2. Warehousing
Warehousing and storage is an act of storing and assorting the finished goods so as
to create maximum time utility at minimum cost
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 acrual use
3. Concept of
warehousing
The concept of distribution warehouse or a distribution centre is
vastly different from the earlier concept of a godown for storage
The establishment of warehouse is ensuring a continuous and
uninterrupted supply of goods
4. Purpose of
Warehousing
To provide desired level of customer service at the lowest possible
total cost
It is the part of the firm’s logistics system that stores products at
and between point of origin and point of consumption and
provides infto to management on the status of items being stored
5. Functions of
warehousing
Receiving Goods: A warehouse accepts the merchandise
delivered by a transporter or an attached factory and then accepts
the responsibility for the merchandise
Identifying Goods: The appropriate stock keeping units are
identified and a record made of the number of each item received
Storing Goods: The incoming goods are sorted out for
appropriate storage area in the warehouse
6. Functions of
Warehousing
Despatching goods to storage: The goods are kept aside when
they can be founder later when needed
Holding Goods: The goods are kept in storage under proper
protection untill needed in warehouse
Marshalling Goods: The several items making up a single order
are brought together and checked for completeness and order
records are prepared or modified
7. Functions of
Warehousing
Dispatching of goods : The consolidated order is packaged
suitably and directed to the rigjt transport vehicle
Preparing records and advices: The number of orders received
the items received and on hand etc.. Are recorded for
replenishment action and stock control and the demand and
receipt data are forwarded to a control centre loacted elesewhere
8. Reasons for
Warehousing
Service related
Maintain source supply
Support customer service
policies
Meet changing market
conditions
Overcome time and space
differentials
Provide customers with the
right mix of products at all
times
Cost related
Achieve production
economies
Achieve transportation
economies
Take advantage of quantity
purchase discounts and
forward buys
Least logistics cost of a
desired service
9. Objective of
warehousing
The primary objective of warehousing is movement of goods
To maintain the flow of goods throught the system these goods
may be raw materials or finished products
To set uo a network of warehouses closest to the customer
locations to service markets better and minimize cost
Provide timely customer service
Keep track of items so they can be found readily and
cocorrectlyminimize the total physical effort thus the cost of
moving goods into and out of storage
Provide communication links with customers
10. Role of
warehousing
1. Ensure protection against delays and uncertainities in
transportation arising from a variety of factors
2. Eliminating lack of sophistication in production control and
consequent uncertainnities in the availability of product at the
desired time and place
3. Providing for adjustment between the time of production and
the time of use because production and use can be seldom
4. Serving as reservoir of goods receiving surplus goods when
production exceeds demend and releasing them when a scsrcity
is anticipated
12. Procedures to
improve
material
handling
Flow chart of present operations should be prepared this chart
should trace the flow to goods from the end of the production line
or from another warehouse
For each movement the volume of each product moved the
method of movement the unit handling cost and the average
distance moved must be worked out snd ascertained
New methods must be evaluated by balancing benefits with costs
15. Types of
warehouses
Bonded warehouses : Private and public warehouses acan be
bonded under the customs and excise act and municipal
corporation regulations
Field warehouses : Fiels warehouses are those which are
managed by a public warehousing agency in the premises of a
factory or company
Cold storage : cold storage facilities are provided for perishables
against payment of a storage charge for the space utilized by
different parties
Agriculrural warehouses : these warehouses are meant for
storing agricultural product grown in certain area
16. Types of
warehouses
Distribution warehouses : these warehouses are loacted close to
the manufacturing concerns or consuming areas
Buffer storage warehouses : these warehouses are built at
startegic locations with adequate transport and communication
facilities
Export and import warehouses : these warehouses are located
near the ports from where international trade is undertaken
17. Warehouse
loaction
Market service area and cost of distribution from the warehouse
to the market area
Transportation rates prevailing in the area and distribution costs
per unit
Competition by rival companies and whether they have
warehouses in the same area
Availability of power water gas sewerage disposal and their cost
Labour supply and labour costs in the area
Real estate excise and government taxes assessed in the area
18. Warehouse
building plan
A warehouse has to be planned and designed bearing in mind the
kinds of goods are likely to be stored the type of handling
equipment that are likely to be used and the height upto which the
stacks may be bubuilt
1. Site
2. Cleanliness
3. Foundation
4. Pavement
5. Roof
6. Floor and walls
7. Doors
8. Windows
9. Ventilations
10. Drain pipes
19. Capacity of
warehouse
The capacity of warehouse affected by number of factors
Type of material to be handling
Handling system to be used
Asitle rerequirements
Stock layout arrangements
Dock requirements
Local requirements
20. Selection of
warehouses
Ceiling height : ceiling heights depends on construction costs
material handling costs and load stacking characteristics
Length and with of warehouse : The length and width of the
warehouse building has to be decided based on the material
movement
High truck dicks capacity : Inward rail consignments or empty
wagons arrive at the warehouse in batches
Warehouse security form :
Theft and house breaking
Fire
Riots and civil commotion
Moisture insects and rodents
