Warehouse

Types of WarehouseManufacturing Support

Factory Retail Distribution Catalog Retailer

•Stock room providing raw material and work in process items to manufacturing operations•Contains many small orders•Only Statistical information available about order composition •Stringent time requirement for response time •Primary focus on response time but accuracy and cost also are important

•Interface production with wholesalers •A Comparatively small number of orders are picked up on daily basis•Advance information about the order composition is required •High focus on cost and order accuracy •Responsiveness heavily depends on production schedules

•Serves a number of captive retail units •Advance info about order composition is needed •Carton and item picking is done from a forward area •More orders per shift than consolidation/shipping lanes •High focus on cost, accuracy, and fill rate of the packages •Responsiveness depends heavily on truck routing schedules

•Fills orders from catalog sales •A large numbers of small, frequently single –lines orders are picked up •Item and, sometime, carton picking •Daily compositions of orders are usually unknown •Only statistical information available •High focus is on cost and response time

Warehouse Site Selection

Availability of Transportation

InfrastructureRoadPowerUtilitiesWater

Skilled Manpower

Government Regulations

Strategic Factors-monitoring & control, pre-determined sites, future Plans

Environmental Factors

Warehouse Management Process

Inbound

Dock / Unload

Receipt of goods

Put away

Pick list Creation

Order picking

Packing Line

Dispatch

Documentation

Warehouse Strategic Questions? What is the need for the Warehouse?

What business is it catering to?

Where should the warehouse be located?

Is the warehouse location well connected?

Is there good telecommunication connection?

What should be the size of the Warehouse?

What should be the height?

How many bays should the Warehouse have?

What are the markets or locations that the Warehouse would be catering to?

What should be the stocking policies?

What should be the replenishment policies?

What should be the Health and Safety policies?

What should be the Security arrangements?