Download Excellence in Warehouse Management: How to Minimise Costs by Stuart Emmett PDF

By Stuart Emmett

Warehouses are usually noticeable as an important evil: locations that cease the move of products and hence bring up expenditures with out including worth. however the fact is they have a severe half to play in offer chain administration, and warehouse managers could be centrally focused on the strategic elements of any enterprise. Excellence in Warehouse administration covers every little thing you want to comprehend to regulate warehouse operations as a part of a streamlined and holistic process, 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 manner, and plot a direction into the longer term.

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

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Expiry of current lease. WA R E H O U S I N G A N D S TO R E S 13 In making the move, the following need to be considered: • Impact to workforce: for example, potential redundancies of existing staff and recruitment of new staff. • Recruitment opportunities: for example, availability with the possible attendant need for medium-term training. • Proximity to the transport network: for example, locations in Northamptonshire and Leicestershire are popular warehouse areas due to the M1/M6/M69 and A1/A14 intersection road network and their central location with the UK population; that is, the source location of demand/where people live who buy things.

All of these will have effects that have to be subjectively determined. Objective methods will, however, involve a mathematical statistical analysis of past demand to predict the future. From the inventory management view of forecasting, this is exactly what forecasting is. Inventory managers should therefore take care when being involved in subjective sales forecasting – for example, when launching a brand new product that has no history of past demand, such launches should more directly involve the stock level decision of, say, marketing, with perhaps inventory managers assisting with the details for any past similar product launches.

5 A summary of the cost/service balance Reduces cost of holding Improves service availability Increase holding No Yes Reduce supply lead time (SLT) and supply lead time variability (SLTV) Yes Yes Reduced demand variability/more accurate forecasting Yes Yes Activity LEAD TIME Lead time (LT) is a critical component in making inventory decisions, as the following simple example illustrates: If 70 items are used per week and the supply LT is 2 weeks, then the quantity to order to cover the demand during the supply LT (called the lead time demand) is 140 items.

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