Distribution Centres and Warehousing
Distribution centers are the foundation of a supply network, as they allow a single location to stock a vast number of products. Some organizations operate both retail distribution and direct-to-consumer out of a single facility, sharing space, equipment, labour resources, and inventory as applicable.
Goods and items should be stored and shipped in a manner that encompasses aspects such as availability, proper hygienic storage(prevention of expired or items getting infected) and most importantly effectiveness which will lead to minimising time taken to load, offload, store and transport the relief kits to their final destination.
➢ 2 Suitable locations-
• Japan- South and Central
• South Korea- Seoul
We have chosen to form a global partnership with a third part logistics (3PL) provider called Kintetsu World Express, which is based in Japan, but also has offices and warehouses around the world. Kintetsu world express has cutting edge distribution centres and warehouses facilities which are equipped with global logistics systems. They also boast specialised freight and factory equipment and they handle a wide range of products from electronic goods to delicates such as thorough bred horses. In relation to our needs they specialise in health care logistics when it comes to certification, handling and storage.(KWE, 2011) We are going to use their existing distribution and warehousing facilities in Narita and Baraki, Japan which is just below Tokyo. Although these parts were affected by the earthquakes, the only obstacle lies within the land transport system where roads are heavily congested with aid to and fro. We are also going to use its warehousing facilities in Kyoto, Tokyo and further down south in Nagoya and Osaka. Additionally to add more depth and efficiency to our services we are also going to use Kintetsu’s distribution centres in Seoul and Busan in South Korea. These locations are important from a logistical perspective because it helps us to add additional storage space for our relief kits, and as South Korea is not suffering from any calamities it is much easier to facilitate our strategies and form a better network to help achieve our goals.
We are also going to use the help of the Unites states military and marine bases. These bases are mainly located at the very south of Japan in Okinawa and Pyongtaek, Dongducheon and Waegwan all located within a forty mile radius of Seoul, South Korea. These locations are ideal as they were least or not affected by any natural disaster. They also have warehouse and transport facilities for their own purposes although there has been major reallocation and changes to their outbound flow since the crisis in Japan.
Kentetsu World Express has approximately 216, 36, 53 square feet of warehouse space throughout Japan and 279581 square feet of space in South Korea, although since our distribution and warehouse centres are going to be located in only selected regions of Japan with approximately 100,00,00 square feet of space.(KWE, 2011) This scale is only an indication as to the possible space we can use, however Kintetsu have their own operations as well, hence it all comes down to resource or item allocation.
Our main aim is to have as many Kits in stock at once as possible, to save space thus minimising inventory costs, and maximize efficiency. If we store as many items as possible the kits can be shipped out as and when they are required, and more importantly at a faster rate. Also by having a large inventory, we can replace our relief kits as they are sent out and used, allowing a faster rate of replacement thus making the availability greater to meet demand.
In terms of storage containers we have opted to use pallets. Pallets are one of the most commonly used means of storage and movement of...