Logistics Distribution Center

1. Industrial Engineering Management Systems Approach to the Enterprise Vision
L | C | LOGISTICS
ENTERPRISE SUPPLY CHAIN MANUFACTURING & COMMERCIAL LOGISTICS OPERATIONS ….
_____ _ PROCESS INNOVATION-OPTIMIZATION & ENGINEERING PROJECTS MANAGEMENT….
Industrial Engineering Management E-Book
INDUSTRIAL ENGINEERING MANAGEMENT FUNDAMENTALS AND HOW IT WORKS
February 2015
Expertise in Process Engineering Optimization Solutions & Industrial Engineering Projects Management
Supply Chain Manufacturing & DC Facilities Logistics Operations Planning Management
Chapter VIII DISTRIBUTION CENTER

2. Systems Approach to the Enterprise Vision
Chapter VIII
Distribution Center
A marketing services company, distributing a great variety of
every day every one’s consumer products, such as those found
in the modern trade from convenient stores, mini-marts,
super-markets, hyper-markets as well as being distributed by
their agents or concessionaires and stockiest normally have a
facility to receive Finish Goods and merchandise from many
vendors, or directly from their manufacturing facilities
This is known as the Distribution Center, with capacity to
receive and dispatch loaded trucks round the clock daily,
throughout the year, throughout all the country cities

3. Systems Approach to the Enterprise Vision
Chapter VIII
Distribution Center
Retail chains such as convenient stores, mini-
marts, super-markets and hypermarkets have
also Distribution Center facilities, to support
their stores’ branches daily supply and
replenishment activities
It is important to notice that in most cases,
the inventory owner is the retail chain or the
marketing services company
Finished Goods and merchandise are not on
consignment and all stocks are controlled by
the distribution center

4. Systems Approach to the Enterprise Vision
Chapter VIII
Distribution Center
They have a full organization structure supported by a
complete computer management information system, with all
the most advanced technology available, linking all their
vendors and store branches, as well as their head office
Their warehousing management system, includes activities
such as pick to light from specialized loose item picking shelves
and conveyors flow system, to bring the picked goods in
containers to a consolidated area prior to loading and trucks
dispatch.
The main operational activities are similar to a warehousing
operation, receiving, put away to storage, bulk picking either
directly to loading bay or to a loose item picking shelves

5. Systems Approach to the Enterprise Vision
Chapter VIII
Distribution Center
The differences are in the number of vendors being
serviced and the volume of goods being put away
per hour through out the day, every day, including
the volume of documents
This require a software system linked to their
accounts payable and inventory management fully
integrated with their accounts receivables and store
branch ordering system

6. Systems Approach to the Enterprise Vision
Chapter VIII
Distribution Center
The key to their efficiency is the effectiveness
of the bulk and loose item storage layout, as
well as the specialized pallet racking and
multi-tier shelving system, including the use
of mezzanine floors, conveyor systems,
materials handling equipment and vehicles
specifications,
All supported by a full warehousing
management system

7. Systems Approach to the Enterprise Vision
Chapter VIII
Distribution Center
The use of Radio Frequency Hand Held barcode computers,
add another factor in the productivity and performance of
the Distribution Center operation, for both warehousing
and delivery activities data accuracy and control
Another facility of the Distribution Center is the use of
Cross Dock operations, receiving sorted finished goods and
merchandise by vendors, consolidating and delivery to all
store branches without the requirement of bulk and loose
item storage including picking, and delivery documentation

8. Systems Approach to the Enterprise Vision
Chapter VIII
Distribution Center
Distribution Center operations are expensive, and
a great part of the cost is being charged to the
supplier per case, pallet or volume-weight
The Distribution Center story told to the vendors
is, that the supplier will benefit by reducing their
own delivery cost to all the store branches by
paying for their deliveries directly to the
distribution center and delivering only to one
place, plus their cost to deliver to the distribution
center.
In reality, it all depends on the volume, frequency
and own vendors capability of their delivery fleet
and system’s cost

9. Systems Approach to the Enterprise Vision
Chapter VIII
Distribution Center
For a small supplier it will be expensive as their
volumes do not justify the Distribution rates,
For a medium supplier it might just break even,
however, they will have the benefit of delivering
to only one point, and
For the big vendors, they will always do better on
their own, so
In this respect, other commercial negotiations are
in place, such as ex-factory or supplier own ex-
distribution center sales
In this case the Distribution Center trucks go to
collect their purchases from vendors at their own
transportation cost

10. Industrial Engineering Management Systems Approach to the Enterprise Vision
L | C | LOGISTICS
ENTERPRISE SUPPLY CHAIN MANUFACTURING & COMMERCIAL LOGISTICS OPERATIONS ….
_____ _ PROCESS INNOVATION-OPTIMIZATION & ENGINEERING PROJECTS MANAGEMENT….
Industrial Engineering Management E-Book
INDUSTRIAL ENGINEERING MANAGEMENT FUNDAMENTALS AND HOW IT WORKS
February 2015
Expertise in Process Engineering Optimization Solutions & Industrial Engineering Projects Management
Supply Chain Manufacturing & DC Facilities Logistics Operations Planning Management
THANK YOU
Chapter VIII DISTRIBUTION CENTER