Warehouse Manager Responsibilities and Challenges PDF

RESPONSIBILITIES OF THE WAREHOUSE MANAGER CHAPTER 2 INTRODUCTION A warehouse manager oversee the efficient receipt , storage and disptach of a range of goods Responsible for a vital part of the supply chain process, a warehouse manager manages people, processes a...

RESPONSIBILITIES OF THE WAREHOUSE MANAGER CHAPTER 2 INTRODUCTION A warehouse manager oversee the efficient receipt , storage and disptach of a range of goods Responsible for a vital part of the supply chain process, a warehouse manager manages people, processes and systems. A warehouse manager in an organization has a very important role to perform KEY SKILLS FOR WAREHOUSE MANAGERS JOB DESCRIPTION AND CORE ACCOUNTABILITIES OF WAREHOUSE MANAGERS (1) Ability to negotiate Information technology skills Basic Finance Ability to make good business decisions People management skills Ability to motivate and lead large numbers of employees through communication and engagement Develop and maintain programs for hiring, training, and professional development JOB DESCRIPTION AND CORE ACCOUNTABILITIES OF WAREHOUSE MANAGERS (2) Cost-efficient warehouse operation Leadership responsibility Continuous improvement in cost- efficiency Long-term vision for future volumes and customer service Safeguard the human and physical assets of the warehouse Management of projects Introduction of new initiatives Maintain/Form strong relationships with suppliers Develop/Manage relations within warehouse environment QUESTION What is the most valuable asset of the warehouse? ANSWER People (558) Warehouse Workers Compete at LogistXGames - YouTube SIX BASIC PRINCIPLES OF WAREHOUSE MANAGEMENT Accuracy Cost control Cleanliness Efficiency Safety Security WAREHOUSE MANAGEMENT TRADE-OFFS WAREHOUSE MANAGEMENT TRADE-OFFS Increased throughput vs. reduction in labor costs Storage density vs. quicker pallet extraction Manual vs. automation Inventory holding costs vs. cost of stock outs Increased pick rates vs. accuracy Speed vs. safety CHALLENGES OF WAREHOUSE MANAGERS Nearly 3,000 hours per year are lost in warehouses and distribution centers through inefficient processes 80% of managers are tasked with finding cost savings in existing operationsOn average, managers are tasked with finding nearly 20% of cost savings in their organizations CHALLENGES OF WAREHOUSE MANAGERS The majority of managers suggested the most inefficient areas are: Inventory Control (53%) Picking (47%) Putaway and replenishment (45%) 1 in 6 managers will not review workflow processes until a customer complains. CHALLENGES OF WAREHOUSE MANAGERS Pressure to reduce operating costs Reduce costs but increase customer service Achieving the perfect order Key Performance Indicator (KPI) used to measure the perfect order:Perfect order – delivered on time, in full, in perfect condition, and with the correct paperwork CHALLENGES OF WAREHOUSE MANAGERS Shorter order lead times and stock availability Order lead time – the length of time between placing of an order and the receipt of the item by the customer Low involvement purchases = high likelihood of switching & search for lowest cost Competitive advantage gained from fast, timely, and accurate delivery CHALLENGES OF WAREHOUSE MANAGERS Delivery through multiple channels CHALLENGES OF WAREHOUSE MANAGERS Smaller, more frequent orders Efficient consumer response (ECR) CHALLENGES OF WAREHOUSE MANAGERS Increases in stock-keeping units Proliferation of product variants Variations in packaging, sizes, etc. CHALLENGES OF WAREHOUSE MANAGERS Environmental Issues Reducing energy consumption Reducing waste Data and information transfer Track and trace information Data security to prevent hacking LEAN WAREHOUSING “Lean” means to remove any activity that uses resources but doesn’t create any additional value. Warehouse operations are generally not lean. Cross-dock centers and fulfillment centers can be lean. Moving stock quickly is key LEAN WAREHOUSING Wasting space Pallet stacking at half-height or quarter-height Part pallets of same product spread throughout warehouse Obsolete stock taking up space Wasting Time Defects (time spent correcting errors as misspicks) Inventories (congestion at inbound and outbound areas) Waiting time (bottlenecks at pick locations) Overprocessing (unnecessary processing steps such as labeling and checking) LEAN WAREHOUSING Wasting Energy Lean Warehousing Transportation (Driving empty forklift) Idling vehicles (Due to operator or wait times) Inefficient machines (Due to maintenance issues or obsolescence) Question: Of these wastes, which is the most expensive one? THE 5S CONCEPT: LEAN WAREHOUSING Sort – remove any unnecessary items from work area Straighten – efficient and effective placement of necessary items in the work area Shine – clean the area and keep it clean Standardize – create standards and display them within work area Sustain – ensure continuous improvement and don’t fall back into old habits. DISCUSSION QUESTIONS 1. Explain why warehouse managers need the ability to negotiate. 2. Why are relationships with suppliers important in warehouse management? 3. Explain ‘delivery through multiple channels’. Give examples in your country. 4. Explain the concepts of lean warehousing. 5. Mention 5 skills of warehouse manager