Warehousing Part Two

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Three Basic Warehouse Functions

• Movement.

• Storage.

• Information.

Movement

Warehouse

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Receiving, putting away

Movement

Warehouse

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Receiving, putting away

Movement

Warehouse

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Receiving, putting awayPicking, staging, loading

Movement

Warehouse

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Receiving, putting awayPicking, staging, loadingCross-docking

Movement

Warehouse

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Receiving, putting awayPicking, staging, loadingCross-dockingPackaging

Movement

Warehouse

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Receiving, putting awayPicking, staging, loadingCross-dockingPackaging

Light assembly, blending, kitting

*Kits are how some manufacturers sell parts. By selling the parts in a kit, the manufacturer gains economies of scale in things like transportation costs. It also saves administrative costs because rather than billing for and keeping track of each part, the manufacturer only has to keep track of the kit. Kitting is also a light manufacturing technique in whichassembly workers, sometimes in a warehouse, get all thecomponent parts of what they are assembling in a singlekit so that time is not lost looking for parts.

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Movement

Warehouse

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Receiving, putting awayPicking, staging, loadingCross-dockingPackaging

Light assembly, blending, kittingLabeling, shrink wrapping

LabelLabel

LabelLabel

Movement

Warehouse

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Receiving, putting awayPicking, staging, loadingCross-dockingPackaging

Light assembly, blending, kittingLabeling, shrink wrapping

Movement

Warehouse

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Receiving, putting awayPicking, staging, loadingCross-dockingPackaging

Light assembly, blending, kittingLabeling, shrink wrappingBreakbulk, consolidation

Movement

Warehouse

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Receiving, putting awayPicking, staging, loadingCross-dockingPackaging

Light assembly, blending, kittingLabeling, shrink wrappingBreakbulk, consolidationTransportation

Movement

Warehouse

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Receiving, putting awayPicking, staging, loadingCross-dockingPackaging

Light assembly, blending, kittingLabeling, shrink wrappingBreakbulk, consolidationTransportation

Import, export services(also an information function)

Storage

Warehouse

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Information

Warehouse

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Inventory trackingOrder entry

Display building/promotions

Proof of deliveryTracing/customer service billing.

Service reporting/carrier monitoring

Site location

Real estate management

Network analysis

Systems analysis

Warehouses versus Distribution Centers:

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 centers are a type of warehouse whichhold minimum inventory of high-demand goods.

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Warehouses versus Distribution Centers:

• Warehouse

Warehouse

Warehouses versus Distribution Centers:

• Warehouse--Receives.

Warehouse

--Stores.--Picks

Warehouses versus Distribution Centers:

• Warehouse--Receives.

Warehouse

--Stores.--Picks

--Ships

Warehouses versus Distribution Centers:

• Warehouse--Receives.

--Stores.

--Picks

--Ships

• Distribution Center

WarehouseDistribution Center

Warehouses versus Distribution Centers:

• Distribution Center– Receives

Distribution Center

Warehouses versus Distribution Centers:

• Distribution Center– Receives– Ships

Distribution Center

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www.arvinmeritor.com

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Warehouses versus Distribution Centers:Other Differences

• 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

End of Program.

Go to Part Three.