Essay on Risk Management

Essay on Risk Management

Risk management is necessary for the warehouse as it ensures that the organization only allows risks that enable it to achieve its primary objectives and avoid or control any other unnecessary risks. The critical areas of risk management in the warehouse include falls from heights, slips, and trips, operation of lift trucks, traffic movements such as deliveries, strap-wrap machine, conveyor belt operations, and portable electrical equipment (Webb, 2019). Besides these hazards, the risk management plan of the warehouse should also protect the warehouse against perils such as fire, hazardous substances, lighting, and hygiene. Protecting the warehouse against hazards requires the communication of strict instructions by the manager and the maintenance staff to ensure that all risks are either kept at bay or protected.

The installation and regular maintenance of fire suppression systems such as fire extinguishers and sprinklers are crucial in protecting the warehouse against extensive product damage from fire. As noted by Webb (2019), the manager and maintenance staff should also perform regular flood risk inspections and assessments and install temporary or permanent barriers to protect the warehouse against the risk of flooding. The introduction of facility boundaries, visitor registers, electronic surveillance and security systems, and employee checks would come in handy in offering physical security to the warehouse premises. The proper labeling, storage, and disposal of hazardous substances would be essential in protecting the organization against dangerous substances. The safety of the warehouse’s employees can be guaranteed by avoiding manual-labor related injuries such as the manual lifting of items and avoiding hazards that can cause falls, slips, and trips.

Finally, training employees on the proper handling of equipment and products would prevent unnecessary equipment failure and product damage.

 

Operational Planning

The operational plan of a warehouse is essential in linking the strategic objectives and goals of the warehouse to its tactical objectives and goals. Managing warehouse operations involves controlling and optimizing sophisticated warehouse and distribution activities (Faber, De Kosta & Smidts, 2013). The effective management of warehouse operations should be determined by the market dynamics and the tax complexity that is a mix of the product variety and the volume of products in the warehouse (Myerson, 2012). The operational plan should include critical processes such as handling inbound products, designating products to their respective locations, order release and batching, picking of orders, product storage, packaging, processing of value-added logistics, and the eventual shipment of the products (Faber, De Kosta & Smidts, 2013). Therefore, the effective running of a warehouse’s operations depends on the successful management of these processes.

While the tactical plan is concerned with the products that arrive at the warehouse and their specific quantities, as well as the storage location, personnel, and equipment, the operational plan focuses on the scheduling, sequencing, routing of orders, and operations associated with storage or retrieval of orders. The operational plan should also include a control system that manages inbound, outbound, and storage activities that do not go as planned (Faber, De Kosta & Smidts, 2013. This is necessary in instances where customers change their minds about their orders, such as the order quantity, time of shipment, and mode of delivery. The control system would also manage cases where suppliers fail to deliver inbound products on time. In essence, the operational plan should schedule, sequence, and route orders while also responding appropriately to any changes to the order delivery process.

 

 

References

Faber, N., De Koster, M. B. M., & Smidts, A. (2013). Organizing warehouse management. International Journal of Operations & Production Management.

Myerson, P. (2012). Lean supply chain and logistics management. New York, NY: McGraw-Hill.

Webb, R. (2019). Warehouse Risk Management: Is Your Facility Secure? Clearrisk.Com. https://www.clearrisk.com/risk-management-blog/is-your-warehouse-secure