...WHITE PAPER The Synchronized Distribution Supply Chain: Best Practices in Warehouse Management About Motorola’s Mobile Supply Chain Solutions Every day, companies all over the world count on Motorola mobility solutions to keep their supply chain operations at peak productivity and profitability. When it comes to supply chain optimization, Motorola’s end-to-end supply chain mobility solutions offer the expertise gained through successful proven deployments in many of the world’s largest enterprises, a comprehensive and proven enterprises class product portfolio — including wireless infrastructure for seamless ‘inside outside’ mobility, integrated voice and data devices and bestin-class applications through a world-class partner network — and a complete portfolio of services designed to help you get and keep your mobility solution up and running to ensure peak performance and maximum value. For more information on how Motorola mobility solutions can streamline your supply chain, please visit motorola.com/supplychainmobility or access our global contact directory at motorola.com/enterprise/contactus Executive summary The warehouse is at the center of your business, a key area through which nearly everything in your business must pass — from packages in a parcel post environment to raw materials and finished goods in a manufacturing plant to a wealth of products in a distribution center. When mobility is extended throughout your warehouse, a new level of efficiency, accuracy...
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...WAREHOUSE ACTIVITY PROFILING: MINING FOR GOLD CHAPTER 2 Warehouse activity profiling • Warehouse activity profiling is the systematic analysis of item and order activity. • The activity profiling process is designed to quickly identify root causes of material and information flow problems, to pinpoint major opportunities for process improvements, and to provide an objective basis for project-team decision making. PROFILING MOTIVATIONS AND MINEFIELDS • Profiling Pays ▫ Done properly, profiling quickly reveals warehouse design and planning opportunities that might not naturally be in front of you. • You can drown in a shallow lake — on average ▫ If we are not careful to plan and design based on distributions as opposed to averages, the entire planning and design process will be flawed. That is why it is so important to go to the extra step to derive these profile distributions. As you start to look at the profiles of customer orders, purchase orders, item activity, inventory levels, and so on, the creative juices begin to flow for everyone on the project team. Everyone on the project team starts making good decisions and generating new ideas. In profiling, we are trying to capture the activity of the warehouse in pictorial form so we can present the information to management and so we can make quick consensus decisions as a team. A full, yet minimum set of profiles required to plan and design warehouse operations follows. This profile set is a synthesis of profiles...
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...Become a Distribution Supervisor To become a distribution supervisor you must possess people skills and have business savvy and practical knowledge about day-to-day supply chain issues in industries as diverse as public utilities, publishing and health care. Distribution supervisors must be team leaders and effective communicators with strong problem-solving skills. From Essentials: Warehouse & Distribution Basics How to Become a Warehouse Courier Depending on the size of the company, a warehouse courier may perform a variety of duties,… More More: See All Articles in this Essentials How to Become a Distribution Supervisor To become a distribution supervisor you must possess people skills and have business savvy and… More More: See All Articles in this Essentials How to Become a Warehouse Traffic Coordinator A warehouse traffic coordinator ensures the efficient delivery of shipments. Traffic… More More: See All Articles in this Essentials How to Become a Warehouse Back Stock Picker A back stock picker selects warehouse merchandise to replace items sold by retail stores the day… More More: See All Articles in this Essentials How to Become a Warehouse Push Processor A warehouse push processor must organize stock as it is received so that the merchandise can be… More More: See All Articles in this Essentials How Does Wholesale Distribution Work? … More More: See All Articles in this Essentials About Warehouse Jobs ...
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...The warehouse is the most common type of storage though other forms do exist (e.g., storage tanks, computer server farms). Some warehouses are massive structures that simultaneously support the unloading of numerous in-bound trucks and railroad cars containing suppliers’ products while at the same time loading multiple trucks for shipment to customers. The different types of warehouses that are to be required will affect the decision make to either build or to buy. This is because it will have to depend on the availability of the warehouses and its uses. For example, Cold Chain’s warehouses are not widely available and are usually located near the port. Below are the different types of warehouses: * Private Warehouse - This type of warehouse is owned and operated by channel suppliers and resellers and used in their own distribution activity. For instance, a major retail chain may have several regional warehouses supplying their stores or a wholesaler will operate a warehouse at which it receives and distributes products. * Public Warehouse - The public warehouse is essentially space that can be leased to solve short-term distribution needs. Retailers that operate their own private warehouses may occasionally seek additional storage space if their facilities have reached capacity or if they are making a special, large purchase of products. For example, retailers may order extra merchandise to prepare for in-store sales or order a large volume of a product that is...
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...The Kroger Company Mem o To: From: Date: Re: Matthew W. Ford Georgi E. Trifonov September 24, 2007 Distribution and supply chain management analysis for Wegmans and Kroger Co. Introduction As assigned, the distribution and supply chain management has been investigated for Wegmans and Kroger Co. A comparison on distributions and supply chain management choice has been made between the two. The comparison also focuses on what beneficial operational decisions can be adopted at Kroger and how they will affect the distribution and supply chains. Summary Comparison between Wegmans and Kroger. The comparison based on distribution strategy shows that Wegmans have implemented strategies that give them advantage over Kroger Co. Such are warehouse semi-automation and conveyor use, which results in decreased labor cost and increased speed and effectiveness. Working with vendors to improve packaging has reduced inventory loss at Wegmans. Information sharing through Global Data Synchronization will further increase their effectiveness. The planned replacement of SKU with ID-tag chips will further improve Wegmans’ supply chain operations. Opportunities for improvement at Kroger. Key opportunities for improvement at Kroger Co. are automation of the warehouse process through the use of conveyor belts that will reduce labor cost and improve effectiveness. Current and future recommendations for Kroger. Key recommendation for Kroger at this point besides automation is vendor relations...
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...DECENTRALIZED PLANT DISTRIBUTION SYSTEM IN THE LOGISTICS OF THAI CEMENT Pairoj RAOTHANACHONKUN Graduate Student Department of Civil and Environmental Engineering Nagaoka University of Technology 1603-1 Kamitomioka-machi, Nagaoka, Niigata, 940-2188, Japan Fax: +81-258-47-9650 E-mail: pairoj@stn.nagaokaut.ac.jp Shinya HANAOKA Assistant Professor Transportation Engineering School of Civil Engineering Asian Institute of Technology P.O. Box 4, Klong Luang, Pathumthani, 12120, Thailand Fax: +66-2-524-5509 E-mail: hanaoka@ait.ac.th Abstract: Siam Cement Public Company Limited (SCC) faced stiff competition after the economic crisis in 1997, decided to close most of their warehouses for the change of logistics system. SCC presently operates five cement plants located whole regions in Thailand with except of the northeast region where three warehouses are still operated. This plant distribution system can be called the decentralized plant distribution system. Which plant distribution system is more efficient for SCC as the logistics strategy between centralized and decentralized? Based on this background, total logistics costs of both systems are formulated and calculated. In addition, the locations of a single warehouse without plant operation are evaluated using linear programming to minimize total logistics costs, which calculated with and without environmental cost. The results of calculation showed that transportation cost was the most significant cost of the plant distribution system and...
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...ABSTRACT Distribution logistic plays an important role in international companies or in Multinational Corporation. It is because most company preferred more competence in the complex and global market. Nowadays customers more concern about how long their ordered product reach to them rather than worrying how the company will deliver the products. As a consequence, time can be used as an indicator in distribution logistic. This research is conducted to explain the consequences of distribution logistic and the way IKEA will gain competitive advantage by utilizing it. We will identify the key elements in distribution logistics and find the competitive advantages of IKEA through analyzing the case study of IKEA and they are: speed, dependability and last but not least is flexibility. Keyword: IKEA, Distribution logistic, Competitive advantage. INTRODUCTION 1.1 BACKGROUND Logistics management is the governance of supply chain functions. Logistics management is important not solely to producing and assembly industries, that are goods-oriented, however conjointly to selling, transport and alternative distribution or service- oriented industries. Daskin (1985) defined logistics as “the design and operation of the physical, managerial and informational systems needed to allow goods to overcome time and space”. Another definition promulgated by the Council of Logistics Management Ballou (1992) is: the process of planning, implementing and controlling the efficient, cost-effective...
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...Warehouse by Ed Acker Steven Winter Associates, Inc. Last updated: 04-23-2008 Overview Warehouses, defined here, are facilities that provide a proper environment for the purpose of storing goods and materials that require protection from the elements. Warehouses must be designed to accommodate the loads of the materials to be stored, the associated handling equipment, the receiving and shipping operations and associated trucking, and the needs of the operating personnel. The design of the warehouse space should be planned to best accommodate business service requirements and the products to be stored/handled. The economics of modern commercial warehouses dictate that goods are processed in minimal turnaround time. The different types of warehouses include: * Heated and unheated general warehouses—provide space for bulk, rack, and bin storage, aisle space, receiving and shipping space, packing and crating space, and office and toilet space; * Refrigerated warehouses—preserve the quality of perishable goods and general supply materials that require refrigeration. Includes freeze and chill space, processing facilities, and mechanical areas; and * Controlled humidity (CH) warehouses—similar to general warehouses except that they are constructed with vapor barriers and contain humidity control equipment to maintain humidity at desired levels. Special-designed warehouses meeting strict requirements can also provide liquid storage (fuel and nonpropellants), flammable...
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...optimize cramped warehouses. It wound up transforming its entire process for building orders and getting them to retailers. Sometimes the way to build a better mousetrap is not by tinkering with the old one but by tossing out altogether and starting afresh. That's essentially what Pepsi Beverages Company, the winner of this year's Supply Chain Innovation award, did with its new direct-to-store delivery model. Pepsi Beverages Company is itself somewhat of a new enterprise. On February 26, 2010, PepsiCo completed its mergers with The Pepsi Bottling Group and PepsiAmericas. PepsiCo's new operating unit, Pepsi Beverages Company, serves the United States, Canada and Mexico. It goes without saying that PBC moves a tremendous amount of product every day. In doing so, executives came to the painful conclusion that with ever growing sales and SKUs, the walls of the company's warehouses and distribution centers figuratively were bursting at the seams. Enter the Warehouse Infrastructure Initiative, which for all practical purposes was an attempt to re-engineer the old mousetrap; in this case, to make it bigger. When all was said and done, that effort was set aside in favor of the highly innovative - and successful - Direct-to-Store Delivery Transformation Initiative. Here are the benefits, according to Timothy Thornton, PBC vice president, supply chain logistics: The distribution strategy that ultimately resulted delivers more than product. "Breakthrough warehouse cost savings"...
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...Fast Food Tech Fast food restaurants need distribution centers in order to replace their inventory; without the distribution centers, the restaurants would not be able to keep enough of their products in stock that would satisfy customer demands. The distribution centers hold the entire company’s product line to insure a quick and easy delivery of the products needed. Having many distribution centers, quick inventory turnovers, and easy radio frequency order placements help allow fast food restaurants to succeed. Golden State Foods is one of the largest distribution companies in the United States. With 12 distribution centers, Golden State Foods is able to accommodate all of the McDonalds that are located in California. Each distribution center has over nine hundred items stored for easy access and shipments. These items are quickly frozen in order to keep all of the freshness from the factories. Having many distribution centers scattered around California gives McDonalds an upper hand on other fast food restaurants because customers are likely to never have to go without their favorite meal due to a shortage. With fast food restaurants having a high demand for food, the warehouses have to be prepared for any amount for a shipment. The demand is so high that inventory turnovers are very quick. These turnovers can be as quick as thirty to thirty five days. Flipping a nine hundred item distribution warehouse is quite impressive. The food isn’t stored as long, making...
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...Pass 2 - explain the process of distributing goods through different channels from the manufacturer to the customer In the last four hundred hears distribution methods have changed. This is because of changes in technology as well as how goods are now transported and stored. An example of an improvement to storage is that the products can now be refrigerated or even whilst being transported as well. Technology has changed distribution methods as products such as music and films are now able to be downloaded from the internet, creating a digital distribution method. Hard goods, perishable goods and digital information products all require different storage and transportation methods. One of the most traditional distribution methods for transportation is by land – this can be either by lorry or by train. Land distribution is good for relatively short transport times (short and medium distances). It is also ideal for transporting heavy and bulk goods and is suitable for products with a long shelf life. On the other hand, land transportation doesn’t have very fast delivery times; this can be due to traffic jams, for example. It can also be quite costly because of petrol and maintenance costs and the land distribution will have a limited transport volume. Another traditional distribution method is by sea. This is also good for transporting heavy and bulk goods but, unlike land transportation, distributing by ship means that there is no need for special architecture such as roads...
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...is a part of Post Graduation Diploma in Management, academic year 2012-14. The project gives us an opportunity to study different aspects of Company. It also helps us to understand the Company Environment. The project is based on Vendor Management followed by SAHARA Q SHOP. The major concern of any firm is to manage its supply chain and to earn loyalty and long term relationship out of it. This project helps us knowing the different steps taken by SAHARA Q SHOP to retain its vendors and all other distributors. The report is an outgrowth of our study at SAHARA Q SHOP. Keeping in view the importance of supply chain management, an attempt has been made to examine the distribution practices followed by the company and how the company can improve its Vendor management. It also contains the brief description of warehouses, logistics, and marketing data. Acknowledgement “Debts can be certainly repaid, but cooperation extended and the guidance given by someone can never be repaid.” It was a great pleasure to have a small but precisions time with SAHARA Q SHOP. We take this opportunity to extend our gratitude towards all those officials who have directly or indirectly contributed to this project. We the student of IILM-AHL is very grateful to SAHARA Q SHOP for providing us the bases to complete this project. We deeply express our gratitude to Mr. Kailash Sharma, Zonal Transportation Manager, Kanpur, Sahara Q Shop, for giving us the maximum co-operation without which, the...
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...European Journal of Operational Research, 2009, Vol 193, pp425-436 Authors: Baker P. & Canessa, M. Warehouse design: a structured approach Abstract: In spite of the importance of warehousing to the customer service and cost levels of many businesses, there is currently not a comprehensive systematic method for designing warehouses. In this paper, the current literature on the overall methodology of warehouse design is explored, together with the literature on tools and techniques used for specific areas of analysis. The general results from the literature have then been validated and refined with reference to warehouse design companies. The output is a general framework of steps, with specific tools and techniques that can be used for each step. This is intended to be of value to practitioners and to assist further research into the development of a more comprehensive methodology for warehouse design. Keywords: Facilities planning and design; Decision support models; Logistics; Warehouse design. 1 Warehouse design: a structured approach 1. Introduction Warehouses are a key aspect of modern supply chains and play a vital role in the success, or failure, of businesses today (Frazelle, 2002a). Although many companies have examined the possibilities of synchronised direct supply to customers, there are still many circumstances where this is not appropriate. This may be because the supplier lead times cannot be reduced cost effectively to the short lead times...
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...Introduction I am a Supervisor of Canadian Tire company. It is one of Canada’s largest companies. We operate four largest distribution center service where exist on (1)Yukon Territory, (2) Nunavut (3) Alberta (4) Ontario, over 470 tire retail outlets. The Company recently installed the YMS (Yard Management System), which we have integrated with our WMS (Warehouse Management System) and TMS (Transport Management System). Our expectation was improved performance in over-a-road transportation equipment utilization, driver productivity, and warehouse dock/door utilization. Our company is No.1 distribution in the country and we have 80% of local markets to supply. A warehouse management system (WMS) is a key part of the supply chain and primarily aims to control the movement and storage of materials within a warehouse and process the associated transactions, including shipping, receiving, put away , Label printing, Storage, Inventory control, ordering fulfillment, Cycle counting and picking. A WMS monitors the progress of products through the warehouse. It involves the physical warehouse infrastructure, tracking systems, and communication between product stations. More precisely, warehouse management involves the receipt, storage and movement of goods, (normally finished goods), to intermediate storage locations or to a final customer. Warehouse management is an aspect of logistics and management. A WMS fully automates and streamlines the entire order fulfillment process with...
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...logistics. * One such initiative was the transit point experiment where in the Milano region, regional distribution centre was eliminated in favor of transit points which held zero inventory. Question 1: What are the costs and benefits of Merloni's current distribution system and of a transit-point-based distribution system? Answer 1: Following are the calculations for both the regional warehouses Roma and Catanzaro. Assumptions made for the calculations: 1. 20 working days in a month. 2. 218 Km, 797 Km – distance between Fabriano and Roma; Fabriano and Catanzaro. 3. 0.425 million & 0.25 million – each tractor truck cost trailer & small from Fabriano to Roma. 4. 1 million & 0.55 million – each tractor truck cost trailer & small from Fabriano to Catanzaro. The cost reduction for Roma Warehouse is 11.874%. Here in Catanzaro regional warehouse, the cost actually increased. This cost can be clearly attributed to a large increase in Total Long Haul Transportation Cost from 8333 in pre transit point system to 12649 in transit point system, a significant increase of 51.79%. Question 2: Should Merloni replace its network of regional warehouses with transit points? if so, what contigency plans and support systems are necessary to support the new logistics network? if not, what changes, if any, would you recommend Merloni make to its distribution system? Answer 2:...
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