Warehousing in Supply Chain
WAREHOUSING IN SUPPLY CHAIN
Introduction
Warehousing is one of the most important and critical logistic activities in industrial and service systems. A few production philosophies, e.g. just in time (JIT) and lean manufacturing, propose and support the so-called ‘‘zero stock’’ as basic and strategic pillar. Also manufacturing requirement planning (MRP), the well known and widely adopted ‘‘push-’’ based fullfilment technique, theoretically guarantees no storage quantities when the ‘‘lot for lot’’ reorder policy is adopted. Nevertheless, these special production systems do not operate in absence of warehousing systems that support and smooth the discontinuity flow of materials, products and components, at the input and at the bottom of a generic production stage.
Warehousing activities and storage systems are necessary! This is true in many industrial and not industrial sectors: from automotive to tile industry passing from food industry, health care production systems, service sectors (e.g. banks, universities, hospitals), etc. Obviously, warehousing is the core activity of logistic providers, usually specialized in distribution activities including storage and transportation issues. In special sectors, like the food industry and the health care supply chains, warehousing means storage systems in critical operating conditions, e.g. controlled temperature and/or humidity levels, by the management of fresh and perishable products.
The storage systems significantly affect the level of quality of products, the customer’s service level, and the global logistic cost. Just an example: the food industry. Warehousing and transportation issues significantly affect the level of quality of foodstuffs at the consumer’s location, especially when production plants and final points of demand (consumers’ locations) are far away and frequently located in different countries.
The mission of warehousing is the same of the discipline ‘‘logistics’’: to
Introduction
Warehousing is one of the most important and critical logistic activities in industrial and service systems. A few production philosophies, e.g. just in time (JIT) and lean manufacturing, propose and support the so-called ‘‘zero stock’’ as basic and strategic pillar. Also manufacturing requirement planning (MRP), the well known and widely adopted ‘‘push-’’ based fullfilment technique, theoretically guarantees no storage quantities when the ‘‘lot for lot’’ reorder policy is adopted. Nevertheless, these special production systems do not operate in absence of warehousing systems that support and smooth the discontinuity flow of materials, products and components, at the input and at the bottom of a generic production stage.
Warehousing activities and storage systems are necessary! This is true in many industrial and not industrial sectors: from automotive to tile industry passing from food industry, health care production systems, service sectors (e.g. banks, universities, hospitals), etc. Obviously, warehousing is the core activity of logistic providers, usually specialized in distribution activities including storage and transportation issues. In special sectors, like the food industry and the health care supply chains, warehousing means storage systems in critical operating conditions, e.g. controlled temperature and/or humidity levels, by the management of fresh and perishable products.
The storage systems significantly affect the level of quality of products, the customer’s service level, and the global logistic cost. Just an example: the food industry. Warehousing and transportation issues significantly affect the level of quality of foodstuffs at the consumer’s location, especially when production plants and final points of demand (consumers’ locations) are far away and frequently located in different countries.
The mission of warehousing is the same of the discipline ‘‘logistics’’: to
References: 1. Manzini, Riccardo. (2012) Warehousing in the Global Supply Chain. Bologna: Springer 2. Martin Murray. Public Warehousing In The Supply Chain. About.com Guide 3. Edward Frazelle. (2001) World-Class Warehousing and Material Handling. McGraw-Hill Prof Med/Tech 4. Radhakrishnan. (2010) Logistics - Warehouse Management (Part I). 5. David K. Ecklund. (2010) Warehousing Efficiency and Effectiveness in the Supply Chain Process. Supply Chain Management Review 6. G Raghuram. Warehousing to Supply Chain Management -Complementary or Supplementary. Indian Institute of Management, Ahmedabad