Excellence in Warehouse Management: How to Minimise Costs and Maximise Value

Introduction ix

Abbreviations xi

Acknowledgements xv

1: The Role of Warehousing and Stores 1

Warehousing and the supply chain 1

Training topics 2

Definitions 4

Strategic aspects of warehousing 5

Customers 7

The value chain 9

Warehouse location 12

Modern warehouse operations 14

World-class warehousing 21

Conclusion 24

2: Inventory, Stock Analysis and Classifying Products 25

Product classification 25

Demand analysis 26

ABC analysis 30

Product coding 34

Product handling groups 34

Inventory management: why hold stock? 35

Inventory costs and service 37

Lead time 41

Demand forecasting 46

Inventory and statistics 48

How much stock should be held? 51

Replenishment methods 54

Questions about inventory 65

Appendix 72

3: Stock Control 75

Stock inaccuracy 75

Continuous or periodic stock checking 77

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Stock control 79

Security and preventing loss 81

Information security 84

Training topics 86

4: The Warehouse and Operational Principles 88

Warehouse structure 88

Warehouse operations 90

Receiving 91

Location methods in the warehouse 96

Picking options 97

Customer orders 99

Methods of picking 100

Despatching activity 110

Organising for flow 111

5: Equipment 112

Fork-lift trucks 112

Racking/shelving 119

The aisle width decision 125

6: Warehouse Information Communications Technology 128

Importance of information 128

Decision-making and ICT 132

Improvements with ICT 133

Warehouse ICT applications 134

Systems implementation 149

7: Regulations 153

Health and safety at work 153

Management of health and safety 154

Health and safety arrangements 158

Warehouse health and safety risks 160

Risk assessments 164

Fork-lift trucks: health and safety 166

8: Productivity, Cost and Service 173

Framework for analysis 173

Key costs 174

Key productivity drivers 176

Basic improvements 179

Understanding productivity 189

Determining pricing and charging 192

Customer service 195

Added value 203

Warehouse layout 208

Training topics 210

9: Outsourcing 212

Users’ views of third parties and the marketplace 212

Selecting third parties 220

Training topics 225

10: People Management 227

Company culture 227

Management 231

Work objectives and performance 235

Motivating people 245

Empowering 251

Teams 252

Communication 254

Managing change 255

Warehouse picking operatives 262

Training topics 264

11: Developments and Trends 268

Supply chain impacts on stores and warehousing 268

Global logistics 270

Reverse logistics and customer returns 271

Risk 277

Roads 278

Legislation 279

Technology 279

People development 279

Political influences 280

The supply chain 282

Warehouse aims/ideals 286

Useful Information and Websites 288

Bibliography 290

Index 292