Page 51 - DMGT553_RETAIL_STORE_MANAGEMENT

Retail Store Management

Notes Self Assessment

Fill in the blanks:
7. ................................. are the foundation of a supply network, as they allow a single location
to stock a vast number of products.

8. Some organizations operate both retail distribution and direct-to-consumer out of a single
facility, sharing space, equipment, labour resources, and ................................. as applicable.
9. A typical retail distribution network operates with centres set up throughout
a................................., with each centre serving a number of stores.
10. Many retailers own and run their own distribution networks, while smaller retailers may
outsource this function to dedicated ................................. firms that coordinate the distribution
of products for a number of companies.

11. A distribution centre can be ................................. at a logistics centre.
12. The ................................. has the utmost influence in deciding upon the choice of the
distribution channel.

3.4 Various Activities at the Distribution Centres

Because many distribution centres service both large and small clients, especially those which
store a specific type of service as opposed to those which serve a specific company, roles and
departments are generally more complicated. A simple distribution centre which serves many
clients of a specific theme or type of service may include:

Goods in: Usually containing specialized container unloading equipment and workers,
including pallet wrapping, conveyor belt unloaders (as used on 40 ft shipping containers),
forklift drivers, and administrative staff.

Bulk: As a rule, a bulk department controls and ships larger orders or orders that contain
only full cartons/boxes. A bulk department includes forklift truck drivers to load containers
and wagons, and man-up or combi forklift trucks to unload full pallets from warehouse
racking.

Break-bulk: Break-bulk (also known as split case) is a lower-capacity version of the bulk
department. Orders usually contain part boxes or items not requiring pallets. Due to the
number of smaller customers a distribution centre may serve, a break-bulk department
may need more workers than a bulk department. A break-bulk department usually uses
trolleys or, for palleted/heavy orders, small electric PPT or walkie low lift trucks. Items
shipped by break-bulk are usually stored in pick, which are usually the bottom two pick-
faces of warehouse racking. A pick-face is the space on such a racking system onto which
a pallet can be loaded.
Export: An export department controls orders which are leaving the country of the
distribution centre. This department is almost identical in function to a bulk or break-bulk
department; however, workers in this department build pallets conforming to different
standards and sizes. An export department also uses different shipping containers or
haulage firms.

Quality assurance: A quality assurance (QA) department performs periodic checks of
random samples of stock to check quality, including from the warehouse racking, goods
in, and returned stock. This department may also take on cycle count duties to find missing
stock.

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