Where is the logistics ?
Place/customer service
levels
Product
PromotionPrice
Order processing and information
costs
Warehousingcosts
Transportationcosts
Inventorycarrying costs
Lot quantitycosts
LOG
ISTI
CS
MAR
KETI
NG
Source: Adapted from Douglas M. Lambert, The Development of an Inventory Costing Methodology: A Study of the Costs Associated with Holding Inventory (Chicago, IL: National Council of Physical Distribution Management, 1976), p. 7.
Autor :Ahmad Arwani R - Consultan
Logistics Strategic Decision
Storage
Order Processing & Fulfillment
Inventory
Transportation
Total Logistics CostService Level
WarehouseAutor :Ahmad Arwani R - Consultan
Autor :Ahmad Arwani R - Consultan
Warehouse Shifting RolesOld Role &ParadigmOld Role &Paradigm
Cost aspect
Cost Center
Investment Center
Function aspect
Storage
Shipping
Cost aspect
Asset Center
Value Added Center
Function aspect
Movement &Storage
Order Fulfillment
Distribution & Consolidation
New Role & ParadigmNew Role & Paradigm
Autor :Ahmad Arwani R - Consultan
Warehouse Roles?
Warehouse contributed to ROI in :- Sales revenue- Cost- Inventory- Fixed asset
Autor :Ahmad Arwani R - Consultan
How to see Warehouse- Warehouse not only storage anymore…- New Roles : Movement and storage, Distribution and Consolidation, order fulfillment
- Need a new methodology to get the “real” figure- Multi perspective, concise and applicable
Autor :Ahmad Arwani R - Consultan
Warehouse Check-up
Strategic• Ensuring the Link/connection between warehouse
department strategy to division and corporate strategy• These “in-line” connection will show the suitability
overall strategies.
Autor :Ahmad Arwani R - Consultan
Warehouse Check-up
Process• Understanding the process and compare to existing the
policy and standard operating procedures• Examine the warehouse by learning the process will show
whether of all members within obey the rules or not.
Autor :Ahmad Arwani R - Consultan
Operasi (Operations)• In this stage we would examine the warehouse operations
by comparing its operations to the key performance indicator.
• By auditing the operations activity based on performance indicator, we could see any opportunity to improve the efficiently and effectiveness .
Autor :Ahmad Arwani R - Consultan
Warehouse Check-up
CostThere are at least 3 things to be considered in order to
control warehouse cost:• Standard cost• Budget approved• Productivity standards
Autor :Ahmad Arwani R - Consultan
Warehouse Cost• Warehousing and distribution center cost :
– Handling costs Labor cost and utility costs that are proportional
to annual flow through the warehouse– Fixed costs All cost components that are not proportional to
the amount of material that flow through the warehouse
– Storage costs Inventory holding cost, which are proportional to
average positive inventory level
Autor :Ahmad Arwani R - Consultan
Warehouse Check-up
IT (Information Technology)• To make sure whether the warehouse management system
capable to handle the complexity of its operations• To ensure the security of system and data that only
authorized person could use • To gather any value could be upgraded with the WMS
Autor :Ahmad Arwani R - Consultan
Warehouse Check-up
Infrastructure• Ensuring the condition of the warehouse facilitie to guaranted
its operations• Safety, Healthy, Security environment would be the main
issues to be addressed.
Warehouse Check-upPeople• All physical distributions within modern warehouse required a
warehouse person which could handle the warehouse activities based on procedures and operate any warehouse devices
• In this stage :– Ensuring the capability of warehouse members to handle operations
efficiently & effectively– Investigating the opportunity to develop their knowledge by training,
sharing session, discussion– Clear career path, Employee satisfaction and Turn offer ratio monitored
Emma Yulini Co – Founder HRPlasa,id
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