12-12-2012, 01:13 PM
Warehousing Decisions
Warehousing Decisions.ppt (Size: 1.33 MB / Downloads: 192)
Learning Objectives
Discuss the strategic value-adding role warehousing plays in the logistics system.
Explain the basic rationale for warehousing in light of transportation consolidation, product mixing, service, contingency protection, and smoothing.
Develop an analytical framework for basic warehousing decisions.
Distinguish between the different warehouse activities requiring space in the warehouse design.
Discuss the major principles of warehouse layout design.
Compare the use of private versus public warehousing.
Explain public warehousing services, regulations, and pricing.
Logistics Profile: Grainger Industrial Supply
Grainger is dedicated to providing excellent customer service using an effective network of warehouses and distribution centers providing same day or next day service.
13.6 million square feet in one national distribution center, two regional and six zone distribution centers, and 373 local branches
1.5 million customers, 220k SKUs, $4.5 billion in sales, 60k to 80k daily customer orders
The Nature and Importance of Warehousing
In 1999, $75 billion, or 0.8 percent of GDP was spent on warehousing.
The total supply of U.S. warehousing space in 1999 was 6.1 billion square feet, an increase from 1990 of 700 million square feet of space.
Warehousing provides time and place utility for raw materials, industrial goods, and finished products, allowing firms to use customer service as a dynamic value-adding competitive tool.
The Ownership Decision
Factors to consider
Throughput volume
Stability of demand
Density of market area to be served
Security and control needs
Customer service needs
Multiple use needs of the firm
Contract Warehousing
Up 23% per year in 2000 to $20.4 billion.
Compensation for seasonality in products.
Increased geographical coverage.
Ability to test new markets.
Managerial expertise and dedicated resources.
Less strain on the balance sheet.
Possible reduction of transportation costs.
Other issues discussed in Chapter 11.
Guidelines and Principles for Materials Handling
To effectively plan and control materials handling, the logistics manager should recognize some guidelines and principles.
Table 8-5 lists 20 of the most commonly accepted principles of effective materials handling. Asterisks mark those deserving special attention.
What Is Packaging?
Consumer packaging
Marketing managers primarily concerned with how the package fits into the marketing mix.
Industrial packaging
Logistics managers primarily concerned with efficient shipping characteristics including protection, ability to withstand stacking when on a pallet, cube, weight, shape and other relevant factors.