Module 3:

Perform Warehouse Operations

 Explain what a warehouse is

 Identify the objectives of a warehouse
 Identify different types of warehouses
 Explain functions of the warehouse
 Concept of warehouse layout design & flow
 Describe the warehouse impact on worker.

1
 What Is a Warehouse?

- A place where inventory is stored

- Inventory is received, identified, checked,
recorded, stored, counted, and shipped
to and from processing plants and
distribution locations.

2
 Functions of the warehouse

Transfer of
Movement Storage
information

Recording and
- Receiving documentation of all
- Transfer Materials are placed in inventory movements.
- Order selection their storage locations
- Shipping / delivery
3
Objectives of a warehouse is to have:

4
 Other Objectives of a warehouse
Warehousing operations must:
• Make sure they provide good customer service
• Ensure cost-effective operations
• Have enough of the right stock to support production efficiency
• Monitor picking efficiency and productivity in the warehouse
• Use warehouse space efficiently
• Reduce obsolescence by determining and monitoring stock levels

5
 Types of warehouses

Private Government Dangerous goods

Public warehouses
warehouses warehouses store/warehouse

Bonded Distribution centers

Cold storage Export and Import
warehouses or warehouses

Raw materials Agricultural

MRO store
store/warehouse warehouses

6
 Warehouse functions

[Link]
[Link]
[Link] control
and [Link]
labelling

[Link] [Link]

7
 Warehouse layout and design
- Every company will have a different warehouse layout because it must be
suitable to their specific products and needs.
- Planning space must include current needs and future needs to allow for
growth.

8
 Planning space requirements
When determining how much space is needed, it is important to identify the
following:
 Storage space needed
 How products will flow through the warehouse (e.g. U-flow, through flow)
 Materials handling equipment needed
 How products will be returned

9
 Warehouse layout principles
The following should be thought of when planning the layout of a storage area:

 Accessibility: It must be easy for materials trucks and cars to access the warehouse
 Size: Enough space both temporary and semi-permanent storage
 Security: The storage area must have proper security to prevent theft
 Easy movement: It must be easy for people and materials handling equipment
 Ventilation: The warehouse must be dry and have good air circulation.
 Temperature control: The storage area must be kept at the right temperature
 Maintenance: The floor should be flat and solid, preferably smooth and crack-free concrete

10
 Functional area design principles
1) Receiving area
 It is the area in the warehouse where materials and products are:
• Checked
• Re-packaged
• Labelled Goods receiving

• Prepared for storage

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 … cont’d
2) Picking area
 The pick area must have aisles that are wide enough to
accommodate the used materials handling equipment.

3) Despatch area
 A space must be allocated for assembling orders and
packing products for despatch.
 Products that are picked should be moved to this area.

12
 … cont’d
How much space is needed in the stock storage area?
 When determining how much space is needed, it is important to identify
the following
1. Product characteristics and volume

 The type of materials and products that will to be stored.

2. Stock flow requirements

 Stock flow is how products move through the warehouse

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Warehouse layout example

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 Product flow through the warehouse

Through-flow

U-flow

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Impact of the warehouse worker on the efficiency of the supply
chain
The warehouse worker can contribute positively to the efficiency of the supply chain
and profitability of the business by:

 Delays in the production process

 Delays in delivering products to customers on time
 Unhappy customers
 Damages to products and equipment
 Injuries to people
 Company profits will go down

16
 Group Discussion

1. What is warehouse?
2. Mention different types of warehouses
3. Explain functions of the warehouse
4. Describe the warehouse impact on worker.

17
 Self-check
Report -3 (Next Day)

18
 1. Receiving Function

Training Outcomes
 Meaning of receiving & its Process
 Understand typical receiving processes.
 Check and inspect goods
 Identify problems during the receiving
process.

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 What is receiving?

Receiving is the function in the warehouse that:

• Receives materials and products delivered by suppliers to
the warehouse.
• Checks incoming goods for correctness and quality
problems.
• Prepares the goods for storage.
• Prepares and records receiving documents.

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 Receiving process
Supplier delivers the materials to the warehouse

Warehouse workers offload the goods from the delivery vehicle

and place them in a demarcated area

Goods are checked against documentation to identify variances

between what was ordered and what was received

Inventory records are updated and a Goods Received Note

(GRN) is issued

Goods are packaged and labelled

Inventory is then sent to storage or packed away

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 Arrival of delivery vehicle

• Make sure vehicle is secured in the receiving dock

• Check containers for external damage

• Check security seal of the vehicle

• If vehicle contains dangerous goods, make sure it is

parked in a safe place

22
 Offloading goods
• Make sure there is enough space available in the warehouse
• Make sure there is sufficient materials handling equipment and staff available to
unload
• Use the correct materials handling equipment
• Balance load if goods have moved during transportation
• Read safety data sheet (SDS) before off-loading
dangerous goods

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 Identifying incoming goods and materials
Stock arriving at the receiving bay could be identified in
different ways:
• A supplier code
• A manufacturer’s code
• International or local standard code
• Barcode label
• Any other code or description supplied on the
purchase order or supplier delivery note
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 Check And Inspect Goods
 When goods arrive, they must be checked for correctness, quantity, quality,
size, and weight:

• Check delivery against order and supplier delivery note

• Make sure the full consignment has been delivered

• Check for external damages to goods and packaging

• Check for correctness, quantity, quality, size, and weight

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 How to check incoming goods
Four ways:
Receiving clerk writes down everything about the
product that was received. For example, the
Blind checking description of the product, the quantity received, etc.
This is the most accurate way of checking goods, but
also the most time-consuming.
Check the goods directly against the actual delivery
Direct checking note or purchase order.
Spot checking Check only one unit of goods for quantity and quality.
Quality check Check the general characteristics of the goods.

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Store Team And Quality Control Inspector Roles During Receiving

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 Goods Received Note (GRN)

The goods received note should be completed with

the following information:
• Date the goods were received
• Whether delivery was on time
• Quantity of goods
• Any discrepancies
• Whether quality of the goods meets specifications
• Name of the person who performed these checks

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Common Problems Processing Goods Received Note (GRN)

 Slow processing time

 Lost paperwork
 Errors with matching goods received against multiple
purchase order lines for various departments
 Poor communication with suppliers about delivery issues

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 2. Pack and Move Stocks Function

• Identify storage and packing methods

• Meaning of staking and its method
• Explain the concepts of stock rotation in a stock
storage area.
• Preservation Of Material And Equipment

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 Where to store products?
Heavy goods

• At waist height so you do not have to bend, or on ground level – where they are safe

High-volume goods (the best sellers)

• At waist height so they are easy and quick to access

Slow-moving goods

• On the top or bottom shelves, depending on weight

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 Considering Product Characteristics

 Perishable goods must be stored in an area that has a

constant low temperature range
 Dangerous/hazardous goods must be stored in a
separate area and regulations
 Dry goods must be stored preferably on racking or
shelving.
 Bulky heavy items should be stacked on the floor

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 Storage Methods

1. Dedicated location storage (fixed)

2. Random location storage
3. Zone storage
4. Point-of-use Storage

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 1. Dedicated Location Storage (Fixed)

• With this system goods are always stored in the same fixed
location.

• This means that when a new product arrives at the

warehouse it is given a fixed location.

• Example:- Boxes with coffee products are always stored in

location 5A row 10, and boxes with bags of rice in location 10A
row 20. When they receive coffee, the boxes will immediately be
stored in location 5A row 10. No other product will be stored in
this location even if it is empty.

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 2. Random location storage
• This method stores goods in any available location.

• This method makes use of space well because it uses all

open spaces for storage.

Example:- A store with 500 different types of dry food products

stores products in random locations. Some of these products may
be stored in several locations. For example, different kinds maize
products may be in 3 different locations because they may take up
too much space to be stored in one location

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3. Zonal –Storage

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 4. Point-in-use Storage
• To create effective material handling which will decrease damage and waste.
Improving operational effectiveness will lead to more efficient production, which means
overall lower costs

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 Packing methods
Packing is the activity of placing one or more products into a unit load such as:

 Boxes
 Pallets
 Barrels
 Bags

A unit load is a system where packages or items are collected together

and are placed on or in a container.

Examples:
• Boxes with tin beans packed on a pallet
• Several bags of maize on a pallet
• Nuts and bolts in a bin

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 Staking Methods
Stacking is the process of packing products one on top of the other.
Type of product Stacking guideline

Pallet
 Put the heaviest items on the bottom of the pallet.
 Put the heaviest pallets on the bottom of the stack.
 This will create a stable base with a lower centre of
gravity.
 Stack pallets evenly and make sure no products are
sticking out.

Boxes
 Band and cross-tie boxes with plastic fibre ties or
stretch-wrap boxes to keep them secure.
 Stack boxes that are the same weight and size together.

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 … Cont’d
Type of product Stacking guideline
• Use tapered stacking (a bit like a pyramid,
Bags where the layers get narrower as they get
higher).
• Place bags in interlocking rows to keep them
secure.
• Step back layers of bags as they are stacked,
and cross-key at least every 10 layers.
• When removing bags start from the top layer
first.
 Bales of cotton or paper should be stored
Bales inside, not outside.
 Leave enough space (about 45cm) between
bales and walls .
 It is important to have fire prevention
measures for these types of loads.

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 … Cont’d
Type of product Stacking guideline

Drums and barrels

• Drums and barrels should be stacked
symmetrically.
• If stored on their sides, block the bottoms
to prevent them from rolling.
• Use plywood, planks or pallets between
each stacked tier to create a firm and flat
surface for the next layer.

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 Type of Stacking Methods

1. Block stacking –Square items like boxes are stacked a cube.

2. Brick stacking – Each level of the stack is turned 90 degrees.
3. Pinwheel stacking –Each quadrant in the stack is turned 90 degrees.
4. Irregular stacking – For irregular shaped loads, add sheets of plywood between each
layer to add extra stability to the stack.

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 Stock Rotation
Stock rotation is the process of storing, picking, and moving stock according to
certain rules such as expiry date.

Failure to rotate stock can lead to:

• Picking and dispatching stock that is out of date.
• Wastage of stock because it has reached its expiry date before being picked.

The two most common methods of stock rotation are:

1) First in First Out (FIFO)

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1) First in First Out (FIFO)

2) Last in first out (LIFO)

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 5. Preservation Of Material And Equipment
 There are many types of packaging materials available, such as:
• Glass containers
• Metal containers
• Paper and cardboard containers
• Plastic containers
• Polythene containers
• Wooden crates/containers

45
 Group Discussion

1. Define receiving & its Process

2. Discuss typical receiving processes.
3. Explain problems during the receiving
process.

46
 Self-check
Report -3 (Next Day)

47
 Picking stock

Training Outcome

• Explain what picking is

• Identify and explain picking systems
• Know documents used for Picking
• Picking operations and its methods
• Explain ways of minimising loss and preventing damage to
stock
• Explain the concept of labelling when picking stock.

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 Picking stock

What is picking?
Storage /
Receivi
replenish
ng
ment
Picking is the process of withdrawing goods from a
stock storage area to fulfil a customer order.
Distribut
Picking
ing

Packing

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 Picking systems _ Fully Automated

 It is important to ensure that the picking and storage area is designed to:
• Reduce the time it takes to pick products.
• Reduce picking errors.
• Improve cost effectiveness.
 Documents used for picking
A picking list is a document that is used by warehouse pickers to tell them what
goods and what quantity must be picked from storage.

50
 Documents Used For Picking
A picking list is a document that is used by warehouse pickers to tell them what goods and
what quantity must be picked from storage.

PICKING LIST

Pick Ref No: 081901 Date: 19 August 2019

Packer ID: Semira 13001 Customer: ABC

Storage Area: Dry Food Scheduled Picking Time: 08:00 – 09:00

Unit/
ID No. Location QTY Req. Unit Code Description
Per Box
1 AA1 5 Boxes 10 bags 56912 Rice 500g

2 AC3 10 Boxes 6 singles 85542 Mushroom Soup 500g

5 BD1 15 Bottles 12 bottles 200225 Instant Coffee 200g

6 BA3 8 Boxes 12 tins 754033 Butter Beans 400g

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 Picking systems
Warehouse operations can either be:
• Fully automated
• Semi-automated
• Manual
Fully automated environment-This type of environment
uses engineered systems and robots
• Use of engineered systems and robots
• Robotic palletising systems
• Order picking robots
• Automatic guided vehicles
• Automatic storage and retrieval systems

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Semi-automated: A combination of automated systems and human
operators

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Manual
Human operators with materials handling equipment such as
industrial trucks

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55
56
 5. Picking methods
Picking methods: common picking methods used in a store/warehouse:
• Discrete (single order) picking-The picker takes one order at a time and
picks all items on the picking list before completing order and moving
on to the next order

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 5. Picking Methods
[Link] picking:- pickers can pick multiple orders at one time.
- This method is suitable to manual picking and automated picking
environments.
a. Manual picking
- The picker moves through the warehouse and picks items for
multiple orders at a time.
- The picker will pick one product at a time. This reduces the travel time.

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b. automated picking
- The picker stays in one location and automated systems like a carousel
delivers the items to the picker.
[Link] picking

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[Link] picking
 Wave picking is similar to single order picking. Pickers will pick one order at a time.
 The difference is that orders are picked according to a schedule at specific times of
the day.

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 Picking operation
Products can be picked in different ways. We will look at the following 3 ways as
well as the picking method and equipment that is most suited to each:

[Link] pallet picking

 With this operation full pallets are picked
Suitable picking methods:
• Single order picking
• Zone picking
• Wave picking

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2) Split pallet/case picking
Not all customers order full pallets of products. With this method a full pallet or case of goods are
pulled from storage and broken down to the quantity the customer has ordered.

Example:
• A distribution centre stores pallets with different types of products.
• Each pallet holds 50 small boxes.
• A customer order 20 boxes of the product.
• The pallet with 50 boxes will then need to be broken down and split, to take out the 20
boxes for the customer order. This is known as case picking or split pallet picking.

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3) Piece picking
- With this method individual items are picked from storage.
Suitable picking methods:
• Single order picking
• Batch picking
• Zone picking
• Wave picking

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 Handling Different Types Of Stock During Picking
Dangerous Goods
All dangerous goods must be handled according to safety instructions and using the right
materials handling equipment
 Wear the right PPE when picking dangerous goods
 Check the area to make sure there are no spills
 When using a forklift to pick dangerous goods in drums, be careful not to puncture the
drum

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Drums

 Place hoops (straps) around the drums to keep them firmly on the pallet
 Drums that are stored on their side must have suitable chocks
 Make sure drums are correctly labelled
 Make sure the drums are safely stacked before picking and moving with materials handling
equipment

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Bags

 Check bagged materials before picking

 Bags showing signs of wear and tear should be re-palletised into smaller quantities or re-
bagged into new/stronger or bigger bags
 Make sure the stacked bags on a pallet are secure before picking

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Fragile products

 Before picking fragile goods, check the packaging to make sure there are no signs of
breakage.
 Make sure fragile products face the right way. Fragile products normally have instruction
labels with special handling instructions.

67
 Minimising Shrinkage And Losses When Picking
How much space is needed depends on:
 Order volume
 Product characteristics and Materials handling equipment
 We can reduce them by implementing the following:
 Make sure that machine operators and all warehouse workers
are properly trained
 Find a way to make the processes in the warehouse better,
faster, safer and more effective
 Wear the right PPE
 Choose the right equipment for the products
 Handle and move products as little as possible
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 Importance Of Labelling

Proper labelling reduces picking time because it helps the picker to:

 Get to the right location

 Find the products to be picked in the location

Advantages

 Reduces mistakes during the picking process

 Helps with stock rotation by identify expiry dates
 Highlights special handling requirements such as for fragile goods

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 Types Of Labelling

[Link] labels: Floor labels are placed on the floor and are useful in large
warehouses
[Link] labels: these are labels placed on racks and are used to identify different
locations and products
[Link] labels: Product labels identify the product and certain characteristics of
the product/package.
4. Magnetic labels: These labels have magnets and are easy to apply and remove.
[Link]-reflective labels:-These labels are used to barcode shelves and products.

70
 Discussion

1. Define picking Identify and explain picking systems

2. Discuss Picking operations and its methods
3. Explain ways of minimising loss and preventing damage to stock

71
 Self-check
Report 3 (Next Day)

72
 Prepare Stock For Despatch

Training outcomes
• Check goods ready for despatch.
• Stage goods ready for despatch.
• Explain the importance of packaging and packing materials.
• Explain the importance of accurately recording and
documenting despatched goods.
• Applying safety guidelines when loading the vehicle.
73
 Documents To Prepare Goods For Despatch
When goods are prepared for despatch the goods need to be checked against the
customer order and the picking documents

• The customer order lists the various items that need to be packed together to be
delivered to the customer.
• The picking list shows the items that have been picked to meet the order requirements.

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 Checking

During the checking process some of the following aspects can be checked:

• Delivery address

• Delivery by date

• Product

• Quantity

• Packaging

• Gross weight

• Special delivery instructions

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 Types of checking

Random Detailed

Only a part of the total order is checked, Each item is checked to see if the picking
or only a few total orders are checked process has been done accurately

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 Staging

During staging goods may be:

• Repacked into special boxes for delivery

• Repacked with different labels for certain customers

• Unboxed for merchandising in stores

• Bar-coded for stores’ requirements

• Palletised for certain customers’ requirements

• Stretch or shrink wrapped to contain the load in the truck

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 Packaging
Packing can involve:

• Placing single items into boxes • Protection

• Stacking boxes onto pallets Function • Containment
• Placing pallets into containers
• Information
• Utility

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 Common Packaging Materials

Bubble wrap Polystyrene beads Box dividers

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 Characteristics Of The Truck To Consider

• The size of the truck’s loading platform – is there enough space for the load?
• The legal load carrying capacity of the truck – can the truck safely carry the load?
• The ways in which the load can be restrained on the truck (this will be discussed in more
detail later)

80
 Guidelines For Assembly Of Delivery Notes
• Routes should be as direct as possible. Avoid routes overlapping, to avoid
unnecessary distance travelled and time wasted.
• Load vehicle in the right sequence according to delivery route.
- The last delivery should be right in the back of the vehicle
- The first delivery right behind the door. This will help minimise
offloading times.

81
 … Cont’d

• Take note when customers are available for deliveries.

• Plan to deliver to traffic congested areas in less congested times.
• Always plan full utilisation of the vehicle into which the goods are
loaded.

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Recording and documenting
despatch movements

83
 Types Of Trucks

Side loading truck Rear loading truck

84
 Safety Guidelines When Loading The Vehicle

 Wear relevant safety cloth, shoes etc

 Check the information on the products
 Check that documentation for despatch
 Select and assemble the goods in a safe way,
 Prepare the goods for loading without damaging
 Allocate loading doors for assembled orders,
 Position equipment and vehicle correctly etc.

85
 Safety Guidelines When Loading The Vehicle

 Ensure that the loading area is clean and tidy and free from hazards and obstructions
 Move goods from the staging area and start loading the vehicle according to organisational
requirements and stock characteristics:
 Fragile goods are loaded on top of heavy goods
 perishable goods should be loaded into a refrigerated truck

 Ensure correct loading equipment is used

86
 Safety guidelines when loading the vehicle
 If you are loading small van type vehicles, then you ideally require loading
facilities at ground level
 If you are loading a variety of vehicles, then you require a variety of docks
and loading facilities

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 Checklist for loading operations Yes No
Are loading / unloading operations carried out in an area away ☐ ☐
from passing traffic, pedestrians and other not involved in
loading / unloading operation?
Is the load, delivery vehicle and materials handling equipment ☐ ☐
compatible with each other?
Checklist Are loading activities carried out on ground that is flat, firm,
and free from potholes?
☐ ☐

Are vehicles braked and / or stabilised to prevent unsafe ☐ ☐

movement during loading operations?
Are systems in place to prevent trucks from driving away while ☐ ☐
they are still being loaded?
Are truck drivers, and others, kept in a safe place away from ☐ ☐
the vehicle while loading operations are carried out.
Is there a safe area where truck drivers can observe loading (if ☐ ☐
necessary)?
Is appropriate lifting equipment available to load goods into ☐ ☐
vehicles?
Is loading carried out in a manner, that allows the load to be ☐ ☐
spread evenly to avoid the truck or trailer from becoming
unstable?
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 Unstable

Increased stability

Strapping

Load Securing

Shrink-wrap or stretch wrap –

consult suppliers for selection

Elastic band round top layer

Anti-slip provides resistance to slip and

allows easy separation without label damage

Special outer board kit

89
Net for short distance vehicle deliveries
 Discussion
1. Define despatching
2. Explain the importance of packaging
and packing materials.
3. Applying safety guidelines when loading
the vehicle

90
Self-Check
Report 3 (Next Day)

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Module 3_End

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