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238 CHAPTER 7 Inventory and Warehouse Management Processes

Business Processes in Practice 7.2: Warehouse
Organization at Steelcase, Inc.

In its massive manufacturing plants, Steelcase might
have to store and maintain inventory for more than
30,000 unique raw materials for production. These
materials are classifi ed into multiple storage types, such
as plastic, rolled steel, wood, and fabric. Because each
of these materials has unique characteristics, each one
requires different types of storage. For example, plastic
parts are typically very small and can be stored in large
bins in bulk quantity on a rack (Figure 7-12). A single
Steelcase warehouse can have up to 15,000 storage bins
for small raw materials. Rolls of fabric require a differ-
ent type of space for storage (Figure 7-13). However,
the rolled steel, which is formed into cubicle walls or fi le
cabinets, is delivered in massive rolls that weigh several
tons each. These materials are bulky and heavy and
©Angela D. Gustaf, Steelcase, Inc.
require special equipment to store and move around Figure 7-13: Fabric storage at the Kentwood East
the plant, so they require unique storage and handling Manufacturing plant, Steelcase, Inc.
space on the warehouse fl oor (Figure 7-14). In addi-
tion, raw materials must be stored in two types of stor-
age locations—standard storage, which is located in the
warehouse, and line storage, which is located directly
next to the manufacturing line for easy access. Typically,

©Angela D. Gustaf, Steelcase, Inc.
Figure 7-14: Rolled steel storage at the Kentwood
East Manufacturing plant, Steelcase, Inc.

Steelcase prefers to have at least a 24-hour supply of raw
materials located next to the production line to ensure a
constant fl ow of materials and to avoid any disruptions
©Angela D. Gustaf, Steelcase, Inc.
to the manufacturing process.
Figure 7-12: Bins in rack storage at the Kentwood
East Manufacturing plant, Steelcase, Inc. Source: Steelcase, Inc. Materials Planning Group.

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