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Lecture 04 : Storage and Warehousing — Transcript

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0:01[Music]
0:22[Music]
0:25hello dear friends once again welcome to
0:28uh nptl online course on Logistics and
0:30Supply Chain management so uh today
0:34lecture four will be on storage and
0:36warehousing so I'm Dr vikas takur
0:39Department of humanities and social
0:41sciences IIT
0:43kakur so under this session we'll try to
0:47address the various concepts of storage
0:50and warehousing and then we'll see the
0:52cross docking as one of very big
0:56opportunity and how we can utilize this
0:59opportunity
1:00but yes there are some challenges and
1:04then we'll discuss small case studies on
1:07storage and
1:09warehousing so let's start with the very
1:13basic function uh in any Logistics
1:15distribution Network that when we are
1:18talking about inventory when we are
1:19talking about Transportation so in
1:22between where will keep this inventory
1:24so we need to have some storage centers
1:28right either you are you can store your
1:31raw material or you can store your sub
1:34assemblies or you can store your
1:36finished goods right even once it is
1:39dispatched from your manufacturing unit
1:43down the supply chain also you can store
1:46those goods just before Distributing the
1:49product to the final
1:51customer so storage in logistics and
1:54Supply Chain management refers to the
1:56process of storing Goods material and
1:58products at various points along the
2:01supply chain from the raw material
2:03procurement to finished goods
2:05distribution effective storage
2:07management is crucial for ensuring the
2:09smooth flow of
2:11material optimizing inventory levels and
2:14meeting the customer demand so just
2:18before proceeding further we'll discuss
2:21what are the different aspects but yes
2:23we'll go through this video link and
2:25then we'll see how this wonder is
2:27happening when we are saying that 10
2:29minutes delivery and how we are dealing
2:33with those perishable items and we are
2:35getting these out of nowhere kind of
2:38thing and the term used is your ghost
2:41stores or dark stor so here I have
2:44included some uh video links you guys
2:46can just quickly go through these videos
2:49and then we'll uh continue our uh
2:51discussion on the topic yes so blinket
2:55japo these are some of the few players
2:58which are promising you 10 minutes
3:00delivery and you have seen one dark
3:02store in Delhi then Mumbai and then
3:05bangaluru so the Delhi store they were
3:09dealing with all the routine items you
3:11are using in your household but
3:13especially talking about bangaluru and
3:15Mumbai that's small store is dealing
3:18with the perishable items kind of fruits
3:20or vegetables right now uh the best uh
3:25the basic feature of this uh dark store
3:28is that you need not to brand this store
3:30right you can take this facility maybe
3:33somewhere little bit outside of the city
3:35right where you can get prob the more
3:38strategic location in terms of if we are
3:40talking about the price of that facility
3:42right so that way we can move little bit
3:46away from the main city and then you are
3:48recording orders through different
3:50channels om Channel approach can be
3:52there and once orders are recorded maybe
3:55in the morning orders whatever you are
3:56recording by evening you can deliver or
3:59whatever evening you are recording in
4:01the night your the second shift you can
4:03process those orders and in early
4:05morning you can go for delivering the
4:07products right so in that way when you
4:11are not inviting this is a kind of
4:13another concept where you are not
4:15inviting customers to your store rather
4:18you want to save that time interacting
4:21with the customer you want to save that
4:22all those facilities which you will
4:25provide when customer are visiting to
4:26your store all those you can minimize
4:29the cost as well in uh you know uh
4:31addressing those things that cooling AC
4:33facility not required required that uh
4:36you know lighting that much lighting is
4:38not required in that way you can be
4:40efficient and then because you are
4:42keeping enough space in between in that
4:45uh wehouse that customers can easily
4:48move with their trolleys and all the
4:50stuff in their hands right so that way
4:53when your uh specialized trained workers
4:55are moving so obviously you can
4:58optimally you can use that space limited
5:00space right so these are some of the
5:03advantages when you are working uh in
5:06dark stores right let's go further and
5:08we'll discuss about the storage and what
5:11are when we are talking about storage
5:12what are the key basic elements we are
5:15addressing first is your we talked about
5:18in probably in the first or second
5:20lecture uh that seven hours that uh
5:24through this logistic services we are
5:25targeting the right customer right
5:27quantity right place right time right
5:30price right and quality variety all
5:33those things are there so obviously here
5:36also in storage will try to address the
5:41customer requirements right so to know
5:44the requirement first we'll interact
5:46we'll interact with the customer we'll
5:48analyze their behavior pattern and then
5:50we'll manage the customer in that way
5:52with the right offerings so with right
5:55offerings means you need to find out the
5:58taste of the Lo local people community
6:00where you are operating what quantity
6:02they are buying what type of flavors
6:04they are weying so all those things
6:06right or maybe shape or size different
6:09size products are there in your basket
6:11right usually up to what size or shape
6:14or maybe the weight they are buying that
6:17product right and how frequently they
6:18are buying right so that will help you
6:21to manage your category of products and
6:24then you need to manage the suppliers
6:26also so storage part is uh
6:30there also because it is not uh one one
6:34piece kind of flow in the supply chain
6:36or in the manufacturing unit or we are
6:38talking about just in time right so your
6:40suppliers are also part of that they are
6:43also storing The Goods the raw materials
6:45right for whatever the raw material we
6:48are taking from the supplier maybe it is
6:50raw material for us but that will be the
6:52finished product for the supplier for
6:54supplier raw material may be coming from
6:57some other supplier right so in we are
7:00providing those stor houses so right
7:03place then we need to place to the
7:05customer using your Logistics and
7:08warehouse management right there also
7:10will try to you know in distribution
7:13centers or we talked about the
7:14Fulfillment center where you are
7:16recording the order and then in the end
7:18you are processing those orders by uh
7:21you know uh delivering the orders and
7:24again you are going for replenishment of
7:26the inventory so when again you will go
7:29for the replenishment again you need the
7:31storage houses to replenish the
7:33inventory so how you will plan the
7:36replenishment cycle that will be based
7:38on your forecasting how you are
7:40forecasting the demand the behavior
7:42patterns right the buying patterns
7:44rather right so accordingly you will
7:46place the this is how we'll manage the
7:49total store within the store how we are
7:52channelizing the inventory how we are
7:54keeping the products on the shelves
7:56right how we are ensuring that product
7:58should not go obsolete which product we
8:01should move first right depending upon
8:04and once it is maybe outdated so expiry
8:07after expiry how we are again returning
8:09or channelizing the product right so
8:11this is very important if you quickly
8:14talk about a small maybe uh milk
8:17supplier who is maybe having uh the milk
8:21related products or milk itself let's
8:23say so let's say he is daily he is
8:26predicting that he can consume around uh
8:281,000 lit of milk so those many packets
8:31of one liter or packaging maybe 2 lit
8:33packaging or maybe half liter packaging
8:35he is storing in your uh in his uh
8:38storage house in his refrigerator right
8:41so but let's say on one end he is able
8:44to consume the full inventory and maybe
8:47some customer he said no so next day he
8:49will increase the inventory right so the
8:51again very fundamental concept of this
8:53is we should never say our customer no
8:55because then that person or customer
8:57will carry that perception that
9:00sometimes I'm not getting the products
9:02so product availability is the major
9:04focus of distri any distribution Network
9:06so let's say the other day he could
9:08consume only 900 L what he'll do with
9:11the 100 lit right 100 lit of milk again
9:15he will uh return back to the reverse
9:18supply chain and maybe it will be
9:20processed again it will be processed and
9:22will be delivered and then very next day
9:24so this is again very important function
9:27of storage
9:29so what are the components of storage
9:31first component is warehousing as we
9:33talked about uh warehousing function as
9:37storage hubs where goods are housed
9:39prior to distribution to the customers
9:42right so uh these facilities may be
9:45owned by your manufacturers manufacturer
9:47may have their own facilities but
9:49usually in large distribution Network or
9:52even in in small distribution Network as
9:54well we are Outsourcing this to third
9:57party Logistics who is taking care of
9:59this
9:59Logistics Transportation warehousing and
10:02these distribution activities right so
10:05we are usually Outsourcing that but then
10:07they are also having their warehouses
10:09and in that way they are managing so
10:11their warehousing is important component
10:13of storage so usually warehouses are
10:16equipped with some very common
10:18equipments you can say sheling are there
10:20racks pallet Auto pallets are also there
10:23right so that depends upon the
10:25infrastructure of that warehouse whether
10:27it is automated or not so you usually to
10:30cut down the cost minimizing the
10:33handling cost and breakage cost you are
10:36not damaging the products so what we are
10:37doing now we are replacing the manpow
10:41with the robots where we can more
10:43efficiently handle the products and
10:45Warehouse will be totally automated and
10:48we will ensure this through robot
10:50process that anything in in our
10:53inventory should not go outdated right
10:55so we'll move that inventory first so
10:58automatically information will be shared
11:00stored digitally and electronic records
11:02will be shared throughout the supply
11:04chain second thing is the important
11:06component is Inventory management as we
11:08discussed about so usually if we we are
11:12talking about warehouses so we are
11:13keeping the finished goods right but yes
11:16raw materials or sub assemblies also
11:18sometime we are keeping right so I told
11:20you that that raw material may be raw
11:23material for me but for my supplier
11:24maybe it is the end product right so we
11:27as inventory manager we need to ensure
11:29the sufficient stock availability while
11:32minimizing the holding cost right on the
11:35this promise that always you are
11:37available with the product should not go
11:39with very high storage cost and then if
11:42you are storing too much inventory then
11:44chances are there that it may go
11:46obsolete right so that also you need to
11:49maintain so accordingly you'll design
11:51your replenishment cycle and then your
11:54inventory valuation will keep in the
11:56limits right the third important element
11:59is storage facilities so storage
12:01facility different types of storage
12:03facilities can be there that depends
12:05upon again the size of the product you
12:07are storing the shape of the product the
12:10nature liquid gas or any hard product
12:13you are storing right so sometimes you
12:16are storing perishable items then you
12:18need Cold Storage kind of facility right
12:21sometimes you are storing those items
12:23which may should be protected from the
12:25common man right or maybe dangerous
12:27items hazardous items in terms of that
12:29we can say so then you you should ensure
12:32that should be leak proof right so means
12:36depending upon whatever your
12:37requirements are then storage facilities
12:40uh we have to design accordingly so
12:43specification will be tailored around
12:45your requirements the another appointed
12:48component of this storage is storage
12:50equipment as we talked about these
12:52warehouses are equipped with pallet
12:54racks shelving units measuring floors
12:58and fork lifts automatic forklifts are
13:00there conveyors are there tugs are there
13:02automated storage and retriable system
13:05right so these are some of the
13:06equipments hard equipment if we'll talk
13:09about we are we are using soft softwares
13:11also like uh transportation management
13:14system software is there warehouse
13:16management system we'll talk about these
13:18softwares also how the these softwares
13:20are playing very very important role
13:22when we are talking about the storage
13:23part right the next thing is Safety and
13:27Security so when we are are talking
13:29about like I told you about the
13:31hazardous material if anything hazardous
13:34you are uh uh storing in your Warehouse
13:38so you should ensure that it should not
13:40be you know carry away by any any
13:42unknown person right so the exess should
13:45be limited to that again if you are
13:47storing the damage and load should not
13:49happen what type of product very fragile
13:51kind of items you are storing so then in
13:54that way you need to ensure the safety
13:56so then you can ensure the surveillance
13:59cameras you you need to access the uh
14:03Control Systems alarms or physical
14:05barriers whatever you need to deploy
14:07that so that you can ensure the safety
14:10and security of the inventory again that
14:12depends upon what type of inventory you
14:14are keeping if you're kind you are kind
14:16of military organization uh okay so you
14:19are related to defense system their
14:21warehouses should be you you know what
14:23type of you know that infrastructure is
14:25required and how they need to ensure the
14:27safety and security of those kind of uh
14:30stuff they are storing
14:32inside another important component is
14:35Material Handling right so Material
14:37Handling is the movement of the material
14:40or goods from one location to other
14:42location and if I'll talk about material
14:44handling is usually this term is used
14:46within organization within one
14:48manufacturing unit right so if I'm
14:50talking about one manufacturing unit so
14:53let's say these are the assembly lines
14:55and these are the substation or
14:57workstation or all those assembly lines
14:59so maybe one product may be moving like
15:02this like this okay other product may be
15:04moving after this stage it is coming
15:06directly to this stage then it is going
15:08to this stage this stage maybe some
15:10stages uh are not not required then it
15:13is going to this stage right so this way
15:16Material Handling is required on the
15:19production lines as well so even before
15:22the production line if material is
15:23coming you
15:24are storing it in your stores then your
15:28production planning and control PPC is
15:32issuing the kit production kit to the sh
15:36Flor to the production floor right so
15:39accordingly what are the items required
15:41for today's production you you will be
15:44issuing the material to show flow right
15:47so during that storage also Material
15:50Handling is required when your material
15:52is reaching at your factory gate even
15:56after that the first stage is you need
15:58to ensure the quality of the in incoming
16:00material so iqc will be handling the
16:03material based on some samples they will
16:05check whatever their sampling plan is
16:08then they will declare that lot is
16:10rejected or accepted if it is rejected
16:13again Material Handling is it will be
16:15returned back to the vendor but if it is
16:18okay then it will be moved to store this
16:20is again Material Handling in store you
16:22will store it for maybe 5 days 10 days
16:24or whatever uh Safety stock uh that for
16:28those many days you want to maintain
16:30right so then comes the role of your
16:33Material Handling but during this The
16:35major portion is accidents and damage so
16:38we need to minimize that so that if we
16:41are saying that in one car five tires
16:43are required so if we have 50 tires
16:47finally we should come up with 10 cars
16:49right we we should not say that during
16:52handling or storing we damaged two car
16:56two tires right so accordingly this this
16:59is not happening because tire is a kind
17:00of thing we can maintain it easily but
17:02there are so many other things right if
17:04you are having glass so maybe for 50
17:07units you you are storing the glass but
17:09in the end you end up with the 45 units
17:12only because five you damaged in the
17:14material handling so that way it is very
17:16important so then this is what I talked
17:18about whether you are handling it
17:21through your robots or you are handling
17:23physically when it is physically done so
17:26then uh there are chances we can damage
17:29that product right so that's why now big
17:32houses are moving towards automating
17:34their storage centers right robots are
17:37being deployed where they are handling
17:38with care and then ensuring the all the
17:41quality related parameters so here I
17:44have included some uh video links you
17:47guys can just quickly go through these
17:49videos and then we'll uh continue our uh
17:52discussion on the topic although these
17:54tugs are being operated by manpow but
17:57now we have robots or
17:59uh manless these uh uh Vehicles which
18:02are moving through sensors and then the
18:05inventory the pallets are moving
18:06automatically from one point you can see
18:08in the video from one point to other
18:09point and we'll go to that shelf only
18:12where you need to stag it right so that
18:14way in Inventor isation is now being
18:18automated and uh you can see how it can
18:20be helpful when you are talking about
18:23you know uh uh avoiding the
18:27damages so uh a warehouse is a
18:29commercial facility designed for the
18:32storage of goods materials and products
18:34right function as a centralized Hub so
18:38see in warehouse this is very very
18:40important like let's say this is your
18:42Warehouse right now there are so many
18:45customers attached to this this is at
18:48one location let's say this is location
18:50one and this is manufacture now there
18:53may be another location location two and
18:57you want to you
19:00know from this location you want to
19:03serve so many other customers right this
19:05is One Market this is another market now
19:08this is why this is a strategic decision
19:10that you you where you should locate
19:13your centralized Hub because see if you
19:17can utilize the full capacity of their
19:19this warehouse and you know that that
19:22demand is there that you can enjoy the
19:24economies of
19:26scale by being there so then you can go
19:29for individual warehouse but if you see
19:32that the demand coming from this market
19:35and this Market can be met by using one
19:38facility so then uh you have to go for
19:42one facility only but again when you are
19:45moving near to customer that means you
19:48are in that way more efficient because
19:50quickly you can respond to the demand
19:52maybe this from this customer one this
19:55location two is only 10 kilm away but
19:58because
19:59our that capacity is not utilized fully
20:03so what we are doing we are rooting this
20:05customer one to location one so maybe it
20:08is 50 km so when it is 50 km obviously
20:12responsiveness will be reduced in that
20:14way it will take time to respond their
20:16queries it will take time to uh do the
20:18repairing thing it will take time to
20:21deliver the first product right okay so
20:24that way you need to somewhere make the
20:26trade off whether you you want to be
20:29responsive enough you want to have many
20:31facilities near to customers or you want
20:33one centralized facility because many
20:36facility now if you are having two
20:38locations let's say We'll add more
20:40location into that location three
20:43location four instead of keeping
20:45inventory at location one now what you
20:48are doing you are keeping inventory at
20:50location 2 location three location four
20:53so that means inventory carrying cost
20:55will also increase and then Material
20:57Handling damages all those will increase
21:00right so you have to in that way make
21:03the balance between responsiveness and
21:06efficiency right so this is very
21:08strategic decision where you should
21:10locate your Warehouse so again we
21:13discussed about warehouses are using
21:15these kind of equipments shelving racks
21:18and pallets to efficiently organize and
21:21manage inventory right so furthermore
21:25Warehouse frequently integrate Logistics
21:27and inventory management system to
21:29monitor inventory levels expedite order
21:32fulfillment and optimize the flow of
21:34goods in and out of the facility right
21:37so again
21:39storage Transportation distribution so
21:42that way it should be
21:45streamlined Warehouse layout design so
21:48before laying out the design of the
21:50warehouse this we need to take care of
21:52these four factors first is flow see
21:55flow is you need to take care of the
21:58whether your product is Flowing like
22:01this so that type of layout is required
22:04that from here it is inward Journey here
22:07it is outward
22:08Journey outward Logistics you can say
22:11right so and then you are storing maybe
22:14many different
22:15items so that also depends that this
22:19particular items how frequently you are
22:23shifting how frequently you are
22:25transporting to other location and not
22:28only frequency then what is the size of
22:30this item what is the shape of this item
22:33what is the weight of this item right so
22:37if that is too heavy or size is that it
22:40is very difficult to me uh you know move
22:43or maybe the nature of the product is
22:45like that very fasile right so then you
22:48should store that product at the
22:51location which is easily accessible but
22:54it is kind of very small components from
22:56anywhere you can easily locate you can
22:58pick you can deliver then so that means
23:01you need to maintain the flow of the uh
23:03product flowing through that Network
23:06right second is accessibility now this
23:08is again very well connected with the
23:11automated warehouses if your Manpower is
23:15included you are operating manually so
23:18then obviously you need to ensure the
23:20proper space for movement of them proper
23:22space for moving the trolleys and
23:25depending upon the size of the items you
23:27are handling inside ins the warehouse
23:29but if it is you know handled by robots
23:32right or automatic forklifts are there
23:35or those automated uh tugs are there
23:38then then you need not to you know keep
23:41that much space so automatically they
23:44will follow the line and they will just
23:46collect the inventory and will deliver
23:49that right then space obviously if we
23:51are going for Automation in that way
23:53space can be very well managed right but
23:56in in case of if human beings are
23:59involved so obviously that efficiency
24:02will not be there when we are talking
24:03about the space utilization throughput
24:06rate also you need to consider how many
24:08units you are processing in interval
24:10right so that will decide I talked about
24:13the frequency right here so frequency
24:16how frequently you are moving that
24:17product maybe different components in
24:20different in one product also you are
24:22coming up with different models right so
24:26see if you're using if you talk about uh
24:29four-wheeler car so they are coming with
24:32the petrol version with petrol version
24:35also the lowest base is there then the
24:37next up to that level is there then
24:40middle version is there then top version
24:41is there then automated version is there
24:44so in that way 4 five uh you can see
24:47more than 4 five and then these four
24:49five different models are coming in all
24:51four five colors so let's say 5 into 5
24:5425 then they are having if different
24:56engine capacity sometimes so then you
24:59can keep on multiplying the things and
25:01then if you have 50 models in one for
25:04petrol version only then 50 models for
25:07diesel version then 50 models for maybe
25:09CG operated right so that what type of
25:14material you are using and the component
25:16size is important when you are designing
25:18the layout within the warehouse so
25:20easily you should be able to move the
25:22products so defining that we have seven
25:26steps to plan the warehouse layout right
25:29either you can go first you need to
25:31Define what is the purpose of the
25:32warehouse that means shape size weight
25:35all that nature of the product you need
25:37to Define then you need to define the
25:39warehouse diagram what is the space
25:41available then what are the storage
25:43requirements right so liquid phase or
25:46you solid phase you are using or maybe
25:48gaseous phase you are storing right and
25:50then Material Handling equipment need so
25:53whether you need big equipments or you
25:55can handle with the small uh robots one
25:58right then you can map it out and you
26:01can optimize that you need to test the
26:03traffic flow whether there is traffic
26:05jam on the line or not so that you need
26:07to check and finally you will come up
26:09with the particular layout that this is
26:11the particle now we I have given just
26:13three different types of layout U shape
26:16on the one end you will enter and the
26:18other end you will come out so this is
26:22most commonly used so only thing is that
26:25space is uniformly designed so now it's
26:28up to you how you'll organize that right
26:30but if it is I shape I shape is the kind
26:33of thing where you are getting the
26:34maximum space maybe you are getting in
26:36from here you are coming out from here
26:39right so high volume products you can
26:42you can suggest that I I shaped
26:44Warehouse is better so L-shaped
26:46Warehouse so it depends again the needs
26:50if you need something very frequently
26:52you can keep it here right from here it
26:54is entering from here it is going out so
26:57then maybe the item items which you need
26:59rarely you can keep on the back side
27:01then again shape and size of that uh
27:04product you are storing and what are the
27:06requirements so depending upon that you
27:08can follow either U shape and that also
27:11how much land is available where you are
27:13developing your that facility Warehouse
27:15facility right that also plays important
27:17role So within Warehouse these are some
27:19of the elements you can take it out you
27:21have unloading cargo you have loading
27:23cargo transportation is happening from
27:25there you are keeping the equipment here
27:28and within this Warehouse cargo you are
27:31keeping on one way so that depends upon
27:34this is one kind of layout right so
27:36there depending upon your requirements
27:38there can be uh different types of uh
27:41layout
27:43options so utility of warehouses first
27:46is product consolidation see we have
27:49small small orders so in Warehouse what
27:52we can do we can make it one order and
27:54if it is going to one location so it
27:57will go through one transportation mean
27:59only right so in that way we can
28:01consolidate the order so we need not to
28:03go for different deliveries will not be
28:06done right so instead of that we will be
28:08having one uh your Warehouse where we
28:11will consolidate those products and uh
28:14because those products are to be shipped
28:17at one location only so through one
28:19vehicle we can travel right so this will
28:23reduce the transportation cost and will
28:25enhance the distribution efficiency
28:27cross talking is something very helpful
28:29in this case because cross doing where a
28:32kind of facility will be there where
28:34trucks are coming from different
28:36directions and maybe we need to deliver
28:40these items right so maybe from Factory
28:441 Factory 2 Factory 3 we have customer 1
28:48or maybe Market 1 market 2 Market 3
28:51right so let's say from Factory 1 we
28:54have demand from Market one as well from
28:57Market 2 Market three right and same is
29:00the case with for your uh Factory 2 and
29:03same is the case with your manufacturing
29:05Hub three right now in this cross doing
29:09what we will do all the shipments which
29:11are supposed to go to market one will
29:15combine here from all these three
29:17vendors or manufacturers right so we'll
29:20combine these three into one and this
29:23will go to market 1 similarly all the
29:26items going to Market 3 we will combine
29:29here just a small stoppage Center you
29:32can say in that way where we are not
29:35storing the products no inventory right
29:37so in that way we can cut down the
29:39inventory cost because it is just a
29:41temporary uh kind of stoppage Center
29:45where we are redistributing the product
29:46so that one location we should go with
29:49one type of uh Transportation mode only
29:53right second then uh another utility of
29:57warehouses where value adding Services
29:59sometimes what we are doing many
30:00manufacturer they are coming up with the
30:03promotional kind of activities and where
30:05they are selling some maybe uh some uh
30:09free products with them right so again
30:12you need to develop one kit where you
30:14will be you know attaching some free
30:16products in that packaging right so
30:18sometimes we are doing labeling also in
30:20the warehouse like if you talk about
30:22ecart Amazon flip cart so in their
30:25warehouse centers they are getting the
30:27products and then they are labeling the
30:29product with their uh package that is
30:32one model other model can be directly
30:35your seller whosoever is registered on
30:37your website will put your package
30:39Amazon package on that packaging and
30:41then we'll deliver that that is also
30:43another model right so these value
30:45adding activities are also done when
30:47we'll talk about warehousing seasonal
30:49storage Warehouse will help you to you
30:52know fight those seasonal
30:55demands why because if there is is peak
30:58season let's say next 2 months there is
31:01no season for maybe bullan close because
31:03it's already summer right so temperature
31:06is high we never need Bullen clothes
31:08right so right now they can manufacture
31:11they can store and then maybe in future
31:14whenever there will be demand towards
31:16September October November in those hes
31:18area so then they can ship the product
31:21so seasonal demand you can meet in that
31:23way right now demand is there for AC
31:25products right now cooling all those
31:26products uh home appliances like fan
31:29cooler or AC's right so maybe in
31:31December or January because weather is
31:34uh that way tolerable so that way during
31:37that time this is season of time so
31:39where you can prepare your sub
31:41Assemblies of uh finished goods and then
31:44can meet the seasonal demands so in that
31:46way you can prevent yourself of being
31:49stock outs and then you can also handle
31:51the overstocks inventory management so
31:55already we discussed about inventory
31:56management right so we three different
31:58types of inventory we are storing
32:00whether you are storing raw material or
32:02you are storing subassembly or you are
32:03storing the finished good right so to uh
32:08ensure the smooth flow in the supply
32:10chain you need to balance the supply and
32:12demand and that you can do only through
32:14Inventory management strategic location
32:17already I told you why this Warehouse uh
32:21location is very strategic because if
32:23you are near to the customer then you
32:25are responsive you can immediately meet
32:27the customer requirement but if you are
32:29little away from the customer then that
32:31much distance you need to cover every
32:33time whenever you are addressing the
32:35needs of the customer so but yes when
32:37you have multiple warehouses right so
32:40that way cost will also increase because
32:43at this you you are managing now 10
32:45different facilities instead of managing
32:47only one facility risk mitigation if any
32:51disruption happens in the supply chain
32:53you can store the buffer stock in your
32:55supply chain if any delays is there
32:57there during the transportation any
32:59natural disaster happens any kind of
33:03man-made disaster sometimes right so
33:05covid-19 or maybe strikes right so
33:08farmer hesitation is going on in the
33:10northern part so maybe then that supply
33:12chain is interrupted or delayed if they
33:14are taking the alternate route which may
33:16be very longer so somehow your supply is
33:19interrupted or delayed right so wehouse
33:22will help you to mitigate the risk as
33:24well this is the cross doing which I
33:26just talked about see these three
33:28different manufacturers are there let's
33:30say I have just coded this with color
33:33and coming from these three uh
33:35manufacturer right now this is One
33:38Market so this one market requires all
33:41these three products so in Cross doing
33:43Center what we'll do we will ship all
33:46the products required in Market one
33:48using one vehicle for Market 2 we'll so
33:53now what we can do is instead of making
33:55three different deliveries from point 1
33:592.2 now we are making we are combining
34:01it here and making only one delivery
34:04right so cross doing is very helpful in
34:07that way to reduce the cost another some
34:09utilities quickly we'll go through uh
34:12these advantages of cross doing just in
34:14time inventory whenever it is required
34:16quickly you can get it right so uh
34:19optimize Transportation as I told about
34:22the transportation routes and vehicle
34:24utilization will be perfect because only
34:27one vehicle is going with the outbound
34:29Logistics right then reduced inventory
34:32handling cost because in Cross docking
34:34we don't have the storage houses where
34:37we are storing our product right these
34:39storage houses are not there so what we
34:42are doing we are just making the small
34:44stops there and we are just reshuffling
34:47the inventory and reordering the
34:49inventory so that all the inventory
34:51going on one route can be rooted through
34:53one vehicle only then improved
34:55efficiency in that way because we are
34:57not in inventory inventory cost is cut
34:59down we are also utilizing the maximum
35:01vehicle capacity that way also efficient
35:04right and minimum handling will be there
35:06so that way it should be uh efficient
35:09faster Transit time because now only one
35:11delivery is done so obviously faster
35:13Transit time will be there uh instead of
35:16waiting for three different Vehicles now
35:18only one is carrying all that so easy to
35:20integrate easy to uh track that Supply
35:24obviously there are challenges with
35:26cross talking first very basic challeng
35:28is customer supplier relationship let's
35:31say I told you customer is here and we
35:34have different distribution centers
35:37now so many customers are there let's
35:39say so many customers are there
35:41here so I need to aggregate the demand
35:45coming from all these different
35:46customers only then if I have the
35:48correct information I can combine that
35:51product those many products and ship as
35:53one shipment right so that way this
35:56relationship need to be strengthened so
35:59how we can do that if we have that digal
36:01Network we we are sharing the electronic
36:04record so that there should be there
36:06should not be any gap between the
36:08customer requirement and the supplies
36:11right quality control is another
36:12challenge because now otherwise in
36:15Warehouse we were storing the products
36:17earlier we were storing here the
36:18products but now we are not storing so
36:21directly we are shipping so we cannot do
36:23any quality check here right so quality
36:27is a point we need to take care right
36:30coordination and synchronization is top
36:33level it is required as I told you you
36:36need to integrate your customer into
36:37your channel as well as your first
36:39supplier into your channel so that this
36:41can be synchronized and this will only
36:43happen when you have the technological
36:46infrastructure and you can efficiently
36:48handle the material in that way you can
36:50track the customer requirements and then
36:53you can combine those orders and can
36:55send in the minimum lead time you can
36:58send that to the Final End customer
37:00combining the inventory from the
37:03different
37:04suppliers so impact of cross doing
37:07already we talked about enhanced
37:09customer services because at one
37:11location if we are supplying to Market
37:13one from different location instead of
37:16three different deliveries now we are
37:18only making one delivery because we have
37:21Consolidated the order so all multiple
37:24orders are now even if you if you'll
37:26take small example at your doorstep
37:29delivery if the Amazon person or flip
37:32person is visiting twice or Thrice or
37:34maybe five times in a day it will be
37:36little irritating for you so why don't
37:38they combine all the orders and maybe
37:39deliver at one common time so then it
37:42will improve your customer experience
37:44right so but then to combine all the
37:46order you should have that information
37:48that these many orders we need to
37:50deliver by today on this location right
37:52this will also help your transportation
37:54cost because instead of making five
37:56different delivery is you're only making
37:58one delivery but then that consolidation
38:01is required so in that way improved
38:04efficiency will be there right so uh
38:07transit times will be reduced and
38:09overall supply chain performance will be
38:11there cost saving obviously when
38:13performance is there we can save the
38:15cost there is no inventory carrying cost
38:17so that also we can save and it will
38:20provide you the Competitive Edge
38:21anywhere you are efficient cost
38:23efficient that will help you to get
38:25extra margin and that extra margin you
38:28can share with your stakeholders you can
38:30share with your customer or you can keep
38:32as that margin as your profit for
38:34further expansion so quick case studies
38:37I have taken two three case studies so
38:40who who are you know beautifully
38:42implementing this cross talking concept
38:44first one is Amazon where they have this
38:46one centralized facility in Germany and
38:50can you imagine whole Europe they are
38:52covering within one day just because of
38:55the help of this cross talking they have
38:57have invested massively in setting up
39:01those information channels centers
39:03connecting all the stakeholders in that
39:06and then they have designed high-tech
39:09cross doing centers where they are
39:10compiling the information codewise pin
39:13code by they are locating this and
39:15making one delivery at a time so and
39:18this is not manual right so this is uh
39:22robot uh done by robots another very
39:24small example beautiful example of r
39:26diagnos
39:28Diagnostics a Switzerland uh company
39:31pharmaceutical company and it's world
39:34famous especially in uh vaccine industry
39:37right so when we are talking about
39:38vaccine industry so again perishable
39:40product same day delivery is required
39:43how you can ensure that same day
39:45delivery so obviously you need not to
39:47store in your storage house you need to
39:49go for only cross docking you just make
39:52small stops at particular location and
39:55then combine the inventory for one
39:57particular ular market and ship All That
39:59vaccine or whatever supplies you are
40:01doing so in that way you can ensure the
40:04temperature you need to maintain that
40:06those vaccine at very you know very
40:09particular temperature right so that
40:11also you can ensure but if you are
40:13storing that in somewhere in the cold
40:14storage even even then there may be
40:17fluctuation in the uh temperature and
40:19that may uh affect the you know quality
40:23of the back
40:24seat the last example is of man fright
40:27which is
40:28a very well-known firm in New Zealand
40:32and this firm is espcially offering the
40:34cross doing Services they don't have any
40:36product or something like that they are
40:37offering cross talking services for you
40:39so let us you whatever you are producing
40:42whatever your demand is we'll take care
40:44of everything we'll segregate whatever
40:47demand you're coming from the segregated
40:49Market we'll consolidate that demand
40:52from wherever you are manufacturing we
40:54will be setting up our own facility for
40:56consolid the demand and making the
40:59efficient deliveries right so this is
41:01main fright uh organization which is
41:03doing providing uh you know these
41:05Services of uh fast deliveries through
41:08cross doing and they have separate uh
41:11you know uh product basket or Services
41:14basket uh they are saying that they have
41:17one package for if you are dealing with
41:19the perishable items if you are dealing
41:21with the retail products routine
41:23products or if there is constant demand
41:25of the product they can manage in that
41:28efficient way so you will you can
41:30leverage more on that if it is constant
41:32demand product right so in the end we
41:35can conclude that so effective storage
41:38management is very very important and
41:40required to ensure the continuous flow
41:43of the material and uh obviously you
41:46need to streamline first all the
41:48function stakeholders within that
41:50distribution Network only then you can
41:52ensure this smooth Supply and then the
41:55very important function of Warehouse
41:57house you need to store although it is
41:59temporary storage but yes it is required
42:02before Distributing to the final product
42:04right to the End customer but what if
42:07your uh you can do some value adding
42:10activities as we discussed all right
42:12packaging labeling or maybe kitting you
42:14can do that but what if the constant
42:17demand is coming from one market so you
42:20can use cross doing as one very
42:22beautiful you know uh tool to just
42:25minimize uh the cost and increasing your
42:28efficiency so these are the references
42:31so thank you very much

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