GLOBAL LOGISTIC MANAGEMENT GLOBAL LOGISTIC MANAGEMENT LECTURE 6: WAREHOUSE MANAGEMENT Agenda Agenda 1 What is warehouse management ? 2 Functions of warehouse 3 Objectives of warehouse management 4 Benefits of warehouse management 5 Decisive factors in warehouse management 6 Value-added warehousing 7 Summary 1 What is warehouse management ? 1 What is warehouse management ? Warehouse management is a key part of the supply chain and primarily aims to control the movement and storage of materials within a warehouse and process the associated transactions, including shipping, receiving, placing and picking. 2 Functions of warehouse 2 Functions of warehouse The basic warehousing functions traditionally have been considered to be as follows: receiving; identification and sorting; dispatching to storage; placing in storage; storage; 2 Functions of warehouse 2 Functions of warehouse retrieval from storage; order accumulation; packing; shipping record keeping. 3 Objectives of warehouse 3 Objectives of warehouse management management In designing warehousing systems, it is desirable to maximize: space utilization; equipment utilization; labor utilization; accessibility of all materials; protection of all materials. 4 Benefits of warehousing 4 Benefits of warehousing Warehouse benefits consolidation Warehouse benefits distribution assortment Warehouse benefits break bulk operation Warehouse benefits in-transit mixing Warehouse benefits manufacturing support Logistics in Supply Chain Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved. WAREHOUSE BENEFITS CONSOLIDATION Plant A Plant B Plant C Consolidation Warehouses Customers A B C Logistics in Supply Chain Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved. WAREHOUSE BENEFIT DISTRIBUTION ASSORTMENT Plant A Plant B Plant C Distribution Center Customer A Customer B Customer C Logistics in Supply Chain Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved. WAREHOUSE BENEFIT BREAK BULK OPERATION Plant A Break Bulk Warehouse Customer A Customer B Customer C . GLOBAL LOGISTIC MANAGEMENT GLOBAL LOGISTIC MANAGEMENT LECTURE 6: WAREHOUSE MANAGEMENT Agenda Agenda 1 What is warehouse management ? 2 Functions of warehouse 3