Storage and

Distribution

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Benefits of materials handling equipment

• Reduce overall handling costs

• Allow greater economy in use of space (through higher stock
density)
• Reduce potential damage to stock

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Criteria for Selecting materials handling equipment

• What requirements are imposed by the nature and types of goods to be

handled?
• What requirements or constraints should be considered in respect of the
warehouse?
• What is the cost-effectiveness of using different types of handling
equipment?
• What quantity of material will be handled?
• What loading distances have to be travelled (horizontal and vertical)?
• Does the use of certain types of equipment enhance safety within the
operation?
• What activities are taking place in adjacent areas?
• What flexibility is required?

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Comparison of handling technologies

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Options in materials handling

• Manually operated equipment such as banding machines, trolleys

and shrinkwrap machines
• Automated and computerised equipment such as conveyor systems,
automated guided vehicles and driverless trolleys
• Mechanical handling equipment including lifting equipment such as
forklifts (variations include straddle trucks, reach trucks, free-path
narrow-aisle trucks, rising cab or counterbalanced trucks)

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Types of power-driven equipment

• Forklift trucks
• Platform trucks and trailers
• Order pickers
• Cranes
• Conveyors

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Principles of order picking

• Picking methods and equipment should be appropriate for the

application.
• Stock availability at the picking face must be maintained.
• Equipment should be laid out and stock positioned in the picking
area for minimum movement but avoiding congestion.
• Picking stock should be concentrated into the smallest feasible area
in order to minimise picker movement, while at the same time
avoiding congestion.
• A prerequisite for effective picking is an information system.
• Stock rotation and similar constraints must be met.
• Performance should be monitored for speed, accuracy and
completeness of order.

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Typical order-picking cycle

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Principles of selecting handling systems and equipment

• Elimination of unnecessary movement and minimisation of

necessary movement
• Selection of the most appropriate handling methods to meet
requirements
• Provision of adequate handling capacity
• Integration of handling with other operations
• Thorough and effective operator training
• Effective equipment maintenance
• Overall control of position and movement

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Management control of unit loads

• Compile a complete register of all unit loads owned, leased or hired.

• Mark all units with a company name and/or logo together with a
unit number. Some organisations mark equipment with fluorescent
marking that will only show up under the correct lighting.
• Make identification of ownership clear to those who may use the
asset. A ‘property of’ declaration is commonplace plus return
details.
• Drivers and staff must be made fully aware that disposal of company
property is both a crime and a dismissible offence. The culture of
staff and drivers taking responsibility for security of company assets
should be encouraged.

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Final Exam question

Q1. You are a member of a project team that has been set up to find
more storage space for a growing retailer which sells non food
products (for example books and stationery). The budget does
not allow for a new build and so you will have to select from a
range of pre-built warehouses.
Analyse the factors that you would need to consider when
evaluating if an existing warehouse site is suitable for the
organisation’s needs.

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Q2. Analyse the impact that the development of intermodal
transport systems has had on the effectiveness of distribution
activities. Support your answer with appropriate examples.

Q3. Discuss the major factors that a multi-drop delivery service

needs to consider when routing and planning the delivery
vehicles.
Discuss the performance measures that can be used to monitor
and manage a multi-drop delivery service

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Q4. Discuss the factors that should be part of the selection criteria
for a new warehouse site
Discuss the factors Org. would need to consider when planning
the layout of a new warehouse

Q5.Discuss how customer demand influences the trade-off between

cost and service standards within storage and distribution.

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