Sie sind auf Seite 1von 81

PROJECT REPORT ON WAREHOUSING

SUBMITTED BY

STUDENT NAME
T.Y.B.M.S. SEMESTER V ACADEMIC YEAR 2011-2012 PROJECT GUIDE

SUBMITTED TO UNIVERSITY OF MUMBAI

College address

WAREHOUSING

DECLARATION I, student name, A STUDENT OF college name, college address, STUDYING IN T.Y.B.M.S. HEREBY DECLARE THAT I HAVE COMPLETED THIS PROJECT ON WAREHOUSING DURING THE ACADEMIC YEAR 2011-2012. KNOWLEDGE. THE INFORMATION SUBMITTED IS TRUE AND ORIGINAL TO THE BEST OF MY

DATE : PLACE : MUMBAI

SIGNATURE OF STUDENT

WAREHOUSING

CERTIFICATE I, PROF. , HEREBY DECLARE THAT SONAM SHAH OF

BHAVANS COLLEGE, MUNSHI NAGAR, ANDHERI [WEST] , MUMBAI 400058, STUDYING IN T.Y.B.M.S. HAS COMPLETED HIS PROJECT ON WAREHOUSING 2011-2012. THE DURING THE ACADEMIC KNOWLEDGE. YEAR INFORMATION

SUBMITTED IS TRUE AND ORIGINAL TO THE BEST OF MY

PROF. SIGNATURE OF PROJECT GUIDE

Principal name SIGNATURE OF THE PRINCIPAL OF THE COLLEGE

WAREHOUSING

ACKNOWLEDGMENT

The collaboration and assistance of many people are involved in producing a book. Its customary for an author to thank all the people who helped him with his book. But since this is a project work, I want to begin by thanking some of the people who helped me with the completion. First of all I would like to thanks University of Mumbai for giving me chance to work on this project. I wish to take this opportunity to express my deep sense of gratitude to Prof. PROF. NAME for her valuable guidance in this endeavor. She has been a constant source of inspiration and I sincerely thank her for her suggestion and help to prepare this project. I am also grateful to all my BMS colleagues who guided me in the right path. I want to thank my old friends from whom I received material about this project during its development.

WAREHOUSING

INDEX

WAREHOUSING

WAREHOUSING
Introduction
We eat a variety of food in our daily life. Some of us may take rice, while others may take chapati or roti as our main food. But have you ever thought from where the paddy or wheat from which these food items are prepared comes from. We know that these food grains are not produced throughout the year. But we need to eat them everyday. So how are the farmers able to supply these continuously to us? You might be thinking that they store the food grains in a proper place and supply them at the time of need. Yes, you are right. Since the production takes place during a particular season and in specific areas, there is a need to store these grains systematically. In our home we may keep limited stock for our own consumption. But there are certain places or stores, where these items are stored in huge quantities in a proper and systematic way. Similarly, businessmen also need a variety of goods for Business Studies their use. Some of them may not be available all the time. But, they need those items throughout the year without any break. Take the example of a sugar factory. It needs sugarcane as raw material for production of sugar. You know that sugarcane is produced during a particular period of the year. Since sugar production takes place throughout the year, there is a need to supply sugarcane continuously. But how is it possible? Here storage of sugarcane in sufficient quantity is required. Again, after production of sugar it requires some time for sale or distribution. Thus, the need for storage arises both for raw material as well as finished products. Storage involves proper arrangement for preserving goods from the time of their production or purchase till the actual use. When this storage is done on a large scale and in a specified manner it is called warehousing. The place where goods are kept is called warehouse. The person in-charge of warehouse is called warehouse-keeper. Warehousing refers to the activities involving storage of goods on a large-scale in a systematic and orderly manner and making them available conveniently when needed. In other words, warehousing means holding or preserving goods in huge quantities from the time of their purchase or production till their actual use or sale. Warehousing is one of the important auxiliaries to trade. It creates time utility by bridging the time gap between production and consumption of goods. A warehouse plays a key role in the integrated logistics strategy and the building and maintaining of good relationships between supply chain partners. Warehousing affects customer service stock-out rates as well as sales and marketing success. It evens out market supply and demand fluctuations. When supply exceeds demand, a warehouse stores products in anticipation of customers requirements however, when demand exceeds supply the warehouse can speed product movement to the customer by performing additional services like marking prices, packaging products or final assembling.

WAREHOUSING

Definition of Warehouse:
"Warehouses

can be defined as a location or commercial building in industrial parts of towns, which are equipped with adequate facilities, where volume shipments are received from the production centre, and are then broken down into specific order and shipped onwards to the customer. They are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc."

WAREHOUSING

Needs of Warehousing:Warehousing is necessary due the following reasons: (i) Seasonal Production -

Agricultural commodities are harvested during certain seasons, but their consumption or use takes place throughout the year. Therefore, there is a need for proper storage or warehousing for these commodities, from where they can be supplied as and when required. (ii) Seasonal Demand -

There are certain goods, which are demanded seasonally, like woolen garments in winters or umbrellas in the rainy season. The production of these goods takes place throughout the year to meet the seasonal demand. So there is a need to store these goods in a warehouse to make them available at the time of need. (iii) 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. Manufacturers also produce goods in huge quantity to enjoy the benefits of large-scale production, which is more economical. So the finished products, which are produced on a large scale, need to be stored properly till they are cleared by sales. (iv) Quick Supply Both industrial as well as agricultural goods are produced at some specific places but consumed throughout the country. Therefore, it is essential to stock these goods near the place of consumption, so that without making any delay these goods are made available to the consumers at the time of their need. (v) Continuous Production -

Continuous production of goods in factories requires adequate supply of raw materials. So there is a need to keep sufficient quantity of stock of raw material in the warehouse to ensure continuous production. (vi) Price Stabilization To maintain a reasonable level of the price of the goods in the market there is a need to keep sufficient stock in the warehouses. Scarcity in supply of goods may increase their price in the market. Again, excess production and supply may also lead to fall in prices of the product. By maintaining a balance of supply of goods, warehousing leads to price stabilization.

WAREHOUSING

Functions of Warehouses:Warehouses preserve goods on a large-scale in a systematic and orderly manner. They provide protection to goods against heat, wind, storm, moisture, etc. and also cut down losses due to spoilage, wastage etc. This is the basic function of every warehouse. In addition to this, warehouses now a day also perform a variety of other functions.

Warehouses perform the following functions: i) Storage of goods -

The basic function of warehouses is to store large stock of goods. These goods are stored from the time of their production or purchase till their consumption or use. ii) Protection of goods -

A warehouse provides protection to goods from loss or damage due to heat, dust, wind and moisture, etc. It makes special arrangements for different products according to their nature. It cuts down losses due to spoilage and wastage during storage. iii) Risk bearing -

Warehouses take over the risks incidental to storage of goods. Once goods are handed over to the warehouse-keeper for storage, the responsibility of these goods passes on to the warehouse-keeper. Thus, the risk of loss or damage to goods in storage is borne by the warehouse keeper. Since it is bound to return the goods in good condition, the warehouse becomes responsible for any loss, theft or damage, etc. Thus, it takes all precautions to prevent any mishap. iv) Financing -

When goods are deposited in any warehouse, the depositor gets a receipt, which acts as a proof about the deposit of goods. The warehouses can also issue a document in favor of the owner of the goods, which is called warehouse-keepers warrant. This warrant is a document of title and can be transferred by simple endorsement and delivery. So while the goods are in custody of the warehouse-keeper, the businessmen can obtain loans from banks and other WAREHOUSING 9

financial institutions keeping this warrant as security. In some cases, warehouses also give advances of money to the depositors for a short period keeping their goods as security. v) Processing Certain commodities are not consumed in the form they are produced. Processing is required to make them consumable. For example, paddy is polished, timber is seasoned, and fruits are ripened, etc. Sometimes warehouses also undertake these activities on behalf of the owners. vi) Grading and branding-

Warehouses also perform the functions of grading and branding of goods on behalf of the manufacturer, wholesaler or the importer of goods. It also provides facilities for mixing, blending and packaging of goods for the convenience of handling and sale. vii) TransportationIn some cases warehouses provide transport arrangement to the bulk depositors. It collects goods from the place of production and also sends goods to the place of delivery on request of the depositors. viii) ConsolidationConsolidation helps to provide for the customer a combination of products from different supply or manufacturing sources. Instead of transporting the products as small shipments from different sources, it would be more economical to have a consolidation warehouse that will receive these products from various sources and merge these into shipments, which are economical for transportation or as per customer requirements. xi) Cross Docking -

This type of facility enables receipt of full shipments from a number of suppliers, generally manufacturers, and direct distribution to different customers without storage. As soon as the shipments are received, the respective customers are identified and the shipment is placed on the vehicle for onward shipment to the respective customer, smaller shipments accompanying these full shipments are moved to temporary storage to await shipment to the respective customers along with other full shipments. x) Product Mixing -

Products of different types are received from different manufacturing plants or sources in full shipment sizes. These products are mixed into the precise combination for the relevant customer and continuously provided for the product mixture shipments requiring these.

WAREHOUSING

10

Advantages of Warehousing:Warehousing offers many advantages to the business community. Whether it is industry or trade, it provides a number of benefits which are listed below: i) Protection and Preservation of goods -

Warehouse provides necessary facilities to the businessmen for storing their goods when they are not required for sale. It provides protection to the stocks ensures their safety and prevents wastage. It minimizes losses from breakage, deterioration in quality, spoilage etc. Warehouses usually adopt latest technologies to avoid losses, as far as possible. ii) Regular flow of goods -

Many commodities like rice, wheat, etc. are produced during a particular season but are consumed throughout the year. Warehousing ensures regular supply of such seasonal commodities throughout the year. iii) Continuity in production -

Warehouse enables the manufacturers to carry on production continuously without bothering about the storage of raw materials. It helps to provide seasonal raw material without any break, for production of finished goods. iv) Convenient location -

Warehouses are generally located at convenient places near road, rail or waterways to facilitate movement of goods. Convenient location reduces the cost of transportation. v) Easy handling -

Modern warehouses are generally fitted with mechanical appliances to handle the goods. Heavy and bulky goods can be loaded and unloaded by using modern machines, which reduces cost of handling such goods. Mechanical handling also minimizes wastage during loading and unloading. vi) Useful for small businessmen -

Construction of own warehouse requires heavy capital investment, which small businessmen cannot afford. In this situation, by paying a nominal amount as rent, they can preserve their raw materials as well as finished products in public warehouses. vii) Creation of employment -

WAREHOUSING

11

Warehouses create employment opportunities both for skilled and unskilled workers in every part of the country. It is a source of income for the people, to improve their standards of living.

viii) Facilitates sale of goods Various steps necessary for sale of goods such as inspection of goods by the prospective buyers, grading, branding, packaging and labeling can be carried on by the warehouses. Ownership of goods can be easily transferred to the buyer by transferring the warehouse keepers warrant. ix) Availability of finance -

Loans can be easily raised from banks and other financial institutions against the security of the warehouse-keepers warrant. In some cases warehouses also provide advance to the depositors of goods on keeping the goods as security. x) Reduces risk of loss -

Goods in warehouses are well guarded and preserved. The warehouses can economically employ security staff to avoid theft, use insecticides for preservation and provide cold storage facility for perishable items. They can install fire-fighting equipment to avoid fire. The goods stored can also be insured for compensation in case of loss.

WAREHOUSING

12

Characteristics of Ideal Warehouse


In each type of warehouses adequate arrangements are made to keep the goods in proper conditions. However, any warehouse is said be an ideal warehouse if it possesses certain characteristics, which are given below: i. ii. iii. iv. v. vi. Warehouse should be located at a convenient place near highways, railway stations, airports and seaports where goods can be loaded and unloaded easily. Mechanical appliances should be there to loading and unloading the goods. This reduces the wastages in handling and also minimizes handling costs. Adequate space should be available inside the building to keep the goods in proper order. Warehouses meant for preservation of perishable items like fruits, vegetables, eggs and butter etc. should have cold storage facilities. Proper arrangement should be there to protect the goods from sunlight, rain, wind, dust, moisture and pests. Sufficient parking space should be there inside the premises to facilitate easy and quick loading and unloading of goods.

vii. Round the clock security arrangement should be there to avoid theft of goods. viii. The building should be fitted with latest fire-fighting equipments to avoid loss of goods due to fire.

WAREHOUSING

13

Warehouse Activity:

Warehouse Activity Monitor: The warehouse activity monitor helps a manager to oversee, plan and optimize work processes in the warehouse. It provides a tool to notify those responsible if there are delays or errors in the overall system. The warehouse activity monitor also helps to identify and correct warehousing problems or critical processes soon after they occur.

Radio Frequency Monitor: The monitor for radio frequency activities lets you display the current workload and resource capacity in the entire warehouse. It is a graphical tool that gives an overview of the current workload status in the groups that workers are assigned to. Using the radio frequency monitor, a warehouse manager can easily access and influence the work process by redistributing tasks between different work groups and prioritizing the tasks within a group.

Task Monitor (available with TRM): The task monitor allows you to manage and control the resources and tasks in a site. It enables a manager to influence allocation of tasks to different resources and to perform various operations (tasks, resources for example).Compared to the RF monitor, the task monitor drills down to a more detailed view of tasks (such as picking, packing, and weighing) that can be generated from different R/3 Enterprise documents.

WAREHOUSING

14

Purpose of Warehouse:
Primary aim for warehouses and distribution centers is to facilitate the movement of goods from suppliers to customers and, by doing so, meet customers' demand in a timely and costeffective manner. In order to achieve this efficiently manufacturer/supplier may have to hold stock, but this is not the main role of warehouses. Manufacturer may hold stock for contingencies, or to give a rapid customer service, or in preparation for a new product launch. But in their purest form warehouses, like passenger terminals, should be transshipment areas from where dispatch all the goods receive as effectively and efficiently as possible. If he could achieve this he would not incur costs in holding goods (or people) unnecessarily. However, the overriding factor is that he must meet his customers' demand and expectations. For this reason he must hold some stock, but he should minimize this so that he avoids stockholding costs. Basic aim must be to minimize the total cost of the operation while providing the desired level of service. Some valid reasons for holding stock include the following.

As a buffer/consolidation point between two production processes. To cover demand during suppliers' lead-time. To enable savings to be made through bulk purchases or discounts. To cope with seasonal fluctuations. To provide a variety of product in a centralized location. The build up/holding of anticipation stocks (for example, before a new product launch). The build-up and holding of investment stocks.

Manufacturers also use warehouses to break bulk stocks down into smaller orders, to transship goods, to consolidate and complete order activities for our various dependent locations.

WAREHOUSING

15

Types of Warehouses:Warehousing caters to the storage needs of different types of commodities. In order to meet their requirement various types of warehouses came into existence, which may be classified as follows: i. ii. iii. iv. v. i. Private Warehouses Public Warehouses Government Warehouses Bonded Warehouses Co-operative Warehouses

Private Warehouses The warehouses which are owned and managed by the manufacturers or traders to store, exclusively, their own stock of goods are known as private warehouses. Generally these warehouses are constructed by the farmers near their fields, by wholesalers and retailers near their business centre and by manufacturers near their factories. The design and the facilities provided therein are according to the nature of products to be stored.

ii.

Public Warehouses The warehouses which are run to store goods of the general public are known as public 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. To start such warehouses a license from the government is required. The government also regulates the functions and operations of these warehouses. Mostly these warehouses are used by manufacturers, wholesalers, exporters, importers, government agencies, etc.

iii.

Government Warehouses These warehouses are owned, managed and controlled by central or state governments or public corporations or local authorities. Both government and private enterprises may use these warehouses to store their goods. Central Warehousing Corporation of India, State Warehousing Corporation and Food Corporation of India are examples of agencies maintaining government warehouses.

iv.

Bonded Warehouses These warehouses are owned, managed and controlled by government as well as private agencies. Private bonded warehouses have to obtain license from the government. Bonded warehouses are used to store imported goods for which import duty is yet to be

WAREHOUSING

16

paid. Incase of imported goods the importers are not allowed to take away the goods from the ports till such duty is paid. These warehouses are generally owned by dock authorities and found near the ports.

v.

Co-operative Warehouses

These warehouses are owned, managed and controlled by co-operative societies. They provide warehousing facilities at the most economical rates to the members of their society.

WAREHOUSING

17

Warehouse Ownership
Warehouse Ownership concern with public or private warehouse.
Major Considerations Primary Decisions Secondary Decisions Owned Regulatory Private ConsiderationsWarehousing

Ownership

Leased

Consideration:

Public

The following represents the major considerations in evaluating warehouse ownership alternative: Owned Warehousing Ownership Classification: Reconfiguration Capital
of warehousing needs Considerations Rented Public Leased

High Control Degree of Operational Control and Responsibility By Owner of Goods Low Control

Owned Leased

Public

The decision in using private or public/contract warehousing is driven by five primary considerations: 1) Management: availability and philosophy: WAREHOUSING 18

Does the organization currently have sufficient management to operate a new warehouse operation? If the answer is no, what is the risk of a start-up with unknown and untested managers? Are rewards given for reducing personnel and assets your company control? (Warehousing is asset intensive and most new operations require capital for facilities and equipment.) 2) Capital: cost and availability: Financial strategy has a major influence on the private-or-public question. Most companies measure their success by examining the ratio of net profits to sales and emphasizing the bottom line. A growing number of corporations place equal or greater emphasis on their ability to receive a return on assets, which is a blending of profit margins and capital turnover. Capital turnover is the ratio of total assets to sales revenue, and this ratio can be improved either by increasing sales or reducing the number of assets controlled be the corporation. When a corporation concentrates on improving return on assets, human resources are rewarded for reducing inventories and minimizing the quantities of fixed assets. 3) Control: The strongest argument for doing it yourself is control. However, if the search and selection for a public/contract warehouse is conducted properly and if expectations are clearly defined and performance is monitored, then the user can achieve greater control. Additionally, electronic monitoring allows users to achieve greater control over 3rd Party warehouse operations. If something goes wrong it can be detected quickly. 4) Labor: Cost and availability of labor and union/non-union are important considerations. 5) Flexibility: Flexibility in space, systems and labor are very important considerations. Can space be expanded or reduced with relative ease? Can the labor force be expanded or reduced with relative ease? How important is it to be able to keep up with technology?

WAREHOUSING

19

Warehouse Receipt:
A warehouse receipt is a document that provides proof of ownership of commodities (e.g., bars of copper) that are stored in a warehouse, vault, or depository for safekeeping. Warehouse receipts may be negotiable or non-negotiable. Negotiable warehouse receipts allow transfer of ownership of that commodity without having to deliver the physical commodity. Most warehouse receipts are issued in negotiable form, making them eligible as collateral for loans. Non-negotiable receipts must be endorsed upon transfer. Warehouse receipts are regulated by the Uniform Warehouse Receipts Act. Warehouse receipts also guarantee existence and availability of a commodity of a particular quantity, type, and quality in a named storage facility. It may also show transfer of ownership for immediate delivery or for delivery at a future date. Rather than delivering the actual commodity, negotiable warehouse receipts are used to settle expiring futures contracts. Warehouse receipts may also indicate ownership of inventory goods and/or unfinished goods stored in a warehouse by a manufacturer or distributor.

WAREHOUSING

20

Warehouse Safety Rules:


Teaching and encouraging employees to follow warehouse safety rules is vital to the success of your business. It's important to provide a safe environment for employees by not just teaching warehouse safety rules but by enforcing them, too 1. Ergonomics: The basis of ergonomics is to minimize stress on the body while performing various tasks. This, in turn, reduces work-related injuries. Ergonomics plays a role in the warehouse environment, particularly with product lifting, shelving and movement. Teach employees the proper way to lift, reach, turn and handle products to reduce ergonomic injuries to the neck, shoulders, spine, and groin regions. Hold workshops to demonstrate proper ergonomic techniques with specific warehouse products. Provide support belts and other equipment that employees can readily use. 2. Chain off Loaded Trucks: Too often, employees step into a loaded truck to do a last-minute check or to adjust a pallet while the driver, unaware anyone is in the truck, drives off. The result can be deadly, with the employee getting thrown out of the truck or injured from shifting products inside the truck. Be sure to chain off loaded trucks. Require drivers to inspect loaded trucks prior to driving off. Teach employees about the serious dangers of getting into a loaded truck. 3. Marking Docks and Work Areas: Marking docks and work areas is an important component of warehouse safety. Be sure to explain to employees the various markings. For example, red marking could mean a do-not-cross line and white could be a general traffic guidance marker. It's important to have marking, but more important to explain the meaning of the markers to employees. 4. Safety Training: Require employees to go through extensive safety training when they are first hired. Hold employee workshops monthly to not only talk about warehouse safety rules, but to provide group discussions. Get feedback from employees on areas to make the warehouse safer and reduce accidental injuries. 5. Enforcement: Have employees sign warehouse safety contracts. Consequences should be given for violating warehouse safety rules. Employees must know that part of employment is contingent upon respecting warehouse safety rules.

WAREHOUSING

21

Warehouse Insurance:
Warehouses expose concentrated values of goods to fire, flood and other damage. They invite theft and open the door to mistakes in tracking inventory. Whether your warehouse is one room or a major facility, it would be wise to protect yourself from the additional liabilities you are assuming. Warehouse insurance may be necessary, the different types of protection available, and the steps couriers can take to minimize their risks and the cost of insurance. Need of Warehouse Insurance: Generally, some form of warehouse insurance is advisable whenever a courier is providing storage services. Other types of insurance simply do not provide adequate protection: Cargo insurance only covers goods "in due course of transit." Once a customer directs you to store its goods, coverage ceases. Property insurance covers your own property -- not your customers'. Even with some "property of others" coverage, your protection is limited by the much exclusion found on every property policy. General liability policies exclude property in your "care, custody or control." Forget warehouses. A customer's insurance may pay them, but then their insurance company has the right to sue you for the full loss. Contracts with your customers that limit your responsibility are vulnerable to legal challenge. We have seen warehouse contracts overturned on a variety of grounds, including the courier's alleged gross negligence, and even the wording and format of the warehouse receipt.

Warehouse Insurance Policy:


Warehouse insurance protects you where these other methods fall short. However, not all warehouse insurance provides equal protection since each insurer is free to draft its own policy language. Some policies are much better than others. For example, some exclude contractual liability or breakage and improper handling. Others only cover specified causes of loss, leaving the burden of proof on you. Just as with cargo insurance, you can benefit from consulting a specialist who will fully analyze your needs and avoid "off-the-shelf" policies. WAREHOUSING 22

Types of Policies: Despite the differences, most ware\-house insurance falls into two broad categories: Warehouseman's' Legal Liability policies and Bailee's Customers policies. Legal liability policies cover what they say - your legal liability as a "bailee" (i.e., ordinary negligence or failure to exercise due care). Thus, if a burglar beat your alarm and stole a truckload of goods, you would probably not be held liable. It would be quite different, however, if the alarm had not been activated, or if an employee start\-ed a fire, or if some computers were knocked around by careless handlers. Warehouseman's' Legal Liability is moderately priced and can cover almost all of your legal responsibilities. Still, it falls short of delivering true peace of mind. After all, how will your customers react when they hear that, just because you are not responsible for the fire or the theft or the landlord's leaking roof, you can't compensate them at all for their lost or damaged property? It is here that Bailees' Customers policies are most useful. They preserve customers' goodwill by covering stored property for loss or damage regardless of your legal liability. Of course, couriers should expect to pay a higher price for this expanded protection.

Warehouse Insurance Conditions:


Limit of Liability:

The Companys limit of liability under this policy on account of any one accident, occurrence, or loss, resulting in loss or destruction of or damage to property, shall not exceed the amount of this policy. It is understood and agreed that the limit of liability as recited herein shall be available for each and every occurrence. Limit of Liability Undiminished: The Companys limit of liability shall not be diminished by the payment of any amounts in accordance with the insuring agreements herein, as all amounts so paid shall be automatically reinstated as of the hour and day of the act causing loss. However, the Insured shall be liable to pay to the Company a additional premium, computed pro rata upon the amount of such loss, from the date of such reinstatement to pro rata the next anniversary date of this policy. Notice of Claim: If any claim or claims, whether groundless or not, be made against the Insured on account of loss or destruction of or damage to property, the Insured shall notify the Company as soon as practicable and if suit ruled against the Insured to enforce any such claim or claims, the Insured shall forward to the Company all summons or other notices served upon the Insured. Subrogation:

WAREHOUSING

23

In the event of any payment of loss or expense under this policy, the Company shall be subrogated to all of the Insureds rights or recovery therefore. The Insured shall execute all papers required and shall do everything necessary to secure such rights.

Other Insurance: If at the time of the occurrence of any loss, destruction or damage covered hereby there is other valid and collectible insurance carried by the Insured, the insurance under this policy shall not apply to such loss, destruction or damage to the extent of such other collectible insurance.

Liability Disclaimed: This insurance shall not cover liability to others assumed by the Insured under any agreement, oral or written; nor any expense, nor the amount of any settlement incurred or made by the Insured on account of any claim unless such expense or settlement is incurred or made by written consent of the Company. The Insured shall not interfere in any negotiations for settlement or in any legal proceedings, but shall, upon request of the Company, aid in securing information and evidence and the attendance of witnesses and in effecting settlements and prosecuting appeals. Action Against Company:

No suit, action or proceeding for the recovery of any claim under this policy shall be maintainable in any court of law or equity unless the same be commenced within twelve (12) months next after the calendar date of the discovery of the loss, destruction or damage out of which such claim arose. Any person or his legal representative who shall have secured final judgment against the Insured because of loss, destruction or damage to the property of such person, liability for which loss, destruction or damage is covered by this policy, shall thereafter be entitled to recover under the terms of this policy. Bankruptcy or insolvency of the Insured shall not relieve the Company of any of its obligations hereunder. Cancellation: This policy may be cancelled by the Insured by mailing written notice thereof to the Company. The Company retaining or collecting the customary short rates for the time it has been in force. It may be cancelled by the Company by mailing to the Insured at the address stated herein notice of such cancellation not less than thirty (30) days thereafter and, if the premium has been paid, by tendering the pro rata earned premium thereon. Provided, however, that no cancellation of this policy or the provisions of this clause shall take effect nor shall the indemnification and insurance herein be reduced or cancelled until thirty (30) days after notice in writing shall first have been given by the Company to and received by the Department of Agriculture, Trade and Consumer Protection of the State. Statutes:

The indemnity and insurance assumed and underwritten by the Company in and by this policy, is furnished so as to enable the Insured to comply with the provisions of Section 99.03 of the Wisconsin statutes and any regulation adopted pursuant thereto. All specific WAREHOUSING 24

statutory provisions in force in the State shall supersede any provisions or conditions of this policy inconsistent therewith. The liability herein assumed by the Company shall in no event be conditioned, reduced or cancelled on account of the possible or actual lack of validity of said statutes or regulations.

Warehouse Management System:


Warehouse Management monitors the progress of products through the warehouse. It involves the physical warehouse, infrastructure, tracking systems, and communication between product stations. Warehouse Management deals with receipt, storage and movement of goods, normally finished goods, to intermediate storage locations or to the final customer. A warehouse management system, or WMS, is a key part of the supply chain and primarily aims to control the movement and storage of materials within a warehouse and process the associated transactions, including shipping, receiving, put away and picking. The systems also direct and optimize stock put away based on real-time information about the status of bin utilization. Warehouse management systems often utilize Auto ID Data Capture (AIDC) technology, such as barcode scanners, mobile computers, wireless LANs and potentially Radio-frequency identification (RFID) to efficiently monitor the flow of products. Once data has been collected, there is either batch synchronization with, or a real-time wireless transmission to a central database. The database can then provide useful reports about the status of goods in the warehouse. The objective of a warehouse management system is to provide a set of computerized procedures to handle the receipt of stock and returns into a warehouse facility, model and manage the logical representation of the physical storage facilities (e.g. racking etc), manage the stock within the facility and enable a seamless link to order processing and logistics management in order to pick, pack and ship product out of the facility. Warehouse management systems can be stand alone systems or modules of an ERP system or supply chain execution suite. The primary purpose of a WMS is to control the movement and storage of materials within a warehouse; you might even describe it as the legs at the end-of-the line which automates the store, traffic and shipping management. In its simplest form, the WMS can data track products during the production process and act as an interpreter and message buffer between existing ERP and WMS systems. Warehouse Management is not just managing within the boundaries of a warehouse today; it is much wider and goes beyond the physical boundaries. Inventory management, inventory planning, cost management, IT applications & communication technology to be used are all related to warehouse management. The container storage, loading and unloading are also covered by warehouse management today. Warehouse management today is part of SCM and demand management. Even production management is to a great extent dependent on warehouse management. Efficient warehouse management gives a cutting edge to a retail chain distribution company. Warehouse management does not just start with receipt of material but it actually starts with actual initial planning when container design is made for a product. Warehouse design and process design within the warehouse (e.g. Wave Picking) is also part of warehouse management. Warehouse management is part of Logistics and SCM. WAREHOUSING 25

Warehouse Management monitors the progress of products through the warehouse. It involves the physical warehouse infrastructure, tracking systems, and communication between product stations. Warehouse management deals with receipt, storage and movement of goods, normally finished goods, to intermediate storage locations or to final customer. In the multi-echelon model for distribution, there are levels of warehouses, starting with the Central Warehouse(s), regional warehouses services by the central warehouses and retail warehouses at the third level services by the regional warehouses and so on. The objective of warehousing management is to help in optimal cost of timely order fulfillment by managing the resources economically. Warehouse management = "Management of storage of products and services rendered on the products within the four wall of a warehouse"

Functions of a Warehouse Management System (WMS)


Before the availability of warehouse management software in conjunction with a WMS, to run a warehouse, managers and workers relied upon clipboards and paper lists. Inventories and the functions required to move product were limited. Today, the magnitude of inventory that can be processed through the walls of the warehouse using a WMS is immeasurable. The functionality available in today's warehouse management software makes this all possible. So, what are some of the functions of the WMS? The Scheduler One important function, unavailable back in the paper days, is the concept of the Scheduler. The scheduler is a service that is capable of reserving dock time for a trailer based upon such metrics as when the trailer will be available, when the trailer must arrive at its destination, when product will be available for shipment, the amount of time required for product to be packaged, tagged, staged and loaded and more. No warehouse management system is complete without a schedule. Material-handling Supervisor The Material-handling Supervisor is another service operating within the WMS that keeps track of the availability and location of the assets required to move product. Such assets include but are not limited to forklifts, totes, mobile devices and carts. Inventory Locator The inventory locator is a module that allows workers to find product within the warehouse. More than just a simple lookup table, the functionality of a locator can include one or more of the following features: a quick search, a multiple location search, a replenishment alert. If inventory is out of stock, the locator can also have the ability to identify when new product will be available, where it will be staged and trip a replenishment alert once it has arrived. Inventory Pick Supervisor Whether product is picked using voice technology, bar code scanning, radio frequency identification (RFID), the inventory pick supervisor controls the amount of product to be WAREHOUSING 26

moved from a staging area onto the conveyor's (pick belts) or one of many other inventory picking configurations including pick to light, etc. Shelf life Supervisor A shelf life supervisor is an invaluable asset for any WMS especially when it comes to food and beverage or consumer package good operations where the amount of time product remains on a shelf is important. Such functionality automatically routes product from the appropriate staging areas and forces bulk moves between staging areas depending upon expiration date of the product. Additional WMS functionality should include cycle counting, inventory auditing, inventory counts, external hardware interfaces, database maintenance, report generation and more. Although this is not an exhaustive list of all the functionality available in today's WMS solutions,

WAREHOUSING

27

Warehouse Storage system:


A warehousing system having remote controlled components for transferring items from an infeed conveyor to selected storage conveyors in a storage rack and for retrieving the items there from and depositing them on a discharge conveyor. The storage conveyors in such a system are provided with rollers on which the items rest and the retrieving unit, which retrieves items from the storage conveyors, includes an extractor belt which engages the rollers, rotates them, and thereby shifts the items onto a waiting supporting bed on the retrieving unit.

Warehouse Storage Function:


Warehousing was supposed to disappear with Lean Manufacturing. This has rarely occurred but the nature of warehousing often does change from storage-dominance to transaction dominance. In addition, the trend to overseas sourcing has increased the need for warehousing and its importance in the supply chain. Warehousing buffers inbound shipments from suppliers and outbound orders to customers. Customers usually order in patterns that are not compatible with the capabilities of the warehouse suppliers. The amount of storage depends on the disparity between incoming and outbound shipment patterns.

Design Strategies One key to effective design is the relative dominance of picking or storage activity. These two warehouse functions have opposing requirements. WAREHOUSING 28

Techniques that maximize space utilization tend to complicate picking and render it inefficient while large storage areas increase distance and also reduce picking efficiency. Ideal picking requires small stocks in dedicated, close locations. This works against storage efficiency. Automation of picking, storage, handling and information can compensate for these opposing requirements to a degree. However, automation is expensive to install and operate.

Types of Warehouse Storage System:


The most common warehouse storage systems are:

Pallet rack including selective, drive-in, drive-thru, double-deep, pushback, and gravity flow

lift

Mezzanine including structural, roll formed, rack supported, and shelf supported Cantilever Rack including structural and roll formed Industrial Shelving including metal, steel, wire, and catwalk Automated Storage and Retrieval System (ASRS) including vertical carousels, vertical modules, horizontal carousels, robotics, mini loads, and compact 3D

1)

Pallet Rack:

Pallet racking is a material handling storage aid system designed to store materials on pallets (or skids). Although there are many varieties of pallet rack, all types allow for the storage of palletized materials in horizontal rows with multiple levels. All types of pallet rack create some level of increase storage density with the least dense being the least expensive and cost increasing with storage density. Selective rack is the least dense at a cost of about $50$70 per pallet position up to gravity flow pallet rack which can cost $250 $400 per pallet position. Forklift trucks are usually an integral part of any pallet rack system as they are usually required to place the loaded pallets onto the racks for storage. Pallet racks are an essential and ubiquitous element in most modern warehouses, manufacturing facilities, retail centers, and other storage and distribution facilities.

A) Selective Pallet Rack


Selective pallet rack is the most common pallet racking system in use today. Selective pallet racks typically come in one of two configurations: a roll formed, or clip-in configuration, and a structural bolt-together configuration. Roll formed selective rack is most commonly manufactured in a "teardrop" style. The nickname teardrop comes from the fact that the holes on the column of the upright are shaped like a teardrop. Pallets then rest on the horizontal load beams that are held in place by mounting clips. Because the clips on teardrop configurations can be quickly moved, the shelves can be easily adjusted to different heights to accommodate various load sizes. This is WAREHOUSING 29

convenient for a warehouse that needs to store a wide variety of product sizes. Structural pallet rack systems are very similar to roll formed pallet rack systems except the horizontal load beams are attached to the uprights with bolts and have much greater weight-bearing capacity. Also, structural pallet racking can be designed into the structure of the building itself, so that the upright columns are simultaneously used to support the roof of the storage facility, in which case the structural pallet rack uprights replace the storage buildings vertical support I-beams. This system is a rack supported building. Very Narrow Aisle (VNA) is the use of selective pallet racking in a tighter configuration to provide maximum space utilization within a storage facility. These systems typically operate in conjunction with wire-guided or rail-guided reach-truck systems. A wire-guided system consists of a wire embedded in the concrete floor that provides tracking for the reach-truck. A rail-guided system consists of angle iron bolted to the floor down the length of each row. Typically, the angle iron is 4 by 3 and inches thick. Another advantage of selective pallet rack systems is the easy accessibility they provide to all products at all times. Such accessibility is important if the inventory is rapidly depleted and restocked (called quick turnover). A selective pallet rack system is commonly used in a big-box distribution application, as well as in retail store inventory rooms, cold storage applications, wholesale stores, etc.

Common components of selective rack include the following: A-1) Load beams (also called step beams or box beams). Step Beams are roll formed members with a 1 step along the top inside edge. This step is used to hold any load support components such as pallet supports or wire decks. Box Beams have no inset step; instead have four flat sides like a box. All load beams typically mount onto an upright frame column with integral rivets or hooks. Some systems utilize an extra clip or bolt to lock the beam to the upright. Structural Beams are hot formed structural C shapes with connecting clips at either end. Structural load beams are generally used with structural uprights but can be used with standard roll formed uprights. Structural load beams offer heavier weight capacities than step beams or box beams.

A-2) Upright Frames (also called upright columns or uprights): WAREHOUSING 30

Vary in size and design depending on load requirements, and styles. The most common upright column is produced by roll forming flat coil stock steel into a modified "C" shape with returns. This style is often referred to as open-back roll-formed columns. Holes or slots are punched during manufacturing up and down the column at standard intervals so that the load beams can be mounted into the upright columns. Upright frames can also be constructed utilizing structural C shapes for columns. Structural uprights have an increased weight capacity over roll formed uprights. I) Diagonal Braces and Horizontal Braces commonly referred to as upright frame lacing is usually welded between two upright columns to form selective upright frames. The lacing may be bolted to the columns in some cases. Pallet Supports are roll formed channels that are placed front to back between the load beams to support pallets.

II)

III) Wire Decking is commonly used as a safety measure on selective pallet rack to prevent pallets or the products stored on them from falling through the rack structure. Wire mesh decking comes in various thicknesses and mesh dimensions. Wire mesh construction also allows for easy identification of shelf contents and prevents dirt and other debris from accumulating on the shelves because of the holes in the mesh. Most wire mesh decking has U-shaped channel supports, also known as struts, to support the load. With this waterfall decking, the wire mesh extends across the top and down the front of the beam to provide more support, and is more desirable in the marketplace. Reverse waterfall decking can provide containment of a loose product to prevent the product from falling behind the rack system. Lay-in decking rests inside the step of the beam, and wire mesh does not waterfall over the beam. Some types of decking are manufactured with solid metal instead of wire mesh. Even though the solid decking provides a greater distributed weight capacity, it is discouraged by fire inspectors because sprinkler systems cannot spray through the shelves to levels below. IV) Footplates, also known as footpads or base plates, are at the base of columns and serve as anchors to give the rack more stability: anchor bolts are inserted through the base plates holes to attach the column to the concrete floor. Footplates are made of thicker steel and in some geographic locations; they must be of a certain size and seismic rating. Footpads increase the pallet racks overall stability and weight-bearing capacity. Shims are used when the uprights are resting on uneven floors; the shims, equal in size to the base of the uprights, are installed beneath the uprights to level the rack. Row spacers are sometimes used if uprights are arranged in back-to-back rows; the spacers are mounted between adjacent columns to ensure that the rows are kept straight and to give the pallet racks even more strength and steadiness. Wall ties may be used for further support if the uprights are arranged in a row along a wall.

V)

VI)

VII)

WAREHOUSING

31

VIII) Column protectors, also known as post protectors, are protective shields that can be installed around the base of an upright to minimize damage where forklifts might hit the upright. Damage to the base of a column can weaken the entire frame and could cause it to collapse. Column protectors are made of various materials such as polyethylene, ductile iron casting, and other durable materials. IX) Guard rails are installed to increase protection for upright columns and for human safety when platforms or steps are attached to pallet racks.

B) Drive-in and Drive-through (sometimes spelled Drive-thru):


Drive-in and Drive-through are storage rack configurations that allow the forklift to drive directly into the lane of stacked rows (called a bay). The difference between a drive-in and a drive-thru pallet rack system is simply whether the bays have an entry at only one end, or at both ends. Drive-in rack systems use a common entry and exit, while drive-thru systems have entry points at either end of the bay. Because a drive-in racking system has only one entrance, it uses what is called a LIFO (last in, first out) storage method. With only one entrance, the last pallet put into a row is necessarily the first one to be taken out. A drive-thru storage system, with two different entry points, can also use a FIFO (first in, first out) storage method. With a FIFO system, pallets are loaded in one end and are pushed back to the other end, where they are then at the front of the row on the opposite side. The first pallet put into such a row is the first one taken out at the other end. This system is advantageous for material with an expiration date or wherever shelf life is a major concern.

Drive-In Pallet Rack System

C) Push Back Pallet Rack:


These systems are designed around the principle of organizing space by depth rather than width. This depth arrangement greatly reduces aisle space and increases storage density. In this configuration, each bay can be up to six pallets deep; each pallet stored on wheeled carts that fit onto rails. The rails are slightly angled toward the load/unload side of the rack in order to take advantage of gravity, saving enormous amounts of energy for moving heavy pallets. When a forklift sets the pallet onto the cart, it drives forward and causes the pallet to bump the next pallet, causing the entire row of pallets to roll backwards. When removing a pallet from the front position the remaining pallets immediately stage themselves forward so that the next available pallet can be accessed. Push back rack is a LIFO (last in, first out) storage system. WAREHOUSING 32

Push back system

D) Pallet Flow:
This system is high density pallet storage systems that utilize depth to increase capacity. This system uses a slightly inclined rail with rollers that allow pallets to move easily along the sloped plane. These systems are also called gravity flow or dynamic flow systems. The pallet flow system often has complex motion and braking systems to control the speed of the moving pallet. Pallet Flow racking systems are either a FIFO (first in, first out) or a LIFO (last in, first out) storage system. If the system is loaded from the back and unloaded from the front, its FIFO; if the system is loaded and unloaded from the front its a LIFO system.

Pallet Flow Lane

Safety Consideration for Pallet System: 1) 2) Because of the size and weight of pallets, important safety factors have to be considered at all times: Pay attention to any loose components in the pallet rack system, and take the time to report any damage in the pallet rack frame; such frame damage could cause the pallets to fall. It is the owners legal responsibility to communicate this important warning to all who are around storage racks: Never climb on racks during or after assembly. Storage racks are not designed to be stepped on or climbed on. A slip or fall may result in serious injury. It is especially WAREHOUSING 33

3)

4)

important to have highly visible warning signs if the pallet rack system is used in retail environments, such as wholesale centers, where the public is present. Use only quality pallets that are not damaged. To save money, or perhaps from neglectful management, some warehouses use pallets until they become faulty and dangerous. Regular inspection of pallets for broken or fractured planks or stringers, protruding nails, and missing support blocks is essential. Damaged pallets can cause loading and unloading problems; for example, loose stringers can get hung up on the pallet racks, which can cause loads to fall from high positions. Also, faulty pallets can cause obstruction problems in flow systems by jamming certain pallet rack designs. Always ensure that the proper motorized equipment is being used for the application. Do not obstruct the end of aisles by staging pallets in these areas. Doing so can cause severe and potentially fatal injuries and accidents. Never overload or exceed the recommended load specifications for a racking system. Overloading may cause a catastrophic failure of your storage rack system. Rack Audits (safety checks) should be performed on a regular basis by a qualified inspector familiar with RMI design and safety standards to make sure all aspects of system are up to 100% operationally safety.

5) 6) 7) 8)

2)

Mezzanine (architecture):

In architecture, a mezzanine or entresol is an intermediate floor between main floors of a building, and therefore typically not counted among the overall floors of a building. Often, a mezzanine is low-ceilinged and projects in the form of a balcony. The term is also used for the lowest balcony in a theatre, or for the first few rows of seats in that balcony. The floor often projects itself from the walls and does not completely close the view of the ceiling from ground floor. In short, the Mezzanine Floor and the ground floor share the same ceiling. There is a belief that a mezzanine floor is always located between the ground floor and the first floor but it is not unusual to have mezzanine floors in the upper floors of a building. In Palladian architecture the mezzanine is a low upper floor, usually for servants and/or storage. In stadiums, the "mezzanine" level is a term often used for premium or "club level" seating, typically just a few rows deep and hanging from the upper tier, affording an unobstructed view of the playing field. In transit stations, a mezzanine level is often encountered between the station's entry elevation and the platform level, where the service is boarded; this may contain the area where fares are paid, or provide access to different service platforms. The term is used particularly where an open concept of station allows the platforms to be viewed from that level.

A) Industrial Mezzanines:
In industrial applications, mezzanine floor systems are semi-permanent floor systems typically installed within buildings, built between two permanent original stories. These structures are usually free standing and in most cases can be dismantled and relocated. Commercially sold mezzanine structures are generally constructed of three main WAREHOUSING 34

materials; steel, aluminum, and fiberglass. The decking or flooring of a mezzanine will vary by application but is generally composed of b-deck underpayment and wood product finished floor or a heavy duty steel, aluminum or fiberglass grating. The mezzanine is often used in shops and similar spaces for storage of tools or materials. The high roof of the shop is ideal for a mezzanine, and offices can be put either below or above it. Mezzanines are frequently used in industrial operations such as warehousing, distribution or manufacturing. These facilities have high ceilings, allowing unused space to be utilized within the vertical cube. Industrial mezzanine structures are typically either structural, roll formed, rack-supported, or shelf-supported, allowing high density storage within the mezzanine structure.

B) Cantilever:

The top example has a full movement connection (like a horizontal flag pole bolted to the side of a building). The bottom example is created by an extension of simply supported beam (such as the way a diving-board is anchored and extends over the edge of swimming pool. A cantilever is a beam supported on only one end. The beam carries the load to the support where it is resisted by moment and shear stress.[1] Cantilever construction allows for overhanging structures without external bracing. Cantilevers can also be constructed with trusses or slabs. This is in contrast to a simply supported beam such as those found in a post and lintel system. A simply supported beam is supported at both ends with loads applied between the supports. A cantilever rack is a type of warehouse storage system consisting of the vertical column, the base, the arms, and the horizontal and/or cross bracing. These components are fabricated from both roll formed and structural steel. The horizontal and/or cross bracing are used to connect two or more columns together. They are commonly found in lumber yards, woodworking shops, and plumbing supply warehouses.

4)

Modern Trends:

Traditional warehousing has declined since the last decades of the 20th century, with the gradual introduction of Just in Time (JIT) techniques. The JIT system promotes product delivery directly from suppliers to consumer without the use of warehouses. However, with the gradual implementation of offshore and off shoring in about the same time period, the WAREHOUSING 35

distance between the manufacturer and the retailer (or the parts manufacturer and the industrial plant) grew considerably in many domains, necessitating at least one warehouse per country or per region in any typical supply chain for a given range of products. Recent retailing trends have led to the development of warehouse-style retail stores. These high-ceiling buildings display retail goods on tall, heavy duty industrial racks rather than conventional retail shelving. Typically, items ready for sale are on the bottom of the racks, and crated or palletized inventory is in the upper rack. Essentially, the same building serves as both warehouse and retail store. Large exporters/manufacturers use warehouses as distribution points for developing retail outlets in a particular region or country. This concept reduces end cost to the consumer and enhances the production sale ratio.

5)

Automation and Intimation:

Some warehouses are completely automated, and require no workers inside. Pallets and product move on a system of automated conveyors and automated coordinated by programmable logic controllers and computers running logistics automation software. These systems are often installed in refrigerated warehouses where temperatures are kept very cold to keep product from spoiling, and also where land is expensive, as automated storage systems can use vertical space efficiently. These high-bay storage areas are often more than 10 meters (33 feet) high, with some over 20 meters (65 feet) high. For a warehouse to function efficiently, the facility must be properly slotted. Slotting addresses which storage medium a product is picked from (pallet rack or carton flow), and how they are picked (pick-to-light, pick-to-voice, or pick-to-paper). With a proper slotting plan, a warehouse can improve its inventory rotation requirements, such as first in, first out (FIFO) and last in, first out (LIFO), control labor costs and increase productivity.

WAREHOUSING

36

Automatic storage warehouse

Data Warehouse System:


Data Warehouse is a central managed and integrated database containing data from the operational sources in an organization (such as SAP, CRM, ERP system). It may gather manual inputs from users determining criteria and parameters for grouping or classifying records. That database contains structured data for query analysis and can be accessed by users. The data warehouse can be created or updated at any time, with minimum disruption to operational systems. It is ensured by a strategy implemented in an ETL process. A source for the data warehouse is a data extract from operational databases. The data is validated, cleansed, transformed and finally aggregated and it becomes ready to be loaded into the data warehouse. Data warehouse is a dedicated database which contains detailed, stable, non-volatile and consistent data which can be analyzed in the time variant. Sometimes, where only a portion of detailed data is required, it may be worth considering using a data mart. A data mart is generated from the data warehouse and contains data focused on a given subject and data that is frequently accessed or summarized.

WAREHOUSING

37

Data Warehouse Definitions: "The data warehouse is that portion of an overall Architected Data Environment that serves as the single integrated source of data for processing information."

Characteristics of Data Warehouse:


The data warehouse has specific characteristics that include the following: Subject-Oriented Integrated Non-Volatile Time-Variant Accessible Process-Oriented

Data Warehousing Tools:


ETL Tools:

ETL means Extraction, Transformation and Loading. And tools that extract data from different data sources (SQL Server, Oracle, Flat Files, and Sybase etc) into a Data warehouse WAREHOUSING 38

are known as ETL tools. Some popular ETL tools in market are Informatica, Ab Initio and Datastage.

Reporting Tools:

Reporting tools are used to generate the reports out of the information (data) stored in the Data warehouse. Some popular reporting tools in the market are Business Objects, Cognos, Microstrategy etc.

Warehousing Technology: 1) Voice directed:


Voice technology is available across all warehouse management modules, including Order Picking, Goods Receiving, Stock taking, Put Away and Picking Face replenishment. The system uses speech recognition and speech synthesis to allow workers to communicate verbally with the system. Workers use a wireless, wearable computer with a headset and microphone, which links to the server via a radio frequency network. In voice directed picking, for example, the order picker is instructed by voice, via the headset, what to pick and where to pick it. He then verbally confirms his actions back to the system through the microphone. The first incarnations of voice directed warehousing were implemented in distribution centers in the early 1990s. Since then, Voice has changed dramatically. Most notably, the technology was originally limited to picking, whereas now all warehouse functions (picking, receiving/put-away, replenishment, shipping) can be coordinated by voice systems. These other functions are only now coming into their own, and despite considerable accuracy and WAREHOUSING 39

efficiency gains that can be made in these areas, most companies still justify voice implementation on picking gains alone. Benefits: Increased picking accuracy Increased inventory accuracy Increased employee productivity Reduced new worker training time Increases job satisfaction for warehouse associates Growing customer satisfaction How it Work: Each operator is given a voice-enabled RF device. These devices need not have screens or keypadsoperators communicate with the system via headset. Managers use the Warehouse Management System (WMS) or middleware to assign operators work-jobs such as picking, put-away, replenishment, and truck loading. How this assignment process takes place is largely implementation specific. For example, operators might be assigned to pick specific orders or load specific trucks - or they might simply be assigned to picking, and be automatically placed on the highest-priority job. Picking: With voice picking, the voice system directs the operator to perform each pick, giving them directions to the pick location. Depending on system configuration, the operator may be prompted for a location check-digit or a container check-digit as well as a count-back. Put-away: In voice directed put-away, the system asks the operator for the license(s) that they will be putting away. The system then directs the operator to put away each license, requesting a location check-digit from the put-away location. An also take advantage of
quicker multi-pallet walkies by performing two-phase put away. Walkie operators are directed to take received pallets to the appropriate aisle where reach operators pick them up and complete the operation.

Replenishment: In voice directed replenishment, the system directs the operator to pick up a particular skid from a particular location, and then directs them to the appropriate picking location. The WMS coordinates which pallets are scheduled for replenishment, and where they are to be put, a sophisticated WMS may assign SKUs to pick faces dynamically according to SKU velocity, available space, proximity to door, etc.

Truck Loading: With voice directed truck loading, the voice system directs the operator to each picked pallet in the proper sequence. In full-pallet DCs, operators may be directed to take entire pallets from the racking directly to the truck. Voice-directed truck-loading WAREHOUSING 40

can help ensure that trucks are loaded in the correct sequence and that all pallets make it onto the truck. Voice Training: Apart from training users to use the voice system, the system must be trained to understand each user. This training process takes roughly 30-45 minutes during this time, the user is asked to repeat aloud the words they will be using when they communicate with the system. The voice system learns how the particular operator speaks, and saves a template of their speech patterns. This allows voice systems to understand users with heavy accents the system knows how each individual user pronounces each word. Security: With the additional security provided by voice, it is easier to enforce particular rules. For example, you could (if your WMS supports it) create job templates for each user. This means that you could, specify which users were qualified to use a reach truck and prevent others from receiving these assignments.

2) Dock Scheduling Software:


Imagine coordinating the schedule of every inbound delivery for all the departments at your warehouse. That's what the latest dock scheduling software does. It processes data from past shipments and figures out how much time a delivery should take. By projecting exact delivery times, the software allows warehouses to process more inbound shipments. The new software, in contrast, made scheduling a hassle-free process, reducing labor needs. "You drag and drop instead of enter data. Changing appointments is a matter of clicking, dragging and dropping. This data can adjust time bars and windows down to the minute by just dragging a color bar across the screen." The software has both simplified and sped up scheduling, which was once a 5 to 10 minute undertaking. The software's reporting capabilities allow the distributor to evaluate vendors' and carriers' performance. Incoming products are time-stamped, and their arrival times are WAREHOUSING 41

compared to their scheduled time and dates so the distributor can see immediately, as well as analyze over time, how a vendor or carrier is faring. In addition, the software helps anticipate labor requirements. "Receiving supervisors can look at the warehouse capacity pie chart and automatically know if they're going into overtime. They can also specify time slots when products can't be received such as during lunch break, so carriers know not to deliver during those hours. Thus, the company is not only increasing its own efficiency but its partners' as well.

3) Automatic Data Capture:


ADC technology, which includes bar codes and radio frequency data communication (RFDC) systems, is another efficiency-enhancing solution that has already improved warehousing operations in the foodservice industry and in consumer goods distribution. By implementing this rapidly evolving technology or expanding its use in your distribution center, you can expect order fulfillment accuracy gains and labor cost reductions. ADC technology has also made the company's receiving operations more efficient. The software generates a pick list after workers scan orders into the system. The pick list is then transmitted to handheld devices carried by pickers in the company's 50,000 square-foot facility, and they, in turn, confirm the picks on their devices. Work capacity has tripled because of the software and ADC. "Order accuracy has improved because this system. Once products have passed through the sorter, we can assume they're correct. ADC technology itself is seeing dramatic improvements. Scanners are getting sturdier, lengthening their range, and increasingly employing fuzzy logic, which allows them to read damaged bar codes. In addition, laser scanners may soon have to make way for the more advanced CCD camera, which is even faster and can capture images. Another hot ADC up and comer: wearable scanners, which promote even greater worker productivity in the warehouse.

4) Radio Frequency Identification (RFID) Technology:


Warehouse and distribution center operations are at the center of the surge in radio frequency identification (RFID) activity. RFID is proving to be a cost-effective resource for saving time, improving visibility and reducing labor requirements for a variety of shipping, receiving and inventory management operations. Technology Overview: RFID uses radio signals to exchange data between a tag (also known as a transponder) and a read/write device (commonly called a reader or interrogator). Tags consist of a wireless chip and antenna that are housed in a label or other protective casing and attached to the item that is to be identified. The tag may be active, which means it has a battery to power its own WAREHOUSING 42

transmission, or passive, which transmits using power received from the reader in the form of electromagnetic waves. Active tags have longer read ranges making them appropriate for asset management and real-time location systems (RTLS). Passive tags have a shorter read range and are smaller and less expensive than active tags making them the tag of choice for most supply chain applications. RFIDs Characteristics: Reading Characteristics: RFIDs suitability for use in industrial environments is just one of the attributes that set it apart from bar code and other automatic identification and data collection (AIDC) technologies. One of the most significant is that no direct line of site is required between the tag and reader to exchange data. This enables tags to be read if theyre not perfectly aligned with the reader, and even to be read through packaging material. Readers can also identify multiple tags simultaneously. Organizations can take advantage of these attributes to reduce labor requirements with automatically triggered reads and unattended, high-speed reading processes. RFID tags offer secure, rewritable memory, which can be used to improve visibility, security and provide other advantages. Most RFID tags are read/write, and many have memory that can be partitioned so that some portions cant be changed (such as a serial number) while other portions can be updated, with transaction histories, storage records, pedigree information or other variable data. Electronic Product Code (EPC) RFID technology provides a standardized, unique serial number for each RFID tag. Many new supply chain processes are emerging to take advantage of unique, standardized and secure serialization that EPC provides. Range and Sensitivity: Range can be an overvalued and misleading indicator of RFID system performance. The control and sensitivity that antennas and readers provide is often much more important than their range. Long read range can increase the chances of unintended reads. RFID in many more warehouse and DC operations, finely tuned directional reading and control are more important than range to ensure only desired tags are read, and are read only when desired. Vehicle-mounted RFID readers with high-performance antennas provide an outstanding degree of reading control, which is a leading reason that reading technique is being adopted rapidly.

Applications: RFID can be used for many common warehouse and DC inventory management operations, including receiving, put away, picking and shipping procedures. RFID has high return on investment potential when applications take advantage of its reading characteristic to overcome previous limitations or to enable new business processes. With RFID, items can be monitored and identified at process points where other forms of data collection are impractical because of environmental or cost limitations. Factor in WAREHOUSING 43

the ability to encode unique, secure serial numbers on tags, and it begins to become clear how RFID can lead to new levels of visibility in inventory and supply chain operations. Reduced inventory levels, storage, handling and logistics expenses follow from improved visibility. The following sections briefly describe how RFID is being used for a variety of common warehouse and DC operations and the value it provides.

RIFDs Functions:
Picking: Similar to put away, RFID builds error-proofing into the picking process. Goods are automatically recorded by a forklift reader or other mobile RFID device as they are picked, and the transaction is checked by the WMS or order management system to confirm the picked item belongs with the order. Tagged goods can also be automatically associated with the pallet theyre placed on, saving data entry time during the pallet build process. Forklift-mounted readers eliminate the orientation concerns and operator labor time associated with bar code scanning, for many manufacturers using vehicle-mounted. Shipping: RFID can validate pallet loads and improve shipping accuracy even if it isnt used as part of the picking process. A pallet of RFID-tagged cases can be identified through either an unattended portal reader or a vehicle-mounted or handheld device. The order management system or WMS would match the read data against the customer order to validate that no cases were missing and that case quantities were correct. The read data could also be used to trigger generation of a shipping label for the pallet (which itself may include an RFID tag) and to provide information for an advance ship notice (ASN). A scan at the shipping dock can be used to update information in logistics applications and to record the goods out of inventory. Lastly, RFID can even be used to validate the trailer if equipped with an RFID tag. Asset Tracking: Often its beneficial to track the shipping container with RFID, if the container is a returnable or reusable asset. By using RFID tags on pallets, drums, racks and other shipping containers to track their movements and associate them with specific customer shipments, organizations build an accurate information foundation to recover more of their assets and manage them more efficiently. For example, leading U.K. retailer Marks & Spencer is tracking more than 4.5 million trays, roll cages, dollies and other returnable containers for its fresh produce logistics operations with RFID tags. Marks & Spencer uses LXE MX5 mobile handheld computers to read RFID tags on its logistics assets as they move in and out six distribution centers. By accurately tracking where assets are in the facility and in the supply chain, organizations can improve planning, reduce buffers and increase utilization, which all add up to real cost savings. Asset tracking benefits arent limited to logistics containers. Forklifts and other capital equipment, machines, tools, supplies and other assets can all be tracked and secured with RFID to improve visibility and availability, reduce losses and provide accurate WAREHOUSING 44

information for asset management and other software applications. High-value assets and shipping containers are sometimes tracked with active RFID technology, because savings from loss or theft of these high-value items can offset the higher tag costs.

Warehouse Equipments
Warehouses are very diverse and vary in size from a home garage to a multi-thousand square foot area. Warehouses are used to ship almost everything we use, from food and electronics, to furniture and clothing. Because warehouses vary so much in size and functionality, the warehouse equipment varies as well. Because packages and equipment are awkward, heavy and need to be moved around, equipment had been built to help assist with warehouse operations. A smaller warehouse may only need a simple hand truck, where a large warehouse may need a fully mechanized pallet lifter. There are also many accessories that help assist with warehouse operations. A gravity conveyor may be used to help transport boxes to a loading dock. A box cutter may be used to help open boxes and remove products. Anti-fatigue mats can be used to help relieve stress

WAREHOUSING

45

put on workers feet. These are just a few examples of several accessories that you may want to consider using in your warehouse. The most important thing in any warehouse is making sure things run smoothly. Smooth operations means customers, retailers and others will get their products, boxes and equipment in a timely manner. Smooth operations also mean increased productivity and an increase in overall profits.

Types of warehouse equipment


Pallet Jacks / Lifters Shrink Wrap Equipment Gravity Conveyors Warehouse Accessories Pallet Jacks / Lifters Trans-Petitioners/Transporters: Trans-petitioners are designed to quickly move material and pallets from one location to another. They are great for lifting and moving pallets from a dock to an isle for storage. These are great for feeding and offloading pallets. They are also ideal for transporting loads from one part of your warehouse to another. Lifter Transporters: A lifter transporter is very similar to a trans-positioner, but designed for a lower weight capacity. They have a small footprint and are ideal for use in small to mid-size warehouses. Lifter transporter has a lifting capacity of 440 pounds, where some trans-positioners have a capacity of 3,000 pounds. Trans-Stacker/Transporter:

Transporters/stackers are a perfect solution for moving heavy pallets from one shelf to another. Once under a pallet, our stackers can quickly lift and lower pallets. These are ideal for use in large warehouses where pallets are stacked or placed on shelves. Our biggest transstacker has a 3,000 pound weight capacity. Unit-Lifter/Transporter: Our pallet lifters and transporters are great for use with skids and open-bottom pallets. Our pallet lifters stably lift and lower pallets up to 3,300 pounds. These machines are a necessity in any warehouse. Container Tilters: WAREHOUSING 46

Ergo-tilts and container tilters are great for easily tilting heavy containers for work positioning. Our lifters are designed to roll under most containers and are great for machine feeding and offloading Pallet Truck: Pallet jacks quickly transport pallets from one location to another with ease. Once under a pallet, the pallet is lifted off the ground for easy transportation. These are always used and seen in warehouses, grocery stores, and other locations. Hand Truck: Hand trucks provide a simple, but effective, way to transport small loads. They can also fit into smaller spaces than traditional forked lifts or pallet jacks. Shrink Wrap Equipment: Shrink wrap is used for packaging purposes and goes hand in hand with most warehouse. Shrink wrap machines can also be used to package multiple products together for transport. Film is sealed around a product and is shrunk using heat. Shrink wrap machines are available in a wide variety of formats, from single bar units to L-bar units that use tunnels. Gravity Conveyors Gravity conveyors use a series of roller wheels and bearings to quickly move boxes and other products from one location to another. Gravity conveyors can be adjusted to various lengths and shapes, depending on the need and use. They are especially ideal for use around a loading dock where packages are being shipped. As products are packaged for shipment, then can be placed on the conveyor and be moved along as additional products are placed on the conveyor. Warehouse Accessories People Positioners: Easily move from one location to another, while sitting with the people positioner. These stools are adjustable and fixed to casters. These are great for working on lower shelves and machinery. Back Support Belts: Back support belts are a necessity for any warehouse. Different styles and sizes are available for people of all sizes. Back supports belts help prevent back injury by providing support to the back while lifting heavy objects. Prevent future injury with your own back support belt. Shipping Scales: WAREHOUSING 47

Make sure your products are properly weighed with a shipping scale. These scales are perfect for any location where shipping weight is needed. Our shipping scales are precise and will give you weights right down to the nearest gram Wet Floor Signs: Keeping your warehouse or workplace safe is an important part of maintaining an effective workforce. Loaded wet floor / piso mojado signs are easy to use and an essential piece of warehouse, office or retail environment. These handy-cone safety signs are compact when stored and bright and obvious when displayed. Help reduce your liability exposure and ensure a safer workplace for employees and customers alike. Tape Dispensers: Tape dispensers are a necessity in any warehouse, allowing workers to quickly tape boxes shut. The tape dispenser quickly applies tape and cuts it off as needed. The handle is ergonomically designed to fit into the palm of a hand and be held securely. Cutting Knives: Cutting blades and knives are used to quickly and precisely open boxes. Most blades will easily cut through cardboard and tape. This makes it easy to remove products, re-package equipment and stock shelves. Anti-Fatigue Mat: Warehouse workers often have to stand for hours, moving and packaging products. Standing for hours can take its toll on feet and joints. Anti-fatigue mats are made out of a sponge-like material that helps absorb some of the impact and gravity often taken out on feet and joints. These mats will keep warehouse workers happy and allow them to work longer on their feet without feeling pain.

Warehouse Layout/Design:
The layout of a warehouse may need to be changed to accommodate new product lines or to add greater flexibility to the warehouse operations. When a new warehouse layout is proposed a detailed planning process should be followed to ensure the success of the project.

Layout Planning Process


The planning process should include the following six steps.

Define Objectives Collect Information Analysis 48

WAREHOUSING

Create Plan Implementation Post Implementation

Define Objectives When deciding on the layout for a warehouse, the objectives should clearly be defined. The objectives should be aligned with the overall warehousing strategy of the company. Objectives can be defined at a high level such as to reduce warehousing costs or to provide maximum customer service. Equally the objectives can be more specific, such as maximizing warehousing space, provide maximum flexibility in the warehouse or to increase warehousing efficiency without increasing resources. Collect Information The specific information of the proposed warehouse should be collected. This includes the specifications of the warehouse from the architectural drawings that can affect storage and material handling. The details should include a physical map of the warehouse space to show columns, doors, height restrictions, docks and storage racks. External features that can affect the receiving, storage and shipment of materials should also be noted. Analysis After the specific information about the warehouse has been collected the analysis can commence with respect to the objectives that have been defined for the warehouse layout. The analysis should determine if the overall objectives can be met and if not how the objectives can be modified. At this point in the planning process decisions need to be made by warehouse management to determine what actions need to be taken if the overall objectives cannot be met or will need substantial changes? If the objectives can be met based on the analysis of the information, the detailed implementation plan can be created.

Create Plan The detailed implementation plan should show all the steps that are required to create the warehouse layout. The objectives and the analysis of the information gathered should be used in creating the plan. The plan should first be at a high level showing the major tasks and then each of those should be sub-divided into the individual tasks that are required. Each task should be reviewed and an allocated the appropriate resources, as the allocation of estimated time is required to complete the task. The plan should indicate when a task is required to start and finish based on the availability of resources, either internal or outside contractors, or if it is dependent on another task. The plan should be checked to ensure that all dependencies have been correctly linked. Once the plan has been created it should be checked to see if the timeline is attainable and if there are enough resources are available. Implementation WAREHOUSING 49

Sometimes the warehouse layout that is implemented is not the one that is in the plan. This can occur due to unrealistic timelines in the plan, lack of resources, unavailability of outside contractors or poor analysis of the information that was gathered. To ensure that the plan for the warehouse layout is achieved the implementation should be timed so that there is little or no movements of materials in the warehouse. An ideal time for this would be during a plant shutdown or at a weekend, if the implementation was of a smaller size. However in modern warehouses, this is not always possible so often additional warehouse resources are needed to keep shipping products during the implementation. If this is the case then this will need to be factored into the plan. The implementation should ensure that all changes made in the warehouse are replicated in the warehouse management system that is operated so that each item can be found. A physical inventory of the products in the warehouse after implementation should be carried out to ensure that the system accurately reflects the warehouse. Post Implementation After the layout has been implemented, there should be a series of checks to ensure that the layout is exactly as defined by the approved drawings. Every item should be stored according to the overall plan and this should be checked to ensure the layout is correct. If there are errors, this could lead to picking errors or lost material within the warehouse. Shipping could be disrupted if the warehouse systems have not been updated accurately with the correct layout information or if items have been stored in the wrong locations. For a period of time after the new layout has been implemented, regular checks should be made to ensure that the layout is working and that there are no operational problems that have occurred due to the new layout.

Warehouse Space Utilization


When you run out of warehouse space you have many options to consider including expanding your warehouse space, building a new facility, or leasing outside space. But, there is another option, stop wasting your space and review options to maximize your existing space. There are many operations design concepts that can be implemented to increase your space utilization. Remove Excess Inventory Selecting the Right Equipment Minimize Aisle Widths Consider Vertical Space Slot Products in Optimum Location Sizes Utilize Random Storage Perform Layout Assessment Remove Excess Inventory: 50

WAREHOUSING

This might sound elementary, but you would be amazed at the amount of space being wasted housing excess or obsolete inventory. The first step to remove excess inventory, is to calculate the economic amount of inventory you should have on-hand. Then, compare this amount to the actual inventory on-hand. There are many reasons for keeping excess inventory (customer satisfaction, having complete product lines, lead time uncertainty, etc), but these reasons should be compared to the cost of the excess space. Selecting the Right Equipment:

A basic principle to not wasting your warehouse space is evaluating and selecting the most space efficient storage equipment. Maximizing storage density is a key factor to reducing your space requirements. The analysis of the SKU cubic activity should be performed to accurately define the inventory storage required per SKU. Then, an evaluation of the various single to deep storage equipment options should be evaluated to make the right choice, which maximizes your space utilization. Minimize Aisle Widths:

Reducing your aisle widths is a prime method of reducing your current space requirements. The industrial truck and the pallet widths dictate the aisle widths. However, with an assessment of aisles widths throughout the facility, you may identify aisles that can be reduced with using the same equipment. In other cases, you might consider the investment of a narrow (96 to 108) or very narrow aisle (44 to 66) industrial vehicles, such as reach or swing-mast respectively. In addition to minimizing the aisle widths, thought should be made with the number of aisles used in your facility. The amount of cross-aisles and people-aisles should be assessed to maximize the utilization of the aisles.

Consider Vertical Space:

The impact of using vertical storage space depends on your current storage clear height and stackablility restrictions. For the beverage industry, a stack height of one to two pallets high is common. With these low stack heights, a simple 4 to 5 level pallet rack structure, using basic counterbalanced vehicles can drastically reduce the space requirements of your facility. The key is to maximize the clear height of your facility. Another method of using the vertical storage space is storing with single-deep pallet racks above your dock doors. These racks can be used to store very slow moving products, packaging supplies and/or empty pallets. Lastly, automated storage and retrieval systems (AS/RS) reach heights of 100 feet, but most likely require you to build a new facility or invest in a rack-supported building, which isnt the theme of this article. Slot Products in Optimum Location Sizes:

An often-overlooked method of reducing space requirements is optimizing the product location sizes. By performing a product slotting analysis on your reserve storage area, the WAREHOUSING 51

right location sizes can be crafted to increase the density of storage, resulting in less product storage space. Stacking 5,000 pallets, with a consistent 44 pallet height into a 60 pallet storage opening is just wasting space. The right balance between tailored product location sizes and flexibility can result in improved space utilization. Random Storage:

There are two basic methods for organizing products in the storage area, fixed or random storage philosophies. A random storage philosophy allows a product (that fits) to be stored in any empty storage location. A fixed storage philosophy assigns a specific product or SKU to a fixed location. This is common in the picking area, but isnt recommended in the reserve storage areas of most industries. The fixed method results in empty or wasted storage space. Perform Layout Assessment:

A general layout assessment can identify the overall approach to utilizing space within your warehouse facility. Common space utilization tactics, such as, storing products along outer walls can be identified an integrated into the layout. The general material flow of the layout can yield space savings. For example, a flow though (or straight through) configuration reduces space requirements for a freight-forwarded, versus a classic u-shaped configuration. Performing an assessment of your existing space utilization is advisable, before investing in other options for handling space shortages. If not, you might duplicate bad space utilization practices into your next facility, or expansion. Another key factor in not wasting your warehouse space is planning for future expansions at the start of any new building design. However, it is never too late to start planning for future expansions of your facility, to ensure the effective use of space.

Warehouse problem and Prevention


Warehouses have many problem and remedies relating to their worker. Warehousing has to reduce the number of injuries and cases of occupational ill health. Following contained a causes and its prevention of injuries. Causes of accidents: The main causes of accidents in warehousing and storage are: slips and trips; manual handling; work at height; vehicles in and around the warehouse; and Moving or falling objects.

There may be other risks on your site that you should also consider. WAREHOUSING 52

Slips and trips

Slip and trip accidents are a serious problem in warehousing and storage and can happen anywhere. They are often seen as trivial and just one of those things, but most slip and trip accidents can be avoided. o Slips

Slips usually happen because the floor is wet or contaminated. Within warehouses, water, oil, cleaning products, dry powders and foodstuffs can all make the floor more slippery. Other items, like stretch wrapping, label backing and plastic bags, can also cause slips. Try to stop the floor getting contaminated, eg by maintaining equipment properly. When contamination does happen, deal with it immediately, eg by cleaning. Most floors have good slip resistance when they are clean, dry and level. However most of the floors have good slip resistance when they are clean, dry and level. However, smooth floors that become even a tiny bit wet or contaminated will be slippery; the rougher the floor, the better it will cope with water and other contamination and the less likely someone is to slip. The right footwear can help reduce slips but only consider issuing footwear to control slip risks as a last resort try to eliminate the root of the problem first. o Trips

Objects on the floor or uneven surfaces are usually the cause of trips. Trip hazards can include items like goods, waste packaging, banded strapping loops and pallets. Plan workflows and storage to make sure that goods, equipment and waste do not cause obstructions or project into places where people may walk. Keep floors and traffic routes free from obstructions. Check that floor surfaces are even both inside and outside buildings and fill in any holes. Provide good lighting. Good housekeeping is important; if items fall onto traffic routes, clear them as soon as possible. Also inspect the workplace regularly to make sure that there are no trip hazards. Manual handling

People suffer from work-related aches and pains in the warehousing and storage industry, including problems such as lower back pain and neck pain. If there is a risk from a manual handling task, try to avoid the task first. If the task cannot be avoided, the risk of injury occurring must be minimized. Carry out a manual handling assessment for manual handling operations and tasks that present a risk of injury. Consider: the task; the load; the working environment; individual capability; and other factors.

Think about all systems of work and tasks that involve manual handling. Where appropriate, redesign tasks to avoid the need to move loads manually, or use mechanical WAREHOUSING 53

handling devices, e.g. lift trucks, pallet trucks, trolleys, conveyors, chutes, scissor lifts etc. Where necessary, introduce additional mechanical handling devices to avoid or reduce manual handling operations. Give your employees information about the weight of a load and its heaviest side if its centre of gravity is not central. Provide training in safe manual handling techniques and manual handling devices used. Training should be specific to the task. It should complement a safe system of work and not be a substitute for it. Work at height

Any work at height, including maintenance work undertaken for you by a contractor, must be properly planned, appropriately supervised and carried out in a safe way. Avoid work at height if you can, but if it cannot be avoided, select the correct equipment for the task. People can fall from stepladders or ladders. Where they are used you must be able to show that it is not reasonably practicable to select alternative, safer equipment because the task is low risk and short duration. Never use pallets on fork-lift trucks for accessing work at height or as working platforms. Never climb on racking unless it is specifically designed for use as access equipment. Make sure that everyone involved in working at height has the ability to do the work safely, training may be needed. Some access equipment may require specialist training, eg a mobile elevating work platform (MEWP). Inspect equipment used for work at height (such as ladders) to make sure it is safe. Do this before use, periodically and after an incident that might affect the equipments safety. Vehicles in and around the warehouse

Moving vehicles need to be carefully managed to control and reduce the likelihood of accidents. o Managing deliveries and visitors:

All of the employers involved in the delivery and collection of goods should exchange any relevant information on health and safety. Visiting drivers should be given any information they need in advance to ensure their own safety and that of others. Think about how you will communicate with visiting drivers who do not speak and/or only have a limited vocabulary or understanding of English, eg provide copies of your site rules, illustrated with pictograms, to cover expected foreign languages. o Pedestrian safety:

Pedestrians and vehicles have to be able to circulate safely. Workplace traffic routes should be suitable for the people and vehicles using them. Where vehicles and pedestrians use the same traffic route, there should be adequate separation between them. Consider the complete separation of vehicles and pedestrians first where this is not possible you will need to use other control measures. o Traffic routes:

- Traffic routes should be properly designed. WAREHOUSING 54

- Consider: vehicles being used; - Minimizing the need for reversing; - Avoiding sharp bends and blind corners; - Maintenance dont allow potholes to develop; and - Anything that can affect load stability, eg steep slopes. o Reversing vehicles:

Warehouses should be designed to reduce the risks from reversing vehicles where possible, e.g. by using a one-way system. Where you cannot avoid reversing, keep pedestrians out of the area where a vehicle is reversing. Reversing sensors and CCTV on vehicles can be useful. o Coupling and uncoupling:

Warehouse should have procedures in place to check that trailers are coupled and uncoupled safely (using the parking brakes on the tractor unit and the semi-trailer) and that semi trailers are parked with the parking brake correctly applied. o Load safety:

Warehouse should have safe systems of work for loading and unloading vehicles. When goods or materials are unloaded from one level to another and there is a risk of injury from a fall, you should use appropriate fall protection measures.

Driveaways or premature vehicle departures:

Have a safe system of work in place so that drivers never move their vehicles (accidentally or deliberately) until the load is secure and it is safe to depart. Check this system regularly to make sure that it works.

Moving or falling objects Falling objects:

Take steps to prevent people being injured by falling objects. If there are areas or specific activities in the warehouse with a risk of material or an object striking someone, make sure that the area is clearly indicated and that unauthorised people dont enter it. o Mechanical handling:

Mechanical handling equipment (e.g. a fork-lift truck) should be suitable for the job it is used for. All industrial truck operating areas should be suitably designed and properly maintained. Industrial truck operators need to be trained by a competent person. Operator training should include the following three stages: WAREHOUSING 55

i) Basic training; ii) Specific job training; and iii) familiarisation training. o Maintenance and examination of industrial trucks:

Lift trucks should be regularly maintained in accordance with the manufacturers recommendations. Lifting parts of industrial trucks, such as the mast, chains, carriage, forks and tilt mechanism, need to be thoroughly examined by a competent person. Warehouse keeper should have: A documented pre-shift check; A system for reporting defects and for ensuring that remedial work is carried out; A planned routine maintenance system; and A thorough examination/safety inspection regime for each truck. o Storage systems:

Storage areas should be properly designated and clearly marked. The layout of storage and handling areas should avoid tight corners, awkwardly placed doors, pillars, uneven surfaces and changes of gradient. Inspect pallets each time before use to make sure that they are in a safe condition. Take damaged pallets out of use for repair or destruction. Handle empty pallets carefully do not drag or throw them about. Pallets should be loaded correctly to ensure load stability; banding, shrink or stretch wrap can help with this. If warehouse keeper uses pallet racking in his warehouse, make sure the pallets he uses are suitable for the type of racking he has. Racking systems should be properly designed and installed, this includes being able to safely take the load of the goods being stored. Protect racking if it is likely to be struck by lift trucks and other vehicles. Inspect racking regularly to make sure it is repaired and maintained properly and is safe. He should use three types of inspection: - Immediate reporting of damage and defects; - visual inspections at regular intervals; and -expert inspections carried out at intervals by a competent person. Where he fined damage that affects the safety of the racking system, offload the racking and introduce controls to prevent it being used until remedial work has been carried out. Keep a record of inspections, damage and repairs, e.g. in a logbook.

WAREHOUSING

56

Future Growth in Warehouse:


Warehouses and distribution centers are often the first place of rest for containers entering the region, regardless of whether the containers entered the region by vessel, train or truck. Accordingly, determining future trends and locations of warehouses and distribution centers was a key component in projecting container flows. Approach and Factors: The unique and changing nature of the warehousing industry, combined with the scarcity of data on the subject, led to the use of a more qualitative approach to projecting warehousing development and location. Under this qualitative approach, can use several factors to project warehousing activity: WAREHOUSING 57

General Trends in Warehouse use and Location Decisions: The role of warehouses and distribution centers has become more important as supply chains have become more global. Warehouses are generally the first place of rest after the production line on the way to points of consumption. In todays increasingly global marketplace, warehouses and distribution centers are often the place where goods that are produced overseas are prepared for local consumption. Products undergo final assembly and customization, as well as packaging and shelf readiness processes. This value added activity differs from typical manufacturing operations in that the primary function of the facility is warehousing and distribution. In addition to warehouses and distribution centers, manufacturing operations, both big and small, also exist throughout the State that rely on the receipt or shipment of international products. In the global supply chain, customization for the North American market increasingly occurs near the port of entry at area warehouses and distribution centers. Accordingly, the southern California region and New Jersey are increasingly attracting warehousing activity. In southern California, for example, the Inland Empire area is quickly developing as a hub of warehousing and distribution activity for the Ports of LA and Long Beach. The Colliers Seeley Industrial Market Report for the first quarter of 2003 states that The Inland Empire is a rapidly growing, big box market. It has a total of 197 million square feet of industrial space, the vast majority (88%) of which was built in the past 20 years. 73% of its space is in the big box segment. Other ports, such as the Port of Savannah, have recognized the trend and are actively marketing local warehousing sites in order to attract customers and cargo flows. Within this context, the consultant team will assume for the Portway study that the demand for warehousing and distribution center space in New Jersey will remain high. Where the State cannot fulfill warehousing needs, it is likely that sites in states adjacent to New Jersey will be used. This trend is one of the reasons for the growing amount of warehousing space located along I-78 to Harrisburg, PA. Considerations in warehouse location decisions include the cost of land/buildings, access to markets and transportation modes and the availability of labor. In general, regional and national distribution centers seek sites with space for future expansions. Developers are also building larger facilities that can be subdivided to house several tenants. While larger tracts to meet these needs are more commonly found in the outer areas of the region, several brown field initiatives are likely to result in sites becoming more available closer to the Port. These locations have been explicitly included in the analysis. Redevelopment of individual, smaller parcels has also been accounted for in developing traffic flow information.

WAREHOUSING

58

Warehouse control system:


A warehouse control system (WCS) is a software application that directs the real-time activities within warehouses and distribution centers. As the traffic cop for the warehouse/distribution center, the WCS is responsible for keeping everything running smoothly, maximizing the efficiency of the material handling subsystems and often, the activities of the warehouse associates themselves. It provides a uniform interface to a broad range of material handling equipment such as AS/RS, carousels, conveyor systems, sorters, palletizers, etc. The primary functions of a WCS include: WAREHOUSING 59

Interfacing to an upper level host system/Warehouse management system (WMS) and exchanging information required to manage the daily operations of the distribution center. Allocating work to the various material handling sub-systems to balance activity to complete the requested workload. system

Providing real-time directives to operators and material handling equipment controllers to accomplish the order fulfillment and product routing requirements. Dynamically assign cartons to divert locations based on defined sortation algorithms or based on routing/order information received from the Host (if applicable). Generate result data files for reporting and/or upload by the Host system. Operational screens (graphical user interface) and functions to facilitate control and management of the distribution warehouse. efficient

Collect statistical data on the operational performance of the system to enable operations personnel to maintain the equipment in peak performance. Each major function is designed to work as part of an integrated process to effectively link the host systems with the lower level control system, while relieving the Host from the realtime requirements such as operator screens and lower level equipment control interfaces.

The typical warehouse/distribution center consists of a multi-tier control architecture in which each level in the control hierarchy has a defined role. The upper most level of the control hierarchy is the warehouse management system (WMS), or host. This system handles the business aspects of the system such as receiving customer orders, allocating inventory, and generating shipping manifests or bills of lading) and invoices based on order fulfillment information and shipping information received from the material handling control system (WCS). It typically interacts with the material handling system on a non-real-time basis. Coordinating the activities of the various material handling sub-systems is the role of the warehouse control system (WCS). The WCS directs the real-time data management and interface responsibilities of the material handling system as well as provides common user interface screens for monitoring, control, and diagnostics. As the focal point for managing the operational aspects of the material handling system, the WCS provides the critical link between the non-real time based host and the real-time MHE control system. It receives information from the upper level Host and coordinates the various real-time control devices (conveyors, print and apply applicators, etc.) to accomplish the daily workload. At each decision point the WCS determines the most efficient routing of the product and transmits directives to the equipment controllers to achieve the desired result. At the lowest level, closest to the physical equipment, are the equipment controller(s). These controllers are typically some form of a Programmable Logic Controller (PLC) or a dedicated, real-time PC control system. They interface to peripheral Input/Output (I/O) devices such as photo-eyes scanners, motors, etc. as well as data collection devices such as bar code scanners (barcode reader) and weigh scales and are responsible for the physical operation of the material handling equipment. The equipment controllers are also responsible for the physical handling of product and tracking it from point-to-point based on the direction from the upper level WAREHOUSING 60

control systems. Typically a single controller is only concerned with the operations of a defined area or sub-system of the overall material handling system. Ultimately, the control hierarchy within the distribution center reflects the organizational structure of their human counterparts. The management staff (or the WMS) determines the workload to be accomplished for the day while the supervisory staff (WCS) oversees the real-time activities of the warehouse associates (equipment controllers) to complete the daily activities. Each warehouse associate is assigned a specific task based on their area of expertise (order selection carousel/Pick to Light, transportation - conveyors, etc.). As each operator completes their individual assignment, the supervisor (WCS) assigns the next task based on the current workload. As orders are completed, the (WCS) supervisor reports back to (WMS) management the status of the orders along with any pertinent order information.

Warehouse Operations:
Getting the right product to the right store at the right time is critical in retail warehouse operations. That's why it's important to have flexible tools in place that can easily match the flow of inventory with changing consumer demands. Intermec's products are known in the industry for their ruggedness, giving retailers the assurance that they can depend upon these critical systems and that they will last for years, giving retailers the best return on their investment. The Warehouse Operations Module is a revolutionary new program for warehouse management. It mobilizes the power of the computer to assure smooth cost-efficient operation. The Warehouse Operations Module manages all the operations of one or more WAREHOUSING 61

warehouses. It provides for multiple warehouses at one site, or multiple warehouses at multiple sites. Benefits Automates Operations Increases Quality and Profits Eliminates Paperwork Features State-Of-The-Art Computer Technology: i) Presents program which is menu-driven, easy to learn, and easy to use. ii) Provides wealth of reports to facilitate warehouse decision-making Powerful and Complete: i) ii) iii) iv) Keeps track of the location of goods within the warehouse system. Converts jobs from SIT to Perm to NTS storage with a single keystroke. Optionally bills for storage for the day received and/or pulled from storage. Tracks from beginning to end, unlimited numbers of containers, cartons, or pallets.

Warehouse Process:
A great deal of time, effort and cost is expended in infrastructure investment including the warehouse. Yet operating costs can be many times this figure, so efficient warehouse processes are critical to overall logistics expenditure. This holds true no matter where the warehouse is located, and whether the operation is outsourced or not. Advice on where to locate a new warehouse is plentiful and of high quality, but it is even more important to look at what goes on within the four walls. Handling deliveries from suppliers includes the entire inbound process and effectively feeds the rest of the warehouse operation. Decisions also have to be made on whether a WMS is needed and how it should operate. Picking and despatch are critical features of customer service and efficiency.

WAREHOUSING

62

Components of a Process Warehouse Process Catalog -

This is an inventory of the processes that an organization uses in its business. This is a central place where all data about the processes is stored and retrieved as necessary. In a typical telecom company, in customer service alone, there are hundreds of business processes that are in operation at any time, just for one line of business such as Landline or Mobile services. Consider additional value - added services and additional businesses, and pretty soon you have many hundreds of business processes that are in operation. Names of processes, who designed them, dates they went into operation, location of the stored process documents, the names of the process owners, their e-mail addresses and phone numbers, the measures used on these processes, the calculations for the measurements are all natural parts of a process catalog. Typically, for each process you may have a few hundred attributes and values you need to store and retrieve. Many companies formalize their processes with ISO 9000 standards, but the information is scattered throughout the company, quite often on the desktops of individual process owners. A process catalog centralizes all this information and enables anyone to access details of any one process or run reports across processes. Process Models -

In order for measures and targets to be instituted for a process, you need a model of the process and the different process steps involved. You also need a multidimensional cube to be associated with the process model for fine-grained process analysis. If a process does not meet its target measures, you need more information to analyze the problems. If a process does not meet turnaround times (TAT), you may need to see what steps contributed more than others to the TAT not being met. More importantly, are there specific kinds of customers, specific kinds of products or services that cause the slips in TAT? The Pareto Principle (80:20 rules) applies very much to processes. In order to track down the 20 percent of the cases that cause 80 percent of the slip-ups in your process, you need a multidimensional cube to give you insights into where you need to concentrate your process improvement efforts on. Process models need not capture only quantitative information such as TAT, accuracy and error counts. Qualitative factors such as customer satisfaction also form natural process measures. Process Execution Information -

You may need to collect process execution information to see how a process is doing today, this week, this month, this quarter, etc. Process execution information may be available in real time or, in many cases, in the form of batch reports or spreadsheets. This data needs to find its way back to the process warehouse to be useful. Process execution information could also be sampled instead of being collected in an exhaustive manner as long as the samples are representative. Process Analysis Information -

Once you have a process model and process execution information, you are ready to create and use process analysis information. You have actual process execution information of TATs, accuracy and error rates to compare against targets for each process step. Now daily, weekly, monthly reports can be generated for appropriate decision making. Incorporation of WAREHOUSING 63

multidimensional modeling in the process model can help you drill down targets that have not been met, down to a customer type or product type or service type that you have included as dimensions in your process model. Statistical process control charts generated from the information collected can help you see if the processes are in statistical control; and if not, you can take appropriate action. Process Capability Information -

Once you undertake process improvement efforts, you should be able to go back and compare "before" and "after" snapshots of process performance to see how you have improved. More importantly, you may need to keep monitoring to see if the processes are still under control or not. Some standards bodies such as ISO-9000 or COPC (Customer Operations Performance Center) Certification require well-documented processes for basic certification. However, they require well-documented evidence of performance improvement for higher levels of certifications.

Warehousing cost:
Warehousing costs are levied by the warehouse owners and are an unavoidable expense for the companies that use the space. The owners should be conversant with the applicable charges. In years to come, users will find it increasingly mandatory to implement near line storage, to reduce their data warehousing costs and make data analysis more efficient and effective. As the warehouses grow in number and provide more services, determining the cost of the company gets more difficult. Basic costs need to be understood, even if there is a third party involved. There are generally three types of expenses involved and they should be understood, while calculating the costs. WAREHOUSING 64

The first is the General Overhead Cost. This consists of the cost of space per cubic square foot. It may further include rent or mortgage, property taxes and utilities. General Overhead Costs also comprise of the cost of racks, tables and other equipment used in staging areas. They include the cost of various security devices, as well as the cost of material handling equipment, depreciation and document destruction services, if necessary and the cost of repairs or shrinkage. The second type of cost included is the delivery cost. This cost includes freight charges from outside vendors. These costs may also include the cost of gas, the insurance and the cost of the delivery trucks. These rates are subject to the time involved in negotiating rates and to select vendors, as well as the time to prepare shipping documents. The third type of cost is the labor cost. This involves the receiving of incoming goods, including entering the relevant data into the computer and assigning warehouse positions. It includes the time taken to move goods from shipping to pallet positions. It is necessary for warehouse owners to be informed about the existing warehousing costs.

Warehouse strategies to help to reduce warehouse cost:


This strategy help in lowering the cost per order, increasing storage capacity within the center, reducing inbound and outbound freight, improving service levels and turnaround times.

1. Benchmarking: A program to set up internal benchmarks will reduce your cost per order or hold the cost in line as volumes increase. Translate these down to department and individual work standards. 2. Manage the labor force: Labor is the largest controllable expense item in your distribution center. Successful practices to improve performance can lower your labor cost.

3. Hiring, retention and attrition (turnover): Labor is your first or second largest expense after outbound freight in the fulfillment center. Review the reasons attrition is so high and work to close the gap. Review your hiring, retention and training practices. How well are you able to staff for the peaks? 4. Reduce handling and touches: The fewer touches of product the less cost of shipping an order. An effective warehouse cost reduction strategy is to streamline the operation and apply industry best practices in order to reduce the handling and cost of fulfilling an order. WAREHOUSING 65

5. Slotting: Effective slotting practices can lower your costs for picking, replenishment, and put away warehouse labor. 6. Team building: Successful organizations take team building seriously. Take your organization to a new level and improve productivity. 7. Picking options: How can you use best practices to improve picking productivity? 8. Use what you have more productively: This is a mantra in fulfillment today. Increasing current capacity and utilizing that capacity more effectively are key objectives. Getting as much productivity as possible out of the existing layout, processes and systems will help you reduce warehouse costs. 9. Performance reporting: The old adage of, "You can't improve what you don't measure" is certainly true. An effective measurement and reporting process can improve performance and lower costs. 10. Packing options: How can industry best practices help you improve performance and reduce costs of one of the most labor intensive functions in the warehouse? 11. Freight management: Controlling inbound and outbound freight can make the difference between a profit or loss for business. Learn more about freight cost reduction. 12. Receiving practices and cross docking: Cross docking is an effective practice to reduce handling and costs while improving customer service and shipping costs. 13. Process returns more efficiently: Returns cost more than orders to process. Untimely processing of customer credits, refunds and exchanges can damage customer service. Look at use of staff, people, space and systems to improve productivity. 14. Workforce software: Many companies are still using Excel for their staffing software. Excel cannot save as much money year over year as a good workforce program. Team up with Contact Center to share a scheduling system. It will pay for itself quickly. If you have one, understand how to use it to its maximum. WAREHOUSING 66

15. Outsourcing option: There are practical and cost effective reasons to outsource part or all of business. It may be to deal with a peak, new product categories or when fulfillment is not a company core competency. 16. Finding the right level of automation and systems: ROI analysis could put automation into your planning for cost improvement. The wrong material handling equipment can be creating hidden lost time and inefficient product flow, impacting cost and customer service. 17. Warehouse management/bar code systems: This should include reviewing how bar coding throughout the warehouse, conveyance, material handling and warehouse management systems can improve productivity, increase service levels and reduce costs. 18. Inventory management in the warehouse: Effective inventory management is the single most important tool to improve customer service and reduce cost of operation. 19. Replenishment practices: Effective replenishment is the basis of successful order fulfillment. Inefficient replenishment will cost huge dollars and negatively impact customer service.

DHL Case Operating System of RIFD's:

WAREHOUSING

67

The job of RFID systems is primarily the same one that barcodes perform today: to store and provide information about a product, a pallet of goods or entire inventories. RFID systems are, however, far superior to barcodes. For example, they can process several products at once without any direct contact. The key benefit of RFID is that data no longer has to be laboriously processed using scanners. Instead this can all be done through radio transmissions: fast and at a distance. While barcodes always need to be read separately, RFID chips can be read "in bulk", which saves time. In warehousing logistics, for example, a stock inventory can be generated at the push of a button. The possibilities for RFID in logistics are endless opening up completely new opportunities for the sector. Find out here what RFID can do today and in the future. An RFID tag consists of a microchip which contains a small antenna. The antenna transmits information to a reading device, known as the RFID reader. Significantly more information can be stored on the microchip than on a barcode label - up to several kilobytes.

Food Co-operation of India (FCI):

WAREHOUSING

68

This is a government owned warehouse the main objective of F.C.I is to protect the farmers as well as the consumers. F.C.I is located in Borivali (E). F.C.I acts as a middle agent between the farmers and consumers. F.C.I imports their food products like rice and wheat from North India specially places like Punjab, Harayana, Raipur, and Chattisgarh. Government of ministry gives the permission for the import and export of the food grains. Mainly these food grains are brought up by F.C.I at a fixed rate and of best quality from farmers and are stored in godown, during shortages of food grains for local consumers they sell it in the form of ration. They also supply food grains to the private dealers if there is a shortage of food grains in their godowns. No profit is taken under consideration. If there is bulk quantity of food grains they export it to other countries which are in extreme needs. It helps the farmers to get a better price for their production and also a reasonable price for consumers. Pulses are also stored for the defense department. The area of F.C.I is 119 acres that makes 110 kilometers. It operates through 5 zonal offices and a regional office in Delhi. Each year, the Food Corporation purchases roughly 15-20 per cent of India's wheat output and 12-15 per cent of its rice output. The losses suffered by FCI are reimbursed by the Union government, to avoid capital erosion, and thus declared as a subsidy in the annual budget. In 2007, such food subsidies were met by government bonds worth almost $8 billion. History: F.C.I was started by the government of ministry in the year 1969. It has 30 years of service. The first branch was started in Borivali and the headquarter of F.C.I is in bandra. It also its other branches which are located in panvel and shivri, they started their storage work with 4 to 5 godowns and in the year 2009 it has 50 godowns with 13 different types of wings. F.C.I was started with the strength of 50 members which included the labors and office staffs and now their strength is approximately around 500 to 600 members.

Functions of Warehouse:
Receive the material:-

F.C.I purchases the food materials from the farmers by consulting the state government and then stores it in their godown. Dealings are been done by the QC department. Store the material properly:-

Materials are stored as per their section. Food grains stored in the godown are according to their quality i.e. a grade and B grade. Before storing it is been checked by the quality department, proper treatment is given to the food grains then it is stored.

Mixing of material:mixing up. 69

As per the grades and quality food grains are stored so there is no chance of WAREHOUSING

Remove the material when required:-

F.C.I godowns are situated in many states and places so in case of any shortage supply of grains is easier and requirement can be fulfilled faster. Records:-

All the records are been filed in the hands of state government i.e. about the dealings of import and export. Packaging and waiting for order:-

Food grains are stored in sacks as per the quantity .once the state government permits to send the materials to the party who placed the order then it is been dispatched. Maintaining good house keeping:-

Warehouse of F.C.I is clean and has a proper storage facility. Proper care and handling is given to the grains. Mainly maintenance is been carried by two wing, civil wing and mechanical wing. Keep proper control:-

Up-to-date transactions are been checked and stored in computers, guards are been allotted at different checkpoints and godowns so there is no theft and pilferation. Avoid keeping surplus material:there are

As they have good storage facility grains are been stored for many years so surplus .These surplus are used during shortage, but in limited quantity. Verification of stock at regular interval:-

Stocks are been checked by qc department periodically every month, phospine mellathine are sprayed on grains so that it will last at least for eight years . Arranging transport:-

and

Transportation is bared by F.C.I as they have their own vehicles. No tax is them as it is controlled by government .all the risk is been bared by the whom the goods are been exported.

levied on receiver to

WAREHOUSING

70

Managing Warehouse: F.C.I acts as an agent between farmers and consumers. It is controlled and managed by the government of ministry. Once the food grains are purchased from farmers and are stored in the godown of F.C.I according to their grades and quality. Nearly they have 50 godowns, access of food grains are purchased so that they can store it in the godown and when the need arises they sell it off. They have different departments which look after the godown as well as warehouses and import export procedures. Multi-Locational Manufacturing and Warehousing: In order to achieve the objectives the organization will depend on the situation to situation. If there is any shortage as such F.C.I plays a better role. It has its warehouse all over India. For e.g. If there is any kind of natural disaster in a state then F.C.I helps them in providing with food grains by manufacturing their own warehouse in the same state and giving them on the rental basis. Their important consideration is manufacturing their warehouses at different places. Dispatching of Goods: Food grains are been dispatched according to the needs and requirements of the consumers. This is all done by consulting the state government. As they have their own transport facilities no duty tax are been charged while transporting.

WAREHOUSING

71

Quality Objectives: Fulfillment of the targets set by headquarters and government of India. Implementation of headquarters guidelines and instructions at various levels. Monitoring of quality related parameters in various identified processes improved customer satisfaction level. Minimization of all losses. Need based up gradation of infrastructure and work environment. Need based enchantment of available knowledge and skill. Maintaining and improving ISO 9001:2000 based quality management. System covering all areas of activity. Quality Policy: Food Corporation of India, District office, Borivali is committed to implement the national food policy and to provide reliable and consumer focused services for effective food security management through efficient procurement, scientific storage and prevention, timely movement and issue of food grains. Their focus shall be WAREHOUSING 72 leading to

Enhancing consumer satisfaction through professional excellence in food grain management. Maintaining transparency and accountability in transaction. Optimum utilization of resources. Comitial improvement of processes and system. Quality Control: The quality control department looks upon the food grains. They give proper treatment to the grains like silage which increase the life of the grain at list eight years. They also check the proteins which are in grains and have not spoiled. Quality control department uses various sprays like phosphine and mellathine(DDVP). They use pesticides where there are standing crops, harvested crops, stored crops, and places where food is processed (PFA) Prevention of adulteration act 1954 plays a vital role it follows the main objectives of the food laws are to protect consumers against health hazards arising out of adulteration. Any fraud by dishonest traders to have fair trade practices in food articles. Insurance: F.C.I is insured by the government of ministry. So if any mishaps take place it is been bared by the government of ministry. Risk during transportation while import the risk is bared by government and during export it is bared by the recipient. Insurance is provided to the workers and they are also provided with medical claims for their family members. In case the stock is in surplus then it is transported to other godowns and all the risk and losses are bared by Food Corporation of India.

WAREHOUSING

73

Maharashtra State Warehousing Corporation:


Introduction: Maharashtra State Warehousing Corporation is one of the oldest State Warehousing Corporation in the country, established on 8th August, 1957, under the Agriculture Produce (Development & Storage) Act, 1956, which was subsequently replaced by the Warehousing Corporations Act, 1962. It started with 3 Warehousing Centre and had grown up to the extent of 165 Centre as at present with a total capacity of 14.71 Lakh MTs as on 31-3-2009. As per the Act, MSWC has got two Shareholders, one is Government of Maharashtra and another is Central Warehousing Corporation with 50% Shares each. It has got Chairman & Managing Director at its Corporate Office in Pune with 10 Nos. of Board of Directors. Out of which 5 Directors are nominated by Government of Maharashtra and 5 Directors are nominated by Central Warehousing Corporation. Initially the State Warehousing Corporation started with the business of storage of stocks from primary producers and local traders and the business was restricted only to the Storage of foodgrains stocks accepted on Warehouse Receipts. However, with the changing times and needs, some more notified commodities were accepted. Thereafter the stocks of Civil Supplies were accepted for storage & handling, followed by Food Corporation of India foodgrains and fertilizers on the same lines. Due to rise of fertilizers production in the country the storage of fertilizers from different fertilizer Companies was started.The Corporation is at present storing various commodities and running many types of warehouses. Mainly the Corporation is storing agricultural produce and agricultural inputs on large scale. The Corporation is also successful in attracting the storage of Cotton Bales on large scale.

WAREHOUSING

74

Storage capacity: Total Storage Capacity of MSWC as on 31-3-2009 is 14.71 Lakh MTs, out of which owned storage Capacity is 11.26 Lakh and hired Capacity is 3.45 Lakh MTs. The details of the storage capacity and its utilization during last 3 years are as under.Year 2006-2007 2007-2008 2008-2009 Features: Widest Network Of Warehouses Amongst All Indian States - 165 Centers With 693 Godowns. Statutory Public Warehouse Keepers for Agricultural Produce Inputs & Stocks in its Warehouses. Warehousing Capacity Over One Million MT. i.e. 12,21,186 MT FIFTY TWO Years Standing In Warehousing Business. National Productivity Award Winner For The last 7 Years. High Average Capacity Utilization - 89%. Warehouse Receipts Accepted By All Banks As Security For Financing. Warehousing Open To Individuals As Well As Organisations. Total Storage Capacity in Lakh M.T. 11.98 11.80 14.71 Utilisation of storage capacity in Lakh M.T. 8.28 8.33 9.28 Percentage of Utilisation 69% 71% 76%

Farmers, Scheduled Castes And Scheduled Tribes Given Rebate In Warehousing Charges. A Shining Example Of Highly Efficient & Profitable Public Sector Undertaking.

Functions of MSWC: 1. To acquire and build warehouses at suitable places within the State. 2. To run Warehouses for the storage of agricultural produce, seeds, manures, agricultural implements and notified commodities offered by individuals, societies and other institutions. fertilizers, cooperative

3. To arrange facilities for transport of agricultural produce, seeds, manures fertilizers, agricultural implements and notified commodities to and from Warehouses. WAREHOUSING 75

4. To act as an agent of the State Government for the purpose of purchase, storage and distribution of agricultural produce, seeds, manures, fertilizers, agricultural implements and notified commodities; 5. Carry out such other functions, as may be prescribed. Services: Bonded Warehouses: Public Bonded Warehousing:

sale,

The Corporation has been operating Public Custom Bonded Warehouses by obtaining a license from Custom Authorities as per the Section 57 of the Customs Act, 1962. At present the Corporation is operating the Public Bonded Warehouses at (1) Vashi, (2) Kalamboli, (3) Taloja, (4) Manpada, (5) Panvel, (6) Dronagiri Node & (7) Nagpur. Custom Bonded Warehouses: We maintain custom bonded warehouses at different centers at following places. These bonded warehouses are the facilities created by the Custom Department, where the imported goods can be stored till the custom duty is paid. The importers can take advantage of the facility of these Bonded warehouses by way of taking delivery of these import goods in part, and thereby making payment of duty restricted to the goods for which delivery taken. This way the custom duty can be paid in parts instead of making huge amount of custom duty in one go. Concentration For Helping The Farmers: Maharashtra State Warehousing Corporation has introduced measures for providing economical services to the farmers. They store their primary produce on Warehouse Receipts. Farmers can get the loan of 70% value of the stock stored in MSWC godowns by pledging the Warehouse Receipts in the Bank. Promoting the farmers to avail the facilities of scientific storage, substantial rebate to the primary producers & farmers is given by the Corporation to the tune of 50% of the storage charges A grain saved is a grain produced: The Corporation has been continuously in profit and has created the own constructed capacity. Even then with the changing face of Trade & Commerce with the liberalization Policy, the competition in the field of warehousing is also increasing and many private warehouses are coming up around cities. The business of Warehousing Corporations not being of monopolistic nature, we have to face the challenges and we are sure to overcome the situation with the zeal & zest that our employees and officers have. Subsidy / Rebates: MSWC provides 50% rebate on Storage Charges to the bonafide farmers. (Primary Producers), 10% rebate is given on Storage Charges to the Cooperative Societies for their stocks stored in Warehouses. MSWC also provides rebates on Storage charges for Bulk

WAREHOUSING

76

reservations, Area Basis & Advance Payment. Please refer details in Schedule 49.No subsidy is provided by MSWC on Storage Charges. Concessions permits: As a bailee of the stocks stored in its Warehouses, the Corporation does not grant any permits, concessions and authorizations of any kind to the public. However, MSWC provides rebate on Storage Charges to the bonafide farmers, (Primary Producers), who bring their food-grain produce to Warehouses for storage. As a quality policy MSWC has to reach its customers. As a part of aggressive thrust under the Quality Policy, rebates are extended to customers / users on certain criteria such as committed volume of business for a committed period based on market forces. Disinfection facility: Pest Control Termite Pre and Post Construction Treatment. Pest Control services for: Eradication of Cockroaches, Mosquitoes, Moths, Bedbugs, Silver Fish, Fleas, Carpet Beetles, Lizards etc Rodent control: Corporation is also undertaking Pest Control Work of outside Organisations under DESS (Disinfestations extension Service scheme) Corporation is also undertaking outside fumigation work of the stocks stored in various godowns of Govt. of Maharashtra and helping the Govt. in preservation of food grains to avoid losses to the valuable food grains. Godown Fumigation: Corporation is undertaking fumigation of Foodgrain stocks of Farmers, traders and also giving these services to Government of Maharashtra for their Civil Supply godowns all over Maharashtra. Future Planning: Carrying out the survey to meet the requirement of storage of farmers, traders, industrialists, exporters, importers, private institutions, Government institutions and constructing the storage capacity is ongoing process of the Corporation. Corporation has increased the storage capacity during 2008-09 and by 22260 M.T. & during 2009-10 Corporations has planned to construct the storage capacity of 71640 M.T.

Case Study - New Age & Beyond Warehouse Management System (WMS)
The Company:

A Sydney based company is a distributor of books, artifacts, cards, antiques and other contemporary gift items and house wares. The company ships their products to WAREHOUSING 77

approximately 700 retailers around the world as well as taking online orders directly from individual consumers. Key Benefits:

* Order accuracy increases from 70% to 99.9 % * Order picking time down from 30 minutes to 4 minutes * Real-time visibility into warehouse inventory Levels * Unit items shipped per day up from 300 to 1000. The Challenge:

New Age & Beyond managed a 10,000 square foot warehouse using a paper based system. Ten warehouse staff had to rely on their memory to find products needed to find their orders, and inventory tracking was done using MYOB Accounting System. "Everything in our warehouse was categorized by product type and the order fillers had to search through the aisles for products similar to what they were trying to ship," says Jason. "Relying on our staff to locate product by memory proved to be an ineffective way to operate. We recognized that we needed a system that would help us better manage our inventory and increase customer service levels". As the business grew, the manual system began to pose significant threats- orders typically took 30 minutes to pick and order accuracy was measured at about 70%. The company started to struggle with inventory control issues, with no accurate way of tracking the many, and varied products company's distributes. Safety stock control was a serious problem and back order logs were created. Not just that most products like gifts and artifacts are difficult to distinguish. Very often the size, shape and even color of the products are the same, the only marked differences being wording and unique barcodes. Because manual paper based system does not allow for picking by barcode , staff members were struggling to find the products the needed to fill the orders- This challenge was negatively affecting both revenue and customer service levels. With no electronic way of tracking the picking lists once they had been printed, the company was also challenged by lists that would go missing. Sometimes the same list would be accidentally printed twice, leading to duplication of work. The Solution:

After months of operating the traditional way the company realized that its current system would not be able to support its growing business. Company chooses to implement Naxtor warehouse management solution (WMS) to solve these challenges. Naxtor WMS is a cost effective yet feature rich warehouse management system (WMS) designed for small to mid sized wholesale distributors like New Age & Beyond. Warehouse Staff:

The company is able to optimise warehouse operations by automating the pick and receive and various productivity reports and tools at staff disposal create a paper-free (paperless) warehouse environment. WAREHOUSING 78

The warehouse was also integrated with company MYOB accounting system to track backlog orders as well as safety stock levels thus improving significantly inventory situation. Where previously the staff team would use traditional means such as sticky notes and paper, the system is now updated in real time as products leave or arrive on the warehouse floor. The WMS has also turned into a powerful benchmarking tool for the organization. Now the warehouse manger able to accurately track its productivity levels throughout the day, and is able to strategically schedule the staff to ensure order completion during the busiest times. After only one week installation and training process, the warehouse was able to leverage the full capabilities of Naxtor WMS. The company was able to equip warehouse staff with PSC falcon line or wireless data collection and printing technologies.

WAREHOUSING

79

CONCLUSION
By this I come to conclusion that warehousing is very much necessary in logistic management and in every aspect of storing goods/produces. It gives a proper storage facility to manufacturer/ retailer or supplier for storing their produce or goods. It has a proper maintenance and material handling facility. It ensures goods from theft and damages. Warehousing is one of the important auxiliaries to trade. It creates time utility by bridging the time gap between production and consumption of goods. Warehousing affects customer service stock-out rates as well as sales and marketing success. It evens out market supply and demand fluctuations. In today's competitive world warehousing is much necessary for manufacturers and for suppliers for the purpose of meets the required demand of customer and retailer. A warehouse maintains good relationships between supply chain partners. Warehousing affects customer service stock-out rates as well as sales and marketing success.

WAREHOUSING

80

BIBLIOGRAPHY
Warehousing; Planning, organizing and coordinating- Dimitris N. Chorats. Warehousing; a guide for uses and operation- Kennith B. Ackerman World class warehouse and material Handling- Edward Frazelle Warehousing System- Henry Longland Public Warehousing- John Hutchison Building the Data Warehouse- William H. Inmon Business Studies Supply Chain Management IWLA; News Gram

www.1keydata.com www.inventoryops.com www.encyclopedia.com www.fcbc.com en.wikipedia.org

WAREHOUSING

81