Techniques in Supply Chain Management
Techniques in Supply Chain Management
“Warehousing is an integral part of the logistics supply chain and it is important that it is seen as such, and that the planning of warehouse design and operations should be within the overall context and objectives of the total supply chain. Unless this happens, there is the risk of sub-optimizing warehouse operations, at the overall supply chain.”
Warehousing is generally defined as “the storage of goods before their use”1. That was just the warehouse’s role up to fifteen years ago when the logistics supply chain philosophies arrived. Since then the warehouse has obtained a strategic role, and has become an integral part of the logistics supply chain. As for the planning of warehouse design and operations they have become one with the overall context and objectives of the total supply chain and the logistic goals. These objectives are:
Shorter cycle times
Lower costs
Better customer services
The warehouse today is focused in speed, since a product may be only stored for a few days or even hours.
What is also important is that by looking warehousing from a macroeconomic angle it creates time utility for raw materials, industrial goods and finished products. Time availability of goods is broadened and customers receive the goods when and where they need them most.
Taking a closer look at the role of warehousing in the logistics system we observe that the warehouse serves certain value adding roles. One of them is the transportation consolidation. This is the moving of small amounts of goods2 to or from a warehouse in order to consolidate these small shipments into a large one, with significant transportation savings that save further cost and don’t add value to the goods. Another warehousing function is the product mixing of the customer. Customers may sometimes order for different amount of goods in type, size e.t.c. . This can be deled with the development of mixing warehouses nearby, so small vehicles can gather the goods and avoid further cost and delay3.
A warehouse also provides customer services. Having the goods available when the order is made and shipped directly leads to customer satisfaction. Also warehousing can play the role of protection against contingencies4. This is very important because it is crucial to have a defense to the case of not being able to deliver the raw materials, otherwise there will be a delay in the production of finished goods. Finally warehousing...