24th December 2007

The Star Maritime

Warehouses need to be on par with multinationals

Malaysia needs more world-class warehouses to develop a successful manufacturing supply chain.
 
Freight Mark (M) Sdn Bhd operations and warehouse manager G. Vizayer Raj said half of the warehouses in Port Klang were still manually operated.
 
“They need to be of world-class standard and to be at par with the multinational logistics players in this country.
 
“Despite just-in-time (JIT) production, warehousing continues to play a critical role for companies worldwide,” he said in his presentation entitled World Class Warehousing and Inventory Management at the recent Supply Chain Conference.
 
Vazayer said world-class warehousing required equipment, metrics and methodology to increase efficiency, accuracy and productivity.
 
“Previously, effective warehousing was a relatively straightforward progression of receiving, storing and shipping.
 
“But, in today's age of e-commerce, supply chain integration, globalisation and JIT methodology, warehousing has become more complex and costly,” Vizayer said.
 
He said warehouses were now “flow-through” centres where products would be offloaded, stored temporarily for one or two day and then shipped to customers.
 
“Warehouses are now an integral part of the supply chain. Planning is important and buildings need to be set-up for movement rather than just a place for storage,” he added.
 
Vizayer said cross-dock labelling was an important part of this flow through concept of warehousing.
 
Cross docking is a term use to describe the unloading of merchandise from one trailer and immediately distributing the goods to one or more waiting trailers for shipment to a store or customer.
 
“The ideal situation would be when product shipments come into the warehouse pre-labelled with their destination.
 
“A recent survey showed 46% of cross-dock labelling was being done by suppliers and 55% of inbound orders which were planned against shipping notices.
 
“To be world-class manufacturers their supply chain, which include warehouses must be able to respond quickly to customers' requests, sometimes within 24 hours,” he said, adding that modern warehouses now use warehouse management system.
 
“The usage of bar code systems can track products from the time they enter into the warehouse, random bin locations, workers efficiency and other kinds of useful data,” he said. 

  
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