Warehouse Performance and Future Trends

LOGISTIC & SUPPLY CHAIN MANAGEMENT
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LOGISTIC & SUPPLY CHAIN MANAGEMENT
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LOGISTIC & SUPPLY CHAIN MANAGEMENT
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Executive Summary
In this document, more information will be discussed about warehousing performance
and its’ future in the market. A brief outline of the warehouse concept is addressed starting from
its background up to the advanced stages in the market due the increase techniques in the
scientific and technology sector of warehouse. The future of warehouse concept it will depend on
the following areas; warehouse management and integration, warehouse performance cycle,
economies of scale and economies of scope, postponement and pull concept, strategic storage,
and other concept are discussed. All these concepts they are aiming to achieve the effectiveness
and efficiency in handling time, product, and other processes in the warehousing management.
Literature review is focusing on the changes which will achieved in the warehouse industry
through adopting new technology of AI and use of automated machines. This motivates to have
low warehousing cost in maintenance and reduction of space in future. Finally, the gap analysis,
recommendation and summary are provided addressing on how to improve the effectiveness,
efficient and the size of the warehouse operation now and in the future.

LOGISTIC & SUPPLY CHAIN MANAGEMENT
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Table of Contents
Introduction...............................................................................................................................................4
Background Conceptual Information......................................................................................................4
Warehouse and Integration......................................................................................................................5
Cross Docking and Inventory Assortment...............................................................................................6
Strategic Storage........................................................................................................................................7
Warehouse described as a “necessary evil."............................................................................................7
Postponement and Pull Concept...............................................................................................................8
Warehouse Performance Cycle and it's Future Trend...........................................................................8
Economies of Scale and Economic Scope.................................................................................................9
Operation strategy.................................................................................................................................9
FIFO System....................................................................................................................................10
LIFO System....................................................................................................................................10
Literature review.....................................................................................................................................10
Introduction.............................................................................................................................................10
The history of the warehouse..............................................................................................................10
The Current Warehouse management...............................................................................................11
The future of the warehouse...................................................................................................................12
Flying Warehouses..............................................................................................................................12

LOGISTIC & SUPPLY CHAIN MANAGEMENT
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Artificial Intelligence and Automated Systems.....................................................................................13
Gap Analysis............................................................................................................................................13
Innovative Idea........................................................................................................................................14
Summary and Recommendation............................................................................................................14
Reference..................................................................................................................................................15
Introduction
Warehousing concept is an old idea which has been there for several years. Currently,
warehousing operations are improving compared to past warehouse activities due to the
existence of new techniques in the sector of the warehouse. These techniques involve the use of
modern technology and other technique which are aiming to have efficiency and effectiveness in
the warehouse activities. The future direction is growing with a high rate, therefore is expected to
have low-cost maintenance and minimum space usage in the warehouse. To achieve this concept
of the current and future warehousing direction, one is required to understand several concepts in
the sector of warehouse operations (Wahab, Sayuti, and Ab Talib, 2018). In this document,
several concepts in the current and future warehousing will be discussed outlying the direction of
the ware in the future. The concept will improve the efficiency, effectiveness thus reducing the
warehousing cost incurred in operation. Also, these techniques will improve and reduce the