Chapter 5 Flashcards
(31 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. Its role is to provide a steady supply of goods to the market to
fill the temporal gap between producers and consumers. It also plays an
important role in maintaining quality at warehouses and logistics centers
and the value of products.
STORAGE
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
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.
When storage is done on a large scale and in a specified manner, it
is called _____.
warehousing
FUNCTIONS OF WAREHOUSING
Receiving and Put away
Storage
Picking and packing
Shipping
Inventory Management
Order fulfillment
Value-Added service
Supply Chain Support
Security and Protection
Transportation Coordinations
Demand Stabilization
: 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. This helps prevent wastage of stock and ensure its protection
and safety. Such goods may be held from the time of their production or
purchase till their use or consumption.
Storage
: 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
: This process involves selecting the specific
products needed to fulfill customer orders, gathering them from their
storage locations, and packing them for shipment.
Picking and Packing
: 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
- IMPROVED INVENTORY MANAGEMENT
- OPTIMAL PRODUCT SAFETY
- EFFICIENT ORDER FULFILLMENT PROCESS
4 FASTER SHIPPING - BETTER CUSTOMER SERVICE
- DELEGATE TASKS
IMPORTANCE OF WAREHOUSING
. These facilities offer warehousing and
logistics services to various businesses. They are owned and
operated by third-party companies and are suitable for small and
medium-sized businesses that don’t have the opportunity to invest in
their own warehouse but have storage needs nonetheless.
Public warehouses
. This is the most common warehousing
solution. It is a warehouse owned and operated by the company
that uses it. It’s usually close to their manufacturing facility or retail
store.
Private warehouse
. These warehouses usually have a high
turnover rate. Goods are stored there for a short period of time.
That’s why efficiency is very important for distribution centers. They
can be both private and public. E.g.J &T, Shopee Express
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. Small and medium-
sized eCommerce retailers use fulfillment centers to outsource
storage and shipping costs. E.g. Amazon, Shopify, Shopee
Fulfillment centers
. These are flexible warehousing
solutions that both individuals and companies can hire. They are
usually used for short-term storage.
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
