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Chapter 7 Introduction

Warehouse Operations Management Warehouses are expensive for companies to operate. The cost of the land, building, machinery, labor

and the items stored in the warehouse can amount to a significant sum of money. Most companies
would like to maximize the operation of the warehouse, either by streamlining the placement and
“What new technologies does is create new opportunities to do a job that customers want done” picking of goods, reducing the time goods are stored in the warehouse, or automating as much as
possible to minimize labor costs while improving accuracy. Companies can also reduce their costs
Tim O’Reilly and improve the efficiency of their warehouse by maximizing space utilization, ensuring that it is
possible to store as many items as possible in the most optimum space.
CHAPTER OVERVIEW
Having a large warehouse is not always good business practice. A large warehouse means that a
“Once a new Technology rolls over, if you are not part of the Steamroller, you are part of the Road”, business can store large numbers of items there, which all have a cost associated with them. In
Stewart Brand. This chapter introduces new technologies and innovations in the Warehousing field. addition, a large warehouse means the staff is not looking to utilize space efficiently and this can
How to maximize the utilization of the space at the warehouse? The various calls of MHE being cause unnecessarily long travel times between locations, causing additional fuel costs, labor costs,
used inside the warehouse and the concept of Inventory Management at the warehouse. and delays in loading or unloading trailers.

MODES OF INSTRUCTION Smaller warehouses can cause companies to be more creative in their thinking, which can lead to
improving space utilization in the warehouse leading to short travel times, improved loading and
LECTURE (3 LECTURES, 4.5 HOURSTOTAL)
unloading, and overall efficiency improvements.
Lecture 1 presents the concept of Optimum Warehouse Utilization, Inventory Management at the
warehouse and the KPI to measure Warehouse Performance. By studying this chapter content, you will be able to understand how to use warehouse in best
manner.

Lecture 2 describes the need and types of MHE.
7.1 Warehouse Utilization Management
Lecture 3 describes the various emerging trends in the warehousing sector like Pick and Put to
Light, AGV, IOT, Big Data, AI and other emerging concepts in the warehousing space. Introduction

ASSESSMENT QUESTIONS (0.5HOUR) As lean warehousing, cost-effectiveness, and increased efficiency and productivity become a way of
life for warehouse professionals, maximizing space utilization is more critical than ever before. To
Assessment questions reinforce key unit concepts and skills. create an effective warehouse design, you must optimize your space and layout. Saying that you’ve
already organized your warehouse effectively is one thing; knowing that you’ve truly optimized
VIDEO your space is another. That’s where accurately calculating your warehouse space utilization comes
in.
See video on the various emerging trends in the warehousing.
Even though it’s a fairly straightforward process, many warehouse managers don’t take the time
LEARNING OBJECTIVES to calculate their warehouse space utilization because they convince themselves they simply don’t

have enough space. By calculating your warehouse space utilization so you can decrease costs,
CONCEPTS
increase productivity, and improve your bottom line by doing effective warehouse utilization
• Warehouse Utilization Management management.
• Use of Material Handling Equipment’s in a warehouse WAREHOUSE MANAGEMENT:

• Inventory Management of a warehouse
Warehouse management refers to the various processes related to maintaining and controlling
• Warehouse Performance Management. a comapnies warehouse. It goes through every step of the process, from beginning to end, and
• Study on emerging trends in warehousing sector is usually overseen by warehouse managers. Starting from incoming freight and moving on to