The objective of this distribution system is to minimize cost and maximize customer service level. The efficient warehouse management performs the following
The activities in the dock range from receipt of goods after transportation from the dock, material is checked against the bill no . The material is checked for damages .
Identification of a SKU : The location, number and the quantity loaded at each stock keeping unit is decided.
Dispatching of goods where goods are sorted and put away.
Holding where the goods are stored under protection
Picking involves taking the selected stock in the marshalling area.
Marshalling area is where goods are brought under a single order are inspected for defects.
In order to maximize productivity and minimize costs
a) Floor space should be utilized effectively since most of the capital costs is associated with the floor space and is calculated in cubic meter since goods are also stored above the floor space.
b) Effective labor and equipment management – Select the optimal mix of labor which controls the operating cost and equipment which contributes to the capital cost
c) The stock keeping units should be easy to access and find . The stock should have a good location and layout.