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Warehousing and Inventory Management - Essay Example

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Summary to essay on topic "Warehousing and Inventory Management Essay"
The successful organization of the future will be customer focused, supported by marketing information competence that links the voice of the customer to all the firm's value delivery processes (Webster, 1997). Each organization must have the strategy to provide goods or services to customers at the right time, right place, right quality, and right quantity and at right cost…
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Warehousing and Inventory Management Essay
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Download file "Warehousing and Inventory Management Essay" to see previous pages... In order to achieve these competencies we are discussing the various aspects of warehouse space utilization and layout plans. There are several plans of layout, which has been discussed, and each has its own advantages and drawbacks. If the warehouses are used efficiently and effectively, it improves the effectiveness of whole supply chain.
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As we know that we are moving through communication revolution, better use of information and communication technology improves the warehouse operations management. While discussing the case study of Seven-Eleven Japan we observed that how use of information and communication technologies have improved the warehousing operations of the organization as a whole and have the potential to proved benefit to the customers. Through use of information and communication technology, objectives of the warehouse manager to provide goods and services to its customers timely and efficiently will be fulfilled. We had also evaluated the traditional and modern inventory management practices and found that modern practices like JIT have outnumbered the traditional inventory management systems like re-order or economic order quantity on various parameters.
Storage is the
1. Warehouse space and layout:
Storage is the physical hording of inventories awaiting transport to customers. The current emphasis is on the movement of inventories. According to Layson (2000), there are a number of important issues to be considered:
Acknowledgement that reducing ware housing and storage costs is essential;
Automated stores and computerized system make it possible to better manage these facilities;
Trade-off between higher customer service levels, low inventory and low operating costs need to be balanced;
Changes in business practices through the implementation of just-in-time (JIT) and Kanban concepts;
Better logistics systems;
Time-compression, reducing time consumed in business processes, Elimination of non-value-added time.
In the process of warehouse layouts and space, organizations primarily focus on
The space required and cost for each category of stock,
Whether to centralize or decentralize the stores
Physical characteristics of the stores at each location e.g. size, weight, shape, perishable, hazardous
Flows of material and handling equipment required
Goods received into store, quantities, volumes, frequencies, packing, delivery vehicles, handling requirements, documentation and inspection
Foods outwards-quantities, volumes, frequencies packing, delivery vehicles, handling requirements, documenting & packaging;
Inventory policies e.g. JIT buffer sticks, stock pilling
Security, safety, administrative system, and personnel.
To fulfill these above-mentioned conditions, warehouse space and layout planning must have following objectives in mind:
Utilizing space efficiently within the building cube
Create rapid and easy access to stock and stock movements
Achieve efficient and balanced traffic flows
Mechanized and automated stores operations ...Download file "Warehousing and Inventory Management Essay" to see next pagesRead More
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