Introduction to Distribution Management
Distribution Management
Introduction to
What do we mean by Logistics?
• Logistics concerns itself with the movement of the physical flow which begins with the source of supply and ends at the point of consumption. • Logistics is also concerned with:
• • • • • • • Plant and warehouse location Inventory levels Production scheduling Materials management Storage Customer order processing Inwards and outwards freight and
• Distribution channels.
History of warehouse
• In early writings, man was described as having stored excess food and kept animals for emergency surplus. • As civilization developed, local warehouses were introduced. Merchandise was stored in connection with shipping, trading, and manufacturing activities. • When transportation branched out from local to cross-country, warehouses became more than local storehouses. • The warehouses were located in the center of the city, usually close to the railroad depot and the wholesale market district.
History of Warehouse
• As the demand for storage space increased and land value rose, multistory buildings were erected to provide more storage space on minimum amount of land. • Technology has created a highly specialized discipline that allows warehouses to store more per square meter, move stock faster and more accurately, and to know where everything is located.
Discussion Connections
Form groups randomly to think about the following questions:
• Some people say warehouse is a evil because it is totally a cost-adding activity. Do you agree? • Describe the roles of the refrigerator in your home. What is the implications for the understanding of the value of warehousing.
Why have a warehouse?
• Supply chain imbalances
The supply chain connecting manufacturing with end consumers will never be so well coordinated that warehousing will be completely eliminated. How to increase the flexibility of warehouse operations through process design, system selection and justification, and
Introduction to
What do we mean by Logistics?
• Logistics concerns itself with the movement of the physical flow which begins with the source of supply and ends at the point of consumption. • Logistics is also concerned with:
• • • • • • • Plant and warehouse location Inventory levels Production scheduling Materials management Storage Customer order processing Inwards and outwards freight and
• Distribution channels.
History of warehouse
• In early writings, man was described as having stored excess food and kept animals for emergency surplus. • As civilization developed, local warehouses were introduced. Merchandise was stored in connection with shipping, trading, and manufacturing activities. • When transportation branched out from local to cross-country, warehouses became more than local storehouses. • The warehouses were located in the center of the city, usually close to the railroad depot and the wholesale market district.
History of Warehouse
• As the demand for storage space increased and land value rose, multistory buildings were erected to provide more storage space on minimum amount of land. • Technology has created a highly specialized discipline that allows warehouses to store more per square meter, move stock faster and more accurately, and to know where everything is located.
Discussion Connections
Form groups randomly to think about the following questions:
• Some people say warehouse is a evil because it is totally a cost-adding activity. Do you agree? • Describe the roles of the refrigerator in your home. What is the implications for the understanding of the value of warehousing.
Why have a warehouse?
• Supply chain imbalances
The supply chain connecting manufacturing with end consumers will never be so well coordinated that warehousing will be completely eliminated. How to increase the flexibility of warehouse operations through process design, system selection and justification, and