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Logistics and Supply Chain Management

Notes  A cross-dock facility is similar except that it involves multiple manufacturers.
 A warehouse with packaging or labelling capability allows postponement of final
production until actual demand is known.

 The direct economic benefit of this warehousing service is secondary to the fact that
seasonal storage is essential to select businesses.

 Stock spotting is most often used in physical distribution.
 Warehouse mixing is similar to the break bulk process except that several different
manufacturer shipments may be involved.

 Stores functions focus on the physical movement and storage of goods and materials.
 A private warehouse facility is warehousing on a contractual basis by Third Party Logistics
Providers (3PL), who provide unique and specially tailored warehousing and logistics
services to clients.
 A public warehouse, in India, is a warehouse operated by the Central Warehousing
Corporation of India or by State Warehousing Corporations.

 Once it has been determined to use a warehouse, the next step is designing it.
 Material handling is an important part of managing materials.

9.6 Keywords

Assortment: The collection of goods or services that a business provides to consumers.

Bonded Warehouses: These warehouses are licensed by the government to store goods prior to
payment of taxes or duties.
Break Bulk: Packaged but non-containerized cargo. Loose cement, grains, ores, etc., are
termed bulk cargo, whereas cargo shipped as a unit (bags, bales, barrels,
boxes, cartons, drums, pallets, sacks, vehicles, etc.) is termed break bulk.
Commodity Warehouses: These are designed to handle bulk material such as wheat, rice, sugar,
lentils, cotton, edible beans, and milk etc.
Cross Dock: Cross-docking is a practice in logistics of unloading materials from an
incoming semi-trailer truck or railroad car and loading these materials directly into outbound
trucks, trailers, or rail cars, with little or no storage in between.

Distribution Centre: Warehouses where product storage is considered a very temporary activity.
General Merchandise Warehouses: This is a warehouse that is used to store goods that are readily
handled, are packaged, and do not require a controlled environment, such as paper, small
appliances, and household supplies.
Goods Receipt Note: Goods Receipt Note is a document used to record the inward entry of the
any goods received at the premises of the organization.

Inventory: Stocking of raw materials, in-process, finished, packaging, tools and equipments,
spares and others in order to meet an expected demand or distribution in future.
Just-in-Time (JIT): JIT is a production strategy that strives to improve a business return on
investment by reducing in-process inventory and associated carrying costs.
Material Handling: Material Handling refers to activities, equipment, and procedures related to
the moving, storing, protecting and controlling of materials in a system.

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