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1. TYPES OF WAREHOUSES
The varioustypes ofwarehouses are:
Private Warehouses
The warehouseswhich areowned and managed by themanufacturersortradersto store,exclusively,
their own stockof goodsareknown asprivatewarehouses.
Generally these warehousesareconstructed by thefarmersneartheir fields,by wholesalersand retailers
neartheir businesscentresand by manufacturersneartheirfactories.
The design and the facilities provided therein areaccording to the natureof productsto be stored.
PublicWarehouses
The warehouseswhich arerun to storegoodsof the generalpublic are known aspublicwarehouses.
Any onecan storehis goodsin thesewarehouseson paymentof rent.
An individual,a partnership firmor a company may own thesewarehouses.
To startsuch warehousesa licence fromthe governmentisrequired.
The governmentalso regulatesthefunctionsand operationsof thesewarehouses.
Mostly thesewarehousesareused by manufacturers,wholesalers,exporters, importers,government

2. agencies,etc.
GovernmentWarehouses
These warehousesareowned,managed and controlled by centralor state governmentsorpublic
corporationsorlocal authorities.
Bothgovernmentand privateenterprisesmay usethesewarehouses to storetheir goods.
CentralWarehousing Corporation of India,StateWarehousing Corporation and Food Corporationof
India are examplesof agenciesmaintaining governmentwarehouses.
Bonded Warehouses
These warehousesareowned,managed and controlled by governmentaswellas privateagencies.
Privatebonded warehouseshaveto obtain licence fromthe government.
Bonded warehousesareused to storeimported goodsforwhich importduty is yetto be paid.
In caseof imported goodstheimportersarenot allowed to takeaway thegoodsfromtheportstill such
dutyis paid.
These warehousesaregenerally owned by dockauthoritiesand found neartheports.
Co-operativeWarehouses
These warehousesareowned,managed and controlled by co-operativesocieties.
They providewarehousing facilitiesatthe mosteconomicalratesto the membersof their society.
CHARACTERISTIC OF IDEAL WAREHOUSES.
Any warehouseissaid bean ideal warehouseif it possessesthebelow mentioned charechteristics:
Warehouseshould belocated at a convenientplacenearhighways,railway stations,airportsand
seaportswheregoodscan beloaded and unloaded easily.
Mechanicalappliancesshould bethere to loading and unloading thegoods.Thisreducesthewastagesin
handling and also minimiseshandling costs.
Adequatespaceshould beavailableinside thebuilding to keep the goodsin properorder.

3. Ware housesmeantforpreservation of perishableitemslike fruits,vegetables,eggsand butteretc.
should havecold storagefacilities.
Properarrangementshould bethereto protectthe goodsfromsunlight,rain,wind,dust,moistureand
pests.
Sufficientparking spaceshould bethere inside thepremises to facilitateeasy and quickloading and
unloading of goods.
Round theclock security arrangementshould bethereto avoid theftof goods.
The building should be fitted with latest fire-fighting equipmentsto avoid lossof goodsdueto fire.
FUNCTIONSOFWAREHOUSING
Receiving
Receiving is thatactivity concerned withthe orderly receipt of all materialscoming into the warehouse.
The necessary activities to assurethat thequantity and quality of such materials are asordered and
The paymentto storageorto otherorganisationalfunctionsrequiring them
Pre-packaging(optional)
Pre-packaging isperformed in a warehousewhen productsarereceived in bulk froma supplierand
subsequently packaged singly,in merchandisablequantitiesorin combinationswith otherpartsto form
kits or assortments.
An entire receipt of merchandisemay beprocessed at once,or a portion may beheld in bulk formto be
donelater.
This may be donewhen packaging greatly increasesthestoragecuberequirementsor when a part is
common to several kits orassortments.
Put-away
Put-away istheact of placing merchandisein storage.
It includesbotha transportation and a placementcomponent.

4. Storage
Storageis the physicalcontainmentof merchandisewhileit is awaiting a demand.
The formof storagewill depend on the size and quantity of theitems in inventory and thehandling
characteristicsof theproductor its container.
Order picking
Order picking is the processof removing items fromstorageto meet a specific demand.
Its representsthebasic service thatthe warehouseprovidesforthecustomerand is thefunction around
which mostwarehousedesignsarebased.
Packagingand/orPricing(optional)
Packaging and/orpricing may bedoneasan optionalstep afterthe picking process.
As in the pre-packaging function,individualitemsorassortmentsareboxed formoreconvenientuse.
Waiting until afterpicking to performthesefunctionshastheadvantageof providing moreflexibilityin
the useof on-hand inventory
Individualitemsare availablefor usein any of the packaging configurations rightup to the time of need
Pricing is current at thetime of sale
Pre-pricing at manufactureorreceiptinto the warehouseinevitably leadsto somere-pricing activity as
price lists are changed whilemerchandisesitsin inventory
Sortationand/orAccumulation
Sortation of batch picksinto individualordersand accumulation of distributed picksinto ordersmustbe
donewhen an order hasmorethan one item and the accumulation isnotdoneas the picksare made.
Packingand Shipping
Packing and shipping may includethe following tasks:
Checking ordersforcompleteness
Packaging of merchandisein an appropriateshipping container

5. Preparation of shipping documents,including packing list,addresslabeland bill of lading
Weighing of orderto determineshipping charges
Accumulation of ordersby outbound carrier
Loading trucks( in many instances,thisis a carriers responsibility
Transportation
In somecaseswarehousesprovidetransportarrangementto thebulkdepositors.
It collects goodsfrom theplace of production and also sendsgoodsto theplace of delivery on requestof
the depositors
ADVANTAGESOF WAREHOUSING
Warehousing offersmany advantagesto thebusinesscommunity.Whetheritis industry ortrade,it
providesa numberof benefits which are listed below:
Protection and preservation of goods
Regularflow of goods
Continuityin production
Convenientlocation
Easy handling
Usefulforsmall businessmen
Creation of employment
Facilitates sale of goods
Availabilityof finance
Reducesrisk of loss
PROTECTION AND PRESERVATION OF GOODS

6. Warehouseprovidesnecessary facilitiesto the businessmen forstoring theirgoodswhen they arenot
required for sale.
It providesprotection to the stocks,ensurestheir safety and preventswastage.
It minimises lossesfrombreakage,deterioration in quality,spoilageetc.
Warehousesusually adoptlatesttechnologiesto avoid losses,asfaras possible
REGULAR FLOW OF GOODS
Many commoditieslike rice, wheatetc. are produced during a particularseason butare consumed
throughouttheyear.
Warehousing ensuresregularsupply of such seasonalcommoditiesthroughouttheyear.
CONTINUITYINPRODUCTION
Warehouseenablesthemanufacturersto carry on production continuously withoutbothering aboutthe
storageof rawmaterials.
It helpsto provideseasonalrawmaterialwithoutany break,forproduction of finished goods
CONVENIENTLOCATION
Warehousesaregenerally located atconvenientplacesnear road,rail or waterwaysto facilitate
movementof goods.
Convenientlocation reducesthecost of transportation
EASY HANDLING
Modern warehousesaregenerally fitted with mechanicalappliancesto handlethegoods.
Heavy and bulky goodscan be loaded and unloaded by using modern machines,which reducescostof
handling such goods.
Mechanicalhandling also minimizeswastageduring loading and unloading
USEFULFOR SMALL BUSINESSMEN
Construction of own warehouserequiresheavy capitalinvestment,which smallbusinessmen cannot
afford.

7. In thissituation,by paying a nominalamountasrent,they can preservetheir raw materialsas well as
finished productsin public warehouses.
CREATION OF EMPLOYMENT
Warehousescreateemploymentopportunitiesboth forskilled and unskilled workersin every part of the
country.
It is a sourceof incomefor thepeople,to improvetheir standardsof living
FACILITATES SALE OF GOODS
Variousstepsnecessary forsaleof goodssuch asinspection of goodsby theprospectivebuyers,grading,
branding,packagingand labelling can be carried on by the warehouses.
Ownership of goodscan beeasily transferred to the buyerby transferring thewarehousekeeper’s
warrant.
AVAILABILITY OF FINANCE
Loanscan be easily raised frombanksand otherfinancialinstitutions againstthesecurity of the
warehouse-keeper’swarrant.
In somecaseswarehousesalso provideadvanceto thedepositorsof goodson keeping thegoodsas
security.
REDUCES RISK OFLOSS
Goodsin warehousesarewell guarded and preserved.
The warehousescan economically employ security staff to avoid theft,useinsecticides forpreservation
and providecold storagefacilityfor perishableitems.
They can install fire-fighting equipmentto avoid fire.
The goodsstored can also be insured for compensation in caseof loss