4892

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This sort of technology facilitates major improvements in communication between the operator and the warehouse management computer, resulting in much greater speed of response within warehouse systems and more efficient and productive utilization of people and equipment. Specific benefits of such systems include:

•paperless operation;

•real-time information and prioritization (e.g. so that pick faces can be replenished just as they are becoming empty);

•high levels of accuracy (e.g. through bar-code scanning and WMS interrogation);

•dual cycling (e.g. a truck may be tasked with two or more activities during one visit to an aisle, such as put-away, replenishment and full pallet picking).

1. Match the words or phrases on the left with the definitions on the right.

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2. Find the words in the text meaning the following:

Nondurable goods; to follow; to refill; criterion; dangerous; cipher; equipment, means; advantage; assistant, supplemental; function

3.Comprehension/interpretation:

1.What can service levels include?

2.What does cost-effectiveness monitor?

3.What is resource utilization concerned with?

4.What do safety and the effective use of staff mean?

5.What is stock turn?

6)Why is it particularly important to monitor the operational parameters? What do these parameters include?

7)What kinds of legislation impact on warehouse operations?

8)What does WMS normally interface with?

9)What kinds of activities does WMS cover?

10)What is bar-coding? What are the types of bar codes?

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11) What are the components of RFID?

4. Give explanations to the following.

ASN

FIFO

OCR

OTIF

SEMA

RFID

WMS

5. Fill in the gaps with missing prepositions.

1.There may be thousands ___ orders received ___ a day, across a range ___

thousands ___ SKUs, and all requiring consolidation ___ individual order, packing and dispatch ___ possibly hundreds ___ vehicles.

2.Warehouses are often the last link ___ the chain ______ delivery ___ the customer.

3.It should be noted that the measure ___ high resource utilization may be ___

conflict _____ the provision ____ capacity to handle infrequent peak volumes.

4.Relevant factors can include the control ___ stock rotation ___ the basis ___

first ___ first ____.

5.These parameters may have a significant impact ____ the performance indicators mentioned _____.

6.An increasing aspect ___ safety regulations is the requirement ____ formal risk assessments to be carried ____ ______ organizations to identify potential hazards and motivate preventative measures.

7.Thus, a WMS will issue an instruction ___ an AS/RS control system ____ a crane to move a specific pallet ______ a pick-up and deposit station ___ the end

____ the aisle ___ a particular location ___ the racking.

8.The major WMS packages are very complex and have a wide range ___

functionality that may be turned ___ or ____ _____ particular applications.

9.An increasingly important benefit ____ such systems is the ability to track individual goods and batches as they progress _______ a system, to provide quick and accurate information ___ progress.

10.____ example, fork-lift trucks may be fitted _____ remote radio data terminals and sometimes also ____ a label printer mounted ____ the terminal.

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6. Translate the following from Russian into English.

Территория склада разбивается на зоны по видам технологических операций в целях автоматизации процедур: приёма, размещения, хранения, обработки и отгрузки товаров, что позволяет упорядочивать работу персонала на различных участках и эффективно распределять сферы ответственности.

На стадии внедрения в систему заносится описание физических характеристик склада, погрузочной техники, параметры всего используемого оборудования и правила работы с ним.

Все поступающие грузы помечены штрих-кодами. Проведение технологических складских операций под контролем системы производится на основании данных штрих-кодов, места хранения и погрузочной техники. Погрузочная техника и работники склада оснащаются радиотерминалами ввода-вывода данных, которые представляют собой переносной компьютер, общающийся с головным сервером системы по радиоканалу. Система может использовать любой из существующих типов кодов или печатать этикетки с внутренним штрих-кодом.

При проведении инвентаризации специалисты с помощью терминалов для сбора данных (ТСД) считывают штрих-коды, которые автоматически заносятся в базы данных приборов.

Система учитывает все требования к условиям хранения при распределении мест хранения для поступающих на склад товаров. Например, могут учитываться влажность, температурный режим, сроки годности, производители, сроки реализации, поставщики, правила совместимости и любые другие параметры. WMS автоматически подбирает места хранения для принятых грузов и формирует задания для работников склада. Задания поступают на экран радиотерминалов в виде элементарных поэтапных команд индивидуально для каждого работника.

При формировании команд система разрабатывает оптимальные маршруты перемещения техники по территории складского комплекса, что позволяет уменьшить холостой пробег погрузочных средств. На выполнение операций система назначает ту погрузочную технику, использование которой наиболее полно отвечает поставленной задаче. Выполнение заданий подтверждается сканированием штрих-кода. Таким образом, система контролирует все действия работника и позволяет практически полностью

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исключить возможность ошибочного размещения груза или неправильного комплектования заказа. В системе мгновенно обновляется вся информация о местоположении грузов, наличии товара на складе, действиях работников и произведенных операциях. Для удобства имеется возможность наблюдения за складом в режиме двухмерного графического отображения. По результатам работы или состоянию склада система позволяет формировать отчёты, которые могут как выводиться на печать, так и передаваться в корпоративную систему компании.

7. Read the case and answer the questions.

Made4net successes

About Natela importers

Natela Importers is a leading food distributor in South Africa, distributing international brand names such as Ferrero Roche, Kinder, Nestle, and Yougata to name a few. Due to increased demand and the company’s expanding geographical reach, Natela has built a new distribution centre in Johannesburg to meet its continuous growth.

To run and operate the vast new distribution centre with its diverse products and complex operations successfully, Natela has turned to Made4net for an end-to-end warehouse management system. The distributor has chosen to implement

Made4net’s WarehouseExpert™ in its new CDC as a first step in optimizing its supply chain management and improving its operational processes.

The Natela challenge

Natela was managing a high volume of inventory using a paper-based system together with an older out-of dated inventory tracking function. Natela needed to overcome the following obstacles:

-reliance on paper-based systems for inventory information to manage a high volume of inventory;

-the complete lack of data collection and inventory tracking functions in Natela’s Syspro ERP inventory management system, which failed to address the needs of the new DC to be built that year;

-inability to track the company products “time in inventory” which created orderprocessing problems;

-the total lack of automation and real-time data having a negative impact on operations and customer service levels.

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According to Natela’s Managing Director, Irad Yuval, the difficulties they experienced came at a high cost: “Our people routinely had to conduct a difficult hunt to find the right product to fill an order. In addition, expiration date was not managed properly and therefore we had sever write offs at the end of each quarter”.

With the company barely holding up against severe growth pressure, they could not afford to perpetuate their inefficient system by simply hiring additional personnel. Neither could Natela invest the time and expense required to develop a solution from scratch in Syspro. It became more than evident that a highly featured automated warehouse management system (WMS) was a must with time, budget and flexibility being factors of concern. After seeking the market, Natela decided to select Made4net’s WarehouseExpert™.

Made4net’s solution

Deployment of WarehouseExpert™ took approximately 16 weeks, including training for about two dozen warehouse employees. The solution included a complete system for managing a warehouse, from receiving through optimized putaway, enhanced picking, replenishment, counting, resource utilization and more. The system was fully integrated into Syspro and supported PsionTeklogix RF terminals that the employees used as end devices.

Made4net delivered results

Made4net delivered the project on time and on budget. With its new central DC operated by WarehouseExpert™, Natela has seen measurable improvement on multiple fronts.

-warehouse personnel are now equipped with wireless handheld barcode scanning systems, directed by the new WMS that utilizes the resources based on real-time needs and in accordance with various operational constraints;

-the new directed picking capability has led to a quantum leap in worker productivity: a large order that once took 2-3 hours to pick can now be completed in a mere one hour;

-accuracy vastly improved: instead of trying to interpret product labels, workers can now scan bin and/or product labels to instantly identify correct products;

-all products are captured with the associated code date control (expiration date or best before) upon receipt and the system ensures that workers pick the oldest lots;

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-WarehouseExpert™ enables Natela to enforce it critical FEFO (first-expired, first-out) inventory management policy;

-increased customer service levels.

“Clearly, the system has made us far more efficient, which greatly reduces costs,” said Yuval. “Our cost associated with picking has been decreased by nearly 20%, our inventory turns have nearly doubled, and we’ve reduced errors.”

In addition, the company has become far more responsive to customer inquiries. “Before, when a customer called about the status of an order, the best we could do was go track it down manually and call back,” said Yuval. “Now, with access to accurate, real-time data, we can answer the customer’s questions on the initial call

– and that’s just one more way that automation has made us more competitive.”

1.What is company business?

2.What was the cost of the difficulties they faced with?

3.How did they come to the idea to use Made4net’s WarehouseExpert™?

4.What was Made4net’s solution?

5.What were Made4net’s delivered results?

II. Watch the video “Warehouse location decision” and do exercises. Words to remember:

converse – обратное утверждение

incumbent transport hub – действующий транспортный узел landmark – знаменательный

rule of thumb – золотое правило

1. While watching the video, answer the following questions.

1.What questions do Supply Chain Executives typically ask with respect to warehouse location decision?

2.How many cost impacts of multiple distribution centers were mentioned?

3.What is the concept of the Square Root Law?

4.What is the example of the rules of thumb for operations within Australia?

5.What objective within any distribution centers should you set when you plan and control five expense areas mentioned above?

6.Why does the expert disagree to the geographical location for a National Distribution Center in Australia?

2.Watch the video fragment again and fill in the gaps with the missing words given above.

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Chief Executive Officers and Supply Chain Executives typically ask 2 questions

____________ warehouse location decisions. Firstly, how many __________do I need to adequately service my customers? Secondly, how can I _________of warehousing? Finding answers to these questions can be perplexing.

So, as a starting point, let’s focus for a moment on _________of multiple distribution centers. You may like to refer to the model displayed on a screen or to the logistics bureau website to view the model.

Firstly, multiple warehouses means higher storage ____________and running cost. Secondly, inventory holding cost, otherwise known as_____________, increase when inventory is held in multiple locations. This is reinforced by ___________by D.H. Maister published in the International Journal of Physical distribution in 1975. This study ___________ the reduction of inventory holding applicably when the number of distribution centers in a network is decreased. Known as the Square Root Law, Maister determined that the __________ in the network is proportional to the square root of the number of locations at which product is held. For example, if I reduce my warehouses down from, say, 8 to 2, by calculation, the law says that I’ll reduce my total inventories by 50 %. If I was to reduce my warehouses from 8 to 1 that increases to 65%. So, the key learning point here is that reducing warehouses, decreases stock holding and the associated _________ to finance it.

Now, for points 3 and 4, I am going to touch on transport. Point 3: Primarily line haul costs for transport between facilities are much higher for multiple facilities as more tonkilometers are travelled to replenish distant warehouse.

And for point 4 the converse applies. Point 4: customer delivery cost from multiple regional warehouses, otherwise known as__________, tend be lower because with more facilities the __________ between the warehouse and the customer is reduced. So, for your network design purposes and your assessment of the most appropriate delivery

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service times for your customers, you might like to note these ___________ for operations within Australia.

If a warehouse is 12 hours or less drive from your customer, for example from Melbourne to Sydney or Sydney to Brisbane delivery into store can be made

_____________ after dispatch. For customers 12 or 24 hours’ drive away, such as from

Brisbane to Melbourne, then delivery will be 2 days. For deliveries exciding 24 hours drive as in this case from Sydney to Perth ___________ of 3 to 4 days are typical. Now these rules are useful in __________ warehouse cost with transport delivery charges.

Finally, let’s look at point 5. It deals with control and systems. For multiple__________, warehouse management systems costs increase markedly as more licenses, interfaces, and hardware requirements cause costs to rise.

So, to plan and to control these five expense areas the objective within any distribution network is ___________ of facilities that will reduce to total cost curve while still maintaining appropriate levels of customer service.

So, you might say, how do I define what is optimal. Well, during the design process Executives should use a blend of common sense and appropriate use of

____________for important network decisions. Be cautious here, even the best designers, using excellent optimization tools and modeling, can____________. For example, one model I have seen showed that the best _____________for a National Distribution Center in Australia was in Western New South Wales. I will not argue about the geographical __________ for this. However, the solution did not take into account the significant population centers on __________ of Australia, nor the incumbent ___________ and spoke networks and infrastructure in coastal of Australia. Taking these into account we often reveal a different solution. For instance, for a company supplying ___________to the Australian market place it is common for a National Distribution Center to be placed in either Sydney or Melbourne with an additional 2_____________: one in Perth and the second in either Brisbane or Northern Queensland. In this way, the rule of thumb service times, mentioned earlier, can be achieved.

In a short module I have covered some __________ in rules of thumb which can be applied to warehouse location decisions. I trust that I have been helpful to you and wish you well as you determine the optimal number of warehouses in your network.

3. Summarize the information represented in the video.

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Contents

1.Unit 1. Key things in Logistics.

2.Unit 2. Logistics process.

3.Unit 3. Logistics network planning

4.Unit 4. Channels of distribution.

5.Unit 5. Warehouse management

Sources

1.Alan Rushton, Phil Croucher, Peter Baker The handbook of logistics and distribution management, 3-rd edition, 2006. – ISBN 0-7494-4669-2

2.David Simchi-Levi, Philip Kaminsky, Edith Simchi-Levi Managing The Supply Chain: Definitive Guide, McGraw-Hill Education (India) Pvt Limited, 2004. – ISBN 0070598584, 9780070598584

3.How to find Proper Distribution Channels for your Products: A Case Study of Chongqing Beer // http://hkmanager.hkma.org.hk/article/how-to-find-proper- distribution-channels-for-your-products-a-case-study-of-chongqing-beer.html

4.Natela Importers (PTY ) LTD/ MADE4NET: WMS CASE STUDY Copyright ©

2007, Made4net LLC http://www.made4net.com/

5.Логистика: управление в грузовых транспортно-логистичесикх системах : учеб. пособие / под ред. проф. Л. Б. Миротина. – М. : Юристъ, 2002.

6.Система управления складом [Словарная статья] // http://ru.wikipedia.org

7.Сханова С. Э. Транспортно-экспедиционное обслуживание : учеб. пособие / С. Э. Сханова, О. В. Попова, А. Э. Горев. – М. : Academia, 2005. – ISBN 5- 7695-2000-0

8.Толуев Ю. И. Имитационное моделирование логистических сетей / Ю. И.

Толуев // http://simulation.su/uploads/files/default/toluev.pdf

9.Транспортная характеристика тарно-штучных и штучных грузов // http://scbist.com/scb/uploaded/tgs/10-1.htm