Assessment Criteria- 4
4.1 Ans- Logistics in supply chain management helps enhance operational efficiency and reduce costs (Mangan and Lalwani 2016). Therefore, logistic management plays an essential role in supply chain management as it has a direct impact on the customer’s demand (Mangan and Lalwani 2016). Companies need to calculate the resource requirements for the warehouse operation to optimize their logistics and supply chain management (Tenhiälä 2011). Therefore, accurate assessments help the companies to ensure that the warehouse meets the customer’s demand while minimizing the cost of the business effectively (Mangan and Lalwani 2016). There are different methods which exist using which companies can calculate the requirements while each of the methods has its advantages and disadvantages (Tenhiälä 2011). Some of the methods are listed below using which companies can calculate the resource requirement within the warehouse operations: –
- Qualitative Methods- This method involves expert opinions and subjective judgements instead of numerical data analysis (Carrasco et al. 2022). Therefore, experienced professionals who have a better understanding of the market dynamics can better provide insights about the industry trends (Carrasco et al. 2022).
- Quantitative Methods- Quantitative methods often rely on statistical and numerical data analysis to determine the resources needed (Hübner et al. 2013). This approach is used by the companies to measure their past performance metrics such as inventory turnover rates, order volumes, market trends etc. to forecast the future resources needed (Carrasco et al. 2022). Economic Order Quantity is one of the formulae using which the logistic managers can better determine the optimal order quantity which can minimize the total inventory costs including the ordering and holding costs (Carrasco et al. 2022). This method helps them to better calculate how much stock is required to be stored to meet future demand (Carrasco et al. 2022).
- Simulation Modelling Method-This method includes the digital representation of the warehouse operations to evaluate different scenarios and their impact on the resource requirements (Mangan and Lalwani 2016). Hence this method allows the logistics manager to visualize how the changes in operational demand will affect the equipment usage, staffing levels and space allocation of the warehouse (Carrasco et al. 2022). Overall, the logistic managers can use the Discrete Event Simulation model to understand how the resources can be better utilized during the peak seasons (Mangan and Lalwani 2016).
- Capacity Planning Tools- This tool helps the logistic managers to better asses the output level of the warehouse operations (Hübner et al. 2013). Hence the logistic manager can use this tool to evaluate the storage capacity, labour capacity and utilization of warehouse equipment (Hübner et al. 2013). Overall logistic manager can integrate these elements into their capacity planning which will help them to better align the resources with the operational demands (Hübner et al. 2013).
Overall, each of the methods provides a unique insight which contributes to effective supply chain management of a company while ensuring that their warehouse effectively meets consumer demands (Mangan and Lalwani 2016).
4.2 Ans- Warehouse contingency planning is one of the critical components of risk management within supply chain operations (Wanke and Correa 2012). This helps logistic managers to be better prepared for unexpected disruptions which can affect warehouse functionality such as supply chain interruptions, operational failures, natural disasters etc. (Yousefi and Tosarkani 2022). Therefore, the need for such planning has increasingly become more popular, especially after the Covid-19 pandemic (Wanke and Correa 2012). As warehouses are the critical nodes in supply chain management any disruption in this can lead to significant operational challenges (Wanke and Correa 2012). Hence companies utilize contingency planning for identifying the potential risks while developing essential strategies to address them which enables them to enhance their overall operational resilience (Yousefi and Tosarkani 2022). For example, a well-prepared warehouse implements alternative sourcing strategies to better adjust its inventory management practices which will allow the company to maximize productivity during the downtime which occurs when a crisis takes place inside the business. Thereafter companies having proper contingency plans can ensure financial protection because it helps them in covering the losses that occur due to the substantial costs that the business has to bear during the crisis time (Gavidia 2017). In most industries, regulatory compliances are also the crucial part of contingency plans using which companies can assure the stakeholders and employees (Yousefi and Tosarkani 2022). Hence this preparedness can better help the business to enhance their abilities for managing the risks of the warehouse effectively (Yousefi and Tosarkani 2022). Companies should continuously upgrade their contingency plans which will help them in ensuring that the warehouse remains prepared for addressing the emerging business threats (Allioui et al. 2024). Therefore, warehouse contingency planning is essential for mitigating the risks that are associated with supply chain disruptions which will further assist the company in enhancing its resilience, ensuring regulatory compliance, promoting continuous improvement as well as protecting against financial losses within the organisation (Yousefi and Tosarkani 2022). As the supply chain of the companies becomes more vulnerable and complex to potential threats it has become essential for the companies to invest more in designing a comprehensive contingency plan that is essential for optimizing the efficiency of the supply chain as well as to maintaining the operational integrity inside the business (Allioui et al. 2024). Overall warehouse contingency planning helps the companies to identify the potential risks and develop comprehensive strategies to mitigate the threats and ensure operational resilience of the supply chain that will ultimately preserve business continuity and customer trust in the long run (Allioui et al. 2024).
4.3 Ans- It is essential to have a correct stock location within a warehouse to enhance efficiency, improve productivity and optimize the supply chain operations (Koundinya and Ekendahl 2023). This strategic placement of inventory significantly impacts different aspects of warehouse management which includes inventory accuracy, order fulfilment speed and operational costs (Mohamud et al. 2023). The benefit of the correct stock location is the enhancement of the order fulfilment centre because when the products are stored in the logical locations then they stay closer to the shipping and packing areas which minimizes the efforts and the time spent by the workers for the items which are frequently demanded and picked up (Koundinya and Ekendahl 2023). Hence as per the statistical analysis, it can be seen that efficient placement of the stock can automatically reduce the picking time by 30% which will lead to improved customer satisfaction and faster order processing (Mohamud et al. 2023). Moreover, accurate store location better contributes to inventory management because when the products are better labelled and organized then it mostly reduces the likelihood of the errors which can occur during the restocking and picking processes (Koundinya and Ekendahl 2023). Hence it has been evident through the research of different researcher that companies having a well-defined stock location are most likely to experience fewer discrepancies in their stock records (Mohamud et al. 2023). Companies having correct stock location practices are better able to reduce labour costs as well as an effective layout designs also help them minimise the travel time for the labourers while they pick up the items from their designated locations (Mohamud et al. 2023). As per the industry report, it has been seen that companies having effective stock location strategies are better able to lower their labour costs by 20% as a result of which they can enhance the operational efficiency of their supply chain (Singh et al. 2018). Even better stock locations also contribute to better safety practices followed within the warehouse of the company (Mohamud et al. 2023). The logistics manager mostly encourages the workers to organize the products logically to ensure that the hazardous items are properly stored to reduce the risks of accidents which might occur due to the wrong lifting practices (Singh et al. 2018). Hence a safe workspace not only minimizes the potential risks for the business but also ensures the health and safety of the workers (Singh et al. 2018). Thus, a correct stock location within the warehouse of the company has several advantages which contribute towards more efficient warehouse operations that lead to higher employee and customer satisfaction levels (Liu et al. 2019). Overall current stock location helps the company to reduce the retrieval time, enhance the operational efficiency, improve inventory accuracy etc. that in return increases the overall productivity within the warehouse operations of the business (Singh et al. 2018).
References
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