1. WAREHOUSING
• A warehouse is a commercial building for storage
of goods. Warehouses are used by manufacturers,
importers, exporters, wholesalers, transport
businesses, customs, etc.
• They 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.
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4. TYPES OF WAREHOUSES
• Private Warehouses
• Public Warehouses
• Government Warehouses
• Bonded Warehouses
• Co-operative Warehouses
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5. Private Warehouses
• The warehouses which are owned and managed by
the manufacturers or traders to store, exclusively,
their own stock of goods are known as private
warehouses.
Generally these warehouses are constructed by the
farmers near their fields, by wholesalers and
retailers near their business centres and by
manufacturers near their factories.
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6. Public Warehouses
The warehouses which are run to store goods of
the general public are known as public warehouses.
Any one can store his goods in these warehouses
on payment of rent.
An individual, a partnership firm or a company may
own these warehouses.
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7. Public Warehouses
• To start such warehouses a license from the
government is required.
The government also regulates the functions and
operations of these warehouses.
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8. Government Warehouses
• These warehouses are owned, managed and
controlled by central or state governments or public
corporations or local authorities.
Both government and private enterprises may use
these warehouses to store their goods.
Central Warehousing Corporation of India, State
Warehousing Corporation and Food Corporation of
India are examples of agencies maintaining
government warehouses
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9. Bonded Warehouses
• These warehouses are owned, managed and controlled by
government as well as private agencies.
Private bonded warehouses have to obtain licence from the
government.
Bonded warehouses are used to store imported goods for
which import duty is yet to be paid.
In case of imported goods the importers are not allowed to
take away the goods from the ports till such duty is paid.
These warehouses are generally owned by dock authorities
and found near the ports. 10-9

10. Co-operative Warehouses
These warehouses are owned, managed and
controlled by co-operative societies.
They provide warehousing facilities at the most
economical rates to the members of their society.
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11. Warehouse operations involve two major
activities – handling and storage
• Objective is to
– Efficiently receive
inventory
– Store it as required
– Assemble it into
complete orders
– Make a customer
shipment
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12. Handling
• Handling must optimize
movement continuity and
efficiency
– Receiving—Unloading the
arriving vehicles
– In-Storage—moving goods
for storage (transfer) or order
selection (picking)
– Shipping—verifying the
order and loading the
departing vehicles
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13. Warehouses must manage two classes of storage
• Active Storage—storage for
basic inventory replenishment
– Focuses on quick movement
– Includes flow-through or cross-
dock distribution
• Extended Storage—storage
for inventory held in excess of
period for normal
replenishment
– E.g. seasonal, speculative etc.
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14. BREAK:
FOR A SMILE
• Teacher: Correct the sentence, "A bull and a cow is
grazing in the Field"
• Student: A cow and a bull is grazing in the field
• Teacher: How?
• Student: Ladies first.
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15. Warehouse management systems encourage
best practices
• Warehouse management systems (WMS) integrate
procedures and software support to standardize storage
and handling work procedures
• A warehouse management system, or WMS, 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.
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16. WMS
• Warehouse management systems often utilize .....
Auto ID Data Capture (AIDC) technology, such as
barcode scanners, mobile computers,
wireless LANs and potentially
Radio-frequency identification (RFID) to efficiently
monitor the flow of products. Once data has been
collected, there is a real-time wireless transmission
to a central database. The database can then
provide useful reports about the status of goods in
the warehouse.
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17. Warehouse Automation:
• Automated Storage Retrieval System (AS/RS)
AS/RS is an automation system with high-rise racks that
are loaded and unloaded using automatic storage
machines within the aisle.
• Automatic Guided Vehicles (AGVs)
These can be used to transport, store and retrieve loads for
warehouses, which are mainly associated with the
manufacturing and shipping industries.
• Carousels
Automated carousels are used in warehouse to move loads
to a pick-and-drop station.
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19. Advantages of Warehouse Automation.
• Automating warehouse operations can be an
attractive supply chain option for many businesses,
offering the benefits of low-staffing requirements,
efficient logistics operations and accurate service
delivery. Warehouse automation also helps in
reducing costs, improving productivity and
accuracy, while giving complete visibility of the
inventory data.
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20. Importance of Handling Systems
• In every manufacturing organization material
handling, place an important role. Every where
there is movement of either material, work in
progress or finished product.
• It is highly pointed out that the cost
material- handling involves 40% to 50% of total
production cost. Therefore considerable attention
must be taken in the material handling.
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21. Importance of Handling Systems
Improved material handling system not only save
time and cost reduction but also ensure the
following:
• Reduction in accidents.
• Greater job satisfaction.
• Reduction in inventory or & work in progress.
• Increasing production.
• Saving time.
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22. SELECTION AND DESIGN OF HANDLING
SYSTEM
• Materials handling systems are expensive to
purchase and operate. The expenses are those of
initial costs, labor cost for operating the material
handling equipments and maintenance and repair
costs. The indirect expenses are those resulting
from damaged or lost materials, delays in material
deliveries and accidents. Since these expenses are
quite substantial, greater attention of management
is needed to the design and selection of materials
handling systems.
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23. Steps to be followed in the selection and
design of materials handling systems:
1. Identification of the appropriate systems.
2. Review of design criteria and objectives of the
handling system.
3. Collection of data regarding flow pattern and flow
requirements.
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24. Steps to be followed in the selection and
design of materials handling systems:
4. Determination of space requirement and
establishment of material flow pattern.
5. Analysis of material and building characteristics.
6. Evaluation of alternatives with respect to optimal
material flow, utilizing gravity, minimum cost,
flexibility, ease of maintenance and capacity
utilization.
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25. Steps to be followed in the selection and
design of materials handling systems:
7. Selection of the best suitable alternative system
and checking it for compatibility with the layout.
8. Procurement of the equipment and installation of
the system
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26. SMILE: Breaking the news subtly
• A man goes on a 2-month business trip to Europe and leaves his cat with his
brother. Three days before his return he calls his brother.
• Brother 1: So how is my cat doing?
• Brother 2: He's Dead
• Brother 1: He's Dead! What do you mean He's Dead! I loved that cat. Couldn't you
think of a nicer way to tell me! I'm leaving in 3 days. You could of broke me to the
news easier. You could of told me today that she got out of the house or
something. Then when I called before I left you could of told me, Well, we found her
but she is up on the roof and we're having trouble getting her down. Then when I
call you from the airport you could of told me, The Fire Department was there and
scared her off the roof and the cat died when it hit the ground.
• Brother 2: I'm sorry...you're right...that was insensitive I won't let it happen again.
• Brother 1: Alright, alright, forget about it. Anyway, how is my son doing?
• Brother 2: He's up on the roof and we're having trouble getting him down.
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