Warehouse: Functions, Activities, Planning, And Location

Warehouses can define as the place or building for storing a large number of goods or materials. For understanding the warehouse system, you need to understand the essential aspects such as warehouse functions, existing types, their planning, as well as the location.

Functions and Activities of the Warehouse

The warehouses are centers that are structured and planned to carry out storage functions such as conservation, control, and expedition of goods and products, reception, custody, etc. The warehouse is in charge of regulating the flow of stocks.

The activities and main functions carried out in warehouses:

Stock Receiving

It is the process that consists of entering the goods that the suppliers send. During this process, it should verify that the stock received coincides with the information contained in the delivery notes. It is also necessary to check during receipt of the goods whether the quantities, quality or characteristics correspond to the order.

Storage

It consists of the location of the goods in the ideal areas for it, with the aim of accessing them, and that is easily locatable. For this, fixed means are used, such as industrial mechanical shelves, warehouses, facilities, supports, etc. and internal factors of transport such as forklifts, elevators or conveyor belts.

Conservation and Maintenance

During the time that the stock stored, it must be kept in perfect condition. The conservation of the merchandise implies the application of the current legislation in terms of hygiene and safety in the warehouse, in addition to the special rules on maintenance and care of each product.

Management and Control of Existence

One of the critical function is to determine the amount of each product that must be stored, calculates the amount and frequency with which each order will request to minimise storage costs.

Shipment of Goods

The delivery of goods begins when the customer places the order, starting the process with the selection of merchandise and packaging, as well as the choice of means of transport. Other operations are also carried out in the commercial distribution warehouses, such as merchandise consolidation, shipping division and cargo combination.

Classification of Warehouses

Warehouses can be classified according to different criteria:

According To the Structure or Under Construction

•    Open-air warehouses

•    Covered warehouses

According To the Activity of the Company

•    Commercial company: a warehouse of merchandise and some cases of containers and packaging.

•    Industrial company: a warehouse of raw and auxiliary materials, a warehouse of diverse materials and warehouse of finished products.

According To the Logistic Function

•    Logistic platforms or central warehouses

•    Transit or consolidation warehouses

•    Regional or zone stores and stores

According To The Degree Of Automation

•    Conventions stores

•    Automated warehouses

•    Automatic warehouses

According To Ownership Or Ownership

•    Warehouses owned

•    Warehouses for rent

•    Warehouses under leasing

Planning and Location of Warehouses

The companies that are looking for the best UK warehousing and storage to store their inventory, must take the decision whether they will be owned, rented or both.

Once the first step has been completed, the second step is to plan the location, distribution, and design of the spaces, the equipment of the facilities, as well as the mechanical means and human resources for the handling and storage of the goods.

Optimal planning of warehouse operation involves the management of available resources and forecasting requirements for the products when, how much they are and where they are required.

•    When: at the time that is needed, or we receive the order from the production center, the distribution center or the point of sale.

•    How much: the amount requested by internal or external customers.

•    Where: the place of delivery required by customers.

Conclusion 

For a company that manufactures the product, the warehouse is a fundamental part of a successful organisation. Therefore, it is necessary to take into account a series of variables when planning the project of a warehouse:

•    The manufacturing capacity of the industry.

•    The characteristics of the distribution network.

•    The cost of land, buildings, facilities, and equipment.

•    The product: the types, features, the total amount to be stored.

Types Of Storage

As important as having a good product is knowing how and where to store it in the best way so that it retains its characteristics and has greater reach in the value chain. Decipher together the types of storage and which are the most convenient for your business.
From the moment that trade appeared, the law of supply and demand made it necessary to have a stock (merchandise stored) sufficient to meet the volumes of the commercial dynamics. This is how the greater amount of a product is sold, the greater must be the stock that supports it. Today everything is susceptible to be stored, from obvious things such as food or raw materials to intangible things such as information or air, without forgetting less conventional "products" such as biological ones: blood, organs or even sperm.
There is a great variety of warehouses and there are many factors to take into account when deciding which of these will be the appropriate option. It is not the same store food as sports equipment, beauty products or vehicles. If we are more strict and exact, there are different characteristics and management recommendations for each "family" of products; For example, foods could be classified into subgroups taking into account their perishable qualities: canned, dry grains, meat or fresh vegetables, just to mention a few.
Below you will find a practical guide to the types of storage and what to take into account when storing merchandise: how to do it, advantages and disadvantages and when it is advisable or not.

Types Of Storage

Taking into account the product and its characteristics, we can determine the degree of environmental protection it requires, whether in a controlled, covered or discovered enclosure.

Covered Storage

It is the one that offers the greatest protection to the elements and materials stored there since it is possible to control various variables such as humidity, temperature, lighting and many others that directly influence the preservation and useful life of the products. There are brick, cement, specialized canvas, metal panels and even materials that help to preserve the temperature, such as resins.

Uncovered Storage

As its name indicates, they are those that are outdoors and without any special control outside the security, because there are stored products that by their nature are not highly affected by climatic or environmental conditions: automobiles, some construction materials and as a general rule, non-perishable products. Generally, these deposits are demarcated with reflective tapes and delimited by fences, fences, fences, and canvas, located outdoors. In some cases, additional protection is usually used directly on the packaging of the products, such as plastics, special tarpaulins and any element of anticorrosive properties.
Another important factor when choosing the most suitable type of warehouse is the kind of material to be stored, determining the nature of the product and its role in the production process.

Storage Of Raw Materials

It is the primary storage within the production chain and is usually located as close as possible to the production plant or transformation site.

Storage Of Intermediate Products

Also called semi-finished, is where those elements that have already undergone a process of assembly or manufacturing but are still in an intermediate stage of it, serving as a link between the different phases of the production line. They must be located inside the factory since they handle very short waiting times for their use. They should always be available.

Storage Of Finished Products

It is the most common and the one that has more value for the company since it keeps the product of its economic activity. The amount of products stored there is directly proportional to the guidelines, projections of the company and demand of them by consumers; therefore, it must guarantee constant availability and high inventory turnover.

Storage Of Accessories

In this warehouse, all the elements that serve as auxiliary material are deposited in the manufacturing process of the main product or the accessories and other accessories that may be required.

Storage Of Spare Parts

This warehouse is designed to respond to the company's after-sales needs. It is there where all the necessary spare parts for the maintenance of the product are stored.

Storage Of Files

It is dedicated to the plans, records, sketches and other designs necessary for the manufacture of the products, besides keeping all the legal and accounting documents of the company, everything related to information. The costs of distributing the product also play an important role when defining or choosing a storage type. That is why we must take into account what is their role in the logistics of this process.

Storage Of Plant Or Home Matrix

It is the one that is closest to the production plant. Its objectives are to reduce transport and handling costs, be the holder of the main stock and distribute to regional warehouses.

Regional Storage

It is arranged by zones in strategic places to achieve the distribution of the product in less than a day. On average, the best warehousing solutions must have the technical capacity to receive merchandise from the production plants in large lorry, of large tonnage and, eventually, distributed to smaller stores, direct sales or retailers.

Platform Storage

It can basically fulfil regional storage functions but is smaller and its focus is to increase the level of customer service by decreasing the stock. The level of mechanization, handling techniques and equipment play a crucial role in the use that can be made of one or another warehouse, since not all the goods can be or should be stored with certain tools or mechanical equipment.

Block Storage

For this type of storage, the resistance of the goods to be stacked must be taken into account, since columns are formed by references. A coefficient of 1.5 must be applied in relation to the resistance of the base to guarantee the stability of the column. It is recommended for products that handle few references but many quantities, for example, buckets of milk, washing powder, bricks or building blocks, among others.

Conventional Storage

They are those in which it is counted on forklifts of the retractable mast for the storage of the merchandise, never surpassing a height of 8 meters in its highest point. The last of the decisive factors to choose the most suitable warehouse for your company has to do with the legal status of the place as such, since depending on the choice made will result in higher expenses or exemption from them.

Own Store

It is the most traditional of all but has been declining compared to other more profitable options in terms of exploitation of the property, since it implies making part of the business the physical complex and the land, assuming expenses that are not necessarily related to the economic activity of the company.

Warehouse and Renting

These two are the most used options because they do not need an initial investment and their costs vary in relation to the needs of the business. The renting for its part assumes maintenance services and contemplates longer periods of use.

Warehouse In Leasing

Leasing is another type of lease in which the property is rented to end up buying it at the end of the contract for a value that is stipulated by both parties at the time of signing.

Prepare The Packages For Shipment

A bad packaging can endanger the shipment of your goods or those of your company so it will be important to take into account a series of questions when it comes to know how to prepare the packaging of the packages for later shipment. Among them, we must assess and keep in mind what type of goods are going to be transported, as well as the fact that the merchandise could be exposed to vibrations, shocks or even a fall.

If improper packaging is carried out, damage to and deterioration of the goods, delays in delivery times and even the impossibility of making claims can occur. Therefore, we want to give you a series of recommendations or advice when preparing the packages for the shipment.

As for the outer packaging, quality and rigid materials must be chosen to withstand possible friction or shock. In addition, in the case of choosing a cardboard box, it must be robust, with good grammage, as well as use a new box, without losing its firmness and without deterioration that may facilitate its breakage. The size of the box must be according to the merchandise that is wanted to send, since the holes that remain empty will be more susceptible to deteriorate or bend, being able to damage the merchandise, in the event that the interior does not fill the box completely, there will be to fill with crumpled newspaper, foam, bubble paper or similar.

In the event that the goods are going to be palletised, it must also be ensured that it is correctly packed, avoiding that it protrudes from the dimensions of the pallet by the sides and ensuring it correctly. To do this, the entire set should be fixed with film from the base of the pallet, including the wooden pallet, to the top, and with hard plastic or metal strip. This will ensure that the load is adjusted, and we will reduce, to a large extent, the risk of deterioration during the handling of the goods. It is a more convenient service for transport and, above all, safer.

The internal packaging by the international freight forwarders in UK will also be important since it will act as a shock absorber for the load against shocks or sudden movements and will prevent the goods from being in direct contact with the outer packaging. The best thing to do is to fit the contents well into the packaging, a loose object is much more likely to be damaged than a properly fitted object. For this, you can use different materials that will protect the merchandise as:

• Foam sheets or polyethene chips.

• Bubble plastic.

• Moldable foam.

• Kraft paper.

• Inflatable packing

• Corner protectors in the case of furniture and other objects.

• Corrugated cardboard.

Transportation Of Goods

If you want to hire a freight transport service, you have several options at your fingertips, but depending on your specific needs and the type of merchandise, it will be more advisable to opt for one option or another. However, of all the possible alternatives, land transport of goods is the most used medium within the European Union, especially for its convenience, speed in short distance operations and its ability to offer door-to-door service.

Current Regulations To Carry Out Land Transport Operations

In order to carry out land transport activities of merchandise, it will be necessary for the freight forwarding solution providing companies that are going to carry them out to arrange and provide their workers with the corresponding administrative authorisation, which enables said activity. Therefore, the company that provides land transport services will have to provide each vehicle and driver with the corresponding transport cards.

Advantages Of Land Transport Of Goods

There are several aspects that differentiate land transport from the rest, since, as we have said, it is the most used modality in the European Union. These are the main advantages that this way provides:

• It is the only means of transport of goods that allows us to deliver the products "door to door"

• We can transport a lot of different types of loads

• It offers a great variety of schedules, frequencies in its services and a great facility in regard to the loading and unloading of merchandise

• We can coordinate it with other modes of loading, such as air or sea

• There are many types of vehicles that are used for land transportation of goods such as trucks, trailers, silo, etc.

3 + 1 Risks Of Land Transport Operations

If we are interested in contracting a land freight service, it is recommended that we take into account the most common dangers that this entails for the professionals dedicated to it:

• Physical fatigue: when dealing, generally, for very long distances, drivers can have problems related to fatigue. However, this should not happen, at least in heavy vehicles, since they have established the maximum number of hours they can perform per day.

• The body position: the second most common risk in land transport of goods is related to the position acquired by the driver, since, being long-haul journeys, if the position is not correct, it can pose severe problems of Health.

• Loading and unloading the goods: when loading and unloading the vehicle, we must bear in mind that carrying out overloads related to weight, exposing oneself to gases or dangerous substances... can put the driver in situations of risk.

• Robbery: this is another risk that usually occurs especially in service areas and when they are vehicles that have the canvas box, since access is much quicker and easier.

Any of these risks can happen in the event that we hire a land freight service. For this reason, if what we want to transport is of great value, we may find it convenient to inform ourselves about current cargo transport insurance, since we will avoid losses or damages in our products.

Digitisation In Land Transport Operations Of Goods

As is happening in most commercial sectors, logistics and transport is also undergoing changes in terms of digitisation and innovation of its services. Thus, with the application of new technologies, there are transport companies that have introduced an electronic bill of lading, called eCMR.

This innovation is already legally valid, and its differential value is based on the fact that it provides greater speed and, above all, security in the documentation of land transport of goods and, in addition, positively influences the costs that we will pay for this service, since it reduces considerably.

How To Choose A Logistics Service Provider?

If you do not select a logistics service provider well, you can waste the market because you do not have an efficient supply chain, from your suppliers to the production plants and from these to the markets where they are selling their articles.

Excess cost may be incurred for failure to deliver timely and in good condition; in addition to the risk of losing the merchandise due to not following up properly to avoid damages or not having the insurance of conventional cargo handling and other mechanisms that protect the capital. Likewise, traumatism are generated in the operation of the companies.

To avoid these disadvantages, the criteria to be taken into account when selecting a logistics service provider is very important:

1st: carry out an evaluation that helps to identify the characteristics of the current logistics process, such as service levels, technology and information systems, to better understand how the logistics operator will support business work.

2nd: identify the advantages and disadvantages of carrying out this outsourcing process, what risks are exposed and under what parameters you want to assume them or invest in action plans to mitigate them.

3rd: must take into account and evaluate in the most conscientious way possible what are the needs that are intended to be covered when starting a new employment relationship with an operator. Deciding what is required to contract and what should be required from the operator is what, will allow choosing the most suitable service provider for the company.

4th: It is also important that the logistics operator not only knows about his business, logistics and supply chain, but also that he cares about understanding the business of his clients and their particular characteristics and needs.

5th: Reputation is a fundamental criterion to determine if it is worth working with a specific logistics provider. During the presentation of your services, a supplier will present some favourable or unfavourable references for our company.

Finally, when hiring a logistics service provider, it must be borne in mind that this can and should be a long-term relationship, avoiding switching between them frequently due to multiple factors such as cost reduction, one of the main benefits of outsourcing, It can be affected as well as other processes such as the consolidation and development of the company.

The Fourth Industrial Revolution. Logistics 4.0

Logistics has been the fundamental basis of the evolution of man, as modernity was arriving, production processes had to change, which led to humanity advancing as its logistical processes allowed it. First, the steam arrived, with it the first machines not moved by human or animal force, the large-scale production created the industrial world, then came the electricity, the chain production applied to the industry, and then the electronics appeared, the technologies of information and automation of industrial processes.

Currently, we are in full adoption of a new revolution, the Internet, the microchip, the digitalisation of processes, the cloud, and artificial intelligence. For the first time we must not develop a logistics aimed at tangible elements, now we also need to optimise the processes of intangibles, which means nothing more or nothing less, that a new transformation of production systems is approaching, the fourth industrial revolution is to arrive.

The industry 4.0 is breaking: machines, tools, operators, warehouses, packaging, the entire chain will be interconnected, the intangible will be as important as the tangible, the information will be increasingly valuable, terms such as data mining, Big Data, hyper-connectivity, 3D technologies, BIM platforms, smart energy, Smart Grid, Smart Cities, biomedical technology, electric mobility will be part of the daily life of the new generations of UK biggest logistics.

But, do not worry, if you are unfamiliar with some of these terms do not get scared, these new platforms are in the process of implementation and in a few years when these are already part of the day to day their use will be adopted easily, as well as the dynamics of new technologies they will always be aimed at making their manoeuvrability easier than the previous one. The same has happened with other types of technologies such as the internet, an invention that was born as a tool of ultra-secret communication during the cold war and today is a system used by older and older children.

New technologies should not scare them, but if motivated, their processes should adapt as quickly as possible to the fourth industrial revolution, the 4.0 will not wait, their logistics department should support the implementation of new technologies, carry out induction programs to staff, and try that the new personnel already bring some type of knowledge in these processes.

If something has made history clear, it is that the peoples that are able to adapt in less time to the different technological revolutions are called to lead the world in the following years, on the contrary, history has also shown that the punishment for whom is not able to get on the bus is underdevelopment.

Supplies On Demand

In online purchases, it is expected that physical stores will continue to exist for many years. However, the configurations within these spaces have changed considerably. Therefore, food distributors are looking for new ways to fill their stores with products efficiently. Deliveries adapted to stores are the ideal solution.

The retail food distribution market continues to be dynamic and consumers demand fresh premium products when they need them. Stores are also expected to remain open for more hours, so inventory replenishment activities will often take place during periods of increased purchase activity.

In addition, consumers want to have greater diversity when choosing their products. This means that deliveries from warehouses are getting smaller, with more frequent replenishment activities. The increase in online purchases, the concept of "dark" or "dark" store and e-commerce are also increasing the complexity of the supply chain for food distributors.

Increase Of Multi-Store Format

One of the most important trends affecting food distributors is the growth of the multi-store format. This issue currently occupies a prominent position in the agenda of the operators of warehouses and distribution centers and for good reason.

Until a few years ago, the basic layout for a store, such as a supermarket, varied very little from traditional design. However, since that traditional and common approach has been rejected by the demands of modern society.

Now the products can be purchased in numerous establishments, from gas stations to express stores, through conventional supermarkets and "ghost" stores. This puts significant pressure on the order preparation and distribution process since the final delivery point must be taken into account.

It is expected that this diversity will continue to exist according to the IGD study, which highlighted that: "The physical store will continue to play an important role in the future of purchases" but those "store schemes will need a greater differentiation counterbalanced by the need to maintain an efficient supply chain.”

With this in mind, distribution centers are looking for new ways to increase efficiency, reduce delivery times and reduce transport costs.

A Pioneer Field

Deliveries adapted to stores are often considered the ideal solution. This method consists in preparing the pallets or the cages in the CDs in line with the specific scheme of the final store. This creates a very positive impact on the inventory preparation and replenishment process since these processes are simpler for stores.

The main advantage of the gas adapted to stores is that CDs can prepare a pallet or a cage accurately, regardless of the layout of a store. The replenishment process could be carried out more efficiently through the automation of the forklift stacking process. One of the reasons is that the individual phonograms of the stores can be taken into account. 

The collection of automatic boxes (ACP). "ACP technology allows us to automate the entire system flow, this ranges from the reception of the pallets of the supplier to the preparation of pallets of combined boxes that are sent to stores.

One of the main components within the ACP is our Load Programming Logic (LFL) software, which calculates the most effective preparation of the pallets. LFL transforms shop orders into a series of forklifts, pallets or cages. It takes into account the characteristics of the store and the product so that the products are stacked in a stable manner facilitating the process of replenishment in the store. "

The creation of pallets using the LFL also means that stores do not need operators to divide the pallets into smaller sections. This saves time and reduces costs. In a traditional manual operation, pallets have to be divided before they can be used for stock replenishment. This occurs because the manually prepared pallet contains different goods from the store.

However, when preparing pallets intelligently, the division process can not only be improved but potentially eliminated. In addition to reducing replenishment costs, you can free up valuable storage space. It can be used alternatively to improve the shopping experience for customers.

Optimization Of The Supply Chain

The advantages of an automatic preparation of the pallets with respect to manual preparation have already been recognized. We can include statements such as the following: "The automatic stacking method has a performance superior to the current manual stacking method. In general, we can conclude that automatic stacking software has a superior performance to manual stacking software in terms of forklift utilization and replenishment times. "

In addition to the layout of the store, LFL also takes into account the "limits of vertical orientation, stacking, stability, complexity, allocation, and distribution of weight, as well as the weight limit of the forklift". These considerations are crucial in a supply chain solutions in UK where "container loading is a paramount function, as insufficient performance generates unnecessary costs and unsatisfactory customer service".

The main benefit for food distributors is the replenishment of inventory in a very faster. Ultimately, products can be prepared on pallets in a way that satisfies their intrinsic value to consumers; always available on supermarket shelves.

The financial implications are considerable. If we rely on an average food distributor with 200 stores, store-adapted deliveries can reduce inventory replenishment activities in two to three hours per delivery, per store. This translates into savings of up to 20 million euros over a period of ten years. Transportation costs are also reduced by around 5 million euros in the same period. Buyers will always have their favourite products available and this is very important as product inventories are getting bigger and stores stay open for longer. The logic of load programming is the basis for the improvement that stores will achieve by passing manual processing from a warehouse to automated processing.

Through automation, the warehouses will benefit from an efficient and flexible operation, as well as a reduction in transport costs. At the same time, the efficiency in the store will be increased and the food distributors will be able to improve their competitive advantage even more.