Logistics warehousing-3

1. Logistics Management
(Part of ORL)
BBA (Semester 4)
Faculty : Ravi Kumar Singh, International School of management Patna
Lecture-12 : Warehousing

2. Lecture-12 : Warehousing
Topics to be discussed-
● Types of Warehouses
● Warehousing Costs
● Warehousing Decisions
● Warehousing Location Analysis
● Warehousing Strategies
ISM Patna/Logistics_1_Ravi_K_Singh

3. TYPES OF WAREHOUSES
● On the basis of
Ownership:
○ Private Warehouses
○ Public Warehouses
○ Contract warehouses
● On the basis of Service:
○ Bonded Warehouse
○ Field Warehouse
○ Cold Storage /Refrigerated
Warehouse
○ Distribution Warehouse
○ Buffer Storage Warehouse
○ Export & Import warehouse

4. WAREHOUSING COSTS
1. Receipt, Handling and Despatch (RHD) Cost
• 2. Storage Cost (rental)
• 3. Construction and Installation Cost
• 4. Operational & Administrative Costs

5. Which Warehouse to use…
Influencing Factors
Private
WH
Public
WH
Contract
WH
Investment Very high None Very less
Controls High Low Medium
Operation Flexibility High Low Medium
Cost per unit stored
Inversely
related to
volumes
Low
Inversely
related to
volumes
Risk High Low Medium

6. Warehouse Decision Model

7. Warehouse Site Selection Decision (Location Analysis)
Decision regarding site selection revolves around two major factors- 1. Level of Service & 2.
Cost to serve
Specific factors affecting site selection are:
a) Market proximity
b) Infrastructural facilities
c) Accessibility
d) Safety & Security
e) Availability of space with respect to price of land
f) Nature of the product
g) Value Density of product
h) Taxes and levies
i) Govt. Regulation

8. Warehousing Strategies
1) Capacity Switching
2) Hub Networking
3) Cobbling
4) Outsourcing