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Master the Economics of Warehouse Management for More Cost Effective Operations

Plan versus actual, and the laws of unintentional consequences are a constant feature in warehouse operations around the world. Economic management of warehouse operations as either an in-house function and or an outsourced to a 3rd party logistics company, directly affects the ‘cost-to-serve’ value for any business. The purpose of this course is to show how to develop the essential tools and develop an operational economic warehouse business model, for future warehouse operations. This course shows you how to evaluate volume storage, intake and despatch. The physical management and deployment of human resources to manage the operation, applied through shift systems to a workable commercial budget.

Turning 'Theory' into 'Practice'?

This intensive two-day course will provide the practical skills, tools, and information that can be taken back to the workplace, which will immediately aid the commercial control of warehouse economics. Training methodology will include expert tutor who has managed very large warehouse operations for leading global brands, delegate discussion and interaction, exercises, case study’s analysis and supportive course material.

Who should attend?

Any organisation that has either internal warehouse operations or outsourced operations to logistics companies. Career orientated shift leaders, supervisors, managers in distribution, logistics and Supply Chain. Purchasing managers for outsourcing activities

Key areas to be covered in the programme and documentation

Economics of warehouse operations. ‘know your numbers, know your business’

Before we actually undertake the physical activity in a warehouse, we need to understand the cost in running warehouse operations. Before we actually execute activity, we need to know, understand, and apply a cost to each activity, based on warehouse operational excellence standards. This session opens the 2 day course to consider.
The operational landscape – what do we need to consider?
Where do we start – how much volume is to be managed
Who are paying the bills
Information to support cost

Before we even start to plan for warehouse operations, we need to understand the volume of activity including forecasting, pre-advice, inbound volumes:
Making sense of annual multi-million case throughput
Applying activity to financial accounting periods
Develop the first stage of the operating model
Segmenting volume categories
Breaking down to weekly volume against a forecast budget
How to determine the number of pallet locations required
Learn how to quickly design a warehouse layout to cope with the volume
Exercise 1: High Bay Warehouse

Resourcing for Warehouse Operations
Here we make sure you have enough people to cope with the demand in warehouse operations
Understand what activities requires people to support
How many people do you need for certain task
How do we measure performance and why do we need to measure
How do we cost for resourcing warehousing operations
Picking Technology type and applications how can we integrate
Establishing a shift system to manage forecast volume
Exercise 2: Develop a resource model for warehouse operations

Mechanical Handling Equipment
Material handling equipment (“MHE”) are used to increase output, control costs, and maximise productivity it is very expensive and prone to costly repairs. This session assess the different types, restrictions and how they can be economically engaged.
How do we know how many MHE is required for warehouse operations
Determine the type of MHE and how do we choose a supplier
Develop simple tables to qualify the number
Budgeting for MHE use and repairs
Managing MHE Suppliers with damages, repairs and maintenance
The cost of pallet management
Exercise 3: MHE KPI’s

Develop a Warehouse Cost Model
Warehouse operations are small business units; this module will take you through establishing a working model, which builds on the previous modules to support real time warehouse operations.
Develop a commercial model to capture all cost elements of a warehouse operation
Amortisation of large capital cost items, how do we calculate the cost to the operation?
Fixed – v – Variable cost how do we maximise the benefits
How do plan and cost for employee training
How do we plan for Staff holidays
Exercise 4: Develop a full working model

Budget Plan – V - Actual
Warehouse operations have to be flexible to cope with real time, real life requirements at a moment’s notice. The key to competitive economic warehousing
operations is to make sure the cost of this flexibility is acceptable.
Discuss the impact of inbound volume vagaries
Managing Customer unplanned sales promotions
Managing Terms & Conditions of employees – will they do overtime?
Continued improvement analysis

Benefits to you

Develop a wider understanding on the impact of cost covering all warehouse activities
Taking away very useful tools and tips of the cost of running warehouse operations
Getting practical advice in how to manage expensive assets (MHE’s)
Understand how easy it is, to develop simple cost models to cover various warehouse activities
Cultivate a greater knowledge of establishing empirical evidence to justify operational cost
Learn how to manage complex warehouse operations, with just a few key numbers

Companies already benefiting include:

Duration of Course

2 days Day Course

Course details

11th & 12th  of April 2013, London, PT2508
14th & 15th November 2013, London, PT2509 

Looking to train larger teams in this subject?

dzingim@marcusevansuk.comTailored in-house/in-company training courses and bespoke strategy workshops designed and delivered on-site throughout Europe according to your specific requirements.

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"This course will allow my company to develop its existing strategies to a much greater and hopefully profitable level."

Managing Director, Tarmac