deliver- exam 3

warehouse management (definition)

process of coordinating the receipt, storage, handling, and movement of goods w/in and between facilities

warehouse management ensures…

right product, quantity, time, place

warehouse management represents the intersection of what?

inventory management, transport management, the physical hub of sc

Warehouse Goals (4)

• maintain inventory accuracy

• enable efficient flow

• support customer service

• minimize total logistic costs

Inbound logistics

moving materials/products in to warehouse from supplier/manufactures/ports

inbound activities

receiving, unloading, inspection, put-away, replenishment

outbound logistics

movement of goods out of warehouse to customers/ store/ distribution partners

outbound activities

picking, packing, staging, loading , shipping

warehouse management flow

supplier → dc (inbound)→ storage/pick/pack → store (outbound)

INbound is driven by what?

supply-driven

Outbound is driven by what?

demand driven

throughput

total volume of product moving through the facility over a given period

Warehouse Core Functions: Receiving

unload, check quantities and sku’s w/ order, inspect for damage/defect, barcodes/rfid labels

receiving goal

accuracy and speed

Warehouse Core function: Put-Away

move items to assigned location

fixed: same sku store in same spot- fast/ predictable

random: system-optimized, better space utilization

Warehouse Core Functions: Storage

balance accessibility and density

pallet racking, shelving, bulk floor storage

^based on density, size, weight

Storage trade offs

high storage density = lower access

high accessibility= lower storage efficiency

Warehouse Core Functions: Order Picking

starts outbound- once ordered

most labor intensive and costly warehouse function (55% of total labor)- collect skus to fulfill outbound orders

Order Picking Methods

Discrete: one at a time

Batch: group similar orders

Zone: each worker covers a zone

Wave: schedule picks for specific shipping waves

Warehouse Core Functions: Packing

combine picked items, verify correctness, prepare for ship

weighing and labeling, protective packaging/documents, sealing cases/ stretch wrapping

Decision Point in Packing

full pallet shipping (B2B) or parcel packing (B2C)

Warehouse Core Function: shipping

consolidate order, stage by carrier/destination/route, loading trailers, updating WMS and generating bill of lading

Accuracy prevents costs how

early accuracy prevents exponential costs

Efficient Flow in warehouse design

• support smooth movement

• minimize travel distance

• maximize space utilization

• enable scalability

U flow layout (description + adv/ disadv)

docks on same side of building- moves in U shape, in and out on the same side

adv: compact, easy supervision, efficient in smaller spaces

disadv: congestion risk w shared dock area

Through Flow Layout (description + adv/ disadv)

docks on opposite sides- straight line flow

adv: clear flow, minimal backtrack

disadv: larger site and more dock doors

L flow Layout (description + adv/ disadv)

inbound on one side, outbound on adjacent side- useful for site restricted locations/ mult building connections

slotting

determining where each sku should be stored in warehouse to minimize travel time and maximize picking efficiency

velocity

rate which sku moves in warehouse (many units move)

pick frequency

how often sku is picked within a time frame (how often their sold)

hit rate

% of total orders that include a given sku

velocity does NOT = frequency

move many units rarely- high velocity low freq

few units often - low velocity high freq

Golden Zone picking (definition)

positioning items within the zone, ergonomic range between workers waist and shoulder, picking = safe/ fast

gold zone range

waist to shoulders

silver zone range

above shoulders/ below waist

bronze zone range

floor level or top racks

linking slotting to warehouse layout

fast movers near shipping area

medium in center

slower deep or vertical

design trade off: high density storage

pro: maximize space

con: reduces accessibility/ flexibility

design trade off: high accessibility

pro: easier access, faster picking

con: uses more cubic space

design trade off: balance design

pro: blend of both, depends on sku profile

con: requires good data analysis

Integrating Flow with Transportation

align dock doors by route/ destination

design adequate staging lanes - in and out bound loads

support corss docking

ensure yard management space for trailer spotting/ drop lots

Fulfillment Center

designed to process and ship customer orders quickly/efficiently - entire order to delivery process

FC key differences from traditional warehouses

customer centric: prioritize rapid order processing - B2C

value-added: offer additional service (assembly, label, etc)

technology-driven: heavily leverage automation, IMS, robotics

FC critical elements for E-commerce

scalability, speed/accuracy, geographic reach, cost efficiency

each picking

selecting individual units

tote/bin

standardized plastic container used for transport or storage inside FC

Put Wall

shelving station, picked items are grouped by customer orders

Re-bin/ induct

step where totes are scanned back into automated systems after decanting

AMR

autonomous mobile robot used for moving totes/inventory

decanting process

unpacking/induction - removing inventory from inbound cases/pallets and transferring into totes/bins/storage system so they can be individually picked for online orders

Decanting steps (5)

1. inbound receiving

2. unpacking/decanting

3. labeling

4. induction to storage

5. ready for picking

Decanting steps: Inbound Receiving

pallets or cartons arrive, sku’s verified w purchase order

Decanting step: unpacking/decanting

workers open cartons/remove items, each item/group of items is canned and put in tote/bin, barcodes/weights are confirmed by WMS

Decanting Step: labeling

totes are labeled with tote ID, sku, quantity, sometimes mixed sku or single sku

Decanting steps: introduction to storage

toes are sent via conveyor / AMR to RS, shuttle racks/ put walls

location is automatically assigned by WMS

decanting step: ready for picking

once in system, totes are accessible for robotic/ manual picking

Decanting is Necessary for…

picking precision, system accuracy, automation readiness, quality control

replenishment (definition)

restocking inventory so thar products are always available when needed, store shelves, picking bins, or DC

ensures: products don’t stockout, warehouse doesn’t overstock

replenishment matters…

balances service levels, controls inventory carrying cost, support smooth transport schedule

Demand Driven Replenishment

replenishment decision are based on actual customer demand/sales data - not a fixed schedule

Replenishment Min/Max system

set min and max stock levels, hit min reorder to max

replenishment: fixed order quantity

reorder same quantity each time (EOQ)

replenishment: fixed interval

order at set time intervals

replenishment: demand-driven (pull)

triggered by actual consumption or POS data

Replenishment: Vendor Managed Inventory

supplier monitors/ replenished customers stock

in/out bound which has more handling/label

outbound- it is always more expensive makes mixed pallets

A class

30% of skus- 50% of picking

B class

next 30% if skus- 25-30% of picking total

C class

last 40% of skus- 25% of picking total

TI- HI

case containing multiple mults of products

ti- number of cases that fit on one layer of a pallet

hi- number of layers that can be stacked

quanity= ti *hi

material handling

science/art of moving, storing, controlling, protecting materials through sc- inside factory, factory, dc

how products physically travel in a facility

material handling objective

reduce labor cost

improve safety

increase efficiency

maximize space use

maintain product quality

support automation

core functions of material handling

movement, storage, control, protection

Material Handling Equipment

transport (move), storage (hold), unit load formation (multi items in manageable load), positioning equipment (lift, rotate, align)

Transport equipment types

manual- people, lift, push, jacks

mechanized- machine, forklift, cranes

automated- robotic, AS/RS, AGV, AMR

Storage Equipment Types (3)

static storage, dynamic storage, automated

static storage

simple+ low cost

no mechanical movement- stationary

slow and labor intensive/injury

dynamic storage

increase accessibility

motion/gravity- rack styles, carousels

still depends on operators

automated storage

high density and accuracy

controlled by computers- AS/RS system,shuttle racks

high cost+ complex maintence

unit load formation

base platform- pallet, skids

containers- totes, crates

load securing - strch wrap/wraps

AS/RS- Automated Storage and Retrieval Systems

computer controlled system- automatically places, storages, retrieves from defined storage locations

mechanized equipment - no manual put away/pick up

AS/RS answers what questions

where to store? how to retrieve fastest? use the least space possible?

AS/RS in digital flow

item arrives→ barcode scan (location)→ transport (slot)→ retrieval (when requested)

AS/RS benefits

space utilization, accuracy, speed, labor efficiency, safety, inventory visibility

AS/RS Challenges

high initial cost, complex implementation, limited flexibility, maintenance needs

Robotics - warehouse operations (3)

AMRs: self navg. robots- carry between work stations

AGVs: fixed paths w magnets/ lasers to move pallets

robotic arms: used for picking, sorting, palletizing

Robotics are transforming warehouses

labor shortages, rising e-commerce demand, safety concerns, space constraints

Warehouse MAnagement System - WMS

digital brain- software that plans, coordinates, monitors every warehouse activity -digital command center

why WMS matters

ensures every movement is recorded/ purposeful- creates data driven operations

Core WMS functions

receiving, inventory management, picking/shipping, put-away, picking and replenishment, reporting and analytics

which warehouse systems connect

ERP→ WMS→ TMS →OMS

how these warehouse software systems work together

order received-oms

order approved- erp

fulfillment assigned -wms

shipment planned- tms

order completed

cross docking

inbound is unpacked and sorted and reloaded directly into outbound trucks- move product dont store

types of cross docking

manufacturing, distribution, retail, transportation

DC channels and their warehouse role

1. manufacturer- produces goods

2. distributor- sells to wholesale/ retail

3. wholesaler- sells in bulk to retailers

4. retailers- sells directly to consumer

5. customers- end consumer

distributor- warehouse focus, flow, ex

case-level, compliance focused

manufacture→ distributor→ retailer

wine, beer, spirit

wholesaler- warehouse focus, flow, ex

bulk pallet storage

manufacture→ wholesale→ retail

packed food, snacks, bev

Retailer- warehouse focus, typical flow, ex

unit picking, replenishment, returns

DC→ store or Customers

apparel, consumer goods, e-commerce

warehouse strategy

company designed operates and invest in its warehousing network to support overall business goal- balance: cost, speed, service, sustainability

warehouse strategy is not but is_

is not about store goods, its about competitive advantage