PROCUREMENT, STORAGE

AND WAREHOUSE
MANAGEMENT
UNIT - IV
PRESENTED BY:
MANTRI GIRIDHAR NAIDU (22414020)
SIRRA JYOTSNA (22414035)
THIVYA S (22414038)
 UNIT - IV

Storage and Warehousing Information system -Storage Equipment: storage option

- shuttle technology - very high bay warehouse - warehouse handling equipment -
vertical and horizontal movement - Automated Storage/ Retrieval System (AS/RS)
-specialized equipment- Technical advancements- Resourcing a warehouse-
warehouse costs- Types of cost - Return on Investment (ROI) - Charging for the
shared-user warehouse service - Logistics charging methods Warehousing
Information System (WIS)- Performance management- outsourcing decisions.
 INTRODUCTION TO STORAGE AND
WAREHOUSING INFORMATION SYSTEM

 What is a SWIS?
• A SWIS is a software system that acts as the brain of your warehouse, managing all aspects of storage and retrieval of goods. It's like a digital conductor,
ensuring everything runs smoothly and efficiently.
 Key Functions of a SWIS:
• Inventory Management, Order Fulfillment, Warehouse Operations, Reporting and Analytics
 Benefits of Using a SWIS:
• Increased Efficiency, Improved Accuracy, Reduced Costs, Enhanced Visibility
 Types of SWIS:
• Basic SWIS: Suitable for small warehouses with simple operations.
• Advanced SWIS: Offers more features like automation integration and advanced reporting capabilities, ideal for larger warehouses with complex operations.
• Cloud-based SWIS: Provides access to the system from anywhere, anytime, increasing flexibility and scalability.
 Choosing the Right SWIS:
• The ideal SWIS depends on your specific warehouse needs and size. Consider factors like:
• Warehouse size and complexity
• Inventory type and volume
• Budget
• Desired features and functionalities
 STORAGE OPTIONS IN WAREHOUSING

• Bulk Storage
• Shelving Systems
• Automated Storage and Retrieval Systems (AS/RS)
• Mezzanine Storage
• Flow Racks
• Cantilever Racks
• Temperature-Controlled Storage
• Outdoor Storage
• Cross-Docking
• Hazardous Materials Storage
 SHUTTLE TECHNOLOGY IN WAREHOUSING
 Shuttle Technology: The Automated Speed Demons of Warehousing
• Shuttle technology has become a rising star in the world of warehousing, revolutionizing storage and retrieval with its automated precision and lightning-fast speed. It essentially involves small,
robotic vehicles (shuttles) navigating within racking systems, autonomously retrieving or depositing inventory to fulfill orders. Think of them as tireless workers zipping through aisles, freeing up
humans for higher-level tasks.

 Types of Shuttle Systems:

• Miniload Shuttles: Designed for smaller boxes and totes within multi-tier racking. They zip horizontally through individual levels, delivering items to pick stations or vertical lifts for further
transport.
• Pallet Shuttles: Built for heavier loads like pallets, operating within deep racking lanes. They maximize storage density by allowing multiple pallets to be stored one behind the other in a single lane.
• Light Goods Shuttles: Perfect for high-throughput operations dealing with small, fast-moving items. These agile shuttles maneuver swiftly within shelving systems, ensuring rapid picking and
replenishment.

 Benefits of Shuttle Technology:

• Increased Storage Density: Shuttles eliminate the need for wide aisles and allow multi-deep storage, significantly boosting your warehouse's capacity within the same footprint.
• Improved Efficiency and Productivity: Automated movements save time and labor compared to manual picking, increasing order fulfillment rates and throughput.
• Reduced Operating Costs: Decreased labor requirements, optimized space utilization, and lower energy consumption can lead to substantial cost savings in the long run.
• Enhanced Inventory Accuracy: Automated systems minimize human error, resulting in greater picking and stock level accuracy.
• Flexibility and Scalability: Shuttle systems can be customized to your specific needs and easily expanded as your inventory or operation grows.

 Considerations for Implementing Shuttle Technology:

• Initial Investment: Installing a shuttle system can represent a significant initial cost compared to traditional racking.
• Complexity and Maintenance: These systems require ongoing maintenance and expertise to ensure smooth operation.
• Integration with Existing Infrastructure: Careful planning is crucial to integrate the shuttle system with your existing warehouse layout and management software.
 VERY HIGH BAY WAREHOUSE DESIGN
1. Structural Considerations:
 Building Height, Floor Load Capacity, Column Spacing
2. Racking Systems:
 Selective Racking, Double-Deep Racking, Drive-In/Drive-Through Racking
3. Material Handling Equipment:
 Reach Trucks, High-Reach Forklifts, Automated Storage and Retrieval Systems (AS/RS)
4. Warehouse Layout
 Aisle Widths, Dock Configuration
5. Safety Systems:
 Fire Suppression, Lighting, Emergency Exit Routes
6. Warehouse Management System (WMS):
• Implement a robust WMS to optimize inventory management, order picking, and overall warehouse operations.
• Utilize technology for real-time tracking of inventory and equipment.
7. Automation and Robotics
8. Temperature and Humidity Control
9. Regulatory Compliance
10. Employee Training
 WAREHOUSE HANDLING EQUIPMENT: VERTICAL
AND HORIZONTAL MOVEMENT
 Horizontal Handling Equipment:
• Forklifts
• Conveyors
• Automated Guided Vehicles (AGVs)
• Tuggers and Tow Tractors
• Carts and Dollies
• Pallet Jacks
• Conveyor Sortation Systems

 Vertical Handling Equipment:

• Forklifts
• Cranes
• Lift Tables
• Stackers
• Automated Storage and Retrieval Systems (AS/RS)
• Shelving Systems
 AUTOMATED STORAGE/RETRIEVAL SYSTEM
(AS/RS)
An Automated Storage and Retrieval System (AS/RS) is a sophisticated warehouse technology that
automates the storage and retrieval of goods within a warehouse or distribution center.
1. Storage Structure
2. Material Handling Equipment: Automated systems use various equipment for handling goods, such as:
- Shuttles or Robots -Conveyors: - Cranes
3. Control Software
4. Inventory Tracking and Management
5. Space Optimization
6. Increased Efficiency and Accuracy
7. Adaptability and Scalability
8. Safety Features
 SPECIALIZED EQUIPMENT IN WAREHOUSING

Specialized equipment in warehousing refers to a variety of tools, machinery, and technology specifically designed to optimize
various tasks within a warehouse setting. These tools and equipment help improve efficiency, accuracy, safety, and overall
productivity in handling, storing, and moving goods. Some examples of specialized equipment commonly used in warehouses
include:
1. Forklifts
2. Pallet Jacks
3. Conveyors
4. Automated Guided Vehicles (AGVs)
5. Robotic Systems
6. Vertical Lift Modules (VLMs)
7. Barcode Scanners and RFID Systems
8. Dock Levelers and Loading Equipment
9. Packaging Machinery
 TECHNICAL ADVANCEMENTS IN WAREHOUSING

Advancements in technology have revolutionized warehousing operations

1. Automation and Robotics
2. Internet of Things (IoT)
3. Artificial Intelligence (AI) and Machine Learning
4. Warehouse Management Systems (WMS)
5. Cloud Computing and Big Data
6. Augmented Reality (AR) and Virtual Reality (VR)
7. Predictive Analytics and Maintenance
8. Voice-Activated Technologies
9. Drones and UAVs
10. Blockchain Technology
 RESOURCING A WAREHOUSE: PERSONNEL

Resourcing a warehouse: personnel and materials Resourcing a warehouse involves effectively managing
both personnel and materials to ensure smooth operations. Here's a breakdown of considerations for each:
Personnel:
1. Staffing Levels
2. Roles and Responsibilities
3. Training and Skill Development
4. Safety Protocols and Compliance
5. Performance Tracking and Incentives
6. Adaptability and Cross-Training
 RESOURCING A WAREHOUSE: MATERIALS

Resourcing a warehouse: personnel and materials Resourcing a warehouse involves effectively

managing both personnel and materials to ensure smooth operations. Here's a breakdown of
considerations for each:
Materials:
1. Inventory Management Systems
2. Optimal Stock Levels3. Storage Solutions
3. Material Handling Equipment
4. Supplier Relationships
5. Quality Control Measures
 WAREHOUSING INFORMATION SYSTEM (WIS)

Warehouse Management System is a software solution that helps to monitor and

handle the day-to-day tasks of a warehouse. WMS systems allow companies to
control and oversee third-party logistics processes. To understand WMS, you first
need to recognize its process, which can be classified into the following steps.
 UNDERSTANDING WAREHOUSE COSTS
Understanding warehouse costs is vital for financial management and efficiency, involving analysis
of fixed and variable expenses like labor and maintenance. This insight helps identify cost drivers,
optimize resource allocation, and make informed decisions for improved profitability. We further
explore into warehouse costs which enhances competitiveness, streamlines operations, and ensures
a better return on investment for organizations.
• Labor Costs and Productivity

• Inventory Holding Costs

• Technology and Automation Costs

• Space Utilization and Costs

• Fixed and Variable Costs Breakdown

 TYPES OF COSTS IN WAREHOUSING

Warehousing costs include fixed and variable expenses like rent and labor, offering insights into
financial dynamics. Differentiating direct and indirect costs evaluates specific and indirect
contributions, while recognizing opportunity costs sheds light on forgone benefits. Considering
external and internal costs aids strategic decision-making and enhances overall efficiency in
warehouse management.
• Fixed Costs in Warehousing

• Variable Costs in Warehousing

• Direct vs. Indirect Costs

• Opportunity Costs in Warehousing

• External and Internal Costs

 RETURN ON INVESTMENT (ROI) IN
WAREHOUSING

ROI in warehousing assesses the profitability of investments in technology and operations,

measuring capital efficiency. It involves evaluating gains versus costs to gauge the financial
success of warehouse projects. Warehouses rely on ROI analysis for informed decisions,
optimizing resources, and ensuring sustainable returns.
• Investment Analysis for Warehouse Operations

• Calculating ROI in Warehousing

• Risk Assessment and ROI

• Technology Investment and ROI

• Long-Term vs. Short-Term ROI

 CHARGING MODELS FOR SHARED-USER
WAREHOUSE SERVICES

Charging models for shared-user warehouses determine cost distribution among users, considering
factors like space usage and performance metrics. Strategies like value-added service pricing and
dynamic pricing ensure fair cost allocation. Choosing an appropriate model is crucial for
collaboration, transparency, and optimizing cost-sharing in shared-user warehouse services.
• Shared-User Warehouse Service Models

• Cost Allocation Methods

• Performance-Based Pricing

• Flexibility and Scalability in Pricing

• Technology Integration and Pricing

 LOGISTICS CHARGING METHODS IN
WAREHOUSING

Logistics charging methods in warehousing, including weight and volume-based charges and
activity-based costing, ensure transparent and efficient financial assessments. Integration of service
level agreements (SLAs) and penalties enhances accountability and quality standards. Dynamic
pricing models contribute to adaptability, fostering competitive and flexible logistics charging
structures.
• Weight and Volume-Based Charging

• Activity-Based Costing

• Value-Added Services Pricing

• Service Level Agreements (SLA) and Penalties

• Dynamic Pricing in Logistics

 PERFORMANCE MANAGEMENT IN
WAREHOUSING

Performance management in warehousing entails tracking key metrics, benchmarking against

industry standards, and utilizing technology for continuous improvement. Employee training and
feedback loops are crucial for maintaining and enhancing efficiency. Focused on KPIs, this
approach ensures warehouses operate at peak performance levels.
• Key Performance Indicators (KPIs) in Warehousing

• Benchmarking and Best Practices

• Technology Integration for Performance Enhancement

• Employee Training and Skill Development

• Continuous Improvement and Feedback Loops

 OUTSOURCING DECISIONS IN WAREHOUSING

Outsourcing in warehousing means strategic decisions on in-house versus third-party operations,

considering costs, efficiency, and risk factors. A cost-benefit analysis evaluates financial
implications, highlighting labor costs and efficiency gains. Risk assessment focuses on challenges,
highlighting data security and supply chain resilience. Success relies on effective vendor selection,
contract negotiation, and performance monitoring in warehouse management outsourcing.
• Strategic Outsourcing vs. In-House Operations

• Cost-Benefit Analysis of Outsourcing

• Risk Assessment and Mitigation in Outsourcing

• Vendor Selection and Contract Negotiation

• Performance Monitoring and Service Level Agreements (SLAs)

 CONCLUSION
The world of storage and warehousing information systems encompasses an array of critical facets. It starts
with understanding the fundamentals of storage equipment and options, exploring shuttle technology and very
high bay warehouse design for optimal space utilization. Warehouse handling equipment, both vertically and
horizontally, plays a pivotal role in efficient operations, especially when integrated with automated
storage/retrieval systems (AS/RS) and other specialized equipment.
Technological advancements continuously redefine warehousing, enabling better resource allocation and
streamlined processes. Managing warehouse resources involves a careful balance between personnel and
materials, understanding warehouse costs, various charging models, logistics methods, and the pivotal role of
a Warehouse Information System (WIS) in orchestrating seamless operations.
Moreover, gauging performance metrics, considering outsourcing decisions, and analyzing the return on
investment (ROI) are crucial aspects for sustained growth and efficiency. Ultimately, mastering these elements
empowers warehouses to navigate complexities and optimize their functions, ensuring a competitive edge in
today's dynamic logistical landscape.
THANK YOU
HIGH BAY WARE HOUSE
INDRODUCTION

• A high-bay warehouse is a facility with tall racking units that

leverage the height of the building to maximize storage capacity .
• A high-bay warehouse is a logistics facility where the storage
systems reach a minimum height of approximately 40' and a
maximum of 165'. The height of the racks allows you to leverage
all available warehouse space from the bottom to the top.
ADVANTAGES

• Maximum space utilization by gaining cubic feet vertically.

• Configuration adaptable to different types of loads and weights.
• More throughput in warehouse operations, e.g., goods storage and removal.
• Flexibility in installing manual storage systems and/or different degrees of automation.
• Improved safety in the facility through the use of automatic handling equipment.
EQUIPMENT USED IN HIGH BAY WAREHOUSE

• Forklifts/Reach Trucks:
• Reach Trucks: These are designed for narrow-aisle storage and are capable of reaching high shelves. They have extending arms that
allow operators to pick items from elevated positions.

• Stacker Cranes:
• Automated storage and retrieval systems (AS/RS) use stacker cranes to handle pallets or containers. These systems are computer-
controlled and can efficiently move vertically and horizontally within the aisles, providing high-density storage.

• Conveyor Systems:
• Conveyor systems are used for the transportation of goods within the warehouse. They can be integrated with other equipment for
efficient material handling.

• Pallet Racking Systems:

• High-bay warehouses often use pallet racking systems to store palletized goods vertically. This includes selective, drive-in, and
push-back racking systems.
• Shuttle Systems:
• Shuttle systems are automated systems that move horizontally within the rack
structure, transporting goods to and from storage locations. They are particularly
useful for high-density storage.
• Warehouse Management System (WMS):
• WMS software is crucial for managing and optimizing the entire warehouse
operation. It helps with inventory control, order fulfillment, and the efficient use
of warehouse resources.
• Loading Docks and Dock Levelers:
• Efficient loading and unloading are essential in high-bay warehouses. Loading
docks equipped with dock levelers facilitate the smooth movement of goods
between trucks and the warehouse.
• Barcode and RFID Systems:
• These systems are used for tracking inventory and improving accuracy in the
picking and shipping processes. Barcodes and RFID tags help identify and locate
items within the warehouse.
• Pick-to-Light and Voice Picking Systems:
• These systems assist warehouse workers in the picking process by
providing visual or auditory cues. This helps improve accuracy and
efficiency in order fulfillment.
• Fire Suppression Systems:
• Due to the height and density of storage, high-bay warehouses often
require specialized fire suppression systems to protect goods and
personnel.
• LED Lighting:
• Efficient lighting is essential in high-bay warehouses. LED lighting is
commonly used for its energy efficiency and ability to provide bright and
focused illumination in tall spaces.
PICKING ROBOT
• The robot’s versatility, which allows it to identify, pick and place a wide
range of items, makes it well-suited for various requirements. It is an ideal
solution for streamlining order fulfilment in scenarios with high product
turnover or seasonal peaks in demand.
ORAGE AND WAREHOUSE
NFORMATION SYSTEMS
 INTRODUCTION
A storage and warehouse information system (SWIS) is a
software application that helps businesses manage their
inventory and warehouse operations. It tracks the
movement of goods in and out of the warehouse, as well
as their location within the warehouse. This can help
businesses to improve efficiency, reduce costs, and better
 HERE ARE SOME OF THE MOST POPULAR
SWISS ON THE MARKET:

SAP Warehouse Management System

(WMS)
Oracle Warehouse Management System
(WMS)
JDA Warehouse Management System
(WMS)
 BENEFITS OF SWIS
• Improved inventory accuracy and visibility / Enhanced stock traceability.
• Increased operational efficiency and productivity.
• Reduced costs and waste.
• Enhanced customer satisfaction through faster delivery times
• Enhanced stock traceability.
 WAREHOUSE MANAGEMENT

Warehouse layout optimization for efficient movement of

goods.
Directed put-away and picking processes for faster turnaround
times.
• Labor management tools for optimizing personnel scheduling
and tasks.
 ORDER FULFILLMENT

Streamlined order processing with automated workflows.

Integration with e-commerce platforms for seamless online

orders.
• Real-time shipment tracking and visibility for customers.
 REPORTING AND ANALYTICS

Generate custom reports on

inventory levels, order trends, and
warehouse performance.
• Identify areas for improvement and
optimize operations based on data
insights.
 INTEGRATION WITH OTHER SYSTEMS

Integrate with ERP, CRM, and accounting systems for seamless data flow.
• Enable automation of tasks across different departments.

IMPLEMENTATION CONSIDERATIONS
Choosing the right SWIS for your business needs and budget.

Data migration and system integration.

• User training and change management.
 SECURITY AND COMPLIANCE

Data security measures to protect sensitive information.

• Compliance with industry regulations and standards.

FUTURE TRENDS IN SWIS

Artificial intelligence and machine learning for predictive analytics.

Robotics and automation for further efficiency gains.

• Internet of Things (IoT) for real-time data collection and monitoring
Thank you
Warehousing and its functions

Nilendra

Himanshu
 Warehouse and its types

Warehousing is the process of storing physical inventory

for sale or distribution. Warehouses are used by all
different types of businesses that need to temporarily
store products in bulk before either shipping them to
other locations or individually to end consumers.

Types of warehouses:
• Public warehouses
• Private warehouses
• Bonded warehouses
• Smart warehouses
• Consolidated warehouses
 Functions of warehouses
• Storage
.

• Cost stabilization

• Risk bearing

• Financing

• Grading and packaging

.
• Breaking the bulk

• Stock Pilling

• Transportation
Storage

Storage is the activity of

storing products at warehouses
and logistics centers. Its role is
to provide a steady supply of
goods to the market to fill the
temporal gap between
producers and consumers. It
also plays an important role in
maintaining quality at
warehouses and logistics
centers and value of products.
 Cost stabalisation

When there is excess demand in the market, the

extra inflow of goods may further decrease their
price and lead to losses for the business owners.
Hence,. in this case, the warehouses hold the
stock back until the demand for such goods
rises again.
 Protection

Warehouses protect goods from loss, theft, and damage

from weather conditions. Warehouse safety is a set of
guidelines and best practices to ensure a safe work
environment.

Here are some warehouse security measures:

•Access control: Limit entry points with key cards or key
fobs.
•Security measures: Install security cameras, upgrade
locks, and use an alarm system.
•Lighting: Ensure the warehouse is well-lit.
•Staff: Ensure staff is trained to react quickly to theft and
protect themselves.
•Inspections: Conduct periodic inspections.
Stock piling

Stockpiling is the use of a warehouse as a

reservoir to handle production overflow.
It can be used in two situations:
• Seasonal production and level demand
• Level production and seasonal demand

Stockpiling can help stabilize prices and reduce

losses. In disaster situations, government
agencies can stockpile stocks at easily
accessible warehouses for distribution during
emergencies.
 Breaking the bulk

Break bulk warehousing involves storing

individual items or small quantities of cargo as
opposed to consolidated cargo.
This approach is often used for items that are
not easily consolidated, such as oversized or
heavy items, or items that require special
handling
Value added services

Labeling
•Packaging
•Product customization
•Assembly
•Kitting
•Quality control inspections
•Reverse logistics
•Work order processing
•Re-branding
Financing

Warehouse financing is a way for

businesses to borrow money secured by
their inventories. Inventories used as
collateral will be moved and stored at a
designated facility. The warehoused
goods are inspected and certified by a
collateral manager to ensure the
borrower owns the inventory used to
back the loan.
Thank you!