WAREHOUSING

Akash Deep Maurya

MT14IND002

M. Tech. (Industrial Engineering)

2014-2015

DEPARTMENT OF MECHANICAL ENGINEERING

VNIT NAGPUR

2 What is warehouse?

A location with adequate facilities where volume shipments are received from production center, then broken-down , reassembled into combinations representing a particular order & shipped to customer.

A storage structure constructed for the protection of the quality and quantity of the stored produce.(GOI)

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3

WAREHOUSING

warehouse

ware

manufactured articles of a

specified type

house

a building in which people

meet for a particular activity.

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Warehouse is for-

For ensuring a continuous , uninterrupted supply of goods in market areas.

To provide adjustment between the production & use of product.

Transportation consolidation; Product mixing; Docking; Service; Protection against contingencies

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Latest concept of warehouse

A location where input (incoming factory shipments) are converted to outputs (outward shipments & orders).

Its need arise due to the time gap between production and consumption of products

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6Material storage

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Material storage

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What could be stored? Raw materials WIP (work in progress) Consumable stores Spare parts Ready made components Finished goods

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Need of warehouse

Regular supply Quality of delivery Stock of trade Price stabilization Seasonal products Perishable goods

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Continuous production

Large scale production

Quick supply Easy handling Protection &

preservation

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Location of warehouse• Service area.

• Transportation facility.

• Availability of power, water, gas, wastes etc.

• Labour supply & cost.

• Existing facilities of company.

• Climate & labour productivity.

• Real estate, excise & government taxes.

• Local residents & government.

• Potential for later expansion and operations.

• Cost of land & other costs.WAREHOUSING

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Warehousing operations:

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Receiving goods

Identifying goods

Sorting goods

Dispatching to storage

Holding

Retrieving Marshalling goods

Dispatching

Preparing records & advices.

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Shipping•Schedule Carrier•Load Vehicle•Bill of Loading•Record Update

RECEIVING•Schedule Carrier•Unload Vehicle•Inspect for damage

INPUT

WAREHOUSE PROCESSING

Put-away•Identify Product•Identify Product Location•Move Products•Update Records

Storage•Equipment•Stock Location– Popularity– Unit Size– Cube

Shipping Preparation•Packing•Labeling•Stacking

Order Picking•Information•Walk & Pick•Batch Picking

OUTPUT

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13PRIVATE WAREHOUSE

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• OPERATED by a company for shipping and storing its own

products

• OWNED AND MANAGED- manufacturers or traders

• CONSTRUCTION- Farmers near their fields, Wholesalers and

Retailers near their business centers' and manufacturers near

their factories

• COMPANIES – Stable inventory levels and long run expectations

• SUITABILITY- Firms that require special handling and storage

features and want to control design and operation of the

warehouse

14PUBLIC WAREHOUSE

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• Provide storage and physical distribution services on rental

basis

• Used by SMALL FIRMS and LARGE FIRMS

• Organizes to provide storage facilities to traders,

manufacturers, agriculturists in return for a storage charge

• Licensed by Govt. (Central Warehousing Corporation, State

Warehousing Corporation, FCI)

• SUITABILTY – seasonal production or low volume storage

needs, companies with inventories maintained in many

locations, firms entering new markets

• OWNER –stands as an agent of goods

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Types of warehouses :

Field warehouses Distribution warehouses Bonded warehouses Cold warehouses Agricultural warehouses Buffer warehouses Export & Import warehouses

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Characteristics of ideal warehouse: Convenient location Appliances to load & unload goods. Adequate space and proper utilization. Cold storage facilities for specific products. Proper arrangement for protection. Sufficient parking area. Round the clock security. Fire fighting equipments.

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Maximize productivity & minimize cost

Maximize use of space

space is the largest capital cost

Effective use of labor & equipment

labor is the largest operating cost

material handling equipment is

the second largest capital cost

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Ideal Facility for Pure Supplier Consolidation(Full Pallet Movement)

Warehouse Space General Layout

DESIGN CONSIDERATION

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Services provided: Temporary storage Quick delivery Balance supply & demand Stock inventory for emergency Refrigeration Invoicing & collection Payment & distribution Protection against factory shutdown Sales promotion activities

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FACTORS INFLUENCING EFFECTIVE USE OF WAREHOUSES

• Cube utilization and accessibility

• Stock location

• Order picking and assembly

• Physical Control & Security - Elements

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Cube utilization and accessibility

Goods stored not just on the floor, but in the cubic space of the warehouse.

Warehouse capacity depends on how high goods can be stored.

Accessibility means being able to get at the goods wanted with a minimum amount of workWAREHOUSING

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Cube utilization and accessibility

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Stock Location• Objectives

1. To provide the required customer service

2. To keep track of where items are stored

3. To minimize effort to receive, put away, and retrieve items

• Basic Stock Locating Systems

1. Group functionally related items together

2. Group fast-moving items together

3. Group physically similar items together

4. Locate working stock and reserve stock separatelyWAREHOUSING

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Stock LocationFixed Location

assigns a permanent location & no other items are stored there

poor cube utilization

Usually used in small warehouses

Floating (Random) Location

Goods stored wherever there is appropriate space

improved cube utilization

requires accurate and up-to-date information

Usually computer-basedWAREHOUSING

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Order Picking and Assembly

When an order is received, items must be obtained from the warehouse, grouped, & prepared for shipment, systems used

• Area system

• Zone system

• Multi-order system

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PHYSICAL CONTROL & SECURITY - ELEMENTS

o Good part numbering system

o Simple, well-documented transaction system

1. Identify the item

2. Verify the quantity

3. Record the transaction

4. Physically execute the transaction

o Limited access

Inventory must be kept in a safe, secure (locked) place with limited general access

o Well-trained workforceWAREHOUSING

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Benefits Maximum usage of available floor space and building height

More storage capacity

Less land and smaller building

High productivity

Operate faster -24 hours a day, 7-days a week

Efficient flow of materials

Provide buffer storage functions

Need for drivers/operators eliminated

Risk of injury minimized by safety fences

Reduce stockholdings

Inventory accurately tracked at all stages

Ongoing operating costs eliminated

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Demerits• Poor market coverage

• Distant market demand not met in short notice

• Transport cost maximum unless in bulk quantity

• Increased material handling cost

• Possibility of bottlenecks and resultant delays

• Greater danger of loss by fire

• Delay in customer service

• Huge investment in inventory

• Chances of stock-out situation is high

• Huge warehousing developments costsWAREHOUSING

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Modern Trends:

• Just In time

• RFID(Radio Frequency IDentification)

• Warehouse type retail store

• Internet based stores

• Automated handling

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Soft wares : • 3PLink

• Visual Logistics WMS

• LoMag

• RF Pathways

• SIMMS

• ATEC-WM

• Advantage Suite

• Autostore

• TECSYS

• SAP

• JDA software

• epicor

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References:1. http://business.gov.in/manage_business/warehousing.php

2. http://www.slideshare.net/omarof5/warehouse-operationslayout-design-by-omar-youssef?related=1

3. http://www.slideshare.net/WelingkarDLP/chapter-5-warehouse-management

4. http://www.capterra.com/warehouse-management-software/

5. http://www.ey.com/IN/en/Services/Transactions/EY-Summarizing-the-key-warehousing-segments-in-India

6. http://www.yourarticlelibrary.com/marketing/marketing-management/warehousing-function-benefits-and-types-of-warehousing/27952/

7. http://www.inboundlogistics.com/cms/article/todays-warehouse-plays-a-new-role/

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31 Questions: What is the latest concept regarding storage in

warehouses? List out difference in public and private warehouse. What are the factors influencing the effective use of

warehouses? What are different types of warehouse? Explain any

three. How the processing of inventory or goods occur in

warehouse? Explain in sequential manner.

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