Download e-book for iPad: Excellence in Warehouse Management: How to Minimise Costs by Stuart Emmett

By Stuart Emmett

ISBN-10: 0470015314

ISBN-13: 9780470015315

ISBN-10: 0470015691

ISBN-13: 9780470015698

Warehouses are frequently visible as an important evil: locations that cease the movement of products and therefore bring up expenses with no including worth. however the fact is they have a serious half to play in offer chain administration, and warehouse managers can be centrally excited about the strategic features of any enterprise. Excellence in Warehouse administration covers every thing you must recognize to regulate warehouse operations as a part of a streamlined and holistic method, fine-tuned to serve the client and force the bottom-line. With pondering issues, self-assessment routines and case experiences Stuart Emmett demanding situations you to think about your personal operations in a brand new means, and plot a direction into the long run.

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Whilst new product development is an important part of their business, they are relatively stabilised with around a constant of 500 SKU’s at any one time. They have three factories based in the East Anglia/Lincolnshire agricultural producing areas with another factory based in the Northwest in a former re-development area. Distribution The following flows of goods and materials are involved: • Raw materials (such as packaging and ingredients) into the factories • Finished goods from the factories to customers (either as full trailer pallet loads or as single pallets of one SKU).

8 100 11 12 13 14 15 16 17 18 19 20 55 60 65 70 75 80 85 90 95 100 I N V E N TO RY A N D S TO C K A N A LY S I S 33 Indeed, it could be possible to make the breakdown into, say, around 10 item categories, such as AAA, AA and A items (very fast, fast, not so fast), three B items, etc. 1 is found. In this example the ABC analysis has been undertaken on product values and shows that: A 10% of items represent 70% of consumption value B 25% of items represent a further 20% of consumption value C 65% of items represent only 10% of consumption value Whatever method of categorising is used, the principle is the same: a high percentage of, for example, volume movement is found from a small number of lines (the A items above, the fast movers), and the converse, that the slow movers (the C items above), will account for a high number of lines for a low percentage of volume movement.

But if the supply LT is variable by +/- one week, then the maximum order is 210 items and the minimum order is 70 items. But we may ‘play it safe’ and order 210 items. This is not the best decision but may be an understandable one for those who are left to base replenishment decisions on protecting against personal ‘noise’ factors when past stock-outs have occurred. In such cases, then clearly inventory management is also not understood or involved both strategically and operationally in the business.

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

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