2014 Logistics Case Counseling: Warehouse Management Case

Warehousing is a comprehensive place to focus on the status of factory material activities, is connected to the production, supply, sales of the transit station, to promote production to improve efficiency plays an important supporting role.

Warehousing is the product production, circulation process due to the order front or market forecast front and make the product, items temporarily stored. It is centralized to reflect the status of the factory material activities in a comprehensive place, is connected to the production, supply, sales of the transfer station, to promote production to improve efficiency plays an important auxiliary role. At the same time, around the warehousing entity activities, clear and accurate statements, documents accounts, accounting department accounting for accurate information is also carried out at the same time, so warehousing is logistics, information flow, document flow of the unity.

Warehouse management focus

With the different orders and business models, warehousing models are different. Below we introduce different order taking mode of warehousing management focus one by one, and business mode associated with the warehousing mode of the important terms are explained below.

The important terms associated with the mode of operation and storage mode are explained below:

1. BTS / BTF: Build to Stock / Build to Forecast, a mode of trading that automatically replenishes stock according to the inventory level agreed with the customer beforehand.

2. BTO: Build to Order, a flexible order-taking mode of transaction based on customer orders for production scheduling, material procurement, and delivery arrangements.

3. CTO: Configuration to Order, a flexible order-taking transaction mode where standard semi-finished products are tested and assembled for delivery according to customer orders.

4. VMI: Vendor Managed Inventory (VMI), free supplier storage, 1-2 hours drive from the assembly place, 3-14 days order or forecast front inventory.

5. VMSA: Vendor Managed Staging Area, manufacturer's free storage, 1-2 hours drive from customer's place of sale, 3-14 days order or forecast lead time finished goods inventory.

BTS / BTF is the traditional way of receiving orders, in the customer to provide forecast demand for the formulation of production measurement, according to the established specifications for the production of semi-finished products, finished goods into storage, the customer orders and delivery notification and then by the inventory shipments up to delivery. The key element of the delivery time is "the amount of semi-finished products on hand and the amount of finished products on hand" to replenish the scheduled production measurements and to meet the needs of the order, and if necessary, to establish a Hub (transit warehouse) and the final assembly line to meet the customer's needs. In the BTS / BTF trading mode, the management of different warehousing modes focus on the following:

VMI: In terms of raw materials, the requirements of valuable and homemade suppliers stationed in the VMI Hub, the production of the first section as far as possible to achieve no inventory (inventory belongs to the supplier), and mobilized when the goods to be mobilized, the true meaning of the term has been such as noun explanation; in the case of semi-finished products, in accordance with the projected demand for the preparation of materials, but pay attention to the variables of the market demand, adjust the inventory level at any time. Adjustment of inventory. Min / Max (demand / minimum demand) plus supporting control of its replenishment. Semi-finished products need to be controlled by SFC (Shop Floor Control, which automatically captures inventory information before the work order is put into effect, and automatically schedules and allocates a better shipment plan for supply chain management activities).

VMSA: Hub located at the customer's place, according to the customer's sales status and Forecast's variables with the customer **** with the negotiation to adjust the Hub's Min / Max, to achieve the customer's pickup automatically reflect the inventory and replenishment back to the manufacturing base.