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Logistics and Supply Chain Management

Notes

Notes The warehouse represents the primary arena for material-handling operations.
Therefore, warehouse design is an integral aspect of overall handling efficiency and is also of
vital concern in obtaining increased labour productivity.

10.3.1 Handling Requirements

The primary handling objective in a warehouse is to sort inbound shipments according to
precise customer requirements. The three handling activities are receiving, in storage handling,
and shipping.

Receiving

Merchandise and materials typically arrive at the warehouse in larger quantities than when
they depart. The first handling activity required is unloading the transportation vehicle. In most
warehouses, unloading is manual. Limited automated and mechanized methods have been
developed that are capable of adapting to varying product characteristics. Generally, one or two
people unload a shipment. The product is hand-stacked on pallets or slip sheets to form a unit
load for movement efficiency. In some cases, conveyors are employed to unload vehicles more
rapidly. Larger types of merchandise may be unloaded directly from the car or truck to be
moved into the warehouse. Containerized or unit-load shipments dramatically reduce unloading
time.

In Storage Handling

Storage handling consists of all movement within a warehouse facility. Following product
receipt, it is necessary to transfer merchandise within the warehouse to position it for storage or
order selection. Finally, when an order is received, it is necessary to accumulate the required
products and to transport them to a shipping area. The two types of in storage handling are
transfer and selection.
There is at least two and sometimes three transfer movements required within a typical
warehouse. The merchandise is first moved into the building and placed at a designated storage
location. The inbound movement is handled by forklift trucks when pallets or slip-sheets are
used or other mechanical traction for larger unit loads. A second internal movement may be
required prior to order assembly depending on the operating procedures of the warehouse.
When products are required for order selection, they are transferred to an order selection or
picking area. When the merchandise is physically large or bulky, such as a stove or washing
machine, this second movement may be omitted. In the final transfer, the assortment of products
required for a customer shipment is moved from the warehouse to the shipping dock

Selection is the primary function of the warehouse. The selection process groups materials,
parts, and products into customer orders. It is typical for one section of the warehouse to be
established as a selection area to minimize travel distance. The typical selection process is
coordinated by a computerized control system. The primary focus for warehouse automation is
the selection process.
Shipping

Shipping consists of checking and loading orders onto transportation vehicles. As in receiving,
shipping is manually performed in most systems. Shipping with units loads is becoming

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