Warehouse

 Why is it important for businesses to utilize their warehouse space effectively?   

Discussion answer: 250 words min…..reference needed

Responses  175 each (view attachment)

Why is it important for businesses to utilize their warehouse space effectively?

 

  

Response 1

 Warehouse and storage space costs for an organization can become very expensive if not utilized properly and efficiently. The best ways to utilize and optimize warehouse space is through careful planning, having an appropriately sized warehouse space to accommodate the items being stored by the organization (Murray, 2019). If an organization has too much warehouse space this could result in lost funds because there are cost that are associated with warehouses such as rent, utilities, taxes, amongst many other costs. Having an appropriate amount of warehouse space can help an organization consolidate and use their time and resources wisely. Another disadvantage to having too much warehouse space is inventory holding costs. There are inventory holding costs that are associated with each item that is being held in a facility, especially if those items require special storage, such as refrigeration (Coronado, 2015).

            It is also important to utilize warehouse space in way that items are organized through a system, so they are able to be located quickly. Knowing how much of what product is required, and when can be vital to a warehouse’s efficiency because if there is not enough space allocated for a certain product, this can lead to issues. Thus, it is important to consider and maintain the appropriate balance of different products (Coronado, 2015). Warehouses not only store products, but they also process items for shipping. When a truck arrives at a warehouse it needs to be able to not only unload products efficiently and effectively, but it must also need to be able to load products for shipping. By having an organized, designated area for prepping and load shipments for trucks must also be considered when optimizing warehouse space.

            There are many different variables that must be considered when managing a warehouse so that it is efficient and effective as a way to reduce costs and keep costs low. Developing and implementing a system of storing and locating products is vital to optimizing warehouse space. Having a system and designated space for inbound and outbound products can help in using warehouse space effectively.

 

Response 2

My favorite places to mentor people was in the warehouse. It was such a thankless job. People would come to us with dreams of traveling the world, but they would end up in the basement of the hospital near the morgue. Teaching people to value their individual contributions, came with the overall winning hearts and mind war, and had a lot to do with caring about the life cycle of warehouse space efficiency!!

85% of people are not satisfied at work. I postulate that these people are not invested. People who feel invested become an efficient workforce (Mirsa, 2018). The best job for me was encouraging each member to “show me their best work”. Whatever they showed me. Didn’t matter what it was, you have to go overboard with the praise. Preferably in the way that suits their personality to receive praise. knowing peoples love language helps. Example: Words of affirmation: Great JOB! I cannot wait to tell everyone how great you are doing on this thing that is important to you. Physical Touch: High Five! Great JOB! Gary Chapman wrote a ton of these books, even if you don’t read the books the lessons still apply to the humanity in all of us. I found through a lot of personal struggle that if you want the most from your people, it is most important to care about them, or what they care about in a meaningful way.

Now that Sarah is confident in the professional relationship she can care about space efficiency by looking at:

1. What is on the shelf should rotate in and out in a natural cycle. Space relates to efficiency in your dead stock reports! We see the items that should be considered no longer required and must be processed accordingly, whether profit or loss occurs doesn’t matter, clear space for what must come and go. 

Note: Redirect personnel who get into the weeds of why something occurred or try to save things that are no longer serving the mission requirements. Things change over time, needs, wants, and requirements. Smart logisticians can overanalyze stock accounts. Beware of the time and resources required to follow those resistant to the natural flow of stock or dead stock. It isn’t bad or good. Just doesn’t serve a purpose anymore for the organization. Let it go.

2. Space relates to new technology and the material that comes with it. Worldwide during cycles of finance and allocation, we would purchase and deploy medical equipment, and 95% of the time the equipment would show up well in advance in multiple bulk shipments (hardware, components, durable, and of course a ton of consumable supplies required to maintain and utilize the equipment. 

Note: Plan ahead for space with internal and external partners. Example: Communication is important for each chain partner when 400 printers arrived at your bay doors, and the government pushing a complete 2-year roll out package to your location without a roll out plan. That leaves you with lots of questions and a big problem. Where you are going to put all the stuff? Who should you call first to sort out the details. Who is going to get their feeling hurt? What can I do to be the most helpful in this situation?

3. Any mandated or government imposed changes to care platforms, relates to space in that training must occur and that also has many material components: Training literature, advertisements, Trainer’s gear to include mannequins or counter based products which can take up multiple positions in a working warehouse.

All in all the military it was a safe way to gather, experience, and grow up in logistics. There are so many people who demonstrated the good, bad, and ugly in supply chain practices, but that opens you up to new perspectives.

WAREHOUSING

Required Reading

The following information will give you a good background on some of the current trends in warehousing. Please review the information presented. Be sure that you look for additional resources to support your case study and SLP papers.

Here is a good article that discusses value-added services that 3PLs and warehousing organizations are starting to offer:

Atkinson, W. (2002). Value-added services from 3PLs and public warehouses: What to look for.Logistics Management, 41(10), W8-11. Retrieved on December 9, 2014, from ProQuest. (ProQuest doc ID 197212274)

Abstract: 
A lot of warehouses are still just offering traditional services – putting away and picking, explains Evan Armstrong, vice president of Armstrong & Associates, Inc., which provides strategic consulting services to shippers, 3PLs and carriers and also publishes Who’s Who in Logistics. Still, though, while many providers remain in the stone age, most are moving forward with new value-added services. With the advent of the very time-sensitive supply chain model, there is a move away from traditional warehousing with shelves and racks for storage to more of a flow-through operation, such as cross-docking, plus some light manufacturing or assembly and kitting, notes Adrian Gonzalez, senior analyst with ARC Advisory Group.

This article takes an in depth look at the functional utility of warehouses.

McKnight, D. (1999). A practical guide to evaluating the functional utility of warehouses. The Appraisal Journal, 67(1), 29-37. Retrieved on December 9, 2014, from ProQuest. (ProQuest doc ID 236506617)

Abstract: 
Many appraisers fail to address some forms of functional obsolescence in warehouse space. Details on interior and exterior layout, dock design, and safety and security issues play an important role in the highest and best use and functional utility of a warehouse. The practical considerations of good warehouse are described in clear and helpful detail, including modes of delivery and scheduling. The oversimplified process of considering only clear heights in the appraisal of such properties is cautioned against.

This article will be used for the case study assignment:

Anonymous. (2002). WMS drives efficient parts distribution. Modern Materials Handling, 57(12). Retrieved on December 9, 2014, from ProQuest. (ProQuest doc ID 236506617)

Abstract: 
When Toyota set up a spare parts distribution facility to support its operations in the UK, the automobile maker realized that a state-of-the-art warehouse management system (WMS) was critical. The WMS that Toyota chose not only tracks parts location, but produces a tag label, which gives part details and subsequent locations.