LOGISTICS - STORES . The aim of the lecture is to discuss importance of storage and different types of stores Šárka Čemerková lecturer Logistics - Stores . Importance of the storage Strategic and operational decisions in the storage Types of stores Stock operations Structure of the lecture IMPORTANCE OF STORAGE • •integral part of the logistics system - the link between production processes and the customer •influence on the quality of CS •modern store = competitive advantage •importance of IT and automation in materials handling Why to store? •Efforts to achieve transport cost savings •Efforts to achieve savings in production •Use quantity discounts or purchases to stockpile •Efforts to maintain a supply source •Business strategy support in customer service •Responding to changing market conditions •Bridging time and spatial differences between producer and consumer •Just in Time support at the suppliers or customers •Efforts to provide customers with a comprehensive range of products •Temporary storage of materials to be disposed of or recycled STORE •general concept •all kinds of products •acceptance, storage, dispatching and loading •classic store does not carry out operations adding value •batch data collection •minimizing operating costs DISTRIBUTION CENTRE •special kind of warehouse •only goods with high demand •only acceptance and dispatching •high share of value added operations •real-time data •profit maximization by meeting requirements STORAGE ALTERNATIVES OF ENTERPRISES •direct deliveries from the manufacturer to the shops - elimination of local sales warehouses •catalog sellers - central storage facilities at the point of dispatch of goods •distribution mixing centers • STRATEGIC STORAGE DECISIONS •allocation of logistics resources in the longer term in accordance with the overall strategy of the company and its general objectives: ochoice of a logistics system type ounification of branch warehouses into a single regional distribution center o ouse of own capacities vs. leased capacities otransferring storage processes to logistics service providers (outsourcing) oinvestment in new handling equipment oincrease in the number of labour force, etc. OPERATIONAL DECISIONS IN STORAGE •management or control of logistics performance •usually decisions of a routine nature •short time horizon •higher degree of certainty than strategic decisions STOCK OPERATIONS •storage process has three basic operations: 1.material and product transfer 2.storage of materials and products 3.transfer of information on stored materials and products Material and product transfer •Acceptance: ophysical unloading or unpacking from the means of transport oupdating of stock records (stock database) ocondition check (damage) orecheck of the physical number of items with data on the accompanying documentation •Transfer and storage: ophysical transfer of products to the store ostorage otransfers to special services (e.g. consolidation and shipping) •Assembly according to orders: oregrouping in relation to the assortment and quantity required by the customer ocreation of wrapping sheets •Transhipment: obypassing the product storage function ogoods are transferred from the place of receipt directly to the place of dispatch When can we consider cross-docking? ocustomer is already known when goods are received in the warehouse ocustomers are ready to receive the goods immediately omore than 70% of the goods can be transported on the belt owe accept large amounts of separate items ogoods we accept are already labelled osome types are time sensitive items oour distribution centre is busy almost to full capacity •Dispatch: opackaging ophysical loading into a means of transport FOUR BASIC TYPES OF STORED STOCK •raw materials, components and parts (supply phase) •stocks of goods in production (production phase) •finished products and packaging (distribution phase) •materials for disposal or recycling (mostly small share of total stock) • TYPES OF STORES •choice on the basis of important financial and CS aspects •private store •public store •customs store •own store vs. contractual storage General commercial warehouses: •the most common type •for manufacturers, distributors or customers •for almost all kinds of packaged products Temperature controlled warehouses: •Deep freezing tunnels ofreezing up to -35 ° C osuitable for all food of animal or vegetable origin (finished products, semi-finished and raw materials) •Freezing warehouses ocontrolled freezing temperature from -18 ° C to -27 ° C ofrozen foods, some pharmaceuticals, photo paper and camera films, furs, archival materials •Refrigerated warehouses orooms with temperature control from 0 ° C to + 15 ° C operishable goods such as fruits and vegetables, meat, dairy products Customs store •their facilities and spaces are supervised by a representative of the Ministry of Finance •customs duties and excise duties are paid only after sale •goods are controlled by the state until they are distributed to the market (e.g. tobacco products, alcoholic beverages, etc.) • Stores for the public •storage of private property, not goods •storage options: oopen space (in open area of store) oprivate room osafe ocontainer o Special commodity stores: •specific agricultural products (grain, wool, cotton,…) •usually one store = one type of product + special services related to the nature of the product Storage of bulk substrates: •liquid products (e.g. chemicals, oil,…) in tanks and loose substrates (e.g. coal, sand) in an open or covered place •another services: ofilling of barrels (from tanks) oproduction of new compounds and mixtures by mixing different kinds of chemicals https://www.youtube.com/watch?v=-LDls7EvAKg https://www.youtube.com/watch?v=1p2ITDbuJj4 Summary of the lecture You can: •Explain the importance of the storage •Describe strategic and operational decisions in the storage •Distinguish between classic store and distribution center •Explain the essence of Cross-Docking •Describe types of stores •Characterize stock operations Charakterizovat