Warehousing

WAREHOUSING
Warehousing

Warehouse ???
 Warehousing

Introduction
Peran Gudang pada SCM?

Information Flow
Flow of finance
Flow of goods

Suppliers

CUSTOMER
MANUFACTURE
SUPPLIER
Supplier Cusomers
Customers
Suppliers Cusomers
Supplier Customers

INBOUND INTERNAL OUTBOUND

LOGISTICS LOGISTICS LOGISTICS

STORAGE STORAGE
 Warehousing

Introduction

Warehouse secara tradisional dipandang sebagai

suatu tempat yang digunakan untuk menyimpan
barang/ inventori
Part of firms logistics system that stores products at
and between point of origin and point of consumption
Gudang berfungsi sebagai pusat logistik namun tidak
memberi nilai tambah secara langsung.
 Warehousing

Function
Storage in Transit Inventory

Economic Service
- Consolidation & Break Bulk - Spot Stocking
- Assortment - Full Line Stocking
- Postponement - Product Support
- Stockpiling - Market Presence
- Reverse Logistics

Reduce Transportation Cost by using warehouse

capability to increase shipment economic of scale
 Warehousing

Economic Function: Consolidation

Consolidation occurs when a warehouse receives materials from a
number of sources and combines them into exact quantities for a
specific destination
Plant A

Consolidation X Y Z
Plant A
Warehouse

Plant A
 Warehousing

Economic Function: Break-Bulk

Break-bulk occurs when a warehouse receives a single large shipment
and arranges for delivery to multiple destinations
Customer X

Plant A Break-Bulk Customer Y

Warehouse

Customer Z
Warehousing

Economic Function: Assortment

Reconfigure / arrange freight as it flows from

origin to destination

Cross Docking Mixing Assembly

 Warehousing

A. Cross-Dock
Combine inventory from multiple origins into an assortment for
specific customer

Plant A Customer X

Distribution Customer Y
Plant B
Warehouse

Plant C Customer Z
 Warehousing

Cross-docking combines inventory from multiple origins into a

prespecified assortment for a specific customer

Stock
Inventory
 Warehousing

A schematic representation of the warehouse

material flow
Replenishment Replenishment

Broken
Case
Reserve Storage Case
Picking
and Picking
Pallet Picking

Accumulation, Sortation & Packing

Direct Direct
putaway putaway
to reserve to primary
Receiving Shipping
Cross-docking
 Warehousing

B. Mixing

Customer W
A B C D
Plant A
Customer X
A B C D

Transit Mixing
Plant B
Point Customer Y
A B C
Product D

Plant C
Customer Z
A B
 Warehousing

Mixing is usually performed at an intermediate location between origin

and destinationng
Mixing combines inventory from multiple origins (like cross-docking)
but also adds items that are regularly stocked at the mixing warehouse

Stock
Inventory
 Warehousing

C. Assembly
Procure inventory from multiple Vendor to support
manufacturing operations

Vendor A

Lead Supplier Assy. Plant

Vendor B
Warehouse

Vendor C
 Warehousing

Assembly supports manufacturing

operations
Assembly occurs when
products or components from
second-tier suppliers are
assembled by a warehouse
located near manufacturing
plant
Common assembly
processes are packaging and
color customizing
Warehousing

Economic Function: Postponement

Warehouse postpone commitment to final product

configuration by completing final packaging,
labeling, and light manufacturing

Reduced Risk Lower Inventory

 Warehousing

Economic Function: Stockpiling

Accommodate seasonal production or demand

Buffer Stock
 Warehousing

Economic Function: Reverse Logistics

Perform physical work related to product recall,

removal of overstock and damage inventory

Control Regular
 Warehousing

Reverse logistics
Reverse logistics include
activities supporting
Returns management
Recalls or product that did
not sell
Remanufacturing and
repair
Repairing/refurbishing
equipment
Remarketing
Selling used equipment
Recycling
Disposal
 Warehousing

Illustration of reverse logistics flow

 Warehousing

Service Function

Establishing warehouse to service a specific

market area

Spot Stocking
Full Line Stocking
Product Support
Market Presence
 Warehousing

Service Function
Spot-stocking is the positioning of
inventory for seasonal or
promotional demand (Seasonal
production include agricultural Seasonal storage allows production
efficiencies within the constraints of
products;Seasonal demand seasonality
includes lawn furniture and toys)

Full line stocking provides

one-stop shopping capability for
goods from multiple suppliers
Value-added services include
any work that creates a greater
value for customers
See Table 10.1 for examples Full Line Stocking at United
Electrics Distribution Center
 Warehousing

Typical list of value-added services

Table 10.1 Value-Added

Services
Warehousing

Warehouse Operation
Warehouse activities

RESERVE
STORAGE
LOADING
UNLOADING
GOODS ORDER
RECEIPT PICKING SORTATION
CHECKING DELIVERY

RECEIVING S T O R AG E SHIPING
 Warehousing

Warehouse operations involve two major

activities handling and storage
Objective is to
Efficiently receive
inventory
Store it as required
Assemble it into
complete orders
Make a customer
shipment
Operations will
therefore emphasize
product flow
Warehousing

Warehouse Operation

Handling Storage
Receiving - Active
In Storage Handling - Extended
Shipping
 Warehousing

Handling
Handling must optimize
movement continuity and
efficiency:
ReceivingUnloading the
arriving vehicles
In-Storagemoving
goods for storage
(transfer) or order
selection (picking)
Shippingverifying the
order and loading the
departing vehicles
 Warehousing

Storage plans should make product velocity a

major factor
Slotting determines
specific locations for the
product based on
Velocityhow fast the
goods move
Weighthow heavy is
the product
Special Characteristics
how large or small,
does it require rack or
bin storage
 Warehousing

Illustration of storage plan based on product

movement velocity
 Warehousing

Warehouses must manage two classes of

storage
Active Storagestorage
for basic inventory
replenishment
Focuses on quick
movement
Includes flow-through or
cross-dock distribution
Extended Storage
storage for inventory held
in excess of period for
normal replenishment
E.g. seasonal,
speculative, or even
commodities
 Warehousing

Warehouses must manage two classes of

storage
Active Storagestorage
for basic inventory
replenishment
Focuses on quick
movement
Includes flow-through or
cross-dock distribution
Extended Storage
storage for inventory held
in excess of period for
normal replenishment
E.g. seasonal,
speculative, or even
commodities
 Warehousing

Warehouse ownership arrangements

Privatewarehouse operated
by the firm owning the product
Building may be owned or
leased
Publicservice company
owns warehouse and hires out
space and services
Usually classed as
General merchandise
Refrigerated
Bonded
Special commodity
Household goods and
furniture
 Warehousing

Contract warehousing combines elements of

private and public operations
Usually a long-term relationship
or contract between a firm and
the warehousing
owner/operator
Long-term cost savings
compared with public
warehouse
Often a firms employees
will work alongside the
contract warehouses
Example is Kraft Foods who
has contracted with
AmeriCold Logistics since
the late 1990s
 Warehousing

Storage Plan
Receiving
Dock

Low Volume High Volume Low Volume

Shipping
Dock
Warehousing

Basic Warehouse Design

Receiving Area

Bulk Storage Rack Storage

Area Area

Order Picking Area

Packaging or Unitizing Area

Staging Area

Warehousing-Senator Nur
Bahagia@
 Warehousing

General w/h lay out

 Warehousing

General Building
 Warehousing

General Racking
 Warehousing

Two examples illustrating the integration of

handling equipment with final layout
Warehousing

Flow of Goods in Warehouse

Receiving Receiving Receiving

Holding Holding Holding

Picking Picking Picking

BatchForming
Batch Forming

Packaging
Packaging

Shipping
Shipping
Warehousing

Simple Warehouse Operation

Receiving Zone

Storage Zone

Shipping Zone
 Warehousing

Warehouse With Reserve and Forward Storage

Receiving Reserve Forward Shipping

Zone Zone Zone Zone
 Warehousing

Storage Media
Physical Characteristics of Goods in Stock
Solid Goods: Stack, Rack, Drawers
Number of items of each product in a customer order
 Warehousing

Block Stacking System

Warehousing

Warehouse Design

Criteria

Services Cost
 Warehousing

Warehouse Cost
Receiving Cost
Holding Inventory Cost
Retrieving Cost
Assembling to customer order Cost
Shipping Cost
 Warehousing

Factors To Be Considered
Physical characteristics of products
Number of items in stock
Rate of storage and retrieval request
 Warehousing

Warehouse Design
1. Determining the capacity: length, width and height
2. Locating and sizing: receiving, shipping and storage
zones (including number of I/O port, number, length and
width of the aisles of storage zone and the orientation of
stack/racks/drawers)
3. Selecting the storage medium
4. Selecting the storage/retrieval transport mechanism
 Warehousing

Selecting The Storage/Retrieval

Physical Characteristics of goods
Packaging at the arrival
Composition of out going lots

Stack Rack Drawers

 Warehousing

Sizing Receiving &Shipping

The Number of Truck Dock

ND = [dt/qT]

ND : Number of Dock Truck

d : Daily demand from all order
t : Average time required to load/unload a truck
q : Truck Capacity
T : Daily time available to load/unload truck
 Warehousing

Case
Average daily demand is 27.000 units, outgoing shipment are performed by
trucks, with capacity equal to 850 units. Average time to load a truck is
280 minutes and 15 working hours are available every day

Number of dock truck:

ND= (Average daily demand x Average time to load or unload) / (truck capacity x Daily
time available to load/unload truck)

ND = [(d.t)/(q.T)]
ND = [(27.000x280)/(850x(15x60)]
ND = 10
Number dock = 10
 Warehousing

Warehouse management systems

encourage best practices
Warehouse management systems (WMS) integrate
procedures and software support to standardize
storage and handling work procedures
One main use of WMS is to coordinate order selection
Discrete selection is when a specific customers order is
selected and prepared for shipment as a single work
assignment
Wave or batch selection is when orders are processed
through zones of the warehouse assigned to specific
employees
 Warehousing

Illustration of the range of activities

coordinated by an advanced WMS
 Warehousing

A summary of WMS functionality and decision

support benefits
Warehousing

Terima Kasih!