Warehouse activities are providing services to other departments in an organization. Warehouse functions are closely related to marketing/sales functions. Effectiveness of warehouse functions has direct impact on sales functions in an organisation.
Relations with other department in an organisation
Transportation
Transportation Service Categories
General freight trucking uses motor vehicles, such as trucks and tractor-trailers, to provide over-the-road transportation of general commodities. This industry segment is further subdivided based on distance traveled. Local trucking establishments carry goods primarily within a single metropolitan area and its
adjacent non-urban areas. Long-distance trucking establishments carry goods between distant areas.
Local trucking comprised 29,400 trucking establishments in 2008. The work of local trucking firms varies with the products transported. Produce truckers usually pick up loaded trucks early in the morning and spend the rest of the day delivering produce to many different grocery stores. Lumber truck drivers, on the other hand, make several trips from the lumberyard to one or more construction sites. Some local truck transportation firms may also take on sales and customer relations responsibilities for a client, in addition to delivering the firm’s products.
Long-distance trucking comprises establishments engaged primarily in providing trucking between distant areas and sometimes between the United States and Canada or Mexico. Numbering 40,900 establishments, these firms handle every kind of commodity.
Specialized freight trucking provides over-the-road transportation of freight, which, because of size, weight,
shape, or other inherent characteristics, requires specialized equipment, such as flatbeds, tankers, or refrigerated trailers. This industry sector also includes the moving industry—that is, the transportation of household, institutional, and commercial furniture for individuals or companies that are relocating. Like general freight trucking, specialized freight trucking is subdivided into local and long-distance components. The specialized freight trucking sector contained 47,600 establishments in 2008.
Intermodal transportation encompasses any combination of transportation by truck, train, plane, or ship. Typically, trucks perform at least one leg of the trip, since they are the most flexible mode of transport. For example, a shipment of cars from an assembly plant begins its journey when they are loaded onto rail cars. Next, trains haul the cars across country to a depot, where the shipments are broken into smaller lots and loaded onto tractor-trailers, which drive them to dealerships. Each of these steps is carefully orchestrated and timed so that the cars arrive just in time to be shipped on their next leg of their journey. Though some perishable and time-sensitive goods may be transported by air, they are usually picked up and delivered by trucks.
Warehousing and storage facilities comprised 15,200 establishments in 2008. Komar Distribution Services (KDS) operates warehousing and storage facilities for general merchandise and retail apparel. KDS takes responsibility for keeping general merchandise and apparel secure and in good condition. In addition to inventory warehousing services, we offer logistical services, such as labeling, inventory control management, repackaging, and transportation arrangement.
Production
· Main user
· Ensure that all the required materials by production are available continuously
· Feedback from production must be accurate, including future production
Customer service
Warehouse Design & Operations
The design of your warehouse and the operations standards and procedures you establish will have a tremendous effect on customer satisfaction. The best strategies, however, are often simple, basic common sense – so basic that they are often forgotten.
The design of your warehouse and the operations standards and procedures you establish will have a tremendous effect on customer satisfaction. The best strategies, however, are often simple, basic common sense – so basic that they are often forgotten.
Many of these simple principles address efficiency. If you are wondering how that relates to customer service, keep in mind that increased productivity, speed and accuracy are the keys to customer satisfaction.
Maintain flexibility:
The first rule of improving the day-to-day operations is to stay flexible. Don ’t be “married” to a particular layout or procedure. Cultivate an attitude of openness to new ideas and “better mousetraps”. As your business grows, you’ll be obliged to change aspects of your operation. In the meantime, flexibility will make constant improvement part of your working culture, and you and your staff will be ready for the day when circumstances force you to make changes.
The first rule of improving the day-to-day operations is to stay flexible. Don ’t be “married” to a particular layout or procedure. Cultivate an attitude of openness to new ideas and “better mousetraps”. As your business grows, you’ll be obliged to change aspects of your operation. In the meantime, flexibility will make constant improvement part of your working culture, and you and your staff will be ready for the day when circumstances force you to make changes.
Use the cube:
Your warehouse isn ’t just floor space or space that can be reached by the pick personnel standing on the floor. When designing storage, think “upwards”; use all the space. This may necessitate more elaborate racking and some form of sophisticated material-handling equipment, but such investments could well make your warehouse operate more cost-effectively in the long term.
Your warehouse isn ’t just floor space or space that can be reached by the pick personnel standing on the floor. When designing storage, think “upwards”; use all the space. This may necessitate more elaborate racking and some form of sophisticated material-handling equipment, but such investments could well make your warehouse operate more cost-effectively in the long term.
Fit equipment and procedures to your product:
Let your product mix dictate methods for storage, slotting, picking and conveyance, not the other way around. Don ’t decide you like one kind of slotting and struggle to make it work for all your merchandise. If your catalog or e-commerce site sells a variety of merchandise (soft goods that come in various sizes and colors, books and giftware, for instance) figure out what works best for each category. Then calculate how much of each you need based on the average merchandise mix and your customers’ ordering patterns. Many direct-to-customer business software packages can perform this sort of analysis and generate reports to guide you.
Let your product mix dictate methods for storage, slotting, picking and conveyance, not the other way around. Don ’t decide you like one kind of slotting and struggle to make it work for all your merchandise. If your catalog or e-commerce site sells a variety of merchandise (soft goods that come in various sizes and colors, books and giftware, for instance) figure out what works best for each category. Then calculate how much of each you need based on the average merchandise mix and your customers’ ordering patterns. Many direct-to-customer business software packages can perform this sort of analysis and generate reports to guide you.
Think traffic:
Plot out how and when merchandise moves through your warehouse. Walk through Picking and Packing – and don’t forget Replenishment. Use the rule of thumb that you’ll need one week’s average sales of all “A” items in primary pick locations and allow for enough space in and easy access to those locations. Consider your replenishment patterns: do you favor demand replenishment (replenishment based on order trends) min-max controls (automatic replen-ishment when quantities reach predetermined levels) or both? Factor this into your traffic plan – and then factor your traffic plan into design and operations strategies.
Plot out how and when merchandise moves through your warehouse. Walk through Picking and Packing – and don’t forget Replenishment. Use the rule of thumb that you’ll need one week’s average sales of all “A” items in primary pick locations and allow for enough space in and easy access to those locations. Consider your replenishment patterns: do you favor demand replenishment (replenishment based on order trends) min-max controls (automatic replen-ishment when quantities reach predetermined levels) or both? Factor this into your traffic plan – and then factor your traffic plan into design and operations strategies.
Be tidy and avoid congestion:
Avoiding congestion isn’t just a matter of cosmetics; cluttered aisles really can slow down the movement of goods through the warehouse. Also, a disorganized, cluttered warehouse leads to more frequent – and costly – errors. Avoiding this means keeping up with receiving, putaway and replenishment, and not letting merchandise accumulate in the aisles; your warehouse staff will move more efficiently and be less prone to costly accidents. It also means allowing for enough accumulation space where needed. At the receiving dock, for example, if you don’t have enough space to put the goods that are being off-loaded and staged for putaway, once that space is filled, work will cease. The same is true of space to accumulate completed orders that are packed for shipping. A good rule of thumb is to assume you will keep 10 percent of primary picking and reserve storage locations empty; that way, during peak times, if they do fill up, they won’t overflow.
Avoiding congestion isn’t just a matter of cosmetics; cluttered aisles really can slow down the movement of goods through the warehouse. Also, a disorganized, cluttered warehouse leads to more frequent – and costly – errors. Avoiding this means keeping up with receiving, putaway and replenishment, and not letting merchandise accumulate in the aisles; your warehouse staff will move more efficiently and be less prone to costly accidents. It also means allowing for enough accumulation space where needed. At the receiving dock, for example, if you don’t have enough space to put the goods that are being off-loaded and staged for putaway, once that space is filled, work will cease. The same is true of space to accumulate completed orders that are packed for shipping. A good rule of thumb is to assume you will keep 10 percent of primary picking and reserve storage locations empty; that way, during peak times, if they do fill up, they won’t overflow.
Minimize travel time:
Most of your warehouse staff’s time is spent traveling back and forth, so make every step count. Batch and route work assignments to minimize unproductive travel time; sort orders in a variety of ways, depending on customer and business needs (regular vs. overnight shipment or singles vs. multi-line orders). In many cases, direct-to-customer business software packages or warehouse management software packages can do the sorting and routing according to your specifications. Equip your staff with the right material-handling tools so they can carry as much as possible on a given trip. Consider conveyor belts if they are feasible and cost-effective for your operation. (There’s a wide range of kinds and prices, from gravity powered conveyors to fully automated.) Save an entire step in the process by cross-docking whenever possible; that is, if a back-ordered item arrives, send it directly to the packing area so it can be shipped immediately, rather than moving it through putaway, replenishment and picking first.
Most of your warehouse staff’s time is spent traveling back and forth, so make every step count. Batch and route work assignments to minimize unproductive travel time; sort orders in a variety of ways, depending on customer and business needs (regular vs. overnight shipment or singles vs. multi-line orders). In many cases, direct-to-customer business software packages or warehouse management software packages can do the sorting and routing according to your specifications. Equip your staff with the right material-handling tools so they can carry as much as possible on a given trip. Consider conveyor belts if they are feasible and cost-effective for your operation. (There’s a wide range of kinds and prices, from gravity powered conveyors to fully automated.) Save an entire step in the process by cross-docking whenever possible; that is, if a back-ordered item arrives, send it directly to the packing area so it can be shipped immediately, rather than moving it through putaway, replenishment and picking first.
Stress Accuracy:
Speed means nothing if the wrong items are shipped out. Lack of accuracy costs you in both customer satisfaction and money to correct your mistake. Use bar codes and scanners as much as possible in receiving, picking, packing and shipping. Make quality control a non-negotiable part of the packing process; have packers double-check orders or use your computer system’s pack-verification function before they are packed to correct any mistakes.
Speed means nothing if the wrong items are shipped out. Lack of accuracy costs you in both customer satisfaction and money to correct your mistake. Use bar codes and scanners as much as possible in receiving, picking, packing and shipping. Make quality control a non-negotiable part of the packing process; have packers double-check orders or use your computer system’s pack-verification function before they are packed to correct any mistakes.
Schedule wisely:
Approach scheduling like an engineer. When does it make the most sense to do which task? Staggering work schedules increases productivity. Have the pickers start their day a little before the packers, because when the packers start, they have orders to work with the minute they hit their workstations. Likewise, replenishment is more efficient when performed off-shift – that is, when the replenishers won’t bump into the picking crew. It’s a balancing act, but worth it.
Approach scheduling like an engineer. When does it make the most sense to do which task? Staggering work schedules increases productivity. Have the pickers start their day a little before the packers, because when the packers start, they have orders to work with the minute they hit their workstations. Likewise, replenishment is more efficient when performed off-shift – that is, when the replenishers won’t bump into the picking crew. It’s a balancing act, but worth it.
Auditing and benchmarking:
Once you arrive at a warehouse design and operational procedures, don’t stop there. Customer satisfaction requires that you be vigilant about maintaining the standards that you have set, and – especially in the instant-gratification culture of e-commerce – improving on them. Two analytical tools can help you in this endeavor: regular operations audits (productivity, cost and quality measurements of every task in the warehouse) and benchmarking (numeric comparisons of your performance against internal standards and that of comparable companies).
Once you arrive at a warehouse design and operational procedures, don’t stop there. Customer satisfaction requires that you be vigilant about maintaining the standards that you have set, and – especially in the instant-gratification culture of e-commerce – improving on them. Two analytical tools can help you in this endeavor: regular operations audits (productivity, cost and quality measurements of every task in the warehouse) and benchmarking (numeric comparisons of your performance against internal standards and that of comparable companies).
Audit your performance:
Measure productivity throughout the ware-house. Calculate units of merchandise processed per hour by various departments, accuracy of shipments (based on returns), order turnaround time, cost of labor and other costs. Include everything: labor, physical plant and equipment, computer systems and procedures. Analyze these figures to create key operating reports for measuring performance. Note any trends over time. Analyze the audit observations and create action plans for improvement.
Measure productivity throughout the ware-house. Calculate units of merchandise processed per hour by various departments, accuracy of shipments (based on returns), order turnaround time, cost of labor and other costs. Include everything: labor, physical plant and equipment, computer systems and procedures. Analyze these figures to create key operating reports for measuring performance. Note any trends over time. Analyze the audit observations and create action plans for improvement.
Make a physical audit of the warehouse:
Create a template to define areas and issues to check your physical audit. This is the road map you will follow when you make regular tours of the facility.
Create a template to define areas and issues to check your physical audit. This is the road map you will follow when you make regular tours of the facility.
Note conditions such as the organization of the plant, condition of the equipment, organization and completion of paperwork, work pace, working conditions such as lighting, heat, ventilation and cleanliness and morale.
Compare yourself with external benchmarks:
Review industry-wide benchmarks for comparable companies (available in industry publications, at seminars, from fellow catalog professionals and consultants). Compare these with your own performance statistics. Do you measure up?
Review industry-wide benchmarks for comparable companies (available in industry publications, at seminars, from fellow catalog professionals and consultants). Compare these with your own performance statistics. Do you measure up?
Set the standards you would like to achieve:
Using industry benchmarks and your own unique operating characteristics as a guide, set your own standards. Put them in writing so you can refer to them in the future, and make sure your employees are aware of them. Conduct a systematic search for areas of potential improvement.
Using industry benchmarks and your own unique operating characteristics as a guide, set your own standards. Put them in writing so you can refer to them in the future, and make sure your employees are aware of them. Conduct a systematic search for areas of potential improvement.
Make auditing and benchmarking part of your routine:
Don’t just measure performance and set goals for improvement once. Schedule regular reviews, major and minor, throughout the year.
Don’t just measure performance and set goals for improvement once. Schedule regular reviews, major and minor, throughout the year.
Compare your goals to actual performance. Your warehouse plays a major role in the satisfaction of your customers.
By paying attention to the basics of efficient design and operations and measuring performance regularly, you can boost customer satisfaction, and ultimately, profits.
Least total cost logistics
Source: adapted from McKinnon, A. "The Effects of Transport Investment on Logistical Efficiency", Logistics Research Centre, Heriot-Watt University, Edinburgh, UK.
Total logistics costs consider the whole range of costs associated with logistics, which includes transport and warehousing costs, but also inventory carrying, administration and order processing costs. The above graph portrays a simple relationship between total logistics costs and two important components; transport and warehousing. Based upon the growth in the shipment size (economies of scale) or the number of warehouses (lower distances) a balancing act takes place between transport costs and warehousing (inventory carrying) costs. This function differs according to the nature of freight distribution. There is a cutting point representing the lowest total logistics costs, implying an optimal shipment size or number of warehouses for a a specific freight distribution system. Finding such a balance is a common goal in logistical operations.
Distribution
· Very important when the warehouse control the finished goods/stock
· Goods will be distributed to transport depot, distributor and all distribution network
· Need to ensure correct stock in a right quantity and ready to be distributed
· Distribution need to give up-to-date information on distribution system requirements
