Warehouse,types, advantage and disadvantage.

1. 1. NAME : PON PANDI
ROLL NO : 18UD47
CLASS : 3 BBA C
SUBJCET : LOGISTICS
MANAGEMENT
TOPIC : WAREHOUSING

2. • MEANING OF WAREHOUSING-
• WHAT IS WAREHOUSING??
• WAREHOUSING IS A PLACE WHERE GOODS AND PRODUCTS
ARE STORED PRIOR TO IT BEING DISTRIBUTED, SOLD OR
USED. THE ACT OF RE-POSITION OF MATERIAL IS CALLED
AS WAREHOUSING.
• THROUGH WAREHOUSING OR WAREHOUSES, THE
BUSINESSES OR COMPANIES CAN STORE OUR PRODUCTS
IN BIG GODOWNS AND PROTECT THEM FROM VARIOUS
UNCERTAINTIES. THESE WAREHOUSES ARE USED BY
WHOLESALERS, IMPORTERS, EXPORTERS, CUSTOMS, ETC.

3. • WAREHOUSING LOGISTICS OBJECTIVES
• THE ULTIMATE GOAL OF WAREHOUSE LOGISTICS IS TO MINIMIZE
OPERATING COSTS WHILE MAINTAINING QUALITY SERVICE. IT AIMS
TO ACHIEVE THE BEST COMBINATION OF THE FOLLOWING ACTIONS:
• STORAGE SPACE.
• ENSURE OPTIMAL ORGANIZATION OF THE WORKFORCE.
• LEVERAGE HANDLING EQUIPMENT.
• GUARANTEE ACCESS TO GOODS WHEN THEY ARE REQUESTED.
• MAINTAIN THE SECURITY MEASURES NECESSARY TO PRESERVE
THE INTEGRITY OF THE GOODS.
• LOGISTICS MANAGERS WORK IN EACH AREA OF WAREHOUSE
LOGISTICS TO MEET THESE OBJECTIVES.

4. PRINCIPLES OF WAREHOUSE DESIGN
• THE THREE BASIC TO BE CONSIDERED IN WAREHOUSING
DESIGNING
• DESIGN CRITERIA
• HANDLING TECHNOLOGY
• STORAGE PLAN

5. • DIFFERENT TYPES OF WAREHOUSES
• DISTRIBUTION CENTER. DISTRIBUTION WAREHOUSES ARE USED TO
STORE AND SELL LARGE QUANTITIES OF GOODS. ...
• CLIMATE-CONTROLLED WAREHOUSE. CLIMATE-
CONTROLLED WAREHOUSES ARE MOST OFTEN USED TO STORE AND
SHIP PERISHABLE GOODS. ...
• PRIVATE WAREHOUSE. ...
• PUBLIC WAREHOUSE. ...
• CONTRACT WAREHOUSE

6. PRIVATE WAREHOUSING
• THESE ARE THE WAREHOUSES OWNED BY THE COMPANY FOR THEIR EXCLUSIVE USE OF
STORING THE GOODS MANUFACTURED OR TRADED BY THEM FOR ONWARD SELLING IN
THE MARKET.
• ADVANTAGES:
• BETTER CONTROL OVER STORAGE AND MOVEMENT OF GOODS
• LESS CHANCE OF ERRORS IN HANDLING THE GOODS
• CUSTOMISED DESIGN AND FLEXIBILITY IN OPERATIONS
• COST EFFECTIVE AND ECONOMIC
• DISADVANTAGES:
• LACK OF GEOGRAPHICAL FLEXIBILITY
• REQUIRES STABLE DEMAND AND HIGH PRODUCT THROUGHPUT
• REQUIRES INITIAL LARGER FINANCIAL INVESTMENT
• HAS PERMANENT LIABILITY

7. PUBLIC WAREHOUSING
• PUBLIC WAREHOUSES
• THESE ARE THE WAREHOUSES HIRED FROM OTHER AGENCIES FOR STORING THE GOODS
FOR A SPECIFIC PERIOD OF TIME BY PAYING AGREED RENT. E.G. CENTRAL WAREHOUSING
CORPORATION (CWC)
• ADVANTAGES:
• GENERALLY LOCATED NEAR PORTS AND MARKET PLACE AND THUS HAS FIXED PERIODIC
OPERATING COST
• GREAT FLEXIBILITY IN LOCATION CHANGEOVER.
• NO PERMANENT LIABILITY.
• ADJUSTMENTS AS PER SEASON ARE POSSIBLE.
• DISADVANTAGES:
• LACK OF FLEXIBILITY IN OPERATIONS
• NOT SUITABLE FOR SPECIALISED SERVICES

8. CONTRACT WAREHOUSING
• CONTRACT WAREHOUSES
• IT IS A SPECIALISED FORM OF PUBLIC WAREHOUSES MANAGED BY THIRD PARTY LOGISTICS
COMPANIES FOR PROVIDING TOTAL WAREHOUSING SERVICES BY PAYING THE AGREED
CHARGES.
• ADVANTAGES:
• GREAT FLEXIBILITY IN LOCATION CHANGEOVER
• NO PERMANENT LIABILITY.
• ADJUSTMENTS AS PER SEASON ARE POSSIBLE.
• AVAILABILITY OF EXPERT MANPOWER AND DEDICATED RESOURCES.
• DISADVANTAGES:
• LESS CONTROL ON OPERATIONS
• PERFORMANCE OF ORGANISATION DEPENDS ON THE PERFORMANCE ON THIRD PARTY

9. BENEFITS OF WAREHOUSING
• BETTER CONTROL, FLEXIBILITY AND COST.
• OPERATION POLICIES AND PROCEDURES CAN BE ADJUSTED TO MEET
INDIVIDUAL NEEDS.
• FIRMS WITH SPECIALIZED CUSTOMERS OR PRODUCTS OFTEN DEVELOP
THEIR OWN WAREHOUSES.
• LESS COSTLY THAN PUBLIC WAREHOUSING BECAUSE PRIVATE
FACILITY COSTS DO NOT HAVE A PROFIT MARKUP.

10. WAREHOUSE FUNCTION
Warehouse
Movement Storage
Receiving In-storage
handling Shipping Planned
storage
Extended
storage

11. WAREHOUSING STRATEGIES
• A WAREHOUSE STRATEGY INVOLVES MANY IMPORTANT DECISIONS
SUCH AS THE INVESTMENT AND OPERATION COSTS THAT MAKE UP
THE LOGISTICS OVERHEAD. IN THIS ARTICLE, DARREN WOOLLARD
FROM DMG FREIGHT, OFFERING SUPPLY CHAIN MANAGEMENT
SERVICES, GIVES YOU SIX TIPS FOR CREATING A WAREHOUSE
STRATEGIC PLAN.

12. WAREHOUSING ACTIVITY

13. WAREHOUSING ACTIVITY
• RECEIVING GOODS
• ACCEPTS GOODS
• FACTOR
• CHECK THE GOODS AND ORDERS OR BILL
• CHECK FOR QUANTITIES
• CHECK FOR DAMAGE
• DAMAGE REPORTS
• HOLD

14. WAREHOUSE DISTRIBUTION
• DISTRIBUTION IS A WAY OF SELLING A COMPANY'S PRODUCT EITHER DIRECTLY OR
VIA DISTRIBUTORS; "POSSIBLE DISTRIBUTION CHANNELS ARE WHOLESALERS OR
SMALL RETAILERS OR RETAIL CHAINS OR DIRECTMAILERS OR YOUR OWN STORES"
DISTRIBUTION AFFECTS THE PLACE OR PATH THROUGH WHICH CONSUMERS CAN
BUY AND RECEIVE THE PRODUCT. A DISTRIBUTION CHANNEL MAY BE AN ON-SITE
STORE, A VIRTUAL STORE, A RETAILER, A WHOLESALER, AN AGENT, A
TELEMARKETER, OR DIRECT MAIL.

15. IMPORTANCE OF WAREHOUSING
• WAREHOUSING ALLOWS FOR TIMELY DELIVERY
AND OPTIMIZED DISTRIBUTION, LEADING TO
INCREASED LABOR PRODUCTIVITY AND GREATER
CUSTOMER SATISFACTION. IT ALSO HELPS
REDUCE ERRORS AND DAMAGE IN THE ORDER
FULFILLMENT PROCESS. PLUS, IT PREVENTS
YOUR GOODS FROM GETTING LOST OR STOLEN
DURING HANDLING.

16. WAREHOUSE SUPPLY CHAIN
• SUPPLY CHAIN MANAGEMENT IS THE AREA
OF BUSINESS ADMINISTRATION THAT
DIRECTLY CONCERNS THE CONSUMERS. IT
IS ESSENTIAL IN ENSURING CUSTOMER
SATISFACTION AND LOYALTY. THIS AREA
COVERS SEVERAL BUSINESS OPERATIONS
SUCH AS WAREHOUSING AND
DISTRIBUTION. TO SUCCEED IN SUPPLY
CHAIN MANAGEMENT, IT IS IMPORTANT TO
EXCEL IN THOSE AFOREMENTIONED
BUSINESS OPERATIONS.

17. WAREHOUSING TRANSPORTATION
• THE TRANSPORTATION AND WAREHOUSING SECTOR
INCLUDES INDUSTRIES
PROVIDING TRANSPORTATION OF PASSENGERS AND
CARGO, WAREHOUSING AND STORAGE FOR GOODS,
SCENIC AND SIGHTSEEING TRANSPORTATION, AND
SUPPORT ACTIVITIES RELATED TO MODES
OF TRANSPORTATION. ... THE MODES
OF TRANSPORTATION ARE AIR, RAIL, WATER, ROAD,
AND PIPELINE.

18. WAREHOUSING ADVANTAGE
• ALLOWS FOR MORE CONSISTENT PRODUCTION. FOR
COMPANIES WHO MASS-PRODUCE THEIR OWN GOODS,
HAVING AMPLE WAREHOUSING SPACE TO STORE ALL OF
THEIR RAW MATERIALS IS NOT ONLY IMPORTANT, IT IS VITAL.
...
• STORAGE. ...
• MINIMIZES THE RISK OF DAMAGED GOODS. ...
• PRIVATE WAREHOUSE. ...
• BONDED WAREHOUSE.

19. WAREHOUSING OF DISADVANTAGE
• DETERMINING WHICH TYPE
OF WAREHOUSE YOU NEED. DETERMINING
WHICH TYPE OF WAREHOUSE YOU NEED IS
NOT GOING TO BE AN EASY TASK. ...
• LESS CONTROL. ...
• SIGNIFICANTLY LOWER INVESTMENTS. ...
• SAFETY, SECURITY, AND INSURANCE. ...
• LOCATION AND DISTRIBUTION. ...
• FLEXIBILITY AND SCALABILITY. ...
• LOWER RISKS.

20. WAREHOUSE DESIGN
• WAREHOUSE DESIGN
• WAREHOUSE DESIGN IS ART IN WHICH GOODS AND MATERIAL
CAN BE STORED AS TO REDUCE WASTAGE, COST OF CARRYING
AND INCREASE SAFETY. THE VARIOUS FACTORS CONSIDERED
FOR WAREHOUSE DESIGN ARE AS FOLLOWS:
• EASY MATERIAL HANDLING INCLUDING RECEIPT, DISPATCH AND
STORAGE.
• EASY SUPERVISION OF MATERIALS AS WELL AS PERSONNEL
• REDUCE AND CONTROL OBSOLESCENCE OF THE GOODS BY
FOLLOWING APPROPRIATE METHOD.
• OPTIMUM UTILIZATION OF SPACE

21. WAREHOUSE LAYOUT AND INVENTERY LIST
• IF YOU RUN A WAREHOUSE, DISTRIBUTION CENTER, OR
FULFILLMENT CENTER, YOU NEED MORE THAN THE
RIGHT SPACE AND EQUIPMENT, YOU NEED AN EFFICIENT
WAREHOUSE LAYOUT. ...
• BRAINSTORM WAREHOUSE DESIGN IDEAS. ...
• DRAW A WAREHOUSE LAYOUT TEMPLATE. ...
• PLAN YOUR WORKSPACE. ...
• SELECT WAREHOUSE EQUIPMENT.