Logistic Warehouse

1. Definition

The warehouse is a key actor in the logistic network:

Upstream the production: from the supplier to the manufacturer (raw materials, half-finished products, consumables),
Downstream: from the manufacturer to the customer (distribution of finished products),
After-sales: from the manufacturer to the customer (spare parts).

By definition, it is a place of transition where you will:

Manage a lot of different logistic flows,
Create added value (flows regrouping & management, prepackaging, synchronization for manufacturer),
Realize physical and administrative operations,

Thus, the economic competitiveness is a leitmotiv for a warehouse. And an effective management is a must.

2. Missions

A warehouse and associated transport management must be able to bring the following competitive advantages:

Have an irreproachable inventory control (optimal products rotation, obsolete management)
Reduce constantly its physical and administrative costs (manpower, m2 renting, transport),
Warehouse productivity improvement,
Best surface utilization,
Have an efficient inventory control process,
Optimize reception and delivery milk runs,
Optimize warehouse equipment’s utilization (forklifts, palletizers)

3. Customer service

The warehouse is a major actor for the customer service improvement, notably by assuring:

An optimal customer service rate:
Fewest errors possible: deliveries, labeling...
Best possible quality,
Respect of announced lead-time,
Shortest announced lead-time possible
Services with added value (prepackaging, customer’s buffer stock, flows synchronization for manufacturer)
The respect for customer’s constraints (quality standards, cold chain)
The coverage of the international market (export / customs services)
The Identification technologies implementation: bar code, radio frequency identification (RFID)
A follow-up service (goods status: received, packed, loaded, in transport, delivered…)

4. Implementation of a warehouse management solution

You want to set up a warehouse management system for your company?

Free-logistics.com © proposes a detailed methodology

1. Compulsory stages

Project focus : To define solution scope and objectives,
Specifications : To list the appropriate functional requirements for your business,
Call for tender : To find existing products answering to the specifications,
Answer to Call for tender : To Study the equivalence of the answers and to opt for a solution,
Contract : To officialize the solution, its cost and its functioning,
Implementation : To implement the adopted solution.

2. Criteria

Project dimensioning: how many concerned sites, surfaces...
Size, volumes and complexity of handled flows: m3, pallets, production, inter-plants, distribution…
Covered functional scope,
Do we have the internal competence? Who can assume the project steering? What will be the resources HR, IS, commercial, legal, technical, that we’ll need? Who?
What is the planning objective of this project: 3 months? 6 months?...
Involvement of the projects actors,
IT concerns:

Do we have already a WMS? The experience and the knowledge of a WMS?...
Existing IT structural design: Can we, in the existing system, add a site, add a new product, on which type of system...
Complexity of parameters setting and interfacing of the external WMS with internal systems.

Warehouse management tools evolve in a permanent way at the will:

Indeed, to choose a warehouse management system is:

To foresee the evolution of your warehousing business by, and integrate it into the company’s global logistic strategy.
To study a diversified offer and under constant changes…in a professional context which evolves with techniques and logistic concepts.

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