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1、Unit 5 Warehousing Management Contents I.Definition of warehousing II.Functions of warehousing III.The Main Process of Warehousing Operation IV. Types of Warehouses V.Materials Handling Systems VI. Distribution Strategies Definition of warehousing Storage: hold stock or inventory In-transit Stock Se
2、asonal Stock Periodic Stock Speculative Stock Safety Stock Safekeeping: protecting value of the goods Temperature Humidity Air Sunshine and dust Storing time Functions of warehousing 1. Geographical Specialization production Internal storage transit to collect the various components to the final ass
3、embly process Market classification on each kind of segmentation 2. Separation of production and demand Storage of work-in-process during production process Bulk shipment with minimum freight cost Functions of warehousing 3. Balancing supply and demand Seasonal production vs. annual consumption, or
4、annual production vs. seasonal consumption Amount to be reserved 4. Buffering uncertainties Demand in exceed of budget Delay in the order cycle The Main Process of Warehousing Operation Information center Confirm information of items Level confirmation and arrangement Unloading Portage facilities an
5、d personnel placement Relevant information Relevant information Picking arrangement Relevant documents Loading Outbound Warehousing Confirm information of items Stock Monitor stock and stocktaking Replacement operation Customer order or plan arrangement Figure 5-1 Warehousing management system The M
6、ain Process of Warehousing Operation Figure 5-2 A typical warehouse layout The Main Process of Warehousing Operation 1. Warehouse Inbound Request 2. Warehouse Receipt Matching and balance of warehouse and suppliers, type and quantity of goods, types and quantity of transport vehicles. Shape and feat
7、ure of commodities Number of personnel needed Suitable handling for storage Purchasing plan Analyzing the plan of purchasing goal Wagon arriving Unloading Dismounting Identifying and classifying the commodity Mastering the general arrival date, cargo quantity and type of wagon Predicting the arrival
8、 date of wagon as far as possible Coordinating the traffic of truck passing in and out the facility and packing space Planning temporary storage location Figure 5-3 Process of receiving Checking invoices, voucher and so on Recording on the purchased material list Checking and accepting the commodity
9、 Maintaining the regular record of all purchasing activities Assigning the location of follow-up warehousing entry Noting the shortage, damage and exceeding and recording on them Figure 5-3 Process of receiving (Continued) The Main Process of Warehousing Operation 3. Internal Put-away Create an inte
10、rnal put- away and enter quantity, zone and bin Figure 5-4 Workflow in a Warehouse The Main Process of Warehousing Operation 4. Warehouse Outbound Request Sales order, outbound transfer order or purchase return order 5. Pick Create a pick order and post the documents 6. Ship Post sales orders, trans
11、fer orders and purchase return orders Types of Warehouses 1. Private Warehouses Owned and managed by manufacturers or traders to store exclusively their own stock of goods Users: farmers, wholesalers and retailers 2. Public Warehouses Used to store goods of the general public on the basis of rent an
12、d regulated by the government Users: manufacturers, wholesalers, exporters, importers, government agencies, etc. Types of Warehouses 3. Government Warehouses Owned, managed and controlled by central or state governments or public corporations or local authorities Users: government and private enterp
13、rises 4. Bonded Warehouses Used to store imported goods of unpaid import duty Users: importers 5. Co-operative Warehouses Owned, managed and controlled by co-operative societies Materials Handling Systems Stock Keeping Unit (SKU) A category of unit with unique combination of form, fit, and function
14、Pallets Materials: wood, pressed wood fiber, corrugated fiberboard, plastic or metal Loading Equipment Access: scissor lifts, goods lifts, dock levelers, loading ramps, doors, dock seals and vehicle restraints Movement: pallet trucks, conveyors and fork lift trucks Materials Handling Systems Lifting
15、 and Transport Equipment Fork lift trucks, order picking trucks, overhead cranes, tower cranes and belt, chain and overhead conveyors Storage Equipment Welded cantilever steel racks, powered vertical carousel system, pallet racks, mobile shelf units, and plastic, wood and steel containers. Automated
16、 Handling Equipment Fully automated and semi-automatic systems Automated Guided Vehicles (AGVs) Distribution Strategies Distribution channels Path followed by a product from the manufacturer to the end-user Consumer goods Industrial goods Figure 5-5 Distribution channels Distribution Strategies Figu
17、re 5-6 Distribution strategies: (a) direct shipment; (b) warehousing; (c) cross-docking Distribution Strategies Cross-docking Requirement: high volume, low variability of demand and suitable information system Function: a) depending on trucking; b) minimizing inventory; c) maintaining value-added fu
18、nctions of consolidation and shipping; d) transferring inbound flows directly to outbound flows with little warehousing Application: manufacturing, distribution, transportation, and retail Distribution Strategies Figure 5-7 Cross-docking methods Distribution Strategies Centralized vs. decentralized
19、warehousing Definition Benefits Centralized warehousing A single warehouse serves the whole market. 1) Lower facility costs 2) Risking pooling 3) Lower transportation costs from manufacturers to warehouses Decentralized warehousing Smaller warehouse serve different zones of the market. 1) Reduced le
20、ad time 2) Lower transportation costs from warehouses to customers Aalsmeer Flower Auction for reference Aalsmeer Flower Auction In Aalsmeer, the Netherlands1 The largest flower auction 2 3 Flowers are traded here4 The second largest building Brief Introduction Aalsmeer Flower Auction (Bloemenveilin
21、g Aalsmeer) is a flower auction, located in Aalsmeer, the Netherlands. It is the largest flower auction in the world. Flowers from all over the world (Europe, Colombia, Ethiopia, etc) are traded on a daily basis at the Aalsmeer facilities. On January 1, 2008 the auction merged with their biggest com
22、petitor FloraHolland. the largest commercial building in the world, covering a size of 1 million sq.m or 200 football fields. Every day, millions of flowers and cut plants are brought to Aalsmeer, where it is auctioned off to potential buyers all over the world, thus setting the price of flowers and
23、 effectively making it the wall street of flower trade. The auction house traces its origins to as early as 1911, when the growers came together in response to the growing power of intermediaries, and the first export flowers were auctioned at caf Welkom in Aalsmeer. Today, the Bloemenveiling Aalsme
24、er boasts at an average daily turnover of 6.6 million Euros, with about 60,000 clock transactions every morning The timing clock The timing clock flowers of all colours and wide varieties Auction Procedures Flower Auction Procedures Flower markets Timing Clock Auction rooms Aalsmeer shuttle Auction
25、rooms Textbook Case Study Logistics Blossoms In Holland 1.What is the risk when a DC of cut flowers is managed? Cut flowers(perishable) have to be delivered timely. 2.Target Market Europe Noth America Asia Main Target Market Inbound Logistics Outbound Logistics Aalsmeer Logistics Sevice Inbound Logi
26、stics 1 2 Electronically controlled aerial rail system to south customers 25 wholesalers and exporters Outbound Logistics Advanced high-tech facilities(freezing)1 Reduce risks in supply chain2 Network connection3 4 Truck and railway with temperature control containers Transportation Modes Transportation ModesShip Air Truck Railway (Road transportation ) (Rail
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