CHAPTER 5 Flashcards
(34 cards)
is an act of storing and assorting the finished goods to create maximum time utility at minimum cost
Warehousing and storage
— involves proper management for preserving goods from the time of their production or purchase till actual use.
— is the activity of storing products at warehouses and logistics
centers
STORAGE
In supply chain management, ____ refers to the process of storing goods in a secure facility to facilitate the smooth flow of products from production to consumption, acting as a crucial link between suppliers and customers.
warehousing
When storage is done on a large scale and in a specified manner, it
is called _____.
WAREHOUSING
encompasses the processes and decision- making involved in the daily operations of a warehouse, focusing on efficient handling and storage of goods, from receiving to shipping.
Warehouse management
FUNCTIONS OF WAREHOUSING
- Receiving and Putaway
2.Storage - Picking and Packing
- Shipping
- Inventory Management
- Order Fulfillment
- Value-Added Services
- Supply Chain Support
- Security and Protection
- Transportation Coordination
- Demand Stabilization:
This involves receiving incoming goods, verifying the shipment against the order, and placing the goods in designated storage locations within the warehouse.
Receiving and Putaway
The primary function of a warehouse is to provide storage
space for equipment, inventory or other items. It offers appropriate
facilities to the enterprises for storing their goods when they aren’t called for a sale
Storage
Warehouses coordinate the outbound transportation of goods to customers, ensuring timely and efficient delivery.
Shipping
This crucial function involves tracking stock levels, preventing overstocking or stockouts, and maintaining accurate records of all goods in the warehouse
Inventory Management
Warehouses play a vital role in fulfilling orders by managing the entire process from receiving the order to dispatching the goods to the customer.
Order Fulfillment
Some warehouses offer additional services like labeling, kitting, assembly, and quality control to enhance the value and readiness of products.
Value-Added Services
Warehousing plays a key role in supporting the overall supply chain by ensuring the efficient flow of goods from producers to consumers.
Supply Chain Support
Warehouses are designed to protect goods from theft, damage, and environmental factors, ensuring the integrity of stored items.
Security and Protection
Warehouses often handle the
coordination of inbound and outbound transportation, optimizing logistics for cost-effective distribution
Transportation Coordination
Warehousing can help balance supply and demand by maintaining a buffer stock to handle market
fluctuations and prevent shortages or surpluses.
Demand Stabilization
IMPORTANCE OF WAREHOUSING
- IMPROVED INVENTORY MANAGEMENT
- OPTIMAL PRODUCT SAFETY
- EFFICIENT ORDER FULFILLMENT PROCESS
4 FASTER SHIPPING - BETTER CUSTOMER SERVICE
- DELEGATE TASKS
TYPES OF WAREHOUSING
- Public warehouses
- Private warehouse
- Distribution centers
- Fulfillment centers
- On-demand warehouses
- Cold storage and climate-controlled warehouses
- Bonded Warehouses
- Hazmat Warehouses
- Reverse Logistics Warehouses
- Manufacturing or Production Warehouse
These facilities offer warehousing and logistics services to various businesses.
Public warehouses
This is the most common warehousing solution
Private warehouse
These warehouses usually have a high turnover rate.
Distribution centers
The main difference between this type of warehousing solution and distribution centers is that they are operated by a third-party logistics provider
Fulfillment centers
These are flexible warehousing solutions that both individuals and companies can hire.
On-demand warehouses
As their names suggest, these facilities offer temperatures that are suitable for perishable foods or for other goods that require special conditions such as electronics or artwork.
Cold storage and climate-controlled warehouses
