SC102 transport goods over land more efficiently than ever

Module 1 before.
WAREHOUSE OPERATIONS MANAGEMENT
The twentieth century brought warehousing to the next
The Origin of Warehouses stage. Machine-operated factories were sprouting
Warehouses are used by companies to store large up everywhere and consumer goods were being
amounts of product inventory. Although a lot of produced at an astounding rate. Advancements in
warehouses today are run by automation (Amazon communication and transportation technologies
warehouses being a prime example of this), increased globalization and urbanization, which led to
warehousing had a far humble beginning. Inventory warehouses being created all over the world
storage and warehousing have been around for
thousands of years, with the first warehouses dating 21st Century
back to the early Roman Empire. Today warehouses This brings us to the current period. Here in the 21st
are a crucial part of our economy. century, we are currently witnessing the next major
development in warehousing– automation. Whereas
Ancient Rome in the past when heavy boxes full of goods would
The first type of public warehouse was the Roman have to be moved by humans, automated machines
Horreum. Originally constructed during the 2nd now handle most of the heavy lifting. These
century BC, these buildings were used to store grain, warehouses usually only require a few human
olive oil, wine, food items, clothing, and marble. operators to schedule tasks while the machines
handle the rest. Products move on automated
The biggest of these was the Horrea Galbae, which conveyors and are organized completely by
contained 140 rooms on the first floor alone. In total, automated machinery. Although most warehouses
the Galbae covered more than 225,000 square feet! today are still operated predominantly by real people,
To help you understand the Galbae’s size, less than the trend of warehousing automation is growing.
half of warehouses in the U.S. are larger than 100,000
square feet. Module 2
WAREHOUSE OPERATIONS MANAGEMENT
Although these horrea (plural for horreum) were the
first of their kind, they were undoubtedly ahead of their Warehouse Functions
time. When Roman emperor Septimius Severus died ● Storing goods to permit the management of
in 211 AD, he left the Galbae stocked with enough product flow or to accommodate longer
food to feed all 1 million citizens of Rome for 7 years! production runs.
Additionally, ancient Roman horrea were built with ● Serving as a mixing point where products
ramps instead of stairs, which made transporting from different suppliers are mixed and
goods in and out of the buildings a breeze. Horrea distributed to fulfill customer orders.
were built with thick walls to reduce the chances of ● Serving as a sales branch and customer
fire, and high windows to reduce the chance of service location.
theft. ● Serving as a source of supply for production.
● Serving as a staging area for final packing
Industrial Revolution and finishing.
The Industrial Revolution of the 18th and 19th
centuries brought new advancements to warehouses Types of Warehouses
which made them more specialized. The dramatic and ➔ Public Warehousing Involves the client
sudden increase in globalization during this period paying a standard fee for storing
caused warehouses to emphasize product movement. merchandise.
This emphasis brought forth some of the earliest ➔ Private Warehousing Storage operations
large-scale supply chains. controlled completely by a single
manufacturer.
Once the railway system began to take hold in the ➔ Leased Warehousing Is a warehouse for
United States, more people began to travel and more stable inventory.
colonize previously barren areas. This development ➔ Contract Warehousing Clients pay fees
led to the creation of several “rail warehouses” that regardless of whether they are using the
were conveniently located alongside railways. Rail space or not. This ensures the space is
warehouses and railways allowed companies to always available for the clients to use.
 3. Real-time Tracking Capabilities
Warehousing Goals ⮚ Tracking assets and orders as mentioned above, as
✔ Maximize effective use of space well as the projects and schedules of your warehouse
✔ Maximize effective use of equipment employees.
✔ Maximize effective use of labor 4. Dashboard
✔ Maximize accessibility of all items ⮚ Allows users to view the date in an
✔ Maximize protection of all items at all times easy-to-understand manner, so they can get an
✔ Maximize effective use of information overview on incoming\outgoing shipments and
✔ Maximize the protection of the company’s assets employee workloads, as well as where stock is and
✔ Minimize Goods Handling how much is in the warehouse.
✔ Minimize the company’s operating cost
Who uses WMS?
Warehouse Managers oversee the warehouse
Module 3 management process. Therefore, it should not come
Warehouse Management System (WMS) in surprise that they are the primary users of the
A system which assists managers in tracking products WMS. That said, however, they are by no means the
throughout the entire storage and distribution process. only ones who benefit from using it.
These systems span from simple computer Thanks to the labor-management features found in
automation systems to high-end, feature-rich most WMS, warehouse employees benefit from using
management programs that improve order picking, WMS solutions as well. They can use it to view orders
facilitate better dock logistics and monitor inventory that need to be processed and more importantly, they
management. can also view their schedules so they know what tasks
A piece of software that controls, records and they have to complete each day.
automates various warehouse operations
Increase the overall productivity and efficiency of a What does WSM do?
business warehousing operations 1. Receiving and Putting Away – A WMS can help
companies receive, process, and put away items in
Transportation Management System TMS the most efficient way based on business rules and
is a logistics platform that uses technology to help warehouse flow. Before warehouse management
businesses plan, execute, and optimize the physical systems, a pen and paper were used to receive items
movement of goods, both incoming and outgoing, and and reconcile them against purchase orders and
making sure the shipment is compliant, proper physical receipts – and some smaller warehouses still
documentation is available. use that approach today.
2. Inventory Management – Warehouse
Environmental Management System EMS management software provides real-time visibility into
is a set of processes and practices that enable an an organization’s inventory across any location,
organization to reduce its environmental impacts and including items in transit and in stores. It provides
increase its operating efficiency. tracking information using automatic identification and
data capture (AIDC) technology such as barcodes or
For example, a publishing company might implement RFID. And many systems support cycle counting and
an EMS framework to: manage and reduce its paper demand forecasting using advanced analytics and
use by switching to email-only internal communication. insights into product and vendor performance. With
review and evaluate waste management processes. these insights, companies can adjust inventory levels
create a policy for responsible disposal of used toner on the fly to ensure there’s just enough stock to satisfy
cartridges. customer demand, whether in-store or online.
3. Order Picking Packing & Fulfillment – WMS
Main Features of WMS systems can help lower these costs by guiding the
1. Bar Code Scanning and Radio Frequency ID most efficient way to store, retrieve, and pack
Tagging products. They also support picking technologies that
⮚ helps with data input, tracking what, when, and how streamline the process, such as radio frequency (RF)
many products were received, as well as how they with and without scanning verification, pick-to-light and
were stored. pick-to-voice technology, robotics, and algorithms that
2. Order and Fulfillment Management can help optimize picking paths.
⮚ Reorder tools that provide accurate information 4. Shipping - Many warehouse systems integrate with
related to when orders are shipped and received transportation management and logistics software that
allows for myriad ways to expedite the fulfillment 3. Real-time inventory visibility: Using barcoding,
process – generating bills of lading, packing lists, and RFID tagging, sensors, or other location tracking
invoices for shipments automatically, for example, as methods, a WMS system gives you real-time insight
well as sending out automatic shipment notifications. into your inventory as it moves into your warehouse,
5. Labor Management - Getting insights into around it, and on to the next location. With this
labor-related costs and productivity can help visibility, you can create more accurate demand
warehouses run leaner, more efficient operations. A forecasts, run a just-in-time inventory strategy, and
WMS can provide real-time visibility into warehouse improve traceability – which is especially important in
workers, labor costs, response times, productivity the event of a recall.
gaps, trends to plan, and more – so companies can 4. Improved labor management: A WMS can help
react accordingly. you forecast labor needs, create schedules, optimize
5. Yard and Dock Management - Features for yard travel time within a warehouse, and assign the right
and dock management can help truck drivers find the task to the right employee based on skill level,
right loading docks quickly. Support for cross-docking, proximity, and other factors. A good WMS system can
where goods arriving into the warehouse are also assist in boosting employee morale by creating a
immediately placed into outgoing shipments without more relaxed, organized, and safe environment where
interim storage, is ideal for fresh grocery products. workers feel their time is valued and being used
The software helps with this by checking receiving wisely.
scans against current sales orders, then notifying the 5. Better customer and supplier relationships: With
receiver if the goods should be placed in a a WMS, customers enjoy improved order fulfillment,
cross-docking location. faster deliveries, and fewer inaccuracies – which
5. Warehouse metrics and analytics -Real-time data increases their satisfaction and loyalty and improves
can be automatically collected through a WMS instead your brand reputation. Suppliers can also experience
of relying on manual data collection methods, reduced wait times at loading bays and docks, for
eliminating keying errors and drastically speeding up improved relations.
the process. This data can also be integrated with
analytics to track important metrics, such as on-time BENEFITS OF USING WMS
shipping, inventory accuracy, distribution costs, order ✔ Reduced Operating Expenses
or line fill rate, order cycle time, and more. The system ✔ Continuous Process Optimization
can then create visual reports that can be easily ✔ Enhanced Security
shared to stakeholders and be used to make ✔ Improved Customer and Supplier Relationships
adjustments. ✔ Maximizing their Labor Resources
✔ Simplifying Just-In-Time Delivery
BENEFITS OF USING WMS ✔ Enhancing Demand Planning
1. Improved operational efficiency: WMS systems ✔ Increasing Transparency to both Employees and
automate and streamline warehouse processes from Suppliers.
inbound receipts to outbound deliveries – for improved
efficiency, smoother operations, and the ability to How does WMS affect SCM?
handle higher volumes. They reduce errors in picking Warehouse Management is the central link in
and shipping goods and eliminate duplicate and Supply Chain Management. It is the all-important
unnecessary work. A WMS also shares data with ERP bridge between producing a product and delivering it
and transportation management systems, giving you a to customers. Warehouse Management helps
holistic outlook that extends beyond your warehouse organize products to make sure that they are shipped
and helps expedite the movement of goods. to the right customer at the right time. It is the most
2. Reduced waste and costs: If you have important effect on the supply chain.
date-restricted or perishable stock, WMS software can
identify which items need to be picked first, or which What does logistics mean in warehousing
might need a sales push, to minimize waste. It can management?
also help you determine the most effective use of Logistics is an UMBRELLA TERM for various tasks
warehouse space, from inventory placement to related to transportation, warehousing, inventory,
optimal travel paths. Some systems offer advanced information management and more. These include the
simulations to create floor plans and place pallets, various processes in the supply chain that happen
shelves, and equipment in the best locations to run at before, during and after the warehousing.
peak efficiency and save time and money.
Warehouse Management Systems ❖ Check the product (Quality and Expiration)
Implementations ❖ Check the Product
The logistics businesses implement the Warehouse ❖ 100 % Accept
Management Systems for process efficiency, ❖ 100 % Check
improvement and transparency. And, a WMS ❖ 10 % Sample Check
implementation would normally require the four ❖ Identify the product
important phases for a successful implementation per ❖ Mark the product
diagram below to be able to ensure the business ❖ Enter the product on receipt register
requirements are completely met by the IT solutions ❖ Transfer the product in stage area
❖ Enter the product in stock
❖ Re-stack the product

2. RECEIVING OBJECTIVES
❖ Right Product
❖ Right Quality
❖ Right Quantities
❖ Right Weight
What does logistics mean in warehousing ❖ Right Condition.
management? ❖ Right Standards
It is important that the different functions of logistics ❖ Right Time
work in a tandem so that your supply chain is as
efficient as possible. This means that the initial 3. Put Away
transportation of goods is scheduled so that they 1. Scans the Barcode & move to the given address
arrive at the warehouse when there is room for the 2. Selection of Warehouse Location
inventory. Additionally, it means that those goods ❑ Product Key ❑ Product Code ❑ Size
leave the warehouse on time, so they arrive at the ❑ Weight ❑ Cost ❑ Color
destination exactly when they are needed to be there.
4. Stacking
Module 4 ❖ Stack according to FIFO (First In, First Out)
WAREHOUSE OPERATIONS ❖ Stack according to standards
It is the procedure of satisfying customer needs and ❖ Methods of Stacking (Manual Stacking or
requirements while utilizing space, equipment, and Automated Stacking)
labor effectively. ❖ Keep stacked goods neat
❖ Boxes to be stacked evenly
❖ Keep Identity Sticker Visible
❖ Keep Expiry date visible
3 MAJOR ACTIVITIES IN WAREHOUSING ❖ Stack Goods in Safe way
INBOUND ACTIVITIES
PROCESS ACTIVITIES COLD STORAGE STANDARDS
OUTBOUND ACTIVITIES PROPER STORAGE TEMPERATURE
❖ Dry Storage from 55 – 70 Fahrenheit (13 to
A. INBOUND ACTIVITIES 21 Celsius)
❖ Refrigerator from 34 – 38 Fahrenheit (1 to 4
1. Unloading & Checking of Shipments Celsius)
2. Unpacking & Inspecting Materials ❖ Freezers from 0 - -22 Fahrenheit (-18 to – 30
❖ Correct Item Celsius)
❖ Quantity
❖ Condition B. PROCESS ACTIVITIES
3. Completion of Receiving Report ORDER PICKING
A process of pulling items from the inventory to fill a
1. RECEIVING PROCEDURES customer order.
❖ Prepare to receive goods and materials ORDER PICKING METHODS
❖ Check Temperature 1. Zone Picking – Specific Zone
❖ Unload the product (Manual or Automated) 2. Batch Picking – By batch
❖ Count the product (Quantity) 3. Wave Picking – Variation
 JOB DUTIES
PICKING TIME CONSUMPTION - PICKING 1. Accomplishes warehouse operations human
❖ 50-60 % of time spent traveling resource objectives by recruiting, selecting,
❖ Optimize picking overload orienting, training, assigning, scheduling,
❖ Optimize workforce assignment coaching, counseling and disciplining
❖ Optimize Picking Routes employees; communicating job expectations;
❖ Use of labor standards planning, monitoring, appraising, and
❖ Apply FIFO (First In, First Out) reviewing job contributions; planning and
❖ Use Right picking equipment reviewing compensation actions; enforcing
❖ Pick right item (Accuracy) policies and procedures.
❖ Picking the right quantity (Accuracy) 2. Achieves warehouse operations operational
❖ Keep picking area neat objectives by contributing warehouse
❖ Use Picking Methods (Manual or Automated operations information and recommendations
Picking) to strategic plans and reviews; preparing and
completing action plans; implementing
STOCK ROTATION production, productivity, quality and
Arrange the oldest units in inventory so they are sold customer-service standards; resolving
before the newer units. problems; completing audits; identifying
trends.
REPLENISHMENTS 3. Meets warehouse operations financial
❖ Movement of inventory from upstream to objectives by forecasting requirements;
downstream preparing an annual budget; scheduling
❖ Keeps inventory flowing through the supply expenditures; analyzing variances; initiating
chain by maintaining efficient order corrective actions
❖ Prevent costly inventory overstocking 4. Develops warehouse design by planning
layout, product flow, and product handling
STOCK ROTATION METHODS systems; evaluating and recommending new
1. FIFO – First In, First Out equipment.
2. LIFO – Last In, Last Out 5. Develops warehouse operations system
3. Barcode of Date of Manufacture System improvements by analyzing process workflow,
manning and space requirements, and
C. OUTBOUND ACTIVITIES equipment layout; implementing changes.
Packing 6. Maintains safe and healthy work environment
Minimize damage that can occur after an item has left by establishing, following and enforcing
the production line. standards and procedures; complying with
Shipping legal regulations
7. Secures property by developing protection
and access policies and procedures;
coordinating patrols with the security
department.
8. Updates job knowledge by participating in
educational opportunities; reading
professional publications; maintaining
MODULE 5
personal networks.
WAREHOUSE OPERATIONS
9. Accomplishes warehouse operations and
organization mission by completing related
WHO ARE MANAGERS?
results as needed.
They are the ones responsible for the operations of
the warehouse.
SKILLS AND QUALIFICATIONS
✔ Managing Processes
WHAT ARE THE RESPONSIBILITIES OF THE
✔ People Management
MANAGERS?
✔ Supervision Skills
Receive and store products by designing and
✔ Data Entry Skills
developing product movement and storage systems,
✔ Data Entry Management
improving operations and managing staff.
✔ Data Processing