Contemporary Warehousing Functions - Essay Example

The purpose of this paper is to provide a critical discussion of contemporary warehousing functions as well as explore the role of modern warehouse management systems. During the process of this discussion, special consideration will be made to the differences between contemporary warehousing functions versus those of a more modern warehouse. After this point a discussion of the role and importance of value-added services (VAS), cross-docking systems, and the role that other innovation play in contemporary warehouse management systems (WMS). Lastly, this paper will conclude with a discussion of how Kirkland’s new warehousing operations exemplify a “State of the Art” warehouse.

            Contemporary warehouse functions are much different that what they used to be. Previous warehousing systems were simply a place to store product until it was needed and in all honesty, used a great deal more space than was necessary to allow for easier tracking of products. Many products were shipped in stored in a manual ledger and cross-referenced when it was in demand. New technologies have had the ability to significantly reduce the strain on modern warehouse requirements. Ultimately incorporating one new technology such as a barcode scanner or radio-frequency identification as a stand-alone technology would not necessarily have a large impact, but incorporating many new technologies in conjunction could significantly increase the efficiency of a DS. A very sophisticated contemporary warehousing facility would have products bar-coded upon delivery trucked to a pre-set area with a conveyor belt or forklift, and wrought back to the shipping region when it is needed. In an ideal situation, a contemporary DS would be able to be cross-docked (Offloaded from one truck or the manufacturing line, directly into another thus alleviating the need for warehousing altogether).  Ultimately one of the main goals of warehousing is the turning around of products as seamlessly as possible and the incorporation of new technologies helps aid this process. In a contemporary DS, scenario technology would help aid workers in directing as much of their energy as possible to turning the product around dedicate as much of their time as possible to moving the product out the door whereas outdated WMS would have workers dedicating much of their time to filling out reports, tracking products manually, moving inventory manually, etc which can be a cumbersome process.

            The relevance and importance of Value Added Services (VAS) as well as cross-docking systems and new innovations in the warehousing field cannot be stressed enough. According to Napolitano (2007), it is the case that approximately 80% of distribution centers incorporate some form of VAS. Major businesses such as Walmart, Home Depot, and Lowes all require some sort of VAS such as tags, display-ready promotional packs, and other special labels. Moreover, there is a trend of many organizations keeping smaller in-store inventories which translates to more frequent deliveries of smaller orders or even split case orders.

            One major innovation is the implementation of green technologies, such as utilizing electric motor vehicles, solar panels, and more efficient refrigeration technologies (Where applicable). Moreover one of the most important VAS would be planning for the future. Whilst many organizations maintain a status quo and get blindsided by changing demands true progressive DS’s tend to look to the future and evaluate applicable technologies that may be necessary for the future. Many times new technologies are easy to implement such as hands-free communication devices, whereas some technologies such as automated conveyor belts and paper-free technologies may be more difficult to implement. Another difficult technology to implement would be the cross-docking technology scenario. Ultimately this relieves additional pressure on the warehousing resources and ensures faster release of products from the warehouse.

            According to Smith (2010), Walmart has been able to implement a significant energy-saving initiative in its 450,000 square foot DC which will service 100 Walmart stores in Western Canada. Some technologies such as LED Lighting do not have a significant impact on overall operations however; special consideration must be made for the refrigeration features which utilize high-efficiency doorways between temperature zones. Special training must be given to all employees who would operate between the temperate zones, moreover, monitoring of materials in these separate areas would require a more centralized inventory control system to ensure there is as little foot traffic as possible in the cooler areas. Special equipment which utilizes hydrogen fuel cell technology not only is more energy efficient but would require special training for all of the operators to ensure the safe moving of equipment between regions.

Kirkland’s new warehousing operations could definitely be considered state-of-the-art. Consolidating three smaller warehouses into one massive central warehouse comes with special difficulties yet can bring exceptional returns. The previous business setup had not incorporated any kind of warehouse management system and had inventory across three DS that needed to provide for 300 stores in 37 states. The organization incorporated conveyors, sortation, and stand-up reach trucks. Ultimately this equipment was less complex and easier to use than management had expected. Many warehouse workers had difficulty adapting to the use of wireless computers. Moreover, the organization has now adopted a proactive approach to its WMS simply because they understand the increased demands. With Kirkland’s sales expected to grow at 20% a year and add 45 -50 stores in the next year, it is the case that changes needed to be made.

In the coming years, as much as 40% of Kirkland’s receipts could be cross-docked however one could conclude that it is the case that there is no single solution to make a warehouse into a state-of-the-art operation largely because it is the fact that it takes the culmination of several innovations working in harmony to ensure a DS is state of the art.