WAREHOUSING & STORAGE

TECHNIQUES
• COURSE CODE: SCM - 401
• SECTION CODE: M - 17230
• CLASS: Room No. SSKBLDC-402

• INSTRUCTOR: MUHAMMAD AHSAN

• MBA – SCM (IoBM 2015)
• Certified Supply Chain Professional (CSCP)
• Work Experience: Pepsi, Hilton Pharma, Aspin
Pharma.
• Current: Aga Khan Development Network
COURSE OUTLINE
• What is Warehousing?
• Need for Warehousing.
• Types of Warehouses.
• Warehousing Impacts on Business.
• Functions & Components of WH.
• Types of Storage in WH.
• Designing a WH.
• WMS (Warehouse Management System)
• Auditing Methods.
• Inventory Calculation.
– ETC…
MARKS DISTRIBUTION

DISTRIBUTION MARKS
Final Exam 40
1st Hourly 15
2nd Hourly 15
Final Report 10
Quizzes 10
Assignments 10
WHAT IS SUPPLY CHAIN……..?
WHAT IS…..?
• STORAGE

• WAREHOUSE
CONCEPT & NEED FOR
WAREHOUSE.
• Prehistoric & Ancient History (Before 17 Century)

• Medieval Period (1702 – 1955)

• Industrial Revolution (18th Century)

• 20th Century
CROSS DOCKING.
•A modern trend in warehousing.
•Breaks down received items on the loading dock and immediately matches them with
outgoing shipment requirements, instead of stocking the items in warehouse locations
and returning to pick for orders later.
•Eliminates the need to place inventory in storage.

•The idea is to transfer incoming shipments directly to outgoing trailers without

storing them in between.
CROSS DOCKING.

Traditional Distribution:

B
A
A
A
Warehouse

B A
B
• Receiving
• Putaway
B Stores
• Storage
• Replenishment
Suppliers • Picking
• Shipping
CROSS DOCKING.

B
A
A Crossdock
A
Facility

B A
B
• Receiving
• Staging (<24hr)
B Stores
• Shipping
Suppliers
TRENDS IN WAREHOUSING
• JUST IN TIME (JIT)
• WAREHOUSE-STYLE RETAIL STORES
• INTERNET BASED STORES
• Third Parties (3PLs, 4PLs & 5PLs).
• RADIO FREQUENCY IDENTIFICATION (RFD))
• TRANSPORTATION MANAGEMENT SYSTEMS
• PICK-TO-LIGHT TECHNOLOGY
MATERIAL HANDLING FUNCTIONS OF
WAREHOUSE
• Loading & Un-Loading
• Movement to & from Storage
• Sorting
• Postponement
• Cross Docking
• Reverse Logistics
ECONOMIC BENEFITS OF A WAREHOUSE
1. It makes Supply Chain operations more efficient.
2. Keeps workplace ethics intact.
3. It helps in making the best use of the available physical space in the warehouse.
4. It makes monitoring work processes seamless.
5. It enhances the productivity of the warehouse.
6. It enhances asset utilization.
7. It allows seamless inventory control by adding speed and accuracy.
SERVICE BENEFITS OF A WAREHOUSE
Five basic service benefits are achieved through warehousing:
1. Spot Stock
2. Assortment
3. Mixing
4. Production Support
5. Market Presence.
CLASSIFICATION OF WEAREHOUSE

• Economic Warehouse: Economic benefits of warehousing occur when overall

logistics costs are reduced
– Consolidation and break-bulk
– Sorting
– Seasonal storage
– Reverse logistics

• Service Warehouse: Perform all the additional services needed to ship

goods to your end customers.
CHALENGES OF A WAREHOUSE

1. Redundant Processes
2. Poor Facility Layout
3. Seasonality in Demand
4. High Labor Cost
5. Inaccurate Inventory
 INVENTORY MANAGEMENT VS WAREHOUSE
MANAGEMENT

• Inventory Management

• Warehouse management

• Stock Management
WAREHOUSE MANAGEMENT COMPONENTS &
PROCESSES

• Receiving.
• Put-away.
• Storage.
• Picking.
• Packing.
• Shipping.