Warehousing

Dr.Sunil Giri
?
Do firms really need storage and material handling as
part of logistics system. If demand for the product
were known for sure and product could be supplied
instantly to meet demand.
Warehousing
Warehousing or storage refers to the holding and
preservation of goods until they are dispatched to the
consumers.
Purpose
Reduce Transport and Production Cost
Coordinate Supply
Assist Production Process
Assist in Marketing Process
Functions
Storage System Functions Holding
Consolidation
Break Bulk
Mixing
Cross dock centers
Sortting centers
Reverse logistics center
Material Handling Loading and Unloading
Movement to and from Storage
Order filling
Warehouse activity as a percentage of cost
Receiving - 14%
Put-away- 8%
Storage - 11%
Order picking- 35%
Packing 12%
Loading 12%
Stock Counting 2%
Value adding Services 4%
Other activity 2%
Preparation for receiving
Offloading ( Automatic Unloading, Boom Conveyer
Unloading, Robotic Palletize, Robotic unloading)
Checking
Cross Docking
Recording
Quality Control
Put Away
Product Annual Pick List Weighted Weighted Cumulative ABC
Demand Frequency Volume Percentage weighted Category
percentage
1 200 20000
2 250 15000
3 400 2000
4 600 1000
5 800 500
6 1000 100
7 1000 40
8 100 80
9 500 10
10 1000 1
11
Warehouse pick Area Layout
Picking Strategies
Picker to Goods
Pick to order
Cluster Picking
Batch Picking
Zone Picking
Goods to Picker
Automated Picking
Handling Equipments
Trolley, Cages Carts
Powered Pallet Trucks
Towing trucks
High level Order picker
Sorttation system
Storage Equipments
Bulk Storage
Racking
Shelving
Carousels
Vertical lift module
A Frames
Order Picking alternatives

Paper Picking :- Small operations with little systemic support

Low technology cost Low risk Low pick rate
Low pick accuracy Long order cycle time

Barcode Scanning;-Most Operations, Paperless, Ability to deal with multi SKU locations

Radio Frequency Picking :- All types of operations High accuracy

Paperless Ability to capture item specific
information (i.e. serial numbers) Low pick rate
(often the same as paper picking)
Pick to Light:- Low no. of items with high volumes High accuracy
High pick rate “Hands Free” High hardware costs
Voice Picking :- Large no. of items spread across a large area
Medium pick rate Medium to High accuracy
“Hands Free” Medium to high capital costs for
systems & headsets
Accuracy comparison of various Pick
technologies

Equipment type Accuracy

RF 99.3-99.5

Pick to light 99.4-99.6

Voice Tech 99.7-99.97

Alternatives
Private
Public
Leased
Some storage options
Vertical Carousels
Vertical Lifts
Pallet Racks
Shelving
Movable Racking
Mezzanines