Chapter 5 - DELIVER - Glue bet ween SCM players (transport and
warehousing)
- Balancing costs and service aspects (close to
the customer)
Influencer
- global economy
- political decisions
- advanced technology
- environmental requirements
Components
- Transport: moving products in trucks, ships, planes,
pipes and trains
- Order:
capturing the customer order all the way through to bringing
back a proof of delivery in order to raise a customer invoice
- Warehouse:
Facility location keeping and moving stock within depots, warehouses
and distribution centres
Center of Gravity (COG): locate facilities by using a
weighting of customer demand data on a grid map.
Other factors:
• Cost of commercial property in that location
• Availability of skilled labour
• Time to build or occupy the site
• Accessibility of government grant or subsidy
• Proximity of road, rail, water and air networks
• Customer service implications
• Environmental considerations
Net work trade-offs
- if number of facilities increase, associated
deliver cost also increases
- Primary transport costs go up when delivery
quantity per warehouse decrease
- Facility costs
- Inventory costs
- Primary transport costs
^ facilites ^ deliver cost ^inventory cost
, WAREHOUSE MANAGEMENT
Handling operations: movement in warehouse
Workers are always there (90% of cost)
Objectives
- Maximize storage space
- Minimize handling operations
Warehouse planning process
Types of warehouse
Contract warehousing
outsourced to logistics service provider
Refrigerated warehousing
provides temperature- controlled storage
Bonded warehousing
Tax duty unpaid inventory (under custody
of government)
Cross-docking
Inventory that enter and leave in a short
time period (carry no safety stock)
U-Shape Most common
- docks can be allocated for loading and
unloading as required (only one road
needed)
- extended on three sides of the building if
necessary
- easily managed and secured (works with
any type of warehouse L-Shape
-
- big volume of operations
- separate flows
- maximum storage
-
I-Shape Through-flow
- when goods received are from an
adjacent manufacturing source
- when different vehicles are used
for unloading and loading of
goods
- beneficial for high-volume 1. Receipt
- separates loading 2. Storage
and shipping area 3. Picking
(More expensive) 4. Dispatch
warehousing)
- Balancing costs and service aspects (close to
the customer)
Influencer
- global economy
- political decisions
- advanced technology
- environmental requirements
Components
- Transport: moving products in trucks, ships, planes,
pipes and trains
- Order:
capturing the customer order all the way through to bringing
back a proof of delivery in order to raise a customer invoice
- Warehouse:
Facility location keeping and moving stock within depots, warehouses
and distribution centres
Center of Gravity (COG): locate facilities by using a
weighting of customer demand data on a grid map.
Other factors:
• Cost of commercial property in that location
• Availability of skilled labour
• Time to build or occupy the site
• Accessibility of government grant or subsidy
• Proximity of road, rail, water and air networks
• Customer service implications
• Environmental considerations
Net work trade-offs
- if number of facilities increase, associated
deliver cost also increases
- Primary transport costs go up when delivery
quantity per warehouse decrease
- Facility costs
- Inventory costs
- Primary transport costs
^ facilites ^ deliver cost ^inventory cost
, WAREHOUSE MANAGEMENT
Handling operations: movement in warehouse
Workers are always there (90% of cost)
Objectives
- Maximize storage space
- Minimize handling operations
Warehouse planning process
Types of warehouse
Contract warehousing
outsourced to logistics service provider
Refrigerated warehousing
provides temperature- controlled storage
Bonded warehousing
Tax duty unpaid inventory (under custody
of government)
Cross-docking
Inventory that enter and leave in a short
time period (carry no safety stock)
U-Shape Most common
- docks can be allocated for loading and
unloading as required (only one road
needed)
- extended on three sides of the building if
necessary
- easily managed and secured (works with
any type of warehouse L-Shape
-
- big volume of operations
- separate flows
- maximum storage
-
I-Shape Through-flow
- when goods received are from an
adjacent manufacturing source
- when different vehicles are used
for unloading and loading of
goods
- beneficial for high-volume 1. Receipt
- separates loading 2. Storage
and shipping area 3. Picking
(More expensive) 4. Dispatch
