supply chain logistics management chapter 13: warehouse management
Post on 21-Dec-2015
239 views
TRANSCRIPT
![Page 1: Supply Chain Logistics Management Chapter 13: Warehouse Management](https://reader035.vdocument.in/reader035/viewer/2022081419/56649d565503460f94a345c3/html5/thumbnails/1.jpg)
Supply Chain Logistics Management
Chapter 13: Warehouse Management
![Page 2: Supply Chain Logistics Management Chapter 13: Warehouse Management](https://reader035.vdocument.in/reader035/viewer/2022081419/56649d565503460f94a345c3/html5/thumbnails/2.jpg)
Logistics in Supply Chain Management, First Edition , Bowersox, Closs, and CooperCopyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
ECONOMIC BENEFITS OF WAREHOUSING
• Consolidation
• Break-bulk or cross dock
• Processing/Postponement
• Stockpiling
![Page 3: Supply Chain Logistics Management Chapter 13: Warehouse Management](https://reader035.vdocument.in/reader035/viewer/2022081419/56649d565503460f94a345c3/html5/thumbnails/3.jpg)
Logistics in Supply Chain Management, First Edition , Bowersox, Closs, and CooperCopyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
WAREHOUSE BENEFITSCONSOLIDATION
Plant A
Plant B
Plant C
Consolidation Warehouses
Customers
A B C
![Page 4: Supply Chain Logistics Management Chapter 13: Warehouse Management](https://reader035.vdocument.in/reader035/viewer/2022081419/56649d565503460f94a345c3/html5/thumbnails/4.jpg)
Logistics in Supply Chain Management, First Edition , Bowersox, Closs, and CooperCopyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
WAREHOUSE BENEFITDISTRIBUTION ASSORTMENT
Plant A
Plant B
Plant C
Distribution Center
Customer A
Customer B
Customer C
![Page 5: Supply Chain Logistics Management Chapter 13: Warehouse Management](https://reader035.vdocument.in/reader035/viewer/2022081419/56649d565503460f94a345c3/html5/thumbnails/5.jpg)
Logistics in Supply Chain Management, First Edition , Bowersox, Closs, and CooperCopyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
WAREHOUSE BENEFITBREAK BULK OPERATION
Plant A Break Bulk Warehouse
Customer A
Customer B
Customer C
![Page 6: Supply Chain Logistics Management Chapter 13: Warehouse Management](https://reader035.vdocument.in/reader035/viewer/2022081419/56649d565503460f94a345c3/html5/thumbnails/6.jpg)
Logistics in Supply Chain Management, First Edition , Bowersox, Closs, and CooperCopyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
SERVICE BENEFITS OF WAREHOUSING
• Spot stock
• Assortment
• Mixing
• Production support
• Market presence
![Page 7: Supply Chain Logistics Management Chapter 13: Warehouse Management](https://reader035.vdocument.in/reader035/viewer/2022081419/56649d565503460f94a345c3/html5/thumbnails/7.jpg)
Logistics in Supply Chain Management, First Edition , Bowersox, Closs, and CooperCopyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
WAREHOUSING BENEFITSIN-TRANSIT MIXING
Plant A
Plant B
Plant C
Warehouse Transit
Mixing Point
Product D
Customer W
A-B-C-D
Customer X
A-B-C-D
Customer Y
A-B-C
Customer Z
A-B
![Page 8: Supply Chain Logistics Management Chapter 13: Warehouse Management](https://reader035.vdocument.in/reader035/viewer/2022081419/56649d565503460f94a345c3/html5/thumbnails/8.jpg)
Logistics in Supply Chain Management, First Edition , Bowersox, Closs, and CooperCopyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
WAREHOUSING BENEFITSMANUFACTURING SUPPORT
Vendor A
Vendor B
Vendor C
Manufacturing Warehouse
Assembly Plant
![Page 9: Supply Chain Logistics Management Chapter 13: Warehouse Management](https://reader035.vdocument.in/reader035/viewer/2022081419/56649d565503460f94a345c3/html5/thumbnails/9.jpg)
Logistics in Supply Chain Management, First Edition , Bowersox, Closs, and CooperCopyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
WAREHOUSING ALTERNATIVES
• Options– Private– Public– Contract– Other
• Select warehousing option with best strategic fit
![Page 10: Supply Chain Logistics Management Chapter 13: Warehouse Management](https://reader035.vdocument.in/reader035/viewer/2022081419/56649d565503460f94a345c3/html5/thumbnails/10.jpg)
Logistics in Supply Chain Management, First Edition , Bowersox, Closs, and CooperCopyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
SHARE OF WAREHOUSE BUSINESS
53%
14%
33%
Private
Contract
Public
![Page 11: Supply Chain Logistics Management Chapter 13: Warehouse Management](https://reader035.vdocument.in/reader035/viewer/2022081419/56649d565503460f94a345c3/html5/thumbnails/11.jpg)
Logistics in Supply Chain Management, First Edition , Bowersox, Closs, and CooperCopyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
DECISION FACTORS
• Strategy
• Type of need
• Information system
• Control
• Product characteristics
• Culture
![Page 12: Supply Chain Logistics Management Chapter 13: Warehouse Management](https://reader035.vdocument.in/reader035/viewer/2022081419/56649d565503460f94a345c3/html5/thumbnails/12.jpg)
Logistics in Supply Chain Management, First Edition , Bowersox, Closs, and CooperCopyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
STRATEGY
• Full line
• Centralized postponement
• Utilization of current capacity and resources
• Market presence
• Segment focused
![Page 13: Supply Chain Logistics Management Chapter 13: Warehouse Management](https://reader035.vdocument.in/reader035/viewer/2022081419/56649d565503460f94a345c3/html5/thumbnails/13.jpg)
Logistics in Supply Chain Management, First Edition , Bowersox, Closs, and CooperCopyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
USE OF ALTERNATIVES(Percent of Facilities)
Type of Firm Private Public Contract Grocery 28 58 14 Drug/HC 65 30 5 Chemical 49 42 9 Automotive 84 9 7 Electronics 84 7 9 Consumer Goods
57 38 5
![Page 14: Supply Chain Logistics Management Chapter 13: Warehouse Management](https://reader035.vdocument.in/reader035/viewer/2022081419/56649d565503460f94a345c3/html5/thumbnails/14.jpg)
Logistics in Supply Chain Management, First Edition , Bowersox, Closs, and CooperCopyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
WHO USES THE MOST FACILITIES?
Type of Company Number of Facilities Grocery 14 Drugs/Healthcare 8 Chemical 25 Automotive 6 Electronics 8 Consumer Goods 5
![Page 15: Supply Chain Logistics Management Chapter 13: Warehouse Management](https://reader035.vdocument.in/reader035/viewer/2022081419/56649d565503460f94a345c3/html5/thumbnails/15.jpg)
Logistics in Supply Chain Management, First Edition , Bowersox, Closs, and CooperCopyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
TYPE OF NEED
• Turn inventory
• Promotional inventory
• Speculative inventory
• Custom services and activities
• Seasonal
![Page 16: Supply Chain Logistics Management Chapter 13: Warehouse Management](https://reader035.vdocument.in/reader035/viewer/2022081419/56649d565503460f94a345c3/html5/thumbnails/16.jpg)
Logistics in Supply Chain Management, First Edition , Bowersox, Closs, and CooperCopyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
INFORMATION SYSTEM
• Communication capabilities
• System compatibility
• Handling technologies
• Activity based costing
![Page 17: Supply Chain Logistics Management Chapter 13: Warehouse Management](https://reader035.vdocument.in/reader035/viewer/2022081419/56649d565503460f94a345c3/html5/thumbnails/17.jpg)
Logistics in Supply Chain Management, First Edition , Bowersox, Closs, and CooperCopyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
CONTROL
• Customs and bonding
• Temperature
• Secrecy
• Lot control and recall
![Page 18: Supply Chain Logistics Management Chapter 13: Warehouse Management](https://reader035.vdocument.in/reader035/viewer/2022081419/56649d565503460f94a345c3/html5/thumbnails/18.jpg)
Logistics in Supply Chain Management, First Edition , Bowersox, Closs, and CooperCopyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
PRODUCT CHARACTERISTICS
• Handling characteristics
• Storage characteristics
• Speed of movement
• Flexibility
![Page 19: Supply Chain Logistics Management Chapter 13: Warehouse Management](https://reader035.vdocument.in/reader035/viewer/2022081419/56649d565503460f94a345c3/html5/thumbnails/19.jpg)
Logistics in Supply Chain Management, First Edition , Bowersox, Closs, and CooperCopyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
NEW WAREHOUSES WILL BE:
50%
28%
22%
Larger
Same
Smaller
![Page 20: Supply Chain Logistics Management Chapter 13: Warehouse Management](https://reader035.vdocument.in/reader035/viewer/2022081419/56649d565503460f94a345c3/html5/thumbnails/20.jpg)
Logistics in Supply Chain Management, First Edition , Bowersox, Closs, and CooperCopyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
CULTURE
• Unionization
• Expertise
• Industry experience and economies
![Page 21: Supply Chain Logistics Management Chapter 13: Warehouse Management](https://reader035.vdocument.in/reader035/viewer/2022081419/56649d565503460f94a345c3/html5/thumbnails/21.jpg)
Logistics in Supply Chain Management, First Edition , Bowersox, Closs, and CooperCopyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
VALUE-ADDED WAREHOUSING
• Packaging
• Refined unitization– Adjust pallets or shrink-wrap– Change containers
• Production specialization
• Product climatization
• Recall capability
• Market confidentiality
![Page 22: Supply Chain Logistics Management Chapter 13: Warehouse Management](https://reader035.vdocument.in/reader035/viewer/2022081419/56649d565503460f94a345c3/html5/thumbnails/22.jpg)
Logistics in Supply Chain Management, First Edition , Bowersox, Closs, and CooperCopyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
TRADITIONAL HANDLING
• Palletizing, put away, storage, replenishment, selection and loading for shipment
• Food industry products handled up to 17 times in SC and in DC 4.3 times
![Page 23: Supply Chain Logistics Management Chapter 13: Warehouse Management](https://reader035.vdocument.in/reader035/viewer/2022081419/56649d565503460f94a345c3/html5/thumbnails/23.jpg)
Logistics in Supply Chain Management, First Edition , Bowersox, Closs, and CooperCopyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
CROSS-DOCKING
• Products received, selected, repackaged, loaded for shipment w/o storage
• Enabled by conveyors & sortation equipment
• Used with general merchandise & food
• Fast moving products replenished using POS/planagram systems
• Used in large (800K to 1,200K sq.ft..) DCs
![Page 24: Supply Chain Logistics Management Chapter 13: Warehouse Management](https://reader035.vdocument.in/reader035/viewer/2022081419/56649d565503460f94a345c3/html5/thumbnails/24.jpg)
Logistics in Supply Chain Management, First Edition , Bowersox, Closs, and CooperCopyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
FOOD INDUSTRYLess Impediments to C-D
• Scanning data-<OC
• Better category mgt. & tracking systems
• Expansion forward w/mfg. pre-assembly multi-SKU pallets
• Bar-code scanning at case & pallet levels
• Advanced ship
• EDI transactions
• Automated replenishment programs
![Page 25: Supply Chain Logistics Management Chapter 13: Warehouse Management](https://reader035.vdocument.in/reader035/viewer/2022081419/56649d565503460f94a345c3/html5/thumbnails/25.jpg)
Logistics in Supply Chain Management, First Edition , Bowersox, Closs, and CooperCopyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
CROSS-DOCKING RESULTS
• MFG. added costs +$.10 /case
• Average distributor cost savings $.35 /case
• Break down store sorted cases saves $.50 to $.55/case
![Page 26: Supply Chain Logistics Management Chapter 13: Warehouse Management](https://reader035.vdocument.in/reader035/viewer/2022081419/56649d565503460f94a345c3/html5/thumbnails/26.jpg)
Logistics in Supply Chain Management, First Edition , Bowersox, Closs, and CooperCopyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
ECR PILOT C-D TESTSRETAIL & WHOLESALE
• <Inventory carrying costs
• <Storage & processing space
• <Product handling(damage, shrinkage, out of date products, returns, DC labor costs
• Improved sales through displays
• >Logistics savings to product sales support
![Page 27: Supply Chain Logistics Management Chapter 13: Warehouse Management](https://reader035.vdocument.in/reader035/viewer/2022081419/56649d565503460f94a345c3/html5/thumbnails/27.jpg)
Logistics in Supply Chain Management, First Edition , Bowersox, Closs, and CooperCopyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
STUDY OF C-D IN INDUSTRY
• Only 76% space of traditional
• Only 57% of direct labor
• Case/hour increases Up to 75%
• Excellent payback periods
![Page 28: Supply Chain Logistics Management Chapter 13: Warehouse Management](https://reader035.vdocument.in/reader035/viewer/2022081419/56649d565503460f94a345c3/html5/thumbnails/28.jpg)
Logistics in Supply Chain Management, First Edition , Bowersox, Closs, and CooperCopyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
CONTRACT WAREHOUSING
• Storage space, software systems, labor & management dedicated to a specific shipper’s logistics system
• Resources customized to a specific client’s requirements
![Page 29: Supply Chain Logistics Management Chapter 13: Warehouse Management](https://reader035.vdocument.in/reader035/viewer/2022081419/56649d565503460f94a345c3/html5/thumbnails/29.jpg)
Logistics in Supply Chain Management, First Edition , Bowersox, Closs, and CooperCopyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
DIFFERENTIATIONCONTRACT VS. PUBLIC
• Productivity sharing
• Business relationships
• Real estate arrangements
• Pricing agreements
![Page 30: Supply Chain Logistics Management Chapter 13: Warehouse Management](https://reader035.vdocument.in/reader035/viewer/2022081419/56649d565503460f94a345c3/html5/thumbnails/30.jpg)
Logistics in Supply Chain Management, First Edition , Bowersox, Closs, and CooperCopyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
INTEGRATED LOGISTICS SERVICES
• Mission-Provide services to meet all or significant part of a shipper’s total logistical requirements
• Titles-Third party logistics, contract logistics, logistics utilities, and integrated logistics service providers
![Page 31: Supply Chain Logistics Management Chapter 13: Warehouse Management](https://reader035.vdocument.in/reader035/viewer/2022081419/56649d565503460f94a345c3/html5/thumbnails/31.jpg)
Logistics in Supply Chain Management, First Edition , Bowersox, Closs, and CooperCopyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
CONSIDERATION OF QUALITATIVE DECISION FACTORS
Private Contract PublicPresence synergyIndustry synergyOperating synergyLocation flexibilityScale economies
![Page 32: Supply Chain Logistics Management Chapter 13: Warehouse Management](https://reader035.vdocument.in/reader035/viewer/2022081419/56649d565503460f94a345c3/html5/thumbnails/32.jpg)
Logistics in Supply Chain Management, First Edition , Bowersox, Closs, and CooperCopyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
TECHNOLOGY
• Remote Computing• Automatic TrailerUL• EDI• Radio Frequency• Sortation Systems• HiDensity Unit Load
Automatic Storage• Scanning • Pick-to-Light • M’tl Handling Auto.
![Page 33: Supply Chain Logistics Management Chapter 13: Warehouse Management](https://reader035.vdocument.in/reader035/viewer/2022081419/56649d565503460f94a345c3/html5/thumbnails/33.jpg)
Logistics in Supply Chain Management, First Edition , Bowersox, Closs, and CooperCopyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
WAREHOUSING IN FUTURETOPIC OF WORKSHOP
• Evolutionary cycles– Become paperless
– Become shelfless
– Become seamless
• External factors– Global networks
– People
– Third party
– Technology
• Reverse logistics
• Company examples
![Page 34: Supply Chain Logistics Management Chapter 13: Warehouse Management](https://reader035.vdocument.in/reader035/viewer/2022081419/56649d565503460f94a345c3/html5/thumbnails/34.jpg)
Logistics in Supply Chain Management, First Edition , Bowersox, Closs, and CooperCopyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
CONCLUSION
• Warehouse strategy is evolving to more focused and flexible
• Technology and expertise are key warehouse alternative determinants
• Operating and industry synergies are more important factors