To satisfy human needs, two types of goods are required: material products and services. These goods are produced by economic entities (enterprises) engaged, generally speaking, in production, trade, or services.
Every enterprise operates in a specific environment with which it interacts in various ways. The dynamic and unstable nature of these interactions forces it to apply the principle of adaptation. This principle necessitates changes in many aspects of operations. In this regard, 4 main approaches can be distinguished:
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system-resource – focusing on inputs
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process – dealing mainly with the internal activities of the enterprise
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goal-oriented – focusing on results (outcomes)
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marketing – focusing on customers.
All these approaches (strategies) of operation are connected by logistics (Figure 1).
In every business process, there are technological processes during which, through appropriate transformations of the object of labor, form utility is created. The second group consists of logistics processes, during which time and place utility is created. Logistics therefore creates the conditions for this utility to be created and for the real needs of buyers to be satisfied. It thus creates added value through the flow of materials and information (Figure 2).
Logistics in manufacturing enterprises is tasked with ensuring the optimal flow of materials and information in the production process. It should be noted that this is a very brief overview of the tasks of production logistics. A full expansion covers a wide spectrum of logistics processes resulting from various types of production and the goals it is to fulfill.
Warehouse in a manufacturing enterprise
A warehouse is an inherent attribute of the logistics process. When creating the principles of warehouse organization, special attention should be paid to the role that the warehouse plays in the logistics process, so that the principles of warehouse organization lead to optimal coordination of all its functions and the achievement of the best results with the lowest labor input. The principles of warehouse organization should also be individually adapted to the role played by the warehouses.
The logistics approach to solving warehouse management problems in a manufacturing enterprise requires a holistic consideration of tasks in three areas of operation: supply, production, and distribution. The organization of warehouse management constitutes the entirety of methods of conduct and undertakings initiated, applied, and interacting with each other in the management of warehouses and organizational structures, aimed at the optimal coordination of all warehouse functions to achieve the greatest effect with the lowest input of living and objectified labor.
The ultimate goal of warehouse management is to ensure the rational storage of material goods. The rationalization of the organization of warehouse management is intended to allow, among other things, for the streamlining of the structure, the best possible performance of tasks, and the reduction of the effort of the employed personnel. When organizing a logistics warehouse process, one should:
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determine the technical characteristics and batch sizes of products intended for storage
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determine the required delivery deadlines and the possibilities of adhering to the “Just in Time” principle
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determine the points of material supply streams and their storage time
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develop a system for creating and flowing information appropriate to the tasks, as well as the type of documentation and records registering the flow of material goods
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develop a technology for the flow of goods, that is, determine the form of load units and equipment for their creation (packaging, pallets, containers, bins), as well as auxiliary equipment (for example, loading bridges, scales)
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develop a preliminary design of the logistics system and a cost estimate for its implementation after agreeing it with representatives of all links in the logistics chain.
It should be noted that the warehouse and its management are treated as one of the most important elements in the sphere of logistics. It is created in such a way as to streamline the management of the whole. Efficiently organized warehouse processes contribute to the rapid flow of materials – from suppliers, through the production system, ending with the recipient. The organizational structure and logistics in warehouse management constitute the foundation upon which the entire management system of a manufacturing enterprise is based.
The article comes from the magazine “Logistyka” 4/2011.