4. Advantages of Automated Materials Handling SystemsOperating cost savings
Improved service levels
Increased control through more and better information11-3
5. Disadvantages of Automated Materials Handling SystemsInitial capital costs
Downtime of equipment
Maintenance interruptions
Software-related problems
Capacity problemsLack of flexibility
Maintenance cost
User interface/ training
Worker acceptance
Obsolescence11-4
6. Operational and Implementation Problems with Warehouse Automation SystemsProblem AreaPercent MentioningCost of equipment/financial justification
Downtime or reliability of equipment/maintenance interruptions
Software-related problems, such as poor documentation, incompatibility, failure or modification
Capacity problems, such as limited applications/integration of equipment into existing system
Lack of flexibility to respond to changing environment/not suitable for high degree of seasonality in business
Maintenance cost/ maintenance parts
User interface/training to operate system/transition from manual to automated procedure
Worker acceptance of automation
No problems/ we are adapting well
Lack of top management commitment
Obsolescence/ need more up-to-date automation/ need more automation19.0%
10.0
8.0
8.0
6.0
5.0
5.0
4.0
4.0
3.0
3.0
11-5
7. Warehousing in a JIT EnvironmentTotal commitment to quality
Reduced production lot sizes
Elimination of non-value-added activities11-6
8. Functions of PackagingMarketing
Information
PromotionLogistics
Containment
Protection
Apportionment
Unitization
Convenience
Communication11-7
9. Benefits of Good PackagingLighter packaging may save transportation costs.
Careful planning of packaging size/cube may allow better space utilization.
More protective packaging may reduce damage and requirements for special handling.
Environmentally conscious packaging may save disposal costs and improve the company’s image.
Returnable containers provide cost savings and environmental benefits.11-8
10. Technologies of the Modern WarehouseWarehouse management systems (WMSs)
Radio frequency communication and inventory update
Bar-code reading and label generation equipment
EDI and the Internet
Transportation management systems
Interface to enterprise requirements planning (ERP) systems
Productivity tracking software
Activity-based costing software11-9
11. Information Flows in the Supply ChainSupplier communication
Manufacturer communication
Warehouse communication
Carrier communication
Customer communication
SupplierCarrierInbound
carrierCustomerManufacturerSupplier
warehouseSupplier
warehouseOrder (or complaint) informationOrder/complaintDelivery informationAppointment informationOrder informationPickup scheduleSource: Arnold Maltz, the Changing Role of Warehousing (Oak Brook,IL: Warehousing Education and Research Council, 1998), p. 27. 11-10