Supply Chain - Storage

 Hello Everyone,

I am writing this post as a part of the SIP preparation series. To start with I have chosen "Supply Chain Management"  as the initial topic for discussion. I hope this will be useful and add value to your preparation.

The supply chain, with proper management, can lead to tangible service and value to the business. Managing storage as a supply chain can lead to short lead times in meeting business application deployments and high quality of delivered storage services at reduced costs of operations and capital.

Storages in a supply chain are as follows:

1.Production: Types of storage available

2.Supply: Tiers of storage

3.Inventory: Available storage

4.Location: Both primary and secondary

5.Availability: Overall storage network performance

6.Reclamation: Reuse of existing storage

7.Information: Application through to the spindle on the array 

Types of Storage Sytems in Supply Chain

Static Shelving:

For lightweight articles and used in continuous replenishment. It is suitable for manually picked and placed inventory.

Short Span Shelving – Better suited to smaller stock items, although most systems are adjustable.

Long Span Shelving – Larger units with space for bigger items

Mobile Shelving:   

Shelves or cabinets are mounted on carriage and rail systems, eliminating fixed aisles. The Setup can hold more items in less space and it also includes the level tracks. 

Pallet racking:

Pallet racking is more suitable for the busiest and largest warehouses and the components are easily accessible. The racks are mobile, with weight, stability, and consume space. Items are placed with a help of a forklift or an automated mechanism. 

Various types of pallet racking are as follows

1.Carton-flow Racking

2. Cantilever Racking

3. Coil Racking 

MultiTier Racking:

Multi-Tier Racking is suitable for large stocks of items that have small unit sizes. Using multi-tier racking we can capitalize on vertical space. The major concern includes the lightweight items that are picked and organized manually. It is flexible as the number of tiers depends on the number of items. We should pay attention to the weights limits and ceiling to rack height guidelines while adding new tiers. 

Mezzanine Flooring:

Mezzanine flooring is used as a space-saving storage option. It involves the construction of a structured floor over the main warehouse floor. This is one of the most expensive storage options in the market.

Cost Factors in Storage:

Rental and/or amortization: The Nature of the cost will depend on whether the warehouse is owned by the company or leased to a third party.

Financing: Capital required to invest in a warehouse.

Repairs and maintenance: Cost of the warehouse maintenance such as painting, insulating, paved floor repairs, building improvements.

Insurance: Ordinarily, a company protects its warehouse building against accidents or losses such as fires, floods, earthquakes

Taxes: Taxes related to the building, such as the property tax, water tax etc.

Regards,

VB