SupplyChainToday.com

Need Distribution and Warehouse Training? Try these resources.

Distribution centers and warehouses are facilities that are used to store and distribute goods and materials. They play a crucial role in the logistics process by receiving, storing, and preparing products for shipment to retail stores, customers, and other destinations.

When products arrive at a distribution center or warehouse, they are received and checked for accuracy and quality. The received products are then recorded in the warehouse management system, which is used to track the location and inventory levels of the products.

Once the products have been received, they are typically stored in a specific area of the warehouse or distribution center, depending on the type of product, its size, and its storage requirements. This can include pallet racking, shelving, or mezzanine systems. Some warehouses also use automated storage and retrieval systems to store and retrieve products more efficiently.

After the products have been stored, they are prepared for shipment. This can include tasks such as picking, packing, and labeling the products. In a warehouse, picking refers to the process of selecting the right products and quantities to fulfill customer orders. Packing involves preparing the products for shipment by placing them in boxes or other containers, and labeling involves attaching shipping labels and other identifying information to the packages.

Once the products have been prepared for shipment, they are loaded onto trucks or other transportation vehicles and transported to their final destinations, such as retail stores or customers.

In addition to these basic functions, some distribution centers and warehouses also provide additional services such as cross-docking, kitting and assembly, and value-added services like packaging, inspection and testing.

Overall, distribution centers and warehouses play a vital role in the logistics process by receiving, storing, and preparing products for shipment to customers and other destinations, and also by providing an inventory management system to keep track of the goods and materials.

Warehouse and Distribution Center Training.

1 2 3 4 … 6 7 8 9 10

Amazon Fulfillment.

Ocado Online Grocery Warehouse.

Ocado is a UK-based online grocery delivery service that was founded in 2000. The company operates its own online supermarket, Ocado.com, and also provides technology and fulfillment services to other retailers. Ocado has a partnership with Waitrose, a UK grocery chain, to provide online delivery services for Waitrose products. In addition, the company has developed its own proprietary technology, including robotic warehouses and delivery vehicles, to facilitate the efficient fulfillment and delivery of online orders. Ocado has seen significant growth in recent years and has expanded its services to other countries, including France, Spain, and the United States.

Material Handling Training.

Inventory Management Training.

Inventory management refers to the process of tracking and managing the stock of goods and materials that a business has on hand. Effective inventory management is important for a number of reasons, including:

  1. Reducing costs: By keeping just the right amount of inventory on hand, a business can reduce the costs associated with storing, handling, and tracking excess stock.
  2. Improving efficiency: Good inventory management can help a business avoid shortages of important items and reduce the time and effort spent on inventory-related tasks.
  3. Enhancing customer satisfaction: By ensuring that products are in stock and available when customers want them, a business can improve customer satisfaction and loyalty.

Inventory Carrying Costs associated with carrying inventory include:

  • Interest on Capital Costs – this is the largest component of carrying cost and is associated with money tied up.
  • Taxes & Insurance – insurance and taxes has to be paid on the current inventory.
  • Obsolescence & Depreciation – inventory obsolescence is a major issue with products with a short shelf life or lose value over time (computer products).  Companies involved with products that become obsolete quickly should be focusing on decreasing cycle times.
  • Storage – the cost associated with having a facility to hold the inventory.
  • Opportunity Cost – what could the capital be used for that is tied up in inventory.

Costs of running out of inventory:

  • Loss of customer/sale
  • Bad reputation
  • Disruption in supply chain

INVENTORY CARRYING/HOLDING COST

Carrying Cost = (Price per unit * Carrying cost percentage * Order Quantity in Units)/2

AVERAGE INVENTORY

Average Inventory = EOQ/2 + safety stock

ECONOMIC ORDER QUANTITY

  • Demand is known and is constant

  • No quantity discounts

REORDER POINT

Reorder point = Estimated Demand * Lead Time

Distribution, Fulfilment and Warehouse Training.

1 2 3 4 … 6 7 8 9 10
distribution center

“Today’s leading real world retailer, Walmart, uses software to power its logistics and distribution capabilities, which it has used to crush its competition.” ~Marc Andreessen

Walmart Distribution Center

“First, we will be a customer-driven company.  We’ve always said the customer is our boss and we’ll make decisions based on how we can serve them better.” ~Don McMillon, Walmart CEO

Scroll to Top