Private and Public Warehouse Operations and Practices: Basis for Strategic Planning and Decision Making

Abstract

Warehouses are the integral part of the supply chain in which they operate, therefore recent trends, such as uncertain and erratic market demand patterns, product range proliferation and shortening customer lead times, all have an impact on the roles that warehouse are required to perform. Warehouses should be designed and operated to match with the specific requirements of the supply chain as a whole. The study assessed whether or not there is a significant difference between the private and public warehouse operations and practices as to: (1) Receiving; (2) Put – away; (3) Storage-in Bulk or Pick; and (4) Order Picking. Assessment was made by the Ten (10) Warehouse Managers and/or Supervisors of Public and Private warehouse. The current practices of private and public warehouses revealed that the Private warehouse, receiving process ranked first of all the operations and practices with 3.72 (CM/HI); Storage 3.56 (CM/HI); Put-away 3.53 (CM/HI); andpicking 3.44 (CM/I). As such this may have variances that hinder to avoid errors that may cause some delays in picking operations. Public warehouse, ranked 1 was the receiving 3.84 (CM/HI); storage3.52 (CM/HI); order 3.52 (CM/HI); put-away 3.32 (CM/H). There is no significant difference in the operations and practices of private and public warehouses. Private and public warehouse strictly adhere to their operations and practices with some flexibility. Attention should be given to Put-away that requires a fair amount of labor because product may need to be moved considerable distance to its storage location. Strict implementation of the FIFO system in the storage of perishable consumables and non-consumables, and supplies/inventories. Reports (daily/weekly) updates on the movement or placement of goods and items to properly monitor the movement and inventory. Maintain and improve Picking strategies to maximize productivity, improve accuracy, and avoid disrupting the operation, is the recommendation with regards to this aspect. Double-check and aim for 100% correct picking system. The warehouse manager can have some programs in the department for 100% error free picking that will aim to perfect this part of the warehousing. This will boost the efficiency of the personnel involved in picking. Receiving, being the most labor-intensive activity, MIS and automation receiving cart that improve efficiency. Finally, the selected groups of respondents must continuously sustain the way they do business to create flexibility in their operations and to constantly increase competitive advantage in the face of increasing global competition.