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