Presently, warehousing and materials handling (MH) has gained traction in the way people view the significance of these functions in the supply chain. The activities of warehousing are seen to be primary activities, which not only involve the temporary storage of goods, to bridge the production-consumption gap but also activities that take into account a considerable amount of handling (Richards, 2018). Therefore, the issue of MH and Warehousing has attracted contemporary research for almost four decades now, as the significance of the two functions forms a vital component of the supply chain in inventory accumulation and withdrawals. However, the two subjects are affected by the era of automation, with supply chain automation attracting much attention, as more organizations are now spending time, energy, and resources on it.
The reason why warehousing and MH have attracted contemporary research is due to the significance that the two elements add to the supply chains of organizations. For instance, Warehousing involves the activities associated with the storage of goods waiting for disposal or distributed later (Buxton, 2019). The activities of the warehouse form an integral part of sophisticated industry activities known as logistics management—which includes, procurement, distribution management, and inventory management. Warehousing activities enable organizations to perform other activities of the supply chain that may involve product development, marketing, and sales activities. Most significantly, warehousing ensures that manufacturers, distributors, and even retailers keep track of the inventory while storing it safely to ensure that inventory becomes an asset rather than liability to the organizations (Bowersox, & Closs, 2017). Warehouses can be a spare room, a garage, a basement, or a large rented space in a building that is designed for storage. These buildings are characterized by loading docks, which enhance the loading and unloading of goods. Cranes and forklifts for moving the goods, and ISO standard pallets and pallet racks that are used to place goods on. Goods on a warehouse are either stored temporarily or permanently (Mohsen, & Hassan, 2018). However, a temporary storage activity is linked with flow of inventory under the normal distribution operations, which is usually holding stock for a limited amount of time that depends upon the order cycle. Thus, factors that may contribute to the limited holding of stock may include the cost of operations, and characteristics such as perishability, volume, sales, value, and profit contribution. When the goods are stored, they allow for activities such as sorting, reassembling, and breaking of bulk to bridge the gap between customers ordering in small quantities and manufactures producing in large quantities (Bowersox, & Closs, 2017). Additionally, warehousing ensures that the goods are readily available to the customers throughout the year, to counter seasonality, extreme demand variability, product conditioning, and speculation as factors that influence demand. As a result, goods stored can act as a buffer against anticipated fluctuation of prices.
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MH comes about when the goods stored in the warehouse are moved in a short-distance within the confines of the warehouse or between buildings. This is enabled through manual, semi-automated, and automated equipment, which contribute to the flow of material from the production to consumption centers. MH is, therefore, the movement, storage, protection, and control of materials and goods throughout the manufacturing cycle, essential in supporting the logistics and making the supply chain work (Buxton, 2019). The fundamental objective of the MH system is to ensure that the ultimate customer service is improved, reducing inventory levels, and most importantly shorten the delivery times of goods to the customers. In return, the overall handling costs of materials significantly reduced. Additionally, the significance of MH ensures that there is an improved flow of materials using auxiliary equipment, hence, reducing significantly incidences related to stoppages in production machines and the whole supply chain. This increased the production flow and timely delivery of goods to the customers (Richards, 2018). MH is related to the early day of man, where the physical handling of materials was done, however, today, man has applied the mechanical principles of MH, which involve the lever, pulleys, and wheels. Nearly all activities of a human being are involved with moving things, hence, the significance of MH cannot be underestimated. However, it is important that organizations understand that MH does not add value to a product but significantly adds to the element of cost, with almost 30 percent of the cost of a product related to MH (Mohsen, & Hassan, 2018). When careful considerations of these costs are done however, there is need for reducing the MH costs through a system approach, while also focusing on the time consumed during the handling of materials. Nevertheless, when the two aspects are carefully considered, MH devices can definitely increase the output, speed up delivery time, and improve on the quality of goods, hence, reducing significantly the overall costs of production.
Supply chain automation has attracted much interest today, with a significant number of organizations moving away from the historical inventory management, to distribution centers automation, which has had significant influences on the warehousing, and MH activities related to the supply chain. Automation of these activities has resulted in increased efficiencies associated with the storage systems, sorting, and picking functions in a warehouse. In addition, computer software solutions applied to manage and control operations in the warehouses. Systems such as Warehouse Management Systems (WMS), and Warehouse Control Systems (WCS), allow for effective management of all the activities within the distribution centers and automating equipment (Buxton, 2019). This, in turn, offers significant benefits in terms of increased accuracy and efficiencies, accountability, work confirmation, and performance measurement that aids in planning of the general activities of the warehouse.
Storage and MH form integral components of the logistics system.in a manner that involves the manipulation of goods in the production process to the transfer of finished products to the users. Manipulation and rotation of stock is made possible through a dynamic storage system known as the warehouse, which enables the combination of different equipment such as forklifts, and stacker cranes for example, that enable for the horizontal and vertical movement of goods within the warehouse. As such, the two elements are seen as significant components of the supply chain, which increase production efficiencies and speed up delivery times to the consumers. With the aid of automated systems, equipment can be automated and enhance the management of the activities within the distribution centers.
References
Bowersox, D. J., & Closs, D. J. (2017). Logistical management: the integrated supply chain process . McGraw-Hill College.
Buxton, G. (2019). Warehouse Management and Materials Handling. In Effective Marketing Logistics (pp. 125-144). Palgrave Macmillan, London.
Mohsen, & Hassan, M. D. (2018). A framework for selection of material handling equipment in manufacturing and logistics facilities. Journal of Manufacturing Technology Management , 21 (2), 246-268.
Richards, G. (2018). Warehouse management: A complete guide to improving efficiency and minimizing costs in the modern warehouse . London: Kogan Page.
