Definition Of Warehouse Operations
Before discussing further warehouse operations, we should know about how it should be a good warehouse location?
A good warehouse location should have the following 2 aspects:
1. MARKET POSITIONED WAREHOUSE
A Good warehouse location should be close to the final customer. The advantage is to minimize the cost of distribution and transportation. Therefore in the present time, many manufacturing companies are building or renting warehouses to store the stock of goods produced in order to be closer to their end consumer. No wonder nowadays there are many warehousing complexes that thrive. This happens because the market and the need for this warehouse from year to year continues to increase.
2. INTERMEDIATELY POSITIONED WAREHOUSE
In case the raw material warehouse to meet production needs should be close to the production line. If the production building consists of several building locations then the best warehouse location should be in the middle. This, of course, will minimize the cost of handling goods.
Then we also have to know a few things about good warehouse productivity.
Warehouse productivity includes the following:
a. Maximum Use Of Space
Take advantage of the space in the warehouse well to get maximum capacity.
b. Effective Use Of Labor, Time And Equipment.
Employee Efficient, time and warehouse equipment will certainly increase productivity. Movement of employees and equipment should be noted well so there is no rush hour at certain times, while at other times employees and equipment idle. The preparation of the task of the warehouse employee's duties should be completely stacked well.
3. EFFECTIVE USE OF WAREHOUSE
This includes stock location, accessibility, order picking and assembly, packaging. This will I discuss further in the warehouse operations later.
a. Stock Location Or Stock Placement
There are 4 things or group that we can do to do the stock allocation well, such as:
- Group Functionally Related Items Together, that is group the goods or materials in the warehouse based on its function.
- Group Fast Moving And Slow Moving Items Together, that is group the goods or materials in the warehouse based on the movement of goods. Placing fast items in use on the front and easy to reach, while items that move slowly are placed in the back
- Group Physically Similiar Items Together, that is group items or materials in the warehouse based on the size of goods and the like. The goods are large-size (bulky parts) in the place at their own location. Then the items whose small size (small parts) are also placed in their own separate location with a large-large. Chemical Goods (chemicals) and frozen goods (frozen) must also be placed in a separate location according to the needs of his because for chemical and frozen goods in need of special needs such as room temperature and the nature of flammable chemicals.
- Locate Working Stock and Reserve Stock Separately. Separate goods or materials in the warehouse to meet the needs of production and goods or materials for the purpose of supply (buffer stock).
Easy access to pick up items or place items is also an important element in the warehouse. If access reaches an unhindered item, it will accelerate the process of taking the goods as time is not wasted just to move the goods that block the road access.
c. Order Picking And Assembly
Order Picking is the most time-consuming job in the warehouse. Approximately 50% of working time from warehouse employees is spent on this picking order activity.
Breakdown of the working element of the order picking activity is as follows:
- Walk to a Pickup location
- Move items in the access location to reach items.
- Pulling/Picking up items from a storage place.
- Documentation of transactions.
- Sort items.
- Packing goods.
The effectiveness of warehouse operations is also determined by the process of packaging goods. Laying out similar items in one pallet will certainly save storage capacity space in the warehouse.
That is an article about the principles of inventory control, stock keeping and stock accuracy, please stay tuned in my blog to read more useful articles.