Facilitator's Question Part II

What are the reasons leading to high popularity of block stacking method (as shown in your Blog) for warehousing operations? Explain.

The following are reasons leading to high popularity of Block Stacking method:

• By using block stacking, it can help to save space in the warehouse. The warehouse can therefore stack more of the inventories. Additionally, the company can also save on getting a smaller warehouse instead.

• Using block stacking ensures that the warehouse is close to 100% utilised, which is what the management would like to achieve; each sq meter being utilised.

• With block stacking, it facilitates easier movement of the same type of inventories, such that they can move as a block, so to say. If the particular item is a fast moving inventory, it is an added-point to do block stacking, as it saves time to move the inventories in loose bulk, but in blocks.

• There is no requirement to invest in racks for block stacking. A high initial capital would be needed to start up a racking storage, compared to other conventional storage. In logistics, saving cost is one of the priorities as it will allow the company profit to increase.

• Block stacking is easy to implement, compared to other storage systems, as the equipments necessary are considered the most basic ones. A forklift and just some labelings and block stacking will be in place for storing goods.

• Block stacking enables flexibility in the usage of space in the warehouse. In racking system, only cargoes of specific dimension and weight can be stored in individual locations. This is unlike block stacking, where it allows cargos of different weight and dimension to be stored. By doing so, the number of customers who can be dealt with, will increase and this enables better space utilisation of the warehouse, increasing revenue earned.

• As far as block stacking is concerned, there is flexibility in the height to which the cargoes can be stacked. As long as it is safe to do so, the cargoes can be stacked to the maximum. As we know, every cubic metre in the warehouse is important to make a profit. Therefore, being able to stack the cargoes to the maximum, it can save on the cubic space in the warehouse. It will increase the revenue per cubic metre and thus increase the overall profit of the company.