This document provides information about warehousing and logistics. It defines a warehouse as a building used to store goods temporarily until they are sold or transported. It describes different types of warehouses like manufacturing, retail distribution, and catalog warehouses. It also lists factors that determine warehouse location and advantages and disadvantages of public and private warehousing.

1. Students:
•María José Bazurto
•Gabriela García
•Cristina Medina
•Karla Pacheco
•Bryan Baldeón
•Luis Ordoñes
•Teresa Revelo
Lecturer:
Max Galarza
02/09/2015
Grade: 9
LOGISTICS
WAREHOUSING

2. Warehousing
A large building used for temporarily storing goods until they are sold and
transported to stored or customers
warehouse management system is a key part of the supply chain and primarily aims
to control the movement and storage of materials within a warehouse and process
the associated transactions, including shipping, receiving, putaway and picking.

3. Warehouses are usually large plain buildings in industrial areas of cities,
towns and villages. They usually have loading docks to load and unload
goods from trucks. Sometimes warehouses are designed for the loading and
unloading of goods directly from railways, airports, or seaports.

4. Types of Warehouse
Manufacturing
Support
•Stock room
providing raw
material and work
in process items to
manufacturing
operations
•Contains many
small orders
Factory
•Interface
production with
wholesalers
•A Comparatively
small number of
orders are picked
up on daily basis
•Advance
information about
the order
composition is
required
Retail Distribution
•Serves a number of
captive retail units
•Advance info about
order composition is
needed
•Carton and item
picking is done from a
forward area
Catalog Retailer
•Fills orders from
catalog sales
•A large numbers
of small, frequently
single –lines orders
are picked up

5. NEED FOR WAREHOUSE
• Warehouse is necessary due to the following reasons:
• 1.-)Seasonal Production:
• There is a need for proper storage or warehousing for these commodities from where
they can be supplied as and when required.
• 2.-)Seasonal Demand:
• There are certain goods,which are demanded seasonally, like woolen garments.
• 3.-)Large-scale Production:
• Nowadays production takes place throughout the year to meet the existing as well
as future demand of products.
• 4.-)Quick Supply:
• Its essential to stock these goods near the place of consumption.
• 5.-)Continuous Production:
• Continuous productionof goods in factories requires adequate supply of raw
materials.

6. WAREHOUSE INVENTORY ISSUES
Damaged inventory, inaccurate inventory counts and other inventory-related
issues occur everywhere
Inaccurate Quantities
• Inaccuracy remains one of the biggest problems facing all warehouses.
Inaccuracy takes shape in many forms, such as inaccurate quantities,
inaccurate storage locations, inaccurate pricing and inaccurate
identification. At some point in time, most companies experience an
inaccurate quantity of one or more products in their warehouse.

7. Capacity
• For warehouses large and small, capacity issues often equate to inventory issues. Often when
a warehouse becomes crowded with pallets and cases of inventory, basic rules for managing
the warehouse get overlooked. In an attempt to store more inventory, products often get
damaged, lost and not accounted for in the inventory management system. Storage problems
can also create obsolete inventory issues.
Damage
• Inventory typically gets handled multiple times in a warehouse. Each time it gets touched or
moved it becomes susceptible to damage. Many companies try to recoup some of the financial
lose of damaged inventory by selling it at substantial discounts to the public--think about
those furniture liquidation centers that sell scratch and dent merchandise.
Product Identification
• Warehousing inventory issues occur when inventory arrives with incorrect labels, barcodes, or
packaging. The warehouse personnel accept the barcode scan without verifying the box
contents. This act creates an immediate inventory discrepancy.
Training
• Unfortunately, a large number of warehouse inventory issues results from improper or a
complete lack of employee training. Typically, issues involving inventory accuracy, damage
and product identification can get traced back to human error.

8. Warehouses play many vital roles in the
supply chain:
• Raw material and component warehouses hold raw materials at or near the
point of induction into a manufacturing or assembly process.
• Work-in-process warehouses hold partially completed assemblies and
products at various points along an assembly or production line.
• Finished goods warehouses hold inventory used to balance and buffer the
variation between production schedules and demand. For this purpose, the
warehouse is usually located near the point of manufacture and is often
characterized by the flow of full pallets in and full pallets out assuming that
product size and volume warrant pallet-sized loads. A warehouse serving
only this function may have demands ranging from monthly to quarterly
replenishment of stock to the next level of distribution.

9. • Distribution warehouses, distribution centers accumulate
and consolidate products from various points of manufacture
within a single firm, or from several firms, for combined shipment
to common customers. Such a warehouse may be located central
to either the production locations or the customer base. Product
movement may be typified by full pallets or cases in and full cases
or broken case quantities out. The facility is typically responding
to regular weekly or monthly orders.
• Fulfillment warehouses, fulfillment centers receive, pick, and ship
small orders for individual consumers.
• Local warehouses are distributed in the field in order to shorten
transportation distances to permit rapid response to customer
demand. Frequently, single items are picked, and the same item
may be shipped to the customer every day.
• Value added service warehouses serve as the facility where key
product customization activities are executed including
packaging, labeling, marking, pricing, and returns processing.

10. FACTORS TO DETERMINATE THE
LOCATION OF WAREHOUSE
• Satisfaction of transport requirements and facilities available in the from of
rail, road vehicles.
• Transportation rates prevailing in the area and distribution cost per unit.
• Availability of power, water, gas sewage disposal and their costs.

11. ADVANTAGES OF PUBLIC
WAREHOUSING
CONSERVATION OF CAPITAL IS MORE
IN PUBLIC WAREHOUSE.
IT HAS GOT ENOUGH SPACE TO
HANDLE PEAK REQUIREMENTS.
HAS REDUCED RISK IN THEIR
OPERATIONS.

12. DISADVANTAGES OF PUBLIC
WAREHOUSING
• Problems in communication due to system incompatibility.
• Specialized services may not always be available whenever it is needed.
• Adequate space may not always be available for end users.

13. Advantages of private warehousing
 1. offers better monitoring systems over the handling and storage of products.
 2. There is less likelihood or error in the case of private warehousing since the
company’s products are handled by its own employees who are able to identify the
products of their own company.
 3. If there is sufficient volume of goods to be warehoused, the cost of private
warehousing comparatively less than that of public warehousing.
 4. Is the best choice for some of the locations and the products handled because of the
non-availability of the public warehousing.

14. Disadvantages of private warehousing
1. Lack of Corporate flexibility which increases the complexity in the
operation.
2. Financial issues
3. Low rate of return.
4. Tax issues are complicated.

15. Netgraphy
• http://ciilogistics.com/coursware/sem2/Warehousing.pdf
• http://www.oracle.com/us/products/applications/jd-edwards-
enterpriseone/warehouse-mgmt-system-presentation-1741531.pdf