How Much Money You Need To Start Homefurnishin Goods As Distributor
The Role Of Warehouse & Warehouse Management In Concrete Distribution
By: Tenaka Budiman, Executive Board of ALI
Logistics+ vol. Ix Outcome No. 48
In supply chain direction, activities catamenia from upstream to downstream, starting with the supplier's supplier and catastrophe with the customer, usually, warehouse space is needed to process raw materials into finished goods, bundle the goods and then store them. The warehouse is where goods are stored though every stage of the supply chain. Moreover, the further downstream the activity, the more important the warehouse becomes, especially since finished goods are likely to be stored in that location and need to be kept safe from impairment. As for the manufacturing process, raw materials and packaging materials enter the warehouse where they are turned into finished goods and sent to the benefactor. The distributor and so categorizes the finished goods and then makes them available to the wholesalers, retailers, sub agents and others who want to sell the goods though retail outlets.
In this article I will non explore the concept of concrete distribution, but rather share experiences related to the importance of the warehouse, warehouse management and physical distribution.
As we know, concrete distribution is mostly concerned with product deployment. Though vertical and horizontal distribution, products get closers to the market and tin exist more easily found by the consumer. In general, warehouses used for concrete distribution though out Republic of indonesia are relatively small and tin merely accommodate plenty goods for two to iv days of average sales. Bigger warehouses do exist but are less mutual and tin can accommodate five to ten days worth of products for sale. Managers often argue that it is more strategic to open points of sales (POS) with warehouses located closer to target markets though direct delivery from the manufactory to the POS rather than using distribution centers (DC) as a hub and spoke style of distribution. Unfortunately, many warehouses involved with advisable warehouse management. Just rarely do we run across warehouse involved with physical distribution implement a truly effective warehouse management system.
I would similar to talk nigh straight delivery from the factory to the POS warehouse versus the hub and spoke organization. Which is improve and more efficient and under which circumstances? Many people are of the opinion the direct commitment is more efficient because there is no double handling compared to using distribution centers as hubs. This may be truthful, but non always. Why? Because direct delivery is simply most constructive if the appurtenances delivered from the factory are strictly in accord with the needs of the recipients of the appurtenances. That means that the appurtenances come up as a consolidated commitment and are of a quantity of at least the upper limit of a minimum order. A problem that frequently occurs is sometimes the goods delivery practise not exactly meet the needs of the last costumer. Sometimes the mill may be forced to delay delivery of the appurtenances until the next week because there is no a big plenty order to justify the costs and the space of delivery. From my experience, straight commitment is most appropriate for fast moving product requiring full truck loads (FTL) of full container loads (FCL) where the consignee warehouse need not devoted excessive warehouse space for additional storage or sometimes the appurtenances can be direct sent to the next supply concatenation, like wholesaler, for example. Generally, the manufacturing plant prefers to transport FCLs or FTLs in gild to accomplish maximum efficiency in delivering, but this is non always to the satisfaction of the distributor. And then direct deliveries from the factory to the distributor do not always gives added values for both parties, especially in cases where an society from the distributor in less than i truck load or one container load. This may hateful a potential loss in sales for the distributor or fifty-fifty a withdrawal of the order for the next week (pulling forwards to PO) depending transportation coasts.
Now, permit us look at the distribution center (DC) hub and spoke system. This system may require logistics distribution centers (LDC), regional distribution centers (RDC), principal distribution centers (MDC), frontward stock location (FSL), an others. For distributors, DCs provide added value past aiding in the managing of goods which are slow moving and delivered in a consolidated way. Without consolidated deliveries, distributors would receive more dull moving appurtenances than they actual need as the minimum order quantity (MOQ) would accept to be satisfied. Consolidated deliveries let diverse products from multiple principles (manufacturers) to be sent together, and so the DC can combine deliveries of various goods together to fill FTLs or FCLs. This is especially valuable if Reorder Point System performed from DC to consignee points and the benefit are gained control of inventory at any point to be more optimal. And also the demand of warehouse space in each POS is condign less. Although though this DC organisation, directly commitment can exist implemented for consolidated products delivery to Modern Trade or Traditional Merchandise Outlet.
Directly delivery from factory to distributor or factory to distribution heart (hub and spoke system) can both exist employed depending on the benefits each would provide at any given time. For instance, if fast moving items can exist sent by FTL or FCL straight to the destination point, information technology is more efficient than though the DC, when deciding which organisation to implement, a comprehensive assay should be conducted in society to detect out which volition most likely provide the almost added value and benefits to price, either in storage or transport.
So, when should it go necessary to implement a warehouse management system (WMS)? I think that before implementing a WMS, a few questions need to be asked. Get-go, how will the complexity of activities of loading and unloading, receiving, storage, and picking be conducted at the warehouse? Will the warehouse management be in accuse of all the operational activities at the warehouse? Is the warehouse management exist in charge of all the operational activities at the warehouse? Is the warehouse team going to run stock taking and cycle counts periodically? What if there are discrepancies in stock taking and cycle counts? Should 5S and kanban systems be implemented in the warehouse? Is the warehouses squad'southward picking accurateness bad or adept? How many total stock keeping units (SKU) tin exist managed? These questions should all exist answered before implementing whatsoever Information technology organisation. If the operational activities of the warehouse have not been measured, then that needs to exist done as presently as possible and from those measurements, then we tin understand the complexity level of process. Equally operations evolve, larger racking systems may be required and fuller multifariousness of product may start entering the warehouse. While the process may experience constraining, increasing productivity and enhancing the picking process eventually becomes more crucial and that is when the utilize of a WMS should be considered. Using a WMS ordinarily helps the processes in the warehouse get more efficient and effective and should never be thought of as a hindrance to progress. Every bit for the operational activities and business processes in the warehouse already divers and well measured, a well implemented WMS will help u.s. to go an improvement in functioning.
I accept ever heard the testimony of many who first use a WMS and in the showtime 4-six months, they take a tough time. Yeah, at that place can be growing pains and perfomance improvement might not exist immediately evident, simply somewhen good benefits and added value will come: stock discrepancies will reduce much better and also picking accurancy volition be much meliorate.
Source: https://www.ali.web.id/web2/publication_detail.php?id=469
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