5.5 Summary

This chapter focused on explaining the importance of storage in the global value chain. Storage of goods received by a firm is known as Inbound Storage, and storage of goods scheduled to move out of a firm is known as Outbound Storage. Material handling was also explained with special reference to its importance in storage. Inbound and Outbound goods are stored in warehouses and distribution centers where they are managed using different concepts of SKUs, EDIs and cross-docking. For optimal utilization of space in warehouses, accurate demand forecasts are essential. Techniques such as demand planning, CPFR, Value Chain Visibility and Value Stream Mapping could help avoid shortage or excess inventories. Various Inventory Management Techniques were also discussed, such as EOQ, VMI, JIT and ABC Analysis.