Asia e University

Malaysia institute 0f logistics

Intermediate logistics officer course

(Executive bachelor in logistics management)

Assignment no3

Enhancing effectiveness of operational

support
Ltcdr hamed Alghafri
Royal Navy of Oman

Date:23 MAY 2011

Contents
Introduction........................................................................................................................2
Warehousing......................................................................................................................2
Management of time and space for effectiveness of operational......................................3
Internet impact...................................................................................................................5
Conclusion.........................................................................................................................5

Introduction
Integrated logistics support (ILS) is an integrated approach to the management of
logistic disciplines in the military, similar to commercial product support or customer
service organizations. Although originally developed for military purposes, it is applied
by the private sector as well. In general, ILS plans and directs the identification and
development of logistics support and system requirements for military systems, with the
goal of creating systems that last longer and require less support, thereby reducing
costs and increasing return on investments. Warehousing is a vital and pivotal link in the
Supply Chain as an intermediate element between inbound and outbound logistics.

Warehousing
A warehouse is a commercial building for storage of goods. Warehouses are used by
manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc.
They are usually large plain buildings in industrial areas of cities and towns. They
usually have loading docks to load and unload goods from trucks. Sometimes
warehouses load and unload goods directly from railways, airports, or seaports. They
often have cranes and forklifts for moving goods, which are usually placed on standard
pallets loaded into pallet racks1. Warehouses are very expensive and some large and
special organizations do their best to eliminate them by the use of JIT [Just-in-Time]
procedures. But invariably, someone somewhere has to hold stores! This is quite simply
to enable them to meet customer requirements it is helpful to see warehouses as
custodians of money and not just simply items. And as such they should be operated in
the same way as actual money holding organizations, like banks! An inefficient,
ineffective warehouse can negate all the excellence that the more glamorous
purchasing, manufacturing or marketing functions may espouse. It is essential that all
elements which comprise the Supply Chain work together; integration is therefore the
order of the day! Warehouse personnel are therefore key players who should display
top qualities of accountability, accuracy and responsibility. In the past, the warehouse
has been seen as the last refuge of the miscreant and failed office worker! Total
Quality Management applies to warehousing as much as any other operational area.

1 Integrated logistics support.Page2http://en.wikipedia.org/wiki/Integrated_logistics_support.16 June

2001.
http://en.wikipedia.org/wiki/Warehouse.

Management of time and space for effectiveness of

operational
Time and space are key elements in warehouse operations - they both represent
money. Costs can be reduced by taking less time to do a task, and by reducing the
space taken up by the items. Paramount in achieving this, are the concepts of flow,
maximizing the cube and meeting operational requirements especially customer
service2.

Automation and optimization

Automatic storage warehouse for small parts

Some warehouses are completely automated, and require only operators to work and
handle all the task. Pallets and product move on a system of automated conveyors,
cranes and automated storage and retrieval systems coordinated by programmable
logic controllers and computers running logistics automation software. These systems
are often installed in refrigerated warehouses where temperatures are kept very cold to
keep product from spoiling, especially in electronic warehouse where they require
specific temperature to avoid damaging the parts and also where land is expensive, as
automated storage systems can use vertical space efficiently. For a warehouse to
function efficiently, the facility must be properly slotted 3.

2 http://en.wikipedia.org/wiki/Warehouse
3

Modern trends

Aisle with pallets on storage racks

Traditional warehousing has declined since the last decades of the 20th century, with
the gradual introduction of Just In Time (JIT) techniques. The JIT system promotes
product delivery directly from suppliers to consumer without the use of warehouses.
However, with the gradual implementation of offshore outsourcing and offshoring in
about the same time period, the distance between the manufacturer and the retailer (or
the parts manufacturer and the industrial plant) grew considerably in many domains,
necessitating at least one warehouse per country or per region in any typical supply
chain for a given range of products.

Internet impact
The internet has had an influence on warehouses. Internet-based stores do not require
physical retail space, but still require warehouses to store goods. This kind of
3 http://en.wikipedia.org/wiki/Warehouse
4

warehouse fills many small orders directly from end customers rather than fewer orders
of many items from stores.
Having a large and complex supply chain containing many warehouse can be costly. It
may be beneficial for a company to have one large warehouse per continent, typically
located centrally to transportation. At these continental hubs, goods may be customized
for different countries. For example, goods get a price ticket in the language of the
destination country.

Conclusion
It thus becomes evident that the operation support of a warehouse is a challenging
pursuit which requires considerable planning, management of time and space, use of
procedures and high caliber staff. A failure to address any one of these key points can
bring a collapse of the entire supply chain, along with the loss of considerable business
revenue. As the intermediate element between inbound and outbound logistics,
warehousing should be the strongest link in the supply chain to achieve effective and
efficient support operation in an organization.