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Content
Introduction: What is the role of Warehouse?

Types of warehouse operation

The role of warehouse and The growth of e-fulfilment and its effect on the warehouse

warehouse manager
The warehouse manager’s challenges
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Lean warehousing

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What are the roles of the warehouse in your view?

Introduction Supplier Manufacturer Warehouse Retailers Consumer

Distributor

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What is the warehouse?

Warehouse definition
• Warehouses are typically viewed as temporary places to
store inventory and as a buffer in supply chains.
Supplier Manufacturer Warehouse Retailers Consumer
Distributor • They serve as static units matching product availability
Picking and despatching to consumer demand and, as such, have a primary aim
products accurately Meet the delivery deadline which is to facilitate the movement of goods from
suppliers to customers, meeting demand in a timely
and cost-effective manner.
Product to be labelled Ensure the product leaves • Primarily a warehouse should be a trans-shipment area
correctly clean and damage free where all goods received are despatched as quickly,
effectively and efficiently as possible.
Loaded onto the right Cost-efficient operation that Van den Berg (2012)
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In the past
Stockholding points Push supply chain supply-driven economy

Warehouse

Types of
Supplier Manufacturer Retailer Customer
Distributor
Supply to Production based Inventory based Stock based Purchase what is

warehouse
forecast on forecast on forecast on forecast on shelves

Nowaday
operation
JIT; ECR; QR Pull supply chain demand-driven economy

Warehouse
Supplier Manufacturer Retailer Customer
Distributor

Supply to Produce to order Automatically Automatically Customer order

order replenish warehouse replenish stock
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Types of warehouse operation

2. Intermediate;
4. Consolidation
1. Raw materials postponement; 3. Finished goods
centres and transit
storage customization or sub- storage
warehouses
assembly facilities

5. Transhipment or
6. Cross-dock centres 7. Sortation centres 8. Fulfilment centres
break-bulk centres

9. Reverse logistics 10. Public sector

centres warehousing

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LMS Fill the gap

Warehouse location
WHY DO WE HOLD STOCK? 1.
2.
Trade–off
Distance
Selection criteria for
3. Bulk
• Uncertain and erratic ______ patterns 4. Demand warehouse location
• The ____ between transport and shipping costs, justifying larger 5. Spare
shipments 6. Seasonal Macro Labour
• Discounts via ____ buying 7. Shutdowns Cost Infrastructure Environment Markets
environment characteristics
8. Production
• ____ between the manufacturer and the end-consumer
• Cover for production _____ Existence of modes of
transport
• Ability to increase _____ runs Land cost Government policies Telecommunication Geography
Labour availability Proximity to
• To manage _____ l production Labour costs Industry regulations
Skilled labour
systems
Energy and water
Away from flood customers
Transportation cost Enterprise zones plains
• High seasonality Tax incentives
and construction
availability utilities
Away from subsidence
Proximity to
supplier/producer
plans Transport links for Quality and reliability
• _____ parts storage Tax structures
Planning regulations
staff of modes of transport Weather Traffic flows
Industrial relations Neighbours Lead times and
• Work-in-progress storage Financial incentives
Political stability record
Proximity to ports
intermodal terminals Congestion responsiveness
Handling costs Security
• Investment stocks and airports
Existing sites
• Document storage
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Figure 1.5 Factors determining the location of a warehouse
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LMS

Challenges operating an e-fulfilment warehouse

The growth of _______

Demand for staff and equipment varies tremendously with the
seasons

e-fulfilment
and its effect
Requires warehouse managers to efficiently process low-value,
_______ single-item orders. Utilize the same amount of labour and
equipment to pick and pack low-cost and high-cost items.

on the
warehouse _______
Accuracy and on-time delivery become paramount to retaining
the loyalty of their customers.

Increase in the number of product lines will put pressure on

_______ the number of pick locations whilst slow-moving and obsolete
lines can take up much-needed space in the warehouse

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To summarize, there are 03 types of fulfilment centres.

Integrated Dedicated
Store fulfilment
fulfilment fulfilment
The
warehouse
manager’s
where internet
sales are carried
carried out in a
purpose-built
which involves
picking online challenges
out alongside facility orders from
existing retail existing retail
operations shelves for
separate
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Choose the information to identify the roles and responsibilities of

the warehouse manager.
1. the provision of a responsive and cost-efficient warehouse that
Job description and the core accountabilities
is aligned with the current and long-term requirements of 6 basic principles of warehouse management
_____;
LMS
2. responsibility for _____ of the warehouse team;
3. to ensure that the warehouse is capable of _____;
Job description 4. to drive continuous improvement in _____;
accuracy cost control cleanliness efficiency safety security

and the core 5. to set the long-term vision for the warehouse in line with the
accountabilities strategic plan and to ensure that _____ can be met;
6. to safeguard _____ employed in the warehouse;
7. the management of projects and introduction of _____;
8. to maintain _____ with suppliers;
9. the development and management of _____within the
warehouse environment.
Warehouse managers recognize and balance other trade-offs as follow:
o increased throughput vs. reduction in labour costs
o storage density vs. quicker pallet extraction
o manual vs. automated processes
o increased pick rates vs. accuracy
o inventory holding costs vs. cost of stock outs
o speed vs. safety

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Stock Keeping Unit – SKU code (Example)

Input time Size
Brand name ‘Small’
’11/07/ 2015’
‘ZARA’

Color
ZACOTVX71115HN_SXA ‘Màu Xanh’

Warehouse
Product description
‘Hà Nội’
‘Cotton Váy Xòe’

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What do you think about the warehouse space

in this photo?

Waste of space
in warehouse

Lean • half-height and

quarter-height pallets
warehousing taking up space in two-
metre-high locations;
• part pallets of the same
product spread over a
number of different
locations
• A number of the stock
was obsolete
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Warehouse Management
Transportation (driving an empty forklift)

Defects (time spent correcting errors such as misspicks)

7 wastes that Inventories (congestion at the inbound and outbound areas)

lean
management Motion (interrupting movement such as staging product
before put-away)
seeks to
eliminate waiting time (bottlenecks at pick locations)
S1: S2 S3 S4 S5
Sort/ Seiri/ Straighten/ Shine/ Standardize/ Sustain/
Overproduction (holding too much inventory) Clear out Seiton/ Seiso/ Seiketsu/ Shitsuke/
Configure Clean Conform Custom

Overprocessing (performing unnecessary steps such as labelling 5S concept

Sàng lọc – sắp xếp – sạch sẽ – săn sóc – sẵn sàng
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• Everybody!
KAIZEN • Everyday!
• Everywhere!

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