKING: ORDER PICKING AND ASSEMBLY:
• FIFO Principle or FEFO Principle or LIFO principle:
FEFO (First Expired First out – Hết hạn trước Xuất trước): Với phương • When an order is received, items must be obtained from the
pháp này áp dụng cho những lô hàng có hạn sử dụng nhất định (như hàng dễ warehouse, grouped, & prepared for shipment, systems used
hỏng, hàng tiêu dùng có hạn sử dụng). Theo đó, những hàng hóa có hạn sử
dụng gần ngày hết hạn nhất sẽ là hàng hoá được xuất ra khỏi kho trước – từ – Area system
đó được gửi vào các cửa hàng hoặc gửi trực tiếp đến khách hàng, đảm bảo – Zone system
trong thời hạn sử dụng của sản phẩm.
– Multi-order system
ORDER PICKING AND ASSEMBLY (cont.): PHYSICAL CONTROL & SECURITY - ELEMENTS
o Area system  Good part numbering system
 Order picker circulates throughout warehouse selecting items on  Simple, well-documented transaction system
an order -- order is ready to ship when order picker is finished – Identify the item
o Zone system – Verify the quantity
 Warehouse is divided into zones, & each picker works only in – Record the transaction
an assigned zone - order is divided by zone, & the items from – Physically execute the transaction
each zone are sent to the marshaling area  Limited access
o Multi-order system – Inventory must be kept in a safe, secure (locked) place with limited
general access
 Same as the zone system, except that each picker collects items
for a number of orders at the same time  Well-trained workforce
8
PHYSICAL CONTROL & SECURITY – ELEMENTS (cont.): ORDER PICKING STRATEGIES:
 This process contains:
– Minimize travel time/distance in warehouse to fill orders.
 Arrival of orders (how, accuracy, solvency)
--------------------------------------------------------------------------
 Preparation of picking list (accuracy, comprehensive)
– Sequence items for single pass order picking.
 Order picking
– Zoning: Divide stock into separate zones for different pickers.
 Calculation of stock level
 Divide order into sub-orders for each zone.
 Financial processing
– Batching: Collect several orders and fill in one pass.
 Shipping
– Interleaving: Replace stock and fill orders on same pass.
 Stock replenishment
 The major concerns underlying the organization of order-picking:  HOW?
• Establish an efficient operation by controlling the order-picking labor  By organizing the associated work-flow so that it presents
costs, especially those due to traveling, and
• Maintain a high level of responsiveness to customer orders, while – high pick density, i.e., average number of picks per foot of travel
• Preserving the order integrity.
– short (order) flow time, i.e., the amount of time elapsed between the
Responsiveness arrival of an order into the warehouse management system and the
time it is loaded on the shipping carrier,
 While providing the appropriate “mechanisms / procedures” to

Costs
Quality
– maintain the order integrity.
 Major mechanisms for increasing the pick density:  Major mechanisms for increasing the pick density (cont.):
 Establishing a high SKU density, i.e., the number of SKU’s encountered per  Batching the orders, i.e., have the workers retrieve more than one order at
foot of travel. each trip in the storage area.
– In general, the effectiveness of this approach will depend on the – Requires an additional sortation process:
characteristics of the stored product and the equipment involved in its sort-while-pick: the picker carries a compartmentalized container
storage and retrieval. that allows the separate accumulation of each order on its picking list
 Maintaining a “forward” pick area, containing a certain quantity from each downstream sorting: sorting of the orders takes place at a dedicated
of the most popular SKU’s in the facility. station of the facility, possibly involving some sophisticated
– The implementation of this approach necessitates a systematic procedure equipment (sorting conveyors).
for determining the items to be stored in the forward pick area and the – Sortation implies additional space, labor and equipment costs
associated amounts, in a way that it balances the incurred space and labor – Batching is another complex economic decision, especially for
(replenishment) costs. “medium size” orders
– In case of a dynamically varying demand, the implementation of this idea
might involve the frequent reconfiguration of the facility.
9
 Major mechanisms for increasing the pick density (cont.):  Warehouse zoning:
 Maintaining a high pick density (which translates to a high level of worker Zone: A part of the warehouse to which an order picker is restricted, e.g., a
productivity). 40-aisle system divided into zones of 10 aisles each.
 Appropriately parallelizing the order processing, i.e., have each order being In case of warehouse systems involving automated storage and retrieval
processed by more than one worker. equipment, a zone can be also defined by one unit of this equipment, e.g., a
– A critical aspect for selecting the order parallelization scheme is the order carousel.
work content, typically quantified as follows:
Zoning patterns:
order work content = (number of picks in the order) x (average person- Progressive Zoning Parallel/Simultaneous Zoning
hours per pick)
To packing and shipping To sorting and consolidation
– If the total work of picking and loading an order is small enough, then
orders are repeatedly assigned to the next available worker. Z1 Z2 Z3 Z4 Z5 Z1 Z2 Z3 Z4 Z5
– If the orders are large and/or span distant regions, then, they must be
parallelized.
– Parallelization typically involves a zoning scheme. Order Order
 Combining Batching with Zoning: the resulting order-flow
 Combining Batching with Zoning: the resulting order-flow patterns
patterns:
• Single-order pick: one picker works on one order at a time until the (cont.):
order is filled • Sort-while-pick with zoning: an order is split into sub-orders by zone and
• Sort-while-pick, no zoning: one picker works on several orders at a time a picker in each zone fills the corresponding sub-orders using a set of
with a container/vehicle that has compartments for maintaining the order containers or a vehicle that has compartments for maintaining order
integrity integrity
• Batch-picking with downstream sorting, no zoning: several orders are
picked by one person completely, often applied with conveyor transport • Batch picking with downstream sorting and zoning, usually
of items to the sorting area simultaneous: several orders are split into sub-orders and the sub-orders
• Single-order-pick with zoning, progressive or parallel: an order is split for each zone are filled by the picker(s) operating in that zone
into sub-orders by zone and a picker in each zone fills the corresponding
sub-order.
2.6. ORDER PICKING 2.7. PACKAGING
 Pick Wave Planning:  Purpose of packing & packaging:
• Time window: a portion of the day/shift during which a set of orders is
released and fully processed, e.g., four 2-hour time windows in an 8-hour shift. • Packaging is the technology of enclosing or protecting products for
• Pick wave: The set of orders processed during a time window. distribution, storage, sale, and use.
• Necessitated by, e.g.,
 a downstream sorting system that limits the number of orders that may be in
process at any time (e.g., the number of streams/output chutes in a conveyor- • Packaging can be described as a coordinated system of preparing goods
based sortation system).
 a forward pick area with a storage capacity insufficient to satisfy the entire for transport, warehousing, logistics, sale, and end use.
daily demand, and therefore, must be replenished, but replenishment cannot
occur simultaneously with picking activity for, e.g., safety or efficiency reasons.
• Small time windows tend to cause workload imbalances and longer travel
times, but they also lead to smaller equipment and/or space costs and smaller
order completion times.
10
2.7. PACKAGING 2.7. PACKAGING
 Interest in packaging:  The Role of Packaging:
 Interest in packaging is widespread: – Identify product and provide information
– Logistics
o Warehousing – Improve efficiency in handling and distribution
o Transportation – Customer interface
o Size
– Protect product
– Marketing
– Production
– Legal
 What Is Packaging?
Packaging Materials:
• Consumer (interior) packaging:
 Basic considerations include:
– Marketing managers primarily concerned with how the package fits
– Soft materials
into the marketing mix.
– Plastic
• Industrial (exterior) packaging:
– Environmental issues
– Logistics managers primarily concerned with efficient shipping
characteristics including protection, ability to withstand stacking when – Recycling (reverse logistics)
on a pallet, cube, weight, shape and other relevant factors.
 Packing method: Packing method (cont.):
o Inbound
• Packing Spec: 20 bottles / box o Outbound:
• Current stock in warehouse: 20 carton boxes / each item − Packing spec.: 10 child boxes / mother box
• Inbound Qty: − Outbound Qty: 500 child boxes
80 carton boxes for each item
5 damaged boxes
11
 Unit Load: Unit load characteristics:
• It should not be too large and can be handled conveniently without damage
Unit load combines individual items or items in ISO container into single
• Too large a unit load may result in:
"units" that can be moved easily with a hand pallet jack, forklift or container  Less space utilization
crane.  Decreased efficiency from reduced maneuverability
 Increased damaged
• Too small a unit load may result in:
 Poor space utilization
 Reduced handling efficiency from carrying too little per trip
 Increased damage due to load shift
 Increase shipping costs due to excess dunnage
 Shipping mark examples:
 Unit load characteristics (cont.):
• Uniform unit load length and width are critical to avoid pallet overhang,
forklift truck damage and storage damage
• Unit load ensures transport and storage cube is fully used
• Unit load allows stacking which provides load stability
PACKING LIST PART II: WAREHOUSE MAJOR ACTIVITIES

2.7. PACKAGING
 Preparing for shipment:
• Packing for Shipment
• Preparing for Shipping
• Confirmation of Shipment
12
2.8. DISPATCH 2.8. DISPATCH
 Warehouse only accept standard kind of order  follow a uniform set of o Dispatching activities:
procedures  make the operation smoothly and productively. i. Transportation checking
 Official document: Waybills, Order Form, Packing lists, etc is the starting ii. Loading by Route plan
point for following activities. iii. Checking and Docs
 Avoid ad-hoc instructions and unspecified procedures as it can lead to iv. Loading Manifest
more mistakes. v. Handover and sign Docs

vi. Entry/ Go out permit

2.8. DISPATCH
CONCLUSION
− This chapter has covered the four main warehouse functions and their
associated activities.
− The warehouse manager now has to consider the types of material
handling equipment to move the goods from inbound to storage to
production to outbound, bearing in mind that he needs the knowledge
of the characteristics of the goods.
76
REFERENCES
1. Ballou R.H. 2004. Business Logistics/ Supply Chain Management,
5th Edition. Pearson Prentice Hall.
2. Divyendu B. 2019. “Analysis and study of warehouse management
systems”. Int’l Research Journal of Engineering & Technology Vol. 6, Issue
10: 1205-06. Accessed 04 Mar 2020. ISSN: 2395-0072. www.irjet.net
3. Đinh thị Thanh Bình. 2016. “Chương 3: Quy trình tác nghiệpi Kho và mặtt
bằng”. Quản trị kho & hàng lưu kho. TP. HCM: ĐH. GTVT. Lưu hành nội
bộ.
4. Max Muller. 2003. Essentials of Inventory Management. Amacom
5. Mohan V. E. (n.d.). Warehousing & Inventory Management. CII Institute of
Logistics, Chennai. www.ciilogistics.com
6. Phan Thanh Lâm. 2014. Cẩm nang Quản trị kho hàng. TPHCM: NXB Phụ
Nữ.
77
13

Warehouse Objectives and Activities

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Warehouse Objectives and Activities

Uploaded by

Copyright:

Available Formats

CONTENTS

PART I: INTRODUCTION OF WAREHOUSE OBJECTIVES

PART I: INTRO OF WAREHOUSE OBJECTIVES

PART I: INTRO OF WAREHOUSE OBJECTIVES

• Storing - Identify the goods/

Warehouse Objectives:  Primary functions of warehouse: Analysis

System for Warehouse Information Flow

PART I: INTRO OF WAREHOUSE OBJECTIVES PART I: INTRO OF WAREHOUSE OBJECTIVES

PART II: WAREHOUSE MAJOR ACTIVITIES

Goods arrived Discharge goods Inspection Sign off POD

Discharge location and provisions (tt)

• Item code: brief, straightforward description of an item; numbers or/

Stock Replenishment Financial Support Shipping Docs

 While providing the appropriate “mechanisms / procedures” to

forklift truck damage and storage damage

• Unit load ensures transport and storage cube is fully used

• Unit load allows stacking which provides load stability

PACKING LIST PART II: WAREHOUSE MAJOR ACTIVITIES

 Preparing for shipment:

• Packing for Shipment

• Preparing for Shipping

more mistakes. v. Handover and sign Docs

PART II: WAREHOUSE MAJOR ACTIVITIES

You might also like