Global Logistics and Supply Chain Management by John Mangan & Chandra Lalwani & Tim Butcher & Roya Javadpour

Author:John Mangan & Chandra Lalwani & Tim Butcher & Roya Javadpour [Mangan, John]
Language: eng
Format: azw3, pdf
Publisher: Wiley
Published: 2012-01-31T05:00:00+00:00

These material related value-adding activities are illustrated in Figure 11.2. Furthermore, warehousing plays an increasingly important role in manufacturing and logistics postponement (as discussed in Chapter 4). With the recognised benefits of postponing final assembly and combining freight and/or packaging, downstream distribution centres today offer much more than just storage and handling. Hence such facilities include assembly and packaging processes to ensure that order fulfilment can occur as close to the end customer as possible, postponing stock handling until the order is confirmed. In this way, the number of product lines that needs to be held only comprises those of the base components rather than all the varieties of the final goods that could be demanded. This postponement concept can therefore be used to reduce inventory significantly, where appropriate.

Increasingly, global supply chains are as concerned with information flows as they are with material flows. Hence information-related value-adding activities such as product tracking and cycle counting are also essential warehousing functions that improve supply chain performance.

This chapter will continue by explaining how modern warehouse operations are designed to not only maintain the flow of freight, but also enhance its perceived value.

Warehouses should aim to provide value-adding services as well as minimising operating costs.

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