Keep it simple: The measures that you implement must be simple. The performance indicator or key performance indicator (KPI) is a measure of performance of the business in order to benchmark against the competition and explore the possibility to improve in order to gain competitive advantage. The more measures you roll out, the less chance you have of success. 1.5 Requirements for a Warehouse A key to taking a more scientific approach to warehousing is an awareness and acceptance of the warehousing requirements of success. A Handbook for Storekeepers of Food Aid. This advance, together with a more pro-active rather than reactive approach, has emphasised an increased need for improved planning and operational management. Supply chain management: concepts, techniques and practices enhancing the value through collaboration, World Scientific, p.347. Every business question should start with the customer. value from their informational assets through use. As with other elements of the supply chain, warehousing is concerned with the two prime factors of cost and service through:-, The environment in which warehousing can operate varies from a single central area as a base for receiving, storing and preparing for delivery to the total market place to a complex network of central, regional and local facilities. You involve not only employees in the warehouse, but in other parts of the organisation as well. If you are found to have inaccurate data, your credibility is gone. 5.12 Direct shipping network with milk runs 75 Fig. The government also regulates the functions and operations of these warehouses. 5.14 A Tailored network .. 76 Fig. No supply chain design and management is adequate without deciding the location, design and management of warehouses. Make sure that it fits: The measures that you implement must fit into you current system of work. Warehouse management systems: A real-time, bar-code based, RF communication WMS (warehouse management system) will be required to meet todays requirements. It is the first step in establishing effective performance measures. Proper arrangement should be there to protect the goods from sunlight, rain, wind, dust, moisture and pests. It is the process whereby organizations extract. Formats. 0% found this document useful, Mark this document as useful, 0% found this document not useful, Mark this document as not useful, Save I - Introduction to Warehousing.pdf For Later, We often define warehousing as the storage of, interpreted, this definition includes a wide spectrum of, the storage of iron ore in open fields; the storage of, finished goods in the production facility; and the storage of, raw materials, industrial goods, and finished goods while. The receiving activity is fundamental to warehousing function. 5.9 Supply chain model 69 Fig. Analysis of logistics costs show that warehouse costs account for approximately 30% of the total. If the answer is something or nothing, you need to know it. See pp 13 of report. It creates, The effective and efficient management of any organization requires that, all its constituent elements operate effectively and efficiently as, individual SBUs/facilities and together as an integrated whole, Across the supply chains, warehousing is an important element of activity, in the distribution of goods, from raw materials and work in progress, through to finished products .It is integral part to the supply chain, network within which it operates and as such its roles and objectives, should synchronize with the objectives of the supply chain. It creates time utility by bridging the time gap between production and consumption of goods. The first one is known as picker-to-stock, where the picker moves around to pick the cases. You need the support of your human resource people to make this succeed. It must be accurate: Your program must produce accurate measures right out of the starting gate. Concepts of Warehousing [Online] Available at: [Accessed 2 January 2012]. 8.4 Demand management process . 119 Fig. Unless the merchandise is properly received, it will be very difficult to handle all other subsequent functions. The warehouses can economically employ security staff to avoid theft, use insecticides for preservation and provide cold storage facility for perishable items. foot Utilisation: % Location and cube occupied Quality: % Location without inventory discrepancies Cycle time: Inventory days on hand Pick-n-pack This activity again can be broadly divided into two parts. The data warehouse is the core of the BI system which is built for data analysis and reporting. This process is called put-away and this is just reverse of order pick function. The objective of this activity is to improve from learning the performance measurement in order to execute things better, faster, and cheaper. What is a data warehouse? You have learnt that warehousing caters to the storage needs of different types of commodities. The warehouse is the backbone of a company, and warehouse workers make the retail world go round. This chapter Seasonal demand: There are certain goods, which are demanded seasonally, like woollen garments in winters or umbrellas in the rainy season. These requirements of success may then be used as a foundation upon which to assess the status of ones warehouse operations. Warehousing and Supply Chain Management 7. 1.16 Implementing Your Measures When you implement your measures, you put them into action. Check Pages 1-33 of Introduction to Warehousing in the flip PDF version. In other words, warehousing means holding or, preserving goods in huge quantities from the time of their purchase or. 5.8 Areas of e-business . 65 Fig. The person in-charge of warehouse is called warehouse-keeper. Consolidation The warehouse acts as a consolidation point to pull product from suppliers into a location, which sorts and then moves to the final customer. Put-away Once receiving activity is completed, the accepted merchandise has to be stored in a location that is convenient to retrieve for further action. Available at HQ Library. mfscnet, 2011. Supply Chain Network [Video Online] Available at: [Accessed 2 January 2012]. This large volume of data is usually the historical data of an organization known as the data warehouse. During this flow product may change format several times from raw material, into work in progress before becoming a finished product. The holding of materials/goods in a warehouse incurs the cost of running and maintaining the warehouse as well as the cost of the initial building and equipment. The data Warehousing," used a alike term way back in the 1970s warehouse exists to answer questions users have about while working as a data professional and becoming an the business, the performance of the various operations, expert in relational data modeling. a. Use it or lose it: Once implemented, you must use your measurements, just as you said you would. Warehousing and Supply Chain Management The warehousing requirements of success are: Professionalism: Warehousing will be viewed as a critical logistics step and a competitive strength and not as a necessary evil. The warehousing operation is an integral part of the total supply chain process and creates a clearly defined break point between the supply and demand aspects of any business. 8.6 Collaborative planning, forecasting and replenishment process .. 122 Fig. International barriers as the scope of the activity reaches across national borders. Three key developments are :-. You know that, sugarcane is produced during a particular period of the year. Supply Chain Management: Concepts and Cases, PHI Learning Pvt. CONCEPT Need for storage arises both for raw material as well as finished products STORAGE involves proper management for preserving goods from the time of their production or purchase till actual use. 4.2 A supply chain network 41 Fig. This will lead to an iterative process to achieve the best solution. The level of service provided to customers will be determined through the effective and efficient practices and procedures used throughout the warehouse operation. Accuracy is a key ingredient of success. Distribution The warehouse network allows products to be pushed from the manufacturer through the network to the end user. Mechanical handling also minimises wastage during loading and unloading. Key performance c. Continuity d. Integration 8. Similarly, businessmen also need a variety of goods for their use. Large-scale production: In case of manufactured goods, now-a-days production takes place to meet the existing as well as future demand of the products. Public The warehouses, which are run to store goods of the general public are known as public Warehouses warehouses.Any one can store his goods in these warehouses on payment of rent.An individual, a partnership firm or a company may own these warehouses. Warehousing is one of the important auxiliaries to trade. Well conclude with a step-by-step review of how to implement performance measures in your warehouse. It is part of intralogistics and closely linked to materials handling and packaging technology. The warehousing and storage industry includes establishments operating facilities for general merchandise, refrigerated goods, and other products. Chavan, S. K., 2010. Protection and Preservation of goods c. Transportation d. Easy handling 6. Thus, the risk of loss or damage to goods in storage is borne by the warehouse keeper. 7.3 Push and pull systems in supply chain .. 100 Fig. Warehousing offers many advantages to the business community. Further as it progresses a number of barriers are encountered: There is a need in most supply chains, particularly complex supply chains, to hold inventory, two of the main reasons for holding inventory is to cover for variations in demand e.g. production till their actual use or sale. You know that sugarcane is produced during a particular period of the year. The principles of data warehousing in business and how it can enhance the generation of new knowledge throughout the organization are described to provide a clear and simple description for busy managers and laymen. Again, after production of sugar it requires some time for sale or distribution. What is success as defined by the customer? Or is your customer distribution point that serves the end customers? The important thing is to ensure that they are meaningful. As with the previous expectations, you must link human resources expectations with the thread that runs to your specific performance measures. 6.3 Pegging in SCM 91 Fig. Processing is required to make them consumable. Financing: When goods are deposited in any warehouse, the depositor gets a receipt, which acts as a proof about the deposit of goods. It makes special arrangements for different products according to their nature. 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