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Warehouse management

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Describes various strategies in Warehouse Management

Publié dans : Direction et management
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Warehouse management

  1. 1. WAREHOUSE MANAGEMENT DR. CHANDAN VICHORAY
  2. 2. WAREHOUSE PROCESS Put-away •Identify Product •Identify Product Location •Move Products •Update Records Storage •Equipment •Stock Location – Popularity – Unit Size – Cube Shipping Preparation •Packing •Labeling •Stacking Order Picking •Information •Walk & Pick •Batch Picking Shipping •Schedule Carrier •Load Vehicle •Bill of Loading •Record Update RECEIVING •Schedule Carrier •Unload Vehicle •Inspect for damage INP UT OUTP UT TheWarehousingProcess
  3. 3. CONVENTIONAL WAREHOUSING SYSTEM
  4. 4. OPERATIONS IN WAREHOUSING PRIMARY OPERATIONS • Locator Decisions • Equipment Planning • Space Planning • Docking • Receiving • Storage • Picking • Packing • Shipping • Customer Returns
  5. 5. OPERATIONS IN WAREHOUSING OTHER OPERATIONS • Back Orders • Order Printing • Time Goals or Standards • Storage and Picking Capacity • EDI and Reconciliation capabilities • Advanced Shipping Notice (ASN) • Technology in General
  6. 6. WAREHOUSE FUNCTIONS Source:
  7. 7. WAREHOUSE FUNCTIONS Source: http://www.futuresupplychains.com/
  8. 8. WAREHOUSE FUNCTIONS Source: http://www.mahindralogistics.com/technology/warehouse-management- MLL WMS helps transform conventional warehouses by improving efficiency and productivity of operations within the warehouse. MLL WMS automates receiving, put away, picking, and shipping in warehouses and supports inventory cycle count planning and execution. This system also adds levels of control that permit users to better plan and manage resource and storage space in warehouse operations. It also provides management with real-time visibility to inventory and order status across different warehouses of the organization.
  9. 9. WAREHOUSE FUNCTIONS
  10. 10. TYPES OF WAREHOUSING SERVICES Type of Warehouse Purpose Types of Products Handled Location Inland Container Depot (ICD) / Container Freight Station (CFS) Handling and temporary storage of import/ export laden and empty containers, Customs clearance. Stuffing and destuffing of containers consolidation and desegregation of less-than container load (LCL) cargo Containerized Cargo CFS are located near ports. ICDs are located near major industrial / railway hubs. Rail Side Warehouse Providing warehousing facility to companies using rail network to transport goods, facilitate direct loading / unloading of cargo from wagons to warehouse Break bulk cargo such as Cement, Fertilizer, Foodgrains, Salt and Sugar. Major Consumption Centres and Port Bonded Warehouse Allows deferral of Import Duty payment to importers Providing temporary warehousing facility for goods which are to be used for Export Oriented Units (EOUs), duty free shops or re-export Imported Goods Near Ports and Major Industrial Areas
  11. 11. TYPES OF WAREHOUSING SERVICES Type of Warehouse Purpose Types of Products Handled Location Retail Distribution Centre Handling and storage of products before dispatching them to retail stores Providing value added services such as packing, sorting and consolidation Facilitating crossdocking and direct shipping distribution strategy Pre-retail services such as kitting, shrink wrapping, labeling and Tagging Retail and consumer products such as FMCG goods, food & beverages, apparels and consumer durables among others Major Consumption Centres Service Parts Distribution Centre Storage and distribution of spare parts & consumables of heavy capital equipment/ machinery Facilitating cross-docking and direct shipping distribution strategy / Reducing delivery time of critical machinery parts during emergency break down of equipment Spare parts and consumables of heavy capital equipment / machinery Major Industrial Centres
  12. 12. TYPES OF WAREHOUSING SERVICES Type of Warehouse Purpose Types of Products Handled Location Industrial Warehouse Storage and distribution of finished goods which are used by other manufacturing companies as inputs Reduce time-to-delivery of critical products to other manufacturers Industrial goods which are used as inputs in other manufacturing industries such as steering wheel for automobiles and spindles for textile machinery Major Industrial Centres 3 PL Warehouse Provide warehousing service to multiple companies from a common facility, providing value added services such as packing, sorting and consolidation Facilitating cross-docking and direct shipping distribution strategy Multiple Products Major Industrial and Consumption Centres Godown A basic warehouse primarily used as a storage area with minimal or no specialised infrastrucutre and IT systems Multiple Products Major Industrial and Consumption Centres
  13. 13. TYPES OF WAREHOUSING SERVICES Type of Warehouse Purpose Types of Products Handled Location Cold Storage Warehouse Storage and distribution of temperature sensitive products in potent condition, Processing and packaging of temperature sensitive products / facilitating sorting, grading, repacking and associated activities Frozen foods, milk products, horticultural and Organic products, fresh fruits, pharmaceutical products Major Consumption Centres and Port Food grain Warehouse Storage and Distribution of Food grains Foodgrains such as rice, wheat, sugar and other grains Major Agricultural Hubs Air Cargo Warehouse Providing warehousing facility to companies using air network to transport goods Time sensitive products, fragile products, high value items, perishable food items Major Airports
  14. 14. SOME EYE OPENERS
  15. 15. SOME EYE OPENERS
  16. 16. SOME EYE OPENERS
  17. 17. EVOLUTION OF THE LOGISTICS SECTOR
  18. 18. WAREHOUSE CHALLENGES  Inventory Management (Accuracy)  Inventory Location (Agile Warehousing)  Space Utilization / Warehouse Layout  Redundant Documentation  Picking Optimization (For Manual Warehouses)  Product Diversification (Paradigm Shift from SKUs to SBUs based on Categories)
  19. 19. SOME PHILOSOPHIES PREVALENT IN WAREHOUSES
  20. 20. CROSS DOCKING WAREHOUSING SYSTEM
  21. 21. OBJECTIVES AND BENEFITS OF CROSS DOCKING OBJECTIVES  To use when time lag expected is zero between inbound and outbound inventory  To Eliminate intermediate disposition, storage and order fulfilment tasks  To help in break up of SKUs for individual store BENEFITS  Reduced Inventory holding costs  Reduced resources in terms of labour, space, time and equipment  Facilitates value added services like labelling, kitting, shrink wrapping and tagging
  22. 22. MILK RUNS  Solution for situation where it is not possible to generate a Full Truck Load (FTL)  Offsets costs associated with stuck situations like Less Than Truck Load (LTL)  The same truck can visit multiple vendors picking up consignments on its route instead of separate trucks delivering shipments from each vendor  Very much suited for demand driven manufacturing and distribution
  23. 23. MILK RUN SYSTEM
  24. 24. HUB AND THE SPOKE MODEL Post GST, Hub and Spoke Model will be more in Demand because of Tax rationalization and Uniformity
  25. 25. AUDITS AND STANDARDS APPLIED TO WAREHOUSES  Warehouse Development and Regulation Act 2007  BS 8555 for Environmental Management Systems  ISO 9000  OHSAS 18001  OSHA Publication 2236 (Revised 2002)  OSHA 3220-10N 2004
  26. 26. OVERVIEW OF LEAN MANUFACTURING & SUPPLY CHAIN AND FACTORING WAREHOUSING ACTIVITY
  27. 27. ROLE OF A WAREHOUSE IN A SUPPLY CHAIN : THE VALUE STREAM  Storing product to fulfill customer demand and protect against uncertainties in demand and lead- time  Providing customers with product assortment  Postponing or delaying inventory commitment to form or location until demand is better known  Achieving low total cost and improved lead-time through consolidating multiple orders  Reducing lead-time through cross-docking  Sequencing materials and components from multiple third-party logistics (3PLs) providers for time-based delivery to factory production lines  Performing light manufacturing, assembly, and kitting
  28. 28. THE LEAN WAREHOUSE Warehousing wastes  Overproduction  Purchase and storage of goods that have no impending or current demand leading to excess order picking  Inventory  Resources and capital tied up on account of Overproduction  Conveyance  Space constraint on account of Overproduction leading to excessive material movement  Over-processing  Additional checks, Redundant systems for same work
  29. 29. THE LEAN WAREHOUSE Warehousing wastes  Motion  Motion of people along the warehouse which is unnecessary and may be due to unmanaged inventory  Defects / Rework  Do the order picking right first time every time.  Waiting  Reducing Lead time to delivery  Knowledge  Leverage and Harvest the Expertise of an Experienced Personnel in the Organization
  30. 30. TECHNOLOGY
  31. 31. TECHNOLOGY INTERVENTIONS AT A WAREHOUSE  RFID enabled Warehouses  Warehouse Management Systems (WMS)  Enterprise Resource Planning (ERP)  Warehouse Control System (WCS)  Smart Warehouses
  32. 32. RFID ENABLED WAREHOUSE  Used for AS / RS  https://www.youtube.com/watch?v=j5YbyI7MZ3I  Movement and Storages are Automated using RFIDs  https://www.youtube.com/watch?v=eob532iEpqk
  33. 33. WAREHOUSE MANAGEMENT SYSTEM (WMS)  Software Solution for ready Data mining and Day- to-Day Activities of a Warehouse  Provides with a Dashboard giving relevant information through knowledge management  Overcomes the weakness of ERP in isolating individual SKUs
  34. 34. ENTERPRISE RESOURCE PLANNING
  35. 35. ENTERPRISE RESOURCE PLANNING
  36. 36. WAREHOUSE CONTROL SYSTEM  https://www.youtube.com/watch?v= CFcH8Dm15aE
  37. 37. WAREHOUSE MANAGEMENT SYSTEM (WMS) Functionality Description Warehouse design Warehouse design functionality allow users to customize workflow and picking logic to ensure that inventory is allocated to the correct location within each facility. The WMS establishes correct bin slotting to maximize warehouse space and account for seasonal inventory variance. Inventory tracking Most systems offer the ability to use advanced tracking systems, such as auto ID data capture (AIDC), barcode scanners or radio-frequency identification (RFID) to ensure that inventory is correctly logged and easily located when the time comes for it to move. Receiving and putaway Once inventory is logged, warehouse management systems assist with inventory putaway for at a later date. More advanced systems offer pick-to-light (light-picking) and pick-to-voice (voice- picking) technology to aid more sophisticated warehouse environments. Pick-and-pack Warehouse management systems often contain a variety of options like zone picking, wave picking batch picking to provide managers greater flexibility. Additionally, lot zoning and task interleaving workers reduce the number of trips necessary to complete a task.
  38. 38. WAREHOUSE MANAGEMENT SYSTEM (WMS) Shipping Once inventory is packed, the WMS can send itemized bills of lading (B/L) ahead of the shipment, generate packing lists and invoices for buyers to reconcile items shipped with items ordered, and include assembly instructions if needed. Once items have been packed, the warehousing software send advanced shipment notifications (ASN) to notify other facilities of pending deliveries. Labor management Labor performance modules also help managers monitor worker efficiency and performance. Key performance indicators (KPIs) help managers keep tabs on the workers who are performing above below standard. Yard and dock management A common feature in WMS software, yard management assists trucks as they come-and-go and find the correct loading docks. Some applications also help manage cross-docking, or the ability for incoming trucks to be unloaded and loaded concurrently. Reporting Advanced reporting features within the software can help managers analyze the performance of the operation as a whole and find areas for improvement. For example, the system can automatically analyze cycle counts, which count a different subset of inventory each day.
  39. 39. SMART WAREHOUSE  Ready to embrace Industry 4.0  Uses Internet of Things (IOT)  https://www.youtube.com/watch?v=dx 5W3Ob7Yo8  https://www.youtube.com/watch?v=ud RYxhS4-Ow
  40. 40. WHAT HAPPENS WHEN YOU PLACE AN ORDER TO AMAZON  https://www.youtube.com/watch?v=Y- lBvI6u_hw
  41. 41. THE CURIOUS CASE OF FUTURE SUPPLY CHAIN: NAGPUR DC
  42. 42. FUTURE GROUP BACKGROUND  Largest Retail Company in India  More than 16 mn sq.ft of Retail Space  Future Supply Chain part of group’s Supply Chain  Was Started in 2007  1000 plus stores across India
  43. 43. FSC OBJECTIVES  What to Store / Move  When to Store / Move  How to Store / Move
  44. 44. INITIAL FSC CHALLENGES  32 stock points mostly unstructured Godowns  Inventory and Godown Management based purely on People’s memory  Supply chain Costs were in the range of 20% of Manufacturing while Benchmark of Europe is 6% - 8%  Stocks and Inventory Holding were of 90 days  Frequent Stock-outs at Stores  Low Visibility on Transit Time  Under utilization of Trucks and Heavy Pilferages
  45. 45. WHY NAGPUR AS MOTHER DC  Centrally located  All major manufacturing hubs and markets within 1000 kms radius  Used for FTL distribution to Areas with a Consumption of more than 60% of the revenue  Costs less
  46. 46. WHY NAGPUR AS MOTHER DC  Centrally located  All major manufacturing hubs and markets within 1000 kms radius  Used for FTL distribution to Areas with a Consumption of more than 60% of the revenue (About 55-60 stores)  Costs less  Could implement the Hub and Spoke Model  From the sub distribution centres they use Milk Runs (Service about 250 stores)
  47. 47. NAGPUR FACILITY DISTRIBUTION MODEL
  48. 48. TECHNOLOGY INTERVENTION AT THE NAGPUR DC  ERP  WMS  VMS  WCS like Conveyors and PTL Systems  Use of MHEs like High Reaches  Cross Belt Sortation System (3 Kms of Conveyor Laid)  Installation of 45 Televisions for Visual Monitoring
  49. 49. BENEFITS ACCRUED FROM NAGPUR DC  Total Inventory Holding down to 1/5th  Total Labour requirement down to 2/3rd  Handling more than 1 lac SKUs which is being scaled to handled more than 3 lacs SKUs  Rent outflow reduced as now there are just few centres to work upon  Minimal Stock-Outs and Pilferages
  50. 50. NAGPUR DC DETAILS
  51. 51. NAGPUR DC DETAILS
  52. 52. WHAT HAPPENS WHEN YOU PLACE AN ORDER TO AMAZON
  53. 53. WHAT LIES IN STORE FOR YOU IN LOGISTICS: THE FUTURE  https://www.youtube.com/watch?v=98 BIu9dpwHU
  54. 54. THAT’S IT FROM ME… Thank you

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