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Presentations text content in WAREHOUSE MANAGEMENT



Industrial Logistics (BPT 3123)

Industrial Technology Management


Faculty of Technology


Chapter Outline


Need for Warehousing Management

Primary Functions of Warehouse

Types of Warehouse

Warehousing Strategies

Warehousing Functions


Lesson Outcomes

Understand warehouse management concept or approach

Explain the role and major activities of warehouses and distribution centers



Nowadays, warehouse are more properly viewed as places where products may be stored and assortments of products created in accordance with customer requirements

Distribution Center

term are being used to emphasize the difference between the storage activity and the strategic role of warehouses

For an ideal logistics system – storage is held to a minimum and inventory moves continuously throughout the supply chain on its destination to fill customer needs


Warehousing Management

Primary purpose of a warehousing management is to control the movement and storage of materials within an operation and process the associated transactions.

Warehousing is viewed as a place to store inventory as well as a facility for switching the inventory.

Need for warehousing management:

Reduce inventory

Reduce labor cost

Increase storage capacity

Increase customer service

Increase inventory accuracy


Trans-Shipment PointA facility where products are received, sorted, sequenced and selected into loads consistent with the customers’ needsStockpilingThe storage of inventories in warehouses to protect against seasonality either in supply or demandProduction SupportA warehouse dedicated to storing parts and components needed to support a plant’s operations

Warehouse Management

Primary Functions of Warehousing



Splitting a large shipment into individual orders and arranging for local delivery to customersWarehouse ConsolidationCombining shipments from a number of sources into one larger shipment going to a single locationCross-DockingCombines break-bulk and consolidation warehouse activities

Warehouse Management


Warehouse Management


Reverse Logistics Support

The logistics needed to send products or packaging materials back to disassembly, reclamation or disposal sitesReturned products can be remanufactured or updated for resale Value-Added ServicesAny work that creates greater value for customersServices may change the physical features or configuration of products so they are presented to customers in a unique or customized manner

Warehouse Management


Receiving and Unloading

Inbound shipments must be received and unloaded from the transportation vehiclesPart of this activity may also involve checking the shipment for the correct quantities and for potential damage to productsIn-Storage HandlingOnce unloaded the goods must be moved to the desired destination within the facility, whether this is an actual storage location or a shipping area in the case of a cross-dock facility

Warehouse Management

Warehouse Functions



Products are held, even if for only a few minutes in a storage areaOrder-PickingThe products are removed from storage and assembled into appropriate quantities and assortments to fill customer ordersStagingThe assembled orders are moved to an area in the warehouse in readiness for loading into a transportation vehicle bound for customer locationsShippingInvolves verifying that the assembled orders are correct and the actual loading of the transportation vehicles

Warehouse Management


Private Warehouse

Facility that is owned and operated by the firm that own the productsPublic WarehouseA firm that offers warehouse services to the public for a fee based on the amount of spaced used and the number of shipments into or out of the facilityContract WarehouseCompanies offer to build, own and operate warehouse facilities for the benefit of clients who do not want to undertake those responsibilities themselves

Warehouse Management

Types of Warehouse


A private or contract facility may be used to cover basic year round requirementsPublic facilities are used to handle peak seasonsPublic and contract warehouse have demonstrated more responsiveness as they offer location flexibilityPublic and contract warehousing increases the potential for industry synergyPublic and contract warehouses are able to design operations and facilities to meet higher volumes of multiple clientsPublic warehousing facility can provide complete logistical support ......





Warehouse are more properly viewed as places where products may be stored and assortments of products created in accordance with customer requirements Warehouses perform several functions over and above storage. It also provide benefits through consolidation, break-bulk, cross-docking and assortment activities

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