2.pptx

Classification of Warehouses by Role in the Supply Chain Function of warehouse has evolved from storage to speed, cost reduction, flexibility, and efficiency. This has resulted to the following types of warehouses. 1. Distribution Centers (DC) 2. Consolidation 3. Break-bulk 4....

Classification of Warehouses by Role in the Supply Chain Function of warehouse has evolved from storage to speed, cost reduction, flexibility, and efficiency. This has resulted to the following types of warehouses. 1. Distribution Centers (DC) 2. Consolidation 3. Break-bulk 4. Cross-docking 5. Reverse logistics  1. Distribution Center (DC) Facility stocked with finished goods. They are:  Demand driven  Order fulfillment if they supply goods directly to customers  Retail distribution center if they distributes goods to retailers, wholesalers and directly to consumers. Eg: Distribution Center  2. Consolidation Receive materials from a number of sources and combine them into an exact quantity for a specific destination Eg: Dell Consolidation Warehouse Dell Consolidating Warehouse: Adapted from expert warehouse  3. Break Bulk Warehouse receive single large shipment and arrange them for delivery to multiple destinations  It sorts or splits individual orders and arranges for local delivery Image courtesy Pearson  4. Cross Docking A practice in which materials are unloaded from an incoming semi-trailer truck or a rail cars, with little or no storage in between.  This may be done to change type of conveyance, or to sort material intended for different destinations, or to combine material from different origins. Advantages  Reduced Handling and warehousing Costs at the DC and other facilities  Shortened Lead time  Retailers have the ability to streamline the supply chain from point of origin to point of sale  Reduced Inventory Level  Turns warehouse into transfer nodes rather than storage nodes Disadvantages  Difficult to coordinate due to complexity of managing Cross Docking.  High precision required for successful mixing is highly dependent on information technology.  5. Reverse Logistics Process of moving goods from their destination for the purpose of capturing value, or proper disposal, and may also include remanufacturing and refurbishing activities Image from Hekla group