Warehouse Management Course Introduction

• The lecture is about the course of warehouse management
• The lecturer is Le Thi Ngoc Bich and can be contacted via email at [email protected] or by phone at 0963965460

Subject Introduction

• The total credit for the course is 2 credits.
• Main books and reference books include Handbook of Logistics and Distribution Management (2014 by Alan.R, et al), Supply Chain Management (Logistics) (2021 by Nguyen Thi Van Ha), and Managing Supply Chain – A Logistics Approach, 9th Edition (2013 by Coyle, J.J. et al).
• Test and exam format includes attendance and learning participation (10%), teamwork (10%), a midterm test (30%), and a final examination (50%).
• Course has 7 chapters including overview of warehouse and yard management, techniques of warehouse management, containter yard management, applying ICT to warehouse/yard management, security and safety, efficiency and risk management and ware house manager.

Chapter 1: Overview of Warehouse and Yard Management

• The objectives include grasping warehouse/warehouse management concepts, understanding roles, and getting a handle on objectives, principles, methods, and tools.
• The content includes trends, concepts, features, warehouse/yard roles in logistics, functions, classifications, objectives, principals/methods/tools and management contents.
• International integration involving global supply chains and international trade is covered.
• Industry 4.0, e-commerce (B2B, B2C) is a factor.
• There is an increasing demand/higher expectation from the Consumption Revolution.
• As a case study for warehouses there is Samsung Television Supply Chain to describe the movement of goods from Korea to customers using NYK – Argos, Northampton – Corby for warehousing.

Warehouse Management Concepts

• Logistics optimizes location, storage, and circulation (forward/reverse) of physical, informational, and financial flows in production/business, helping businesses optimize prodution/business while cutting logistics costs. This enhances competitiveness in economic integration.
• Warehousing is a part of logistics, a place to store raw/semi-finished/finished products during their movement from the first point to the endpoint of the supply chain, with informational status, condition, storage, and location.
• Warehouses represent an interruption in the flow of material thereby adding cost to the system and should only be used if there is an offsetting benefit with stocks being held in place.

Inventory Stocks

• It is necessary to hold stocks when there are fluctuations in raw materials/finished goods prices, uncertain/erratic demand, trade-offs between transport/shipping costs, discounts via bulk buying, and/or distance between manufacturer and end consumer.
• Stocks are also needed for production shutdowns, ability to increase production runs, manage seasonal production, high seasonality, and storing spare parts or maintenance equipment.

Warehouse and Yard Classification

• Type is classified by logistics branches, procurement and distribution, manufacturing, participants and state and municipal property.
• First Party Logistics (1PL) means processes do all tasks and have an in-house logistics department to handle end-to-end logistics.
• Second Party Logistics (2PL) means producer + carrier.
• Third party logistics (3PL) means transportation + procurement + other services (booking, documentation, warehousing, and packaging.
• Fourth Party Logistics (4PL): means all logistics processes, with no need for a full in-house logistics department.
• Functions are classified by long-term/seasonal storage, transshipment and distribution, custom clearances, raw material types and storage conditions.
• Long-term storage, transshipment and distribution, seasonal storage and custom clearance are function parameters
• Raw materials types include fabrics, components and works in progress.
• Storage conditions include equipment types such as warehouses for readily used materials, packaging materials, disposed products and equipment.
• Storage conditions are rated by weather conditions as unheated, heated, cold or multi-temperature units.
• Degree of classification can be categorized by mechanized vs non-mechanized, automated and self-operative
• Technical characteristics include being open or closed, with or without a canopy.
• Other factors for transport infrastructure include membership in material flows and whether the facilities are complex and whether they feature maritime terminals, railway lines or access to a motorway.
• Warehouse classification is rated from A+ to D.

Warehouse and Yard Specifications

• Specifications by classes range from A+ to D in ceiling heights, floor covering, ventilation and air-conditioning systems, energy supply and utilities, security system, office and utility space, parking area, improved land, and whether the facilities are privately owned or close to a railway line.
• Class ratings range from 13M ceiling heights to any ceiling height
• Class ratings range from anti-dusting floor covering to concrete or asphalt floor covering
• Class A+ features water and air conditioning whereas other ratings do not include air conditioning.

Warehouse Yard Concept

• A Yard, also known as Container Yard (CY), is a designated container storage area in a terminal or dry port (ICD – Inland Clearance Depot) for containers, loading and offloading off of vessels.
• A CY is used for aligning containers for loading on ships and for storing off-loaded containers and is then shifted to rail yard or Container Freight Station (CFS- Kho gom hàng lẻ), or delivered to consignee.
• Consolidation centres receive products from different sources and amalgamate them for onward delivery to the customer or onto a production line, or time-centres where automotive parts are delivered. These include retail stock consolidation warehouses.
• Cross-dock centres differ from consolidation centres

Roles of Warehouse and Yard

• The role is to facilitate movement of goods through supply chain to end consumer.
• Types include inventory holding points, consolidation centers, cross-dock centers, sortation centers, fulfillment centers, assembly facilities and trans-shipment points
• A case study to note is Warehouse of SSI Schäfer - Mydibel and Warehouse of Migros - KNAPP.

Warehouse Functions

• Warehousing functions includes Re-export trade, Grading and Branding, Financing, Price Stabilization, Value Added Services and Transportation of Goods.
• It also includes Storage, Risk Bearing, Protection, Consolidation, Breaking the Bulk and Stock Piling

Warehouse Logistics and Features

• Features include proper location, use of mechanical appliances, sufficient space, proximity to market, parking facility, safety measures, economoical features and proper management.

Warehouse Management

• Warehouse management is organizing and controlling everything within a warehouse, and making sure it all runs optimally and that includes
• This includes arranging the warehouse / inventory, having/maintaining equipment. managing new stock and tracking orders for performance.

General Warehouse Management

• Warehouse Design, Inventory Tracking (barcode reader, radio frequency identification tags)
• Picking and Packing (Single order picking, Zone picking, wave picking, batch picking)
• Receiving and Put-away (pick to light (PTL); pick to voice (PTV) and Shipping (Bill of lading)
• Labor Management (Key performance indicators - KPI), Yard and Dock Management and Reports.

Roles of Warehouse and Yard Management

• Warehouse management plays a strategic role in the supply chain by enabling inventory distribution, sorting, or cross-docking processes to meet the growing demand of the market.
• Other factors include streamlined warehouse and customer service procedures, accurate inventory counts and tracking, scalability with business growth, faster order fulfillment, reduced processing costs, and/or reduced or eliminated errors.

Warehouse Objectives

• It is important to increase operational efficiency, and reduce costs while improving the customers' satisfaction along with the utilization of space, labor and equipment.
• Cost minimization, on-time dispatches and order accuracy and maximum use of space and Ready access to all items should be considered.
• Objectives consist of efficient movement of goods, effective utilization of labour & equipment's and Maximum protection of goods and Good-house-keeping.

Stakeholders for warehouse yards

• Stakeholders include Owners and shareholders, top management, warehouse managers and shippers, strategic planners inventory and finance professional, analysts and customers.

Warehouse Yard Management Principles

• Key principles include keeping stock levels optimum, processing sales orders quickly, control material movement and storage and link warehouse management to sales order processing.
• Key principles are accuracy, cost control, efficiency, cleanliness, safety and security.

Methods and Tools

• Methods and tools include economic order quantity (1), minimum order quantity (2), ABC analysis (3), just-in-time inventory management (4), safety stock inventory (5), FIFO and LIFO (6), reorder point formula (7), batch tracking (8)

Warehouse IT

• Some technology used is with ICT application to track warehouse management (9) and 5S, 6 Sigma Tool, lean management (10), including a Warehouse audit checklist (11).

Warehouse Functions

• Key processes include planning, organizing, leading, tracking, allocating and controlling inventory.

Content of Warehouse and Yard Management

• Content includes: warehouse management, container yard management, application of IT, safety and security, performance measurement, risk management and warehouse managers.