Logistics: Chapter 10
Warehouse safety categories
1. employee 2. property 3. motor vehicles
Primary issues of warehouse security
1. protecting products and preventing their theft 2. warehousing security can be enhanced by focusing on people, facilities, and processes.
Warehouse Automation
- refers to utilizing mechanical or electronic devices to substitute for human labor - reduces labor costs - improves warehouse productivity
Public warehousing
- serves all legitimate users and has certain responsibilities to those users - requires no capital investment - more locational flexibility - Drawback: potential lack of control by the user
Fixed slot location
- each SKU has one or more permanent slots assigned to it - provides stability in order picking - result in low space utilization
Purpose of distribution centers
- emphasize the rapid movement of products through a facility - attempt to maximize throughput
Variable slot location
- involves empty storage slots being assigned to incoming products based on space availability - results in more efficient space utilization
Primary purpose of warehouses
- maximize the usage of available storage space - emphasize the storage of products
Private warehousing
- owned by the firm storing goods in the facility - offers users a great deal of control over their storage needs - able to access products when an organization needs (or wants) them - Drawback: generates high fixed costs
Four forms of regrouping function
- Quantity of product: 1. accumulating (also referred to as bulk-making) 2. allocating (also referred to as bulk-breaking) - Product assortment: 3. assorting 4. sorting out
Contract Warehousing 3PL (third-party warehousing / dedicated warehousing)
- a long term, mutually beneficial arrangement which provides unique and specially tailored warehousing and logistics services exclusively to one client, where the vendor and client share the risks associated with the operation - involves specially tailored warehousing services that are provided to one client on a long-term basis
Longer-haul transportation
Direct from producer to retailer
Regrouping function
Involves rearranging the quantities and assortment of products as they move through the supply chain
Allocating
involves breaking larger quantities into smaller quantities
Accumulating
involves bringing together similar stocks from different sources
Dunnage
material that is used to block and brace products inside carrier equipment to prevent the shipment from shifting in transit and becoming damaged
Multiclient warehousing
mixes attributes of public and contract warehousing; services are more differentiated than a public facility but less customized than in a contract facility
Hazardous materials (hazmat)
negatively impact the health and/or safety of the general public. E.g. explosives, flammable liquids, and flammable solids
Shorter-Haul Transportation
placing a warehousing facility between the producer and customers adds a new layer of costs
Assorting
refers to building up a variety of different products for resale to particular customers
Warehousing
refers to that part of a firm's logistics system that stores products (raw materials, parts, goods-in-process, finished goods) at and between points of origin and point of consumption
Sorting out
separating products into grades and qualities desired by different target markets
Velocity slotting
strategy that slots the most frequently picked items in the most accessible location; generally reduces an order picker's travel distance
Throughput
the amount of product entering and leaving a facility in a given time period
Cross-docking
the process of receiving product and shipping it out the same day or overnight without putting it into storage. Benefits: - products reach their destinations faster - less inventory carrying costs from less safety stock
Fulfillment centers
type of distribution center that is focused on e-commerce orders
