Distribution ManagementDesign A Facility - Essay Example

The four major factors of production are capital, land, entrepreneurship and men. Land includes the building and premises within which the men operate and the capital is spread out apart from the fact that this is where entrepreneurship is put to its true test. Therefore, it is important that the distribution of resources within this space should be designed in such a way that the efforts of the other factors of production are put to optimum use. With a tagline of "Made for Ideas", LaCie has come to demonstrate a range of innovative ideas that are the key to its success.

LaCie's success is that we run a very competitive organization. In the coordination of our various departments, we have come up with a structure that is an epitome of results and wide ranging customer satisfaction. Our financial team and IT department keep our information accurate and updated. Our procurement team can move products much faster than anyone else. This "finance IS logistics" organizational method gives us a chance to sell hot products at the lowest cost without compromising on quality or service.

Thus, our base is strong and unique in its functioning. We have showed adherence to various short term and long term commitments in our planning process whether it has to do with our facilities or profit margins. Moving to a new facility is a long-term commitment and it had just one chance to get it right. LaCie new warehouse area is 17,046 sq. ft. The warehouse layout is mainly following the one-story warehouse model for design. Apart from this feature, the basic parts of warehouse are: Dock Area, Receiving Area, Reserve Area, Replacement Area, Assembly and packaging area, Delivery Zone and Office.

Besides of the layout design of the warehouse, the warehouse is adopted the selective pallet storage rack system. It consists of uprights frames and pairs of load beams for each shelf elevation. Selective pallet storage system is the most common of all storage systems for palletized goods. Also, it is the simplest system in term of equipment and lowest in cost. Another important feature is the order picking process. It is the removal of material from storage to fulfill customer orders. It is a critical customer service tool, which, if well done, will enhance the company's customer service level and, if badly executed, will have the opposite effect.

The accuracy and efficiency of the order picking is a warehouse responsibility, which requires careful planning and control. Also, the other consideration is the choice of the material handling system. It is mainly depending on storage volume and usage pattern. On the LaCie warehouse, the product throughput is low, so it seems difficult to justify the cost of automation. Finally, today warehouse would operate much less efficiently. Information technology EDI and radio frequency systems have created advantages in warehousing, including improved customer service, lower costs, and improved operations.

These advantages come