Asia e University

Malaysia institute 0f logistics

Intermediate logistics officer course(Executive bachelor in logistics management)

Assignment no3

Enhancing effectiveness of operational support

Ltcdr hamed Alghafri

Royal Navy of Oman

Date:23 MAY 2011

ContentsIntroduction......................................................................................................................2

Warehousing....................................................................................................................2

Management of time and space for effectiveness of operational.....................................3

Internet impact.................................................................................................................5

Conclusion.......................................................................................................................5

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Introduction

Integrated logistics support (ILS) is an integrated approach to the management of logistic disciplines in the military, similar to commercial product support or customer service organizations. Although originally developed for military purposes, it is applied by the private sector as well. In general, ILS plans and directs the identification and development of logistics support and system requirements for military systems, with the goal of creating systems that last longer and require less support, thereby reducing costs and increasing return on investments. Warehousing is a vital and pivotal link in the Supply Chain as an intermediate element between ‘inbound’ and ‘outbound’ logistics.

Warehousing A warehouse is a commercial building for storage of goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. They are usually large plain buildings in industrial areas of cities and towns. They usually have loading docks to load and unload goods from trucks. Sometimes warehouses load and unload goods directly from railways, airports, or seaports. They often have cranes and forklifts for moving goods, which are usually placed on standard

pallets loaded into pallet racks1. Warehouses are very expensive and some large and special organizations do their best to eliminate them by the use of JIT [Just-in-Time] procedures. But invariably, someone somewhere has to hold stores! This is quite simply to enable them to meet customer requirements it is helpful to see warehouses as custodians of money and not just simply items. And as such they should be operated in the same way as actual money holding organizations, like banks! An inefficient, ineffective warehouse can negate all the excellence that the more glamorous purchasing, manufacturing or marketing functions may espouse. It is essential that all elements which comprise the ‘Supply Chain’ work together; integration is therefore the order of the day! Warehouse personnel are therefore key players who should display top qualities of accountability, accuracy and responsibility. In the past, the warehouse has been seen as the last refuge of the miscreant and “failed office” worker! Total Quality Management applies to warehousing as much as any other operational area.

1 Integrated logistics support.Page2

http://en.wikipedia.org/wiki/Integrated_logistics_support.16 June 2001.http://en.wikipedia.org/wiki/Warehouse.

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Management of time and space for effectiveness of operational

Time and space are key elements in warehouse operations - they both represent money. Costs can be reduced by taking less time to do a task, and by reducing the space taken up by the items. Paramount in achieving this, are the concepts of flow, maximizing the cube and meeting operational requirements especially customer service2.

Automation and optimization

Automatic storage warehouse for small parts

Some warehouses are completely automated, and require only operators to work and handle all the task. Pallets and product move on a system of automated conveyors, cranes and automated storage and retrieval systems coordinated by programmable logic controllers and computers running logistics automation software. These systems are often installed in refrigerated warehouses where temperatures are kept very cold to keep product from spoiling, especially in electronic warehouse where they require specific temperature to avoid damaging the parts and also where land is expensive, as automated storage systems can use vertical space efficiently. For a warehouse to

function efficiently, the facility must be properly slotted3.

2 http://en.wikipedia.org/wiki/Warehouse3 http://en.wikipedia.org/wiki/Warehouse

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Modern trends

Aisle with pallets on storage racks

Traditional warehousing has declined since the last decades of the 20th century, with the gradual introduction of Just In Time (JIT) techniques. The JIT system promotes product delivery directly from suppliers to consumer without the use of warehouses. However, with the gradual implementation of offshore outsourcing and offshoring in about the same time period, the distance between the manufacturer and the retailer (or the parts manufacturer and the industrial plant) grew considerably in many domains, necessitating at least one warehouse per country or per region in any typical supply chain for a given range of products.

Internet impactThe internet has had an influence on warehouses. Internet-based stores do not require physical retail space, but still require warehouses to store goods. This kind of warehouse fills many small orders directly from end customers rather than fewer orders of many items from stores.

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Having a large and complex supply chain containing many warehouse can be costly. It may be beneficial for a company to have one large warehouse per continent, typically located centrally to transportation. At these continental hubs, goods may be customized for different countries. For example, goods get a price ticket in the language of the destination country.

Conclusion It thus becomes evident that the operation support of a warehouse is a challenging pursuit which requires considerable planning, management of time and space, use of procedures and high caliber staff. A failure to address any one of these key points can bring a collapse of the entire supply chain, along with the loss of considerable business revenue. As the intermediate element between ‘inbound’ and ‘outbound’ logistics, warehousing should be the strongest link in the supply chain to achieve effective and efficient support operation in an organization.

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