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Distribution Strategy: Warehousing

Distribution Strategy: Warehousing. Logistics and Supply Chain Management. Warehousing . . . . The storing of products, including raw materials, parts, goods-in-process, finished goods at and between point-of-origin and point-of-consumption. Provides information on status of goods.

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Distribution Strategy: Warehousing

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  1. Distribution Strategy:Warehousing Logistics and Supply Chain Management

  2. Warehousing . . . • The storing of products, including raw materials, parts, goods-in-process, finished goods at and between point-of-origin and point-of-consumption. • Provides information on status of goods. Distribution centers are a type of warehouse which hold minimum inventory of high-demand goods. . . . .

  3. Warehousing . . . • The storing of products, including raw materials, parts, goods-in-process, finished goods at and between point-of-origin and point-of-consumption. • Provides information on status of goods. Warehousing: Storage of inventories all through logistics process. . . . .

  4. Warehousing: Storage of inventories all through logistics process. • Raw materials, components, parts. • Finished goods. • The storing of products, including raw materials, parts, goods-in-process, finished goods at and between point-of-origin and point-of-consumption. • Provides information on status of goods. Physical supply Distribution Warehouse Warehouse

  5. Inventory in a Warehousing Context • Achieves transportation economies.

  6. Transportation Economies Economies of scale Transportation carriers usually give discounts for bigger loads. . Warehouse Supplier

  7. Transportation Economies Economies of scale . Warehouse Supplier

  8. Inventory in a Warehousing Context • Achieves transportation economies. • Achieves production economies.

  9. Achieves Production Economies Economies of scale Warehouse Assembly line

  10. Inventory in a Warehousing Context • Achieves transportation economies. • Achieves production economies. • Quantity purchased discounts, forward buy discounts. • Maintain source of supply. • Support customer service policies. . .

  11. Inventory in a Warehousing Context . . . • To meet changing market conditions. • Seasonality. • Demand fluctuations. • Competition. • To overcome time and space differentials between producers and consumers. • To minimize logistics costs while meeting customer service goals. • To support just-in-time inventory programs.

  12. Just-in-Time (JIT) Assembly line

  13. Just-in-Time (JIT) Assembly line

  14. Just-in-Time (JIT) Assembly line

  15. Just-in-Time (JIT) Assembly line

  16. Just-in-Time (JIT) . Assembly line

  17. Just-in-Time (JIT) . Assembly line

  18. Just-in-Time (JIT) . Assembly line

  19. Just-in-Time (JIT) . Assembly line

  20. Three Basic Warehouse Functions • Movement. • Storage. • Information.

  21. Movement Receiving, putting away . Warehouse

  22. Movement Receiving, putting away . Warehouse

  23. Movement Receiving, putting away Picking, staging, loading . Warehouse

  24. Movement Receiving, putting away Picking, staging, loading Cross-docking . Warehouse

  25. Movement Receiving, putting away Picking, staging, loading Cross-docking Packaging . Warehouse

  26. Movement Receiving, putting away Picking, staging, loading Cross-docking Packaging Light assembly, blending, kitting . Warehouse

  27. Movement Receiving, putting away Picking, staging, loading Cross-docking Packaging Light assembly, blending, kitting Labeling, shrink wrapping . Warehouse Label Label Label Label

  28. Movement Receiving, putting away Picking, staging, loading Cross-docking Packaging Light assembly, blending, kitting Labeling, shrink wrapping . Warehouse

  29. Movement Receiving, putting away Picking, staging, loading Cross-docking Packaging Light assembly, blending, kitting Labeling, shrink wrapping Breakbulk, consolidation . Warehouse

  30. Movement Receiving, putting away Picking, staging, loading Cross-docking Packaging Light assembly, blending, kitting Labeling, shrink wrapping Breakbulk, consolidation . Transportation Warehouse

  31. Movement Receiving, putting away Picking, staging, loading Cross-docking Packaging Light assembly, blending, kitting Labeling, shrink wrapping Breakbulk, consolidation . Transportation Warehouse Import, export services (also an information function)

  32. Storage . Warehouse

  33. Information Inventory tracking Order entry Proof of delivery Tracing/customer service billing. Service reporting/carrier monitoring Site location . Warehouse Real estate management Network analysis Systems analysis Display building/promotions

  34. Warehouses versus Distribution Centers:

  35. Warehouses versus Distribution Centers:Cycles

  36. Warehouse Warehouses versus Distribution Centers:Cycles Warehouse

  37. Warehouse --Receives. Warehouses versus Distribution Centers:Cycles Warehouse

  38. Warehouse --Receives. --Stores. Warehouses versus Distribution Centers:Cycles Warehouse

  39. Warehouse --Receives. --Stores. --Picks Warehouses versus Distribution Centers:Cycles Warehouse

  40. Warehouse --Receives. --Stores. --Picks --Ships Warehouses versus Distribution Centers:Cycles Warehouse

  41. Warehouse --Receives. --Stores. --Picks --Ships Distribution Center Warehouses versus Distribution Centers:Cycles Warehouse

  42. Warehouse --Receives. --Stores. --Picks --Ships Distribution Center Warehouses versus Distribution Centers:Cycles Distribution Center

  43. Distribution Center Receives Warehouses versus Distribution Centers:Cycles Distribution Center

  44. Distribution Center Receives Ships Warehouses versus Distribution Centers:Cycles Distribution Center

  45. www.perotdevelopment.com

  46. www.perotdevelopment.com

  47. www.perotdevelopment.com

  48. www.arvinmeritor.com

  49. www.arvinmeritor.com

  50. Warehouses --Minimal adding of value. --Data collection in batches. --Aim at minimizing shipping costs. Distribution Centers --Maximum adding of value (including final assembly). --Real-time data collection. --Aim at maximizing profit of demand Warehouses versus Distribution Centers:Other Differences

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