1. Overview and evaluation of distribution centre requirements. Throughout the years, there has been a wealthy contribution, regarding the design procedure of a distribution centre. Despite that, there are differences, regarding the number and the content of the steps. Generally, the most commonly described stages are the definition of the business requirements, the analysis of data, the operating methods, the equipment requirements and capacity and the design of the layout (Apple, 1977; Oxley, 1994; Baker & Canessa, 2009; Rushton et al., 2010). It is important, however, before proceeding to the selection of the equipment and the operating methods, the design of the layout and the rest of the steps, to determine the distribution center’s role, …show more content…
Decision trees are used, for instance, the one developed by Rushton et al., (2010) for storage systems. Two types of storage equipment are selected. The fast and medium moving items, due to the fact that in average more than one pallet per SKU is stored, will be stored on back-to-back single deep and wide aisle racking. Twenty lines of racks are needed and the dimensions of each pair are: height=6.5m, length=100m and width=2.4m. On the other hand, for the storage of slow moving items longspan shelving will be used, having a length=120m, height=2.4m and width=1.2m. It should be noted that electrical products are stored in a secured area in the east area of the warehouse and the heavy and large products are located to the south-east part of the storage area, in order to be close to the receiving and shipping operations. The equipment selected for the movement of products within warehouse is the counterbalanced fork lift truck (CBFL), as it can be used in all the operations efficiently. A total of twenty-five CBFL trucks will be needed. A warehouse management system (WMS) has to be created, as well, tailored to the needs of the distribution centre, in order to function properly. Apart from the standard modules, in the WMS additional information system functionalities are installed - staff scheduling, slotting, stock locator, directed putaway and dock management - …show more content…
These requirements demand a shift from conventional wide aisle racking infrastructure to a more automated infrastructure, such as automated storage and retrieval systems (AS/RS), pick conveyors or sophisticated sortation systems (Baker, 2004). Reflecting on the current warehouse design, potential improvements can be identified and proposed, due to the fact that a few steps in the design are missing and some decisions were taken arbitrarily. These improvements are focused, primarily, on the warehouse operations and on the storage and movement
Inventory management has traditionally been considered as a necessary resource that every company needed. Its primary purpose was to evaluate and control inventory from the raw material level, through the production process and control stage, to the final out-door delivery. These older models of inventory management had several issues, such as inefficient control system, long cycle time, and bureaucratic process. Beginning in the late 1980s, many corporate businesses became deeply interested in developing new inventory management system that will reduce operation cost and expand market chare. Today, the business world is still improving its inventory system. The most effective systems are now not just count products and manage production schedule, but obtain lower prices by making large purchases, and increase inventory turnover. Today, forward-looking corporations build their serious efforts at inventory management systems through implementing new technologies, involved digitization, Internet, high-speed data network, and other e-sources that became available after business outsourcing and globalization.
Companies like Harley-Davidson and Lantis Eyewear are users of the pick-to-light technology. Harley-Davidson is using pick-to-light from 2001 for supplying motorcycle parts to customers and dealers with carton flow shelving. Lantis Eyewear is using their pick-to-light with carton flow shelving for order picking for both major retailers and small retailers. Easton Sport has replaced their warehouse management system and a tilt-tray sorter with a pick-to-light system for the customer orders. Bardwil Industries is a linen supplier that also uses their pick-to-light system for picking store orders for various national retailers. The combination of a warehouse management system with a pick-to-light system increases the accuracy of picking the right SKU unit and the right quantity of the SKU on each pick. Most of the companies using the pick to light system are able to achieve more than 99% accuracy. (Feare, 2003). Harley Davidson able to maintain an accuracy level of 99.7% (Langnau, 2001). After the implementation of a pick-to-light system Vitacost, an internet vitamin and supplement retailer, has been able to increase from 1,000 orders per day to 6,000 orders per day with the same number of warehouse workers (Bodenburg,
The first step will be to address the need and scalability that Kathy Kudler is looking for in the company. There is a growing need it increase and standardize their network structure in the way of wired and wireless network. The network infrastructure has become a global on demand in all business. Technological advances require a responsive network infrastructure that is designed to control costs and reduce risks to a business, while enabling new business opportunities. The first Kudler's operations will have to be centrally linked tighter one server that can be accessed at all location. This will elevate the database which is presently used and has to be updated continuously at each store. The new system will accomplish the need to the entire operations. The heads of each location will be called upon for a meeting, the CEO, Kathy Kudler will have be aware of the global changes that will take place and effect the organization. Establishing a central database management system will keep track information from each facility and there location. Being able to access this information from any location can support the supply chain management system that Kudler is also looking for. The information in a database that can be linked to all three stores, this way the information of gathering these resources can be deploy and optimize the network infrastructure with proper management. With a system that can be integrated between these facilities can be all run virtually regardless of the complex organization's size, achieving business viability and maintain a competitive edge will be a paramount concern at Kindler's.
Distribution CenterDistribution Center Director:. The Director, of the Distribution Center is responsible for the management of an automated and paced distribution center. The chief responsibilities of the person applying for this position are as follows. They are responsible for developing and skillfully managing the annual budget of the distribution center Maintaining and supporting the Distribution Center Key Performance Indicators Maintains the entire Distribution Center Equipment efficiently and manages the facilities maintenance programs Manage the available resources effectively Responsible for the management of the performance development procedure Warehouse Manager::. A person who has expertise in managing and training people at work to achieve daily production targets and quality can easily fit into this job.
My thought process for this project was... if I introduce some order and structure into the pantry... then Central Station will flow with ease. With permission, I implemented my ideas to improve the efficiency of the pantry. The overall organization of the pantry needed work. I wanted to make it more convenient to find the items needed to complete orders and prepare food. I started by storing "like" items together (cooking liquids together, drinks together, food items together, etc.). I wanted to keep the food items together, the pots and pans on the opposite side of the pantry, and common use items such as, plates and cups in the same general area. I wanted to make everything easily accessible so inventory could be done quickly and effortlessly. I wanted everything to have its own
The purpose of this report to compare the current distribution system to a distribution system without the aforementioned limitations on which distribution centers are allowed to service a specific area. In order to determine which system would be better, Darby Company has gathered additional information about the costs of shipping to other areas. For example, the Ft. Worth center could also service Denver, in addition to its current zones, Santa Fe could ship to any customer and Las Vegas could ship to Denver, Salt Lake City, and Phoenix, as well as LA and San Diego. In Appendix 2.2B, specific costs of shipping from distribution centers to customers are detailed.
The Home Depot Supply Chain Management model is based on integrated inventory management through a centralized network of 20 distribution centers, called Rapid Deployment Centers (RDCs) and three Direct Fulfillment Centers (DFCs) aimed at the e-commerce market (Bond, 2015). Orders are processed and managed to meet current and forecasted demands, sent to the regional RDCs, which service approximately 100 stores each, and sent to retail outlets to meet stock requirements (Bond, 2015). Direct Fulfillment Centers are e-commerce distribution systems. Home Depot delivers within a two-day timeframe to 90% of US based customers, and the system also leverages in store stock for same day pick-up (Bond,
In the competitive environment, it is necessary for moving products involves reception of products at an intermediate location, store, repackage, clear customs and transport to final destination. The other factor in the supply chain logistics is speed given information flows fast in the internet era. The customer expects everything quick accustomed to the instant status access to the information. With the real time inventory, customer expects the location of the product, it is next scheduled movement and the final delivery schedule.
For every $100 spent at a locally owned business, $68 of that will stay local compared to $43 if spent at a “big box store”. Even though people believe that local businesses are not as beneficial as a big box store, buying locally not only benefits the business but also the community because buying locally builds a strong community and the money you spend at a local business gets put back into the community.
“Logistic is the process of planning, implementing and controlling the efficient, effective flow of goods storage of goods, services and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements”
Inventory management is a method through, which a business handles tangible resources and materials to ensure availability of resources for use. It is a collection of interdisciplinary processes including a full circle from the demand forecasting, supply chain management, inventory control and reverse logistics. Inventory management is the optimization of inventories of manufactured goods, work in progress, and raw materials. According to Doucette (2001) inventory management can be challenging at times; however, the need for effective inventory management is largely seeing more as a necessity than a mere trend when customer satisfaction and service have become a prime reason for a business to stand apart from its competition. For example, Wal-Mart’s inventory management is one of the biggest contributors to the success of the company;
Coolcargo and Frito-Lay implemented technical solutions for agricultural-products transportation following customers’ requirements. Coolcargo developed a transport-system for maintain fresh asparagus at controlled temperature from production site in Thailand to final destination in UK (UOL, 2013). Frito-Lay developed a global agile supply-chain for manufacturing and distributing salty-snacks to end-customers that allows processing agricultural-products in less than 24 hours for flavor guarantee (PepsiCo, 2013).
All choices made by Seven-Eleven are structured to lower its transportation and receiving costs. For example, its area-dominance strategy of opening at least 50 to 60 stores in an area helps with marketing but also lowers the cost of replenishment. All manufacturing facilities are centralized to get the maximum benefit of capacity aggregation and also lower the inbound transportation cost from the manufacturer to the distribution center (DC). Seven-Eleven also requires all suppliers to deliver to the DC where products are sorted by temperature. This reduces the outbound transportation cost because of aggregation of deliveries across multiple suppliers. It also lowers the receiving cost. The information infrastructure is set up to allow store managers to place orders based on analysis of consumption data. The information infrastructure also facilitates the sorting of an order at the DC and receiving of the order at the store. The key point to emphasize here is that most decisions by Seven-Eleven are structured to aggregate transportation and receiving to make both cheaper.
Inventory management involves planning, coordinating, and controlling the acquisition, storage, handling, movement, distribution, and possible sale of raw materials, component parts and subassemblies, supplies and tools, replacement parts, and other assets that are needed to meet customer wants and needs (Collier & Evans, 2009). In order for business and supply chains to run smoothly, they must meet all the listed requirements for effective inventory management. Thus, inventory management must be managed wisely in order to be a successful an...
Wholesalers acts as a lesion between manufacturers of commodities and other industries that are interesting in selling the same products. Along this distribution chain wholesalers usually purchase goods in large quantities and in turn sells them to retailers who ultimately supplies goods and services to consumers. Due to the available space at wholesale locations they are able to store products for distribution to retailers which reduces retailers storage costs. Wholesalers are able to store goods in large quantities which allow retailers to purchase in small quantities. Due to this option retailers are able to only purchase what is needed at that given point (Kotler & Keller, 2012). Additionally, because wholesalers are able to purchase goods