1. Material Handling

2. Objectives Examine material handling and warehouse design
Differentiate between types of warehouses
Analyze distribution center operations
Examine documentation needed for various modes of shipping

3. Inventory Storage
Storage – holding of goods until they are sold – usually in warehouses

4. Types of Warehouses Private Public Distribution Centers Bonded
Retail Distribution Center – goods to retail stores
Fulfillment Center – goods directly to consumers
Bonded

5. Private Warehouse
Storage facility designed to meet specific needs of owner
Advantage - valuable if move large volume of products – can specialize
Disadvantage – costly to build and maintain

6. Public Warehouse
Storage and handling facility offered to any individual or company that will pay for its use
Advantage – businesses with low-to-medium volume storage needs or seasonal production
Disadvantage – must pay rent and other costs

7. Types of Public Warehouses
Bulk Storage – keep products only in bulk forms – such as chemicals/oil
Cold Storage – handle perishables – fruits, vegetables, frozen products
Commodity - store agricultural products – cotton, grain, tobacco
General Merchandise – products that do not require special handling
Household Goods – personal property, household articles, furniture

8. Distribution Center
Warehouse designed to speed delivery of goods and to minimize storage costs
Main focus is sorting/moving products – NOT storing them
Planned around geographic markets
Cut costs by reducing the number of warehouses and eliminating excessive inventory

9. Distribution Center Cycle

10. Distribution Center – System of Operations
Unloader – unloads trucks and breaks down pallets
Receiver - inventories and tags unloaded pallets
Hauler – transports received pallets from receiving dock to storage racks
Put-Away Driver – loads product into racks with a forklift
Replenishment Driver – Pulls products from racks and prepares for order filler
Order Filler – locates ordered products and moves it to designated location
Loader – wraps pallets and loads the truck

11. Bonded Warehouse
Public or private warehouses that store products that require payment of a federal tax
Imports and exports

12. Skechers Distribution Center

13. Math Skills
Calculate Savings. A large manufacturer can save 25% by using a distribution service instead of a private warehouse. The cost of the distribution service would total $55,450. How much money will the manufacturer save by using the distribution service? Cost Per Order. The cost per order is one measure of warehouse productivity. The cost per order is represented by the ratio Total Warehouse Cost:Total Orders Shipped. What is the CPO for a company that has a total warehouse cost of $850,000 and shipped a total of 95,000 orders in a one-year period?
1. X * .75 = $55450 = $73,933.33
2. $850,000/95,000 = $8.95

14. Material Handling Equipment – Storage Systems

15. TI-HI TI (Tier) – number of boxes/cartons stored on a layer
HI (Pallet) – number of layers high to be stacked

16. Material Handling Equipment – Lift Equipment

17. Case Study: New Pallet Program Better by Half

18. Material Handling Equipment – Dock Equipment

19. Material Handling Equipment - Conveyors

20. Extreme Forklifting 2
Description: Always dreamed of becoming a forklift operator? Now you can! The forklifting adventure you’ve always been dreaming of!
Features:
Realistic, accurate and highly responsive controls.
Support for most steering wheels.
All the pallets you can wish for!
Pick pallets up!
Put pallets down!

21. Warehouse Functions Receiving Reserve Storage Forward Pick
Sorting and/or Assembly
Quality Control
Shipping

22. CASE STUDY: Ryder Redefines the Smart Warehouse; Deploys Innovate Mix of Startup Technologies
Partnerships with innovators in robotics, drones, sensors, and wearables make the smart warehouse customizable, flexible, and scalable.

23. Warehouse Layout and Material Flow Patterns
U-Shaped
I-Shaped
L-Shaped

24. U-Shaped
Product comes in one side of the building, moves to the back (pallet storage), moves across the back (to forward pick), and back to the front for shipping

25. I-Shaped
Items must move through the system in proper sequence

26. L-Shaped
Items must flow through in proper sequence

27. Cross-Docking
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.

28. Racking Each section of racking is called a “bay.”
Each bay usually holds 2 or more pallets.
Racking is usually 1 to 6 bays high (depending on how much space is available in the warehouse.
Each bay usually has a label with an identification number.

29. Functional Layout
A functional design must also take into consideration the isle space (area between the racks.)
If the isle does not allow enough space for the material handling equipment (fork lifts and pallet jacks) to function properly, productivity goes down greatly.

30. Project: Warehouse Layout and Design
SCENARIO:
Kroger management has decided to open a new distribution center in Marshall County and requested that you design the warehouse for the new location. The goal for the warehouse layout is to optimize efficiency and minimize distribution time.

31. Documentation
Documentation is needed to identify goods, enable tracking, indicate where the goods originated and where they are being shipped.
Shipping goods globally is more complicated, because every country has its own set of regulations controlling which products can be imported or exported, how imports are taxed, which documents must be filed with the country’s customs officials, and which must accompany the shipment to its destination.

32. Customs
Government authority designated to regulate the flow of goods to/from a country and to collect duties levied by a country on exports and imports
Customs inspectors will review the documents to confirm the accuracy of the information that typically includes a brief description of each item, the number of items in the shipment, and the monetary value of the goods expressed in the importing nation’s currency. The United States, and most other nations, assess import duties, or taxes, on goods entering the country.
Duty: the tax charged by customs for goods being shipped into the country; sometimes the tax is charged for goods leaving the country

34. Documentation – Domestic Shipping
Address Label
Packing List
Purchase Order
Invoice

35. Examples of Logistics Documentation

36. Documentation – International Shipping
Commercial Invoice
Insurance Certification
Consular Invoice
Dock Receipt
Certificate Of Origin
Warehouse Receipt
NAFTA Certificate
Export Declaration
Bill Of Lading
Export License
Certificate Of Inspection
Export Packing List

37. International Shipping
Many companies have a small staff of employees who are familiar with the international shipping regulations and requirements and who have the experience necessary to complete forms accurately and file all required documentation.
Other companies choose to contract with freight forwarders and 3PL firms to handle the logistics of international shipping. Many of these logistics firms handle thousands of international shipments each year, take note of any changes in a country’s import policies, and relieve much of the anxiety their clients may initially feel.

38. https://video. search. yahoo

39. Activity: Types of International Shipping Documentation
Create and complete the following table in MS Word for all the documentation listed in Slide 39:
Document
Definition
Example
Commercial Invoice
Created by the seller of the goods - represents the bill for the cost of goods