SCM 373 Lecture Notes - Lecture 6: Break Bulk Cargo, Papercutting, Reverse Logistics
6 Feb 2017
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Warehouses primarily help buffer against uncertainty and allow other costs to be minimized: reasons for warehousing. Demand / supply / lead time uncertainty. Three basic functions of warehousing: movement (handling) In-storage handling: moving goods for storage (transfer) or order selection (picking) Shipping: verifying orders and loading departing vehicles: storage. There are two primary types of benefits for warehouses: economic and service. Economic benefits operational strategy to save money by using a storage point. Service benefits operational strategy to add value within the supply chain process. There are four primary economic benefits in using warehouses: seasonal storage / stockpiling, reverse logistics, consolidation and break-bulk, cross-docking / in-transit mixing. Warehouses must manage two classes of storage: active storage storage for basic inventory replenishment. Includes flow-through or cross-dock distribution: extended storage storage for inventory held in excess of period for normal replenishment. Service benefits add value to the customer in the supply chain: value added changes made to product in warehouse.
