1. 1. What is the importance of warehousing?
The first is, having a warehouse you will have the opportunity of consolidating the products. So
to provide service to our customers, we need a variety of items. Before we deliver them to the
customers, we have to consolidate those products. Without the warehouse, we can’t do that. If you can
consolidate the items in the warehouse, it will be cheaper than sending each item to your customer.
Second, the buffer lead time. With the warehouse, you can reduce the lead time in delivering your
service to customer. Because you have the materials available already. Unlike if you will order your
items every time you receive order from your customer, so it will take time.
The third one is the transportation mode trade off. Meaning to say, if you have a warehouse, you can
take advantage of the economies of scale in transportation. You can optimize the use of transportation.
You can send your materials in bulk orders and whatever quantity you desire.
The fourth one is you will have the opportunity to save due to bulk orders. When you buy a particular
item from a supplier, more often than not you can avail of discounts.
Last one; it gives you protection from unforecasted price upsurge. There are times in a year, suppliers
decide to increase the price of their commodity. So when you have the warehouse, most likely you will
not be affected for that year.
2. What are the requirements needed in choosing the warehouse
You have to know what goods you are going to store in the warehouse. Like for instance,
you need a warehouse which controls temperature. First and foremost, you have to know what you
need to store. Then space requirement and capacity. Then accessibility, safety, security and location.
3. Who make decisions in choosing a warehouse?
For us, it can be decided by the logistics and coordination with our safety. That is if your company has a
safety department.
4. Do you consider the warehouse layout and design in choosing a warehouse?
Layout and design is very important in choosing a warehouse. Most of the time, the layout affects your.
In warehouse loss and prevention, it is very critical in choosing a good layout in the warehouse. But
nowadays, warehouse has not become the core competence of many companies. That’s why most
companies no longer build their own warehouses. So they lease their own warehouse.
5. Who is in-charge in the warehousing operation?

2. It depends on the organizational setup of your company. If centralized or decentralized, regionalized, it
depends. In the case of Globe, I don’t know if I can tell you. Our warehouse now is being run by a third
party.
6. What are the primary functions of warehousing in your company?
Just like any other warehouse, we have receiving, identification and sorting, storage, picking, packing,
shipment and then recording.
7. Do you consider warehousing important in the logistics system in Globe?
Yes it’s very important, in day to day operations and as well as keeping good service to our customers.