SKILLS DEVELOPMENT

PROGRAMME FOR SUPPLY

CHAIN STAFF OF
WILMAR AFRICA LIMITED
TEMA
By

Phidelis Ebledzi
Consultant @ ILESL
OVERVIEW OF
WAREHOUSING
 Course Outcomes
By the end of this session, participants will be
able to:
• Distinguish between a warehouse and
warehousing;

• Identify different types of warehousing;

• Discuss the strategic value-adding role of

warehousing in the logistics system;

• Describe the framework for basic warehousing

decisions.
Outline of Presentation
Introduction

Purpose of Efficient Warehousing

Types of Warehouses

Value-added Warehousing

Warehousing Decisions
 Introduction
• The primary
function of
warehousing is the
management of
space and time

• Warehouse is a
strategic asset of
an organisation.
 A Warehouse
A warehouse is a commercial
building for buffering and
storage of goods, or an
intermediate area for storing
raw materials or products until
they are needed for
production or consumption
 Warehousing
• Warehousing is the
process of storing
raw materials, goods-
in-progress (WIP)
and finished goods
within a storage
facility
 Basic Objectives of Warehouse
• Maximize effective use of space.
• Maximize accessibility of all items.
• Maximize protection of all items.
• Maximize effective use of information
• Maximize effective use of equipment.
• Maximize effective use of labour.
• Maximize the protection of company’s assets.
• Minimize the company operating Cost.
 Warehousing Strategy
• Depends on the organisation’s objectives
in general and logistics objectives in
particular like:-
- availability of goods to consumers
- degree of customer service offered
- achieve minimum total distribution
cost.
Purpose of Efficient Warehousing - 1

• Achieve transportation economies.

• Achieve production economies.
• Provide customers with a mix of products.
• Meet customer’s requirements.
• Support the firm’s customer service policies.
Purpose of Efficient Warehousing - 2

• Value-added service
• Meet changing market conditions and
uncertainties.
• Provide a buffer location for trans-shipments.
 Types of Warehousing - 1

PUBLIC WAREHOUSING PRIVATE WAREHOUSING

Owned by some agencies and
Single manufacture or wholesalers.
clients pay some fees – duty paid
warehouses.
 Types of Warehousing - 2

CONTRACT WAREHOUSING
LEASED WAREHOUSING
Clients pay fees
Stable inventory
 Value-added Warehousing - 1
• A facility where key product customization
activities are executed, including packaging,
labelling, marking, pricing, and returns
processing.
Value-adding Roles Trade-off Areas

Consolidation Transportation

Product Mixing Order Filling

Value-added Warehousing - 2
Value-adding Roles Trade-off Areas

Lead times,
Service
stockouts

Contingency
Stockouts
Protection

Smooth Operation Production

 Warehousing Decisions - 1

• The standard of warehousing and

distribution management in today’s
volatile market can have a significant
impact on corporate performance and
profitability.
Warehousing Decisions - 2
Top
Management

Middle
Management

First Line
Management
 Warehousing Decisions Flow Chart
Warehouse

Private Public

How many?

Centralized Decentralized

What size?

Where? (Location)

Interior layout
What products;
Where?
 Group Discussion
• Discuss the benefits of a
private warehouse to an
organisation.
• Identify factors that
Wilmar Africa Limited
takes into consideration
before locating its
warehouses.
 END OF LECTURE

NICE TO BE WITH YOU

 Business Consultant
E-mail: lifeide76@gmail.com
Cell: 0240999639