Regrouping Functions of Warehouse

Date : 1 May 2018
Welcome to Our Presentation
On
Regrouping Functions
Chapter-1 :Introduction
GL006 Warehouse Management
Group Name : "We Four (4)”
Mohammad Nazmuzzaman Hye
1001748700
Sun Yun
1001747952
Zhang Peng
1001748078
Mati Ur Rehman
1001748258
1

Four ways that Warehousing Facilitates the Regrouping Functions 2

 Regrouping functions refer to the rearrangement of quantities and
assortments of goods as they pass through the supply chain.
 Regrouping function is facilitated by warehousing in a supply chain.
 There are four forms of regrouping function and they are-
If the introduction of warehousing
into a supply chain appears to result
in a net increase in the total cost of
conducting business, then why is
warehousing desirable?
One Important reason is that
warehouse and distribution centers
facilitate the regrouping functions in
a supply chain
Regrouping
Functions
Associated with
Quantity of Products
1.Accumulating
(Bulk Making)
2. Allocating
(Bulk Breaking)
Associated with
Product Assortment
3. Assorting
4. Sorting Out
3

 Also referred to as Bulk Making
 Accumulating involves bringing together similar stocks from
different sources.
Within this arrangement, the
accumulating warehouse
receives and accumulate
materials from a number of
manufacturing plants destined
to a specific customer on a
single transportation shipment.
Figure 1 : Accumulating Functions for Dell Production Plant
Manufacturing Plant
A
(Mother Board)
Manufacturing Plant
B
(Graphics Card)
Manufacturing Plant
C
(CPU)
Accumulating
Warehouse
Dell
Production
Plant
4

 Also referred to as Bulk Breaking
 Breaking Larger Quantities into smaller quantitates
 Break-Bulk Occurs when a warehouse receives a single large
shipment and arranges for delivery to multiple destinations
 A Break bulk Operations
receive combined customer
orders from manufacturer
and ship them to individual
customer.
 The Break bulk warehouse
sorts or splits individual
orders and arranges for local
delivery.
Klang Plant –
Massimo
Bread For
Distributor X,
Y and Z
Penang
Distributor (X)
Malacca
Distributor
(Y)
Sabah
Distributor (Z)
Klang
Warehouse
(Break Bulk
Functions)
Figure 2 : Break Bulk Functions of Massimo Bread at Klang warehouse
5

 Building up a variety of different products for resale to particular
customer.
 Assorting warehouse usually has a broad product line
 Assorting warehouse held close to the source of Demand in order to
assure short customer lead time.
 An Assortment warehouse
stocks product combinations in
anticipations of Customer
Order.
 Example :An athletic
wholesaler can stock products
from a number of clothing
supplier so that customers can
be offered Assortments .
 The Assortments may
represent multiple products
form different manufacturer or
special assortments as
specified by customer
 Example: The wholesaler can
create a specific team uniform
including shirt, pants and
shoes.Figure 3 : Assorting Functions of warehouse for Team Uniform
Assorting
Warehouse
Customer P
Customer Q
Customer R
Customer S
Clothing Supplier A
for Manchester
United
Clothing Supplier B
for Barcelona
Clothing Supplier C
for Real Madrid
Clothing Supplier D
for Bayern Munich
6

 Separating products into grades and qualities desired by different
target market.
 Example : Sorting of White egg and brown egg , Sorting Flakes of
Different brands.
 Sorting out involves
separating products into
different classes on the basis
of certain predetermined
standard relating size and
quality.
Figure 4 : Sorting out Functions of Poultry Products.
Poultry Firm A
For Brown Egg
Poultry Firm B
For White Egg
Sorting Out
Warehouse
Target Market A
For Brown Egg
Target Market B
For Brown and White Egg
Target Market C
For White Egg
7

 Accumulating and Allocating refers to adjustments associated with the quantity of
product.
 Assorting and Sorting out refers to adjustment associated with product
Assortment.
8

Regrouping Functions of Warehouse

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