Warehouse Management

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Transcript of Warehouse Management

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Warehouse Check-Up

Autor :Ahmad Arwani R - Consultan

Where is the logistics ?

Place/customer service

levels

Product

PromotionPrice

Order processing and information

costs

Warehousingcosts

Transportationcosts

Inventorycarrying costs

Lot quantitycosts

LOG

ISTI

CS

MAR

KETI

NG

Source: Adapted from Douglas M. Lambert, The Development of an Inventory Costing Methodology: A Study of the Costs Associated with Holding Inventory (Chicago, IL: National Council of Physical Distribution Management, 1976), p. 7.

Autor :Ahmad Arwani R - Consultan

Logistics Strategic Decision

Storage

Order Processing & Fulfillment

Inventory

Transportation

Total Logistics CostService Level

WarehouseAutor :Ahmad Arwani R - Consultan

Autor :Ahmad Arwani R - Consultan

Warehouse Shifting RolesOld Role &ParadigmOld Role &Paradigm

Cost aspect

Cost Center

Investment Center

Function aspect

Storage

Shipping

Cost aspect

Asset Center

Value Added Center

Function aspect

Movement &Storage

Order Fulfillment

Distribution & Consolidation

New Role & ParadigmNew Role & Paradigm

Autor :Ahmad Arwani R - Consultan

Warehouse Roles?

Warehouse contributed to ROI in :- Sales revenue- Cost- Inventory- Fixed asset

Autor :Ahmad Arwani R - Consultan

How to see Warehouse- Warehouse not only storage anymore…- New Roles : Movement and storage, Distribution and Consolidation, order fulfillment

- Need a new methodology to get the “real” figure- Multi perspective, concise and applicable

Autor :Ahmad Arwani R - Consultan

Warehouse Check-up

Strategic• Ensuring the Link/connection between warehouse

department strategy to division and corporate strategy• These “in-line” connection will show the suitability

overall strategies.

Autor :Ahmad Arwani R - Consultan

Warehouse Check-up

Process• Understanding the process and compare to existing the

policy and standard operating procedures• Examine the warehouse by learning the process will show

whether of all members within obey the rules or not.

Autor :Ahmad Arwani R - Consultan

Operasi (Operations)• In this stage we would examine the warehouse operations

by comparing its operations to the key performance indicator.

• By auditing the operations activity based on performance indicator, we could see any opportunity to improve the efficiently and effectiveness .

Autor :Ahmad Arwani R - Consultan

Warehouse Check-up

CostThere are at least 3 things to be considered in order to

control warehouse cost:• Standard cost• Budget approved• Productivity standards

Autor :Ahmad Arwani R - Consultan

Warehouse Cost• Warehousing and distribution center cost :

– Handling costs Labor cost and utility costs that are proportional

to annual flow through the warehouse– Fixed costs All cost components that are not proportional to

the amount of material that flow through the warehouse

– Storage costs Inventory holding cost, which are proportional to

average positive inventory level

Autor :Ahmad Arwani R - Consultan

Warehouse Check-up

IT (Information Technology)• To make sure whether the warehouse management system

capable to handle the complexity of its operations• To ensure the security of system and data that only

authorized person could use • To gather any value could be upgraded with the WMS

Autor :Ahmad Arwani R - Consultan

Warehouse Check-up

Infrastructure• Ensuring the condition of the warehouse facilitie to guaranted

its operations• Safety, Healthy, Security environment would be the main

issues to be addressed.

Warehouse Check-upPeople• All physical distributions within modern warehouse required a

warehouse person which could handle the warehouse activities based on procedures and operate any warehouse devices

• In this stage :– Ensuring the capability of warehouse members to handle operations

efficiently & effectively– Investigating the opportunity to develop their knowledge by training,

sharing session, discussion– Clear career path, Employee satisfaction and Turn offer ratio monitored

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