Supply Chain Management Assignment

SUPPLY CHAIN MANAGEMENT Course code: BBA311

WAREHOUSING & PACKAGING (2) UNIT 7

• “ABC item segmentation”

• Strategic Warehouse – Economic Benefits

– Service Benefits

• Warehouse Operations

• Warehouse ownership arrangements

• Rigid and flexible containers. Pallets.

• Materials handling: – Mechanized systems

– Semi-automated systems

– Automated systems definitions

Unit 7: index

Warehouse

Why we do not want to have warehouses?

• Ideally we would prefer not to have inventory to store. Movements

• It requires investment (ASSETS): stock, infrastructure, training, etc.

• It leads to expenses: maintenance, transport, salaries, etc.

• Risk of product being obsolete.

• Risk of product being lost

• Sometimes we need more than one (centralized or des-centralized

model)

Warehouse

• LOCATION: Weber calculation. Least cost theory, location model.

Transportation Labour costs

Agglomeration

RM weight > FG weight RM weight loss/gain during the process

RW shipping cost > FG shipping cost

RM weight < FG weight RM weight gain during

the process RW shipping cost < FG

shipping cost

FOCUS ON:

FOCUS ON MARKET LOCATION:

FOCUS ON SOURCING LOCATION:

Example: perishable and AutoExample: Lumber and Steel

Warehouse: criteria for decision

Location

• Accessibility

• Nearby services

• Potential growth

• Tax and subsidies

• Prices and payment terms

Company

• Micro/SME /Big/ multinational

• #employees

• Income

• Technology

• Company assets

Product type

• Raw materials

• Semi-finished product (WIP)

• Spare parts

• Finished goods

• Packaging

Specific requirements

• Hazardous

• Flammables

• Temperature

• Expiration

Finance Model

• Owner

• Leasing

• Rental

• Outsourcing (logistics operator)

Handling unit

• Pallet

• Barrel

• Boxes

• Containers

• Units

• Crates

Warehouse: activities

MAIN activities

• Goods IN, reception

• Storage

• Order preparation

• Goods OUT, shipping

OTHER activities

• Returns management

(reverse logistic)

• Product reworking

(transform product A

into product B)

ADMIN activities

• Customer service

• Transport management

• H&S

• Continuous

improvement

• HR

• Maintenance

Warehouse: GOODS IN

• Unload

• Count

• Pallet construction

• Material id

• Material location

Warehouse: STORAGE

• STORAGE

– Floor storage

– Rack storage

– Compact storage

• ID location

• FIFO vs LIFO

FIFOFIFO LIFOLIFOVS.

Warehouse: ORDER PREPARATION

• Full box order preparation

• Full pallet order preparation

• Picking order preparation:

– https://youtu.be/frY6jcANpRk (voice)

– https://youtu.be/JeXeF8muwuw (light)

– https://youtu.be/gnUK-HTn4ZA (vision)

• Replenishment

Warehouse: ORDER PREPARATION

• Automatic warehouse:

– https://youtu.be/ZBRoXW6YtGI

• New technologies

– Robots https://youtu.be/4DKrcpa8Z_E

– Amazon https://youtu.be/IMPbKVb8y8s

Warehouse: GOODS OUT • Sorting

• Packing

• Loading

• Cross docking

Warehouse: OTHER activities

• Returns

• Reworking

– Labelling

– Packs

– Etc.

Warehouse: AREAS

Goods In Goods Out

Offices/Changing room/ common areas

Offices/Changing room/ common areas

Charging battery roomRework

STORAGE

Picking line

Warehouse: FLOW

Goods In Goods Out

Offices/Changing room/ common areas

Offices/Changing room/ common areas

Charging battery roomRework

STORAGE

Picking line

Warehouse: ABC

Goods In Goods Out

Offices/Changing room/ common areas

Offices/Changing room/ common areas

Charging battery roomRework

STORAGE

Picking line

A

A

A

CC C

B

B B

Warehouse: Admin operations

PROBLEM ACTION # Area Customer What Who When Why Problem caused € What Who When € Did it work?

Indicator PROBLEM analysis: • # problems per week, area and customer • # € lost per week, area and customer • “Who”. Training needed?

Indicator ACTION analysis: • # actions per week, area and customer • How good am I closing: “when” vs “when” • Pending to close • # € spent • Successful action rate

Warehouse: TAGS

One dimension barcode label

Two dimension barcode label

RFID label

Warehouse: RFID vs Barcode label

PROS:

• Scanning distance

• No need for the product to be in motion

• No line of sight needed

• Allow scanning more than one at a time

• Reusable, it lasts for a lot longer

• More info capacity (work and repair

history) and actions allowed (tracking)

• Higher level of security (encrypt)

• Lower labour cost overall in the

warehouse operations

CONS:

• Special printers to be used

• Higher cost

• Not as flexible for specific actions

• Standards still not clear worldwide

NFC (Near Field Communication)

Reader or tag Only short distance