Jan 14, 2009

Way to save costs

Physical aspects of warehousing
Physical aspect such as location, layout, and type of material, shelf life, handling equipment, storing methods, bins, racks, a passageway between stacks or displays of goods, use of preservatives play a crucial role in the context of cost reduction.

The performance of warehouse measured by cubic space and hence utilization of heights assumes importance. This storing height has to decide based on ease of storage, retrieval, and type of packages, load characteristics, flooring, roofing, ladder facility and handling facilities.

The upper limit of stacking heights depends upon the roof structure, lighting arrangements, exhaust arrangements, fire prevention facilities, use of sprinkler system, safety considerations, handling methods etc.,

Allow clearance at the top 2 to 4 feet and about six inches at the bottom free movement and prevention of dust accumulation.

Give adequate provisions for maintenance of buildings, yards, handling equipments, storage areas, wiring systems, roads etc.

Stacking method:
Unit loads to stack one over the other, in such a way to make it possible to issue out a part of the stack from top to bottom without disturbing the rest of the stack. Stability of the stack has to be ensured to prevent crashing loads. The advantage is space utilization is high, no special requirement of racks or bins. Suitable for bulk when variety is less and quantity is more.

Bins and racks
These wooden or metallic structures divide storage space in to compartments to enable items to keep individually. Arrange parallel, one foot away from walls, back to back allowing sufficient moving place. They can reach up to the roof leaving two feet above. Number properly and a file to be maintained indicating the bin number and its contents.

Loading and unloading areas
Exercise care to have sufficient space for proper maneuvering of vehicles and handling equipment. Provide weighing scale at the unloading bay of the receipt section.

Safety measures
Protection against fire hazards is one of the primary safety measures to undertake in a warehouse.
Fire is a major menace in warehouses, because of the inflammable nature of materials stored.

In case of an accident, an extinguisher on hand is better than brigade coming ten minutes later.

There must be early detection of fire and a fire fighting system, which can swing into action at once.

Fire extinguishers at strategic points, junction of gangways are immense help.

Provide a bucket of sand and another with water besides adequate number of fire extinguishers.

Gas extinguishers are hazardous.

Provide First aid and medical kits at all points

Install fire alarms and smoke detectors throughout the stores.

Inspect and update fire equipments on regular intervals.

Develop, train and retrain fire-fighting teams within the organization.

Protect pilferage. Prevention is better than cure.

Costly items that are small enough to carry are likely to pilfer.

Arrange caged enclosures or closed shelves with locks for available items to limit the access. Restrict the number of people who will have the key. Establish foolproof check out system.

Appealing to the moral value and ensuring that the wages of the workers are comparable to other organization may help reduce pilferage.

Preservatives in storage
If materials are to be stored without depreciation of their physical properties they have to be guarded against the effects of dampness, rain, dryness, heat, cold, humidity, temperature variations, dust, dirt, attack by insects, fungus formation, and other biological aspects.

Chemical items
All containers must be labeled and storage areas demarcated by visible signs.

The storage place containing chemicals well ventilated far from fire hazards. Incompatible chemicals must not be stored together.

Issue on a first in first out basis will reduce the incidence of losses in warehouses. Special care on expiry date is an exception for first in first out. The material getting expired soon to be issued out first.

Cleanliness, inspection, proper ventilation, and use of preservatives may reduce the wastage.