Page 253 - DMGT551_RETAIL_BUSINESS_ENVIRONMENT

Retail Business Environment

Notes
Accellos automatically logs all processes drastically reducing the possibility for human
error. With Accellos One Warehouse, Agrostroj has achieved 98% inventory and order
accuracy, and has been able to add a new product line to their business which they were
logistically unable to accommodate under their old system. The company now processes
between 100 and 300 orders per day, with each order consisting of 5-10 lines.
“I’m very happy with our Accellos One Warehouse system,” says Jaroslav Kudyn, IT
Director, Agrostroj Pelhrimov. “We are now able to accurately track our entire inventory
within our warehouse, and our workers don’t have to locate items by memory any more.
With all of these benefits, and the fact that Accellos’ ROI is already becoming apparent, we
would have to say that this is a very cost effective system.”

Question:
Discuss in brief the benefit of Accelloone Warehouse system.
Source: http://www.accellos.com/wp-content/uploads/Agrostroj-Case-Study.pdf

12.9 Summary

 A warehouse or store is a static unit in the material and product pipeline, necessary to
match products in a timing sense with consumers, for storage of products. It holds raw
materials, semi-finished goods or the finished goods, for different periods in time.

 Efficient warehousing permits reduction in material and parts storage and handling costs
while optimizing production, for manufacturers producing products at multiple locations.
Warehousing has also become an integral part of JIT and stockless production strategies.
 Technology-based improvements, especially information technology, makes it possible
to respond to growing customer demands in terms of product and shipment profiles. With
advanced information technology, warehouse operators can quickly react to changes in
market conditions.

 Warehousing enhances the time and place capability of the overall logistical system.
Nonetheless, it has to be fully justified on a cost-benefit basis. There are five basic benefits
achieved through warehousing from a service point of view: (a) Spot stock, (b) Assortment,
(c) Mixing, (d) Product support, and (e) Market presence.

 Some of the commonly used operational logistic techniques for cost reductions are,
(a) consolidation, (b) break bulk, (c) processing/postponement, (d) stockpiling, and (e)
cross docking.
 In consolidation warehousing, manufacturers move away from multiple warehouses for
downstream storage and combine their inventories with that of other manufacturers in
huge warehouses that take the place of internal distribution centers or third party logistics
providers.
 In break bulk warehouse operations no storage is involved. A break-bulk facility is for the
consolidation of long-distance transportation movement for less-than-truckload freight
to lower transport costs.

 Stores can also be used to postpone, or delay production. Stockpiling provides an inventory
buffer, which allows production efficiencies within the constraints imposed by material
sources and consumer behaviour while at the same time supporting marketing
requirements.
 A cross-docking is a practice in logistics of unloading materials from an incoming truck or
rail car and loading these materials in outbound trucks or railway wagons, with little or

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