The document discusses warehousing, which refers to the large-scale storage and organization of goods from the time of production or purchase until use or sale. Warehouses serve several purposes like supporting customer needs, maintaining supply, and achieving transportation efficiencies. An ideal warehouse has characteristics like a convenient location, adequate space and equipment, security, and fire protection. The types of warehouses include private, public, and specialized varieties like bonded or cold storage facilities. Location and utilization strategies aim to optimize efficiency through factors such as demand patterns and economies of scale. Proper site selection, layout, and protection measures help prevent product damage and theft in warehouses.

1. PRODUCT AND
SERVICE
WAREHOUSING

2. ALIGARH MUSLIM UNIVERSITY
CENTRE MALAPPURMAM
Sales and Distribution Management
Submitted to :-
Asst. Prof Rinoj P.K
Aligarh Muslim University
Centre Malappuram
Submiited by :-
Prince Kumar Maurya
16-MBAK-76
GJ-5846
2nd year

3. Contents:-
 Concept
 Meaning and definition
 Basic function performed
 Reasons for warehousing
 Characteristic of ideal warehouse
 Benefits
 Function of warehouse
 Types of Warehouse
 Warehousing strategies
 Warehouse location strategies
 Site selection

4. Concept :-
• Need for storage arises both for raw material as well as
finished products.
• STORAGE involves proper management for preserving
goods from the time of their production or purchase till
actual use.
• When this storage is done on a large scale and in a
specified manner it is called WAREHOUSING.

5. Meaning and Definition.
• Place where goods are kept is called WAREHOUSE.
• The person in-charge of warehouse is called WAREHOUSE-KEEPER.
• A commercial building for storageof goods.
• Used by manufacturers,importers, exporters, wholesalers, transport
business, customers etc.

6. • Warehousing refers to the activities involving storage of goods
on a large-scale in a systematic and orderly manner and making
them available conveniently when needed.
• Means holding or preserving goods in huge quantities from the
time of their purchase or production till their actual use or sale.
• Creates time utility by bridging the time gap between
production and consumption of goods.

8. Reasons for warehousing.
1. To support the company’s customer policy.
2. To maintain a source of supply without interruptions.
3. To achieve transportation economies.
4. To support changing market conditions and sudden changes in
demand.
5. To support any JIT programs.
6. To provide customers with the right mix of products at all times and
all locations.
7. To ensure least logistics cost for a desired level of customer service.

9. Characteristic of ideal Warehouse.
• Convenient location.
• Availability of mechanical appliances to load and unload goods
• Adequate space.
• Cold storage facilities.
• Proper arrangement for protection.
• Sufficient parking space.
• Round the clock security arrangement.
• Latest fire fighting equipment

10. Benefits.
• Less land and smaller building
• High productivity
• Operate faster -24 hours a day, 7-days a week
• No delays
• Efficient flow of materials
• Provide buffer storage functions
• Need for drivers/operators eliminated
• Risk of injury minimized by safety fences
• Reduce stockholdings
• Inventory accurately tracked at all stages
• Ongoing operating costs eliminated

11. Functions of a warehouse.
 Storage of goods.
 Protection of goods.
 Risk bearing.
 Identification of goods.
 Financing .
 Processing.

12. Types of warehouse.
 Private warehouse.
 Public warehouse.
 Government warehouse.
 Co-operative warehouse.
 Bonded warehouse.
 Cold storage warehouse.
 Export/import warehouse.
 Agricultural warehouse.

13. Warehousing Strategy.
An integrated warehouse strategy focuses on two questions.
 The 1st concerns how many warehouses should be employed.
 The 2nd question concerns which warehouse types should be
used to meet market requirements.

14.  Many firms utilize a combination of private, public,
and contract facilities.
 A private or contract facility may be used to cover basic
year round requirements, while public facilities are used to
handle peak seasons.
 In other situations, central warehouses may be private, while
market area or field warehouses are public facilities.

15.  Full warehouse utilization throughout a year is a remote
possibility.
 As a planning rule, a warehouse designed for full-capacity
utilization will in fact be fully utilized between 75 to 85 % of the
time.
 Thus from 15 to 25 % of the time, the space needed to meet
peak requirements is not utilized.
 In such situations, it may be more efficient to build private
facilities to cover the 75% requirement and use public facilities to
accommodate peak demand.

16. It may be more efficient to build private facilities
to cover the 75 % requirement and use public
facilities to accommodate peak demand.

17. Other qualitative factors that should be
considered include:
presence synergies: Inventory located nearby in a building
thatis clearly affiliated with the enterprise.
industry synergies: Refer to the operating benefits of collocating
with other firms serving the same industry.
operating flexibility: Refers to the ability to adjust internal policies
and procedures to meet product and customer needs.
location flexibility: Refers to the ability to quickly adjust
warehouse location and number in accordance with seasonal
or permanent demand changes.
scale economies: Refer to the ability to reduce material-handling
and storage through application of advanced technologies.

18. The Warehouse location strategies.
1) Market positioned:
a) Order Cycle time.
b)Transportation cost.
c) Sensitivity of the product.
d) Order sizes.
2) Product positioned:
a) Perishability of the raw materials.
b) Number of products in the product mix.
c)Assortments ordered by the customers from the product mix.
d)Transportation consolidation rates.
3) Intermediately positioned:

19. Site Selection.
1. Location of the major markets.
2. Nature of the products being distributed.
3. Quality & Variety of carriers serving the proposed site.
4. Quality & Quantity of labour available.
5. Cost of industrial land.
. Potential for expansion.
7. Local tax structures.
8. Cost of construction.
9. Cost & availability of utilities .
10. Any local govt. tax concessions or incentives.

20. Warehouse Layout.
1. Layout of a warehouse depends on the proposed material
handling system and requires development of a floor plan to
facilitate product flow.
2. If pallets are to be utilized, the first step is to determine the
pallet size.
Pilferage Protection.
1. Protection against theft of merchandise has become a major
factor in warehouse operation.
2. As standard procedure, only authorized personnel should be
permitted into the facility and surrounding grounds.

21. Product Deterioration.
1. The most obvious form of product deterioration is
damage from careless transfer or storage.
2. Another major form of deterioration is non-compatibility
of products stored in the same facility.
3. Product deterioration from careless handling within the
warehouse is a form of loss that cannot be insured
against and constitutes a 100 percent cost with no
compensating revenue.