Warehousing involves storing goods on a large scale in a systematic manner from production until consumption. It bridges the time gap between production and consumption. There are several types of warehouses including private, public, government, and bonded warehouses. Warehouses provide essential functions like storage, protection from damage, financing through warehouse receipts, and transportation. They benefit businesses by ensuring regular supply of goods, facilitating production and sales, and providing employment opportunities.
Warehousing refers to storing goods on a large scale in a systematic and orderly manner from the time they are produced until they are consumed. It removes the hindrance of time and bridges the gap between production and consumption. The key needs for warehousing include seasonal production/demand of goods, large-scale production, ensuring quick supply of goods to consumers, and enabling continuous production through adequate raw material storage. Warehousing provides various benefits such as protecting goods, facilitating regular supply and continuity in production, making goods available at convenient locations, and enabling financing through warehouse receipts.
Commodity makets warehousing trading & settlementMedlin Rozario
The document discusses the role of warehouses in commodity trading and settlement. It notes that warehouses store commodities and play an important role in delivery-based commodity futures trading by providing storage. Warehouses issue negotiable warehouse receipts that allow the transfer of ownership of stored commodities and can be used as collateral for loans. The document also outlines key regulations around warehouse receipts and provides details on types of warehouses and major warehouse operators in India like the Central Warehousing Corporation.
The document discusses logistics and warehouse management. It provides an overview of logistics, lean principles, types of waste, and value stream mapping. It also discusses warehouse selection processes including proposal forms, checklists, negotiations, and automation technologies like conveyor systems, stacker cranes, sorters, and picking systems that can improve warehouse operations. Matrices for measuring transportation and fulfillment performance are also presented.
This document provides an overview of warehousing concepts including:
1) The need for warehouses to balance supply and demand and facilitate distribution.
2) Key considerations for warehouse setup such as site selection, management processes, and typical material flow.
3) The general workflow within warehouses including receipt of goods, putaway, storage, order picking, packing and dispatch.
4) Different types of material flows like "U flow" where receipt and dispatch are located at the same end to optimize dock resources.
Managing warehouse operations. How to manage and run warehouse operations by ...Omar Youssef
The document provides information about warehouse operations and goals. It discusses maximizing the effective use of space, equipment, labor and information. It outlines warehouse functions like receiving, storing, order picking and shipping. It also describes operational processes, inventory terms and costs, and opportunities to improve warehouse distribution. Controls are discussed around safety, fire prevention, theft and storing hazardous materials. Equipment and tools are also mentioned.
Warehousing refers to the large-scale storage of goods in a systematic manner from production until consumption. Warehouses are needed due to seasonal production and demand, large-scale production, the need for quick supply, continuous production, and price stabilization. The main types of warehouses are private, public, bonded, cooperative, and government. Warehouses provide storage, protection from damage, financing through warehouse receipts, some processing, risk bearing, and sometimes transportation. They benefit businesses by protecting goods, ensuring regular supply, enabling continuous production, providing convenient locations, and facilitating the sale of goods.
Warehouses are commercial buildings used for storage of goods by manufacturers, importers, exporters, and others. They come equipped with docks and cranes to load and unload trucks. Warehouses are needed for seasonal production and demand, large-scale production, quick supply to consumers, continuous production, and price stabilization. There are private, public, government, bonded, and cooperative warehouses that differ in ownership and use. Warehousing involves costs like overhead, delivery, and labor. Modern warehouses also function as retail outlets to reduce consumer costs.
This document provides an overview of a seminar on the role and importance of storage and warehouses in the agricultural sector in India. It discusses different types of storage structures, including underground, surface, and bag storage. It then covers the definition and importance of warehousing, as well as different types of warehouses. The remainder summarizes key government organizations that operate warehouses in India, including the Central Warehousing Corporation, State Warehousing Corporations, and Food Corporation of India.
Warehousing refers to storing goods on a large scale in a systematic and orderly manner from the time they are produced until they are consumed. It removes the hindrance of time and bridges the gap between production and consumption. The key needs for warehousing include seasonal production/demand of goods, large-scale production, ensuring quick supply of goods to consumers, and enabling continuous production through adequate raw material storage. Warehousing provides various benefits such as protecting goods, facilitating regular supply and continuity in production, making goods available at convenient locations, and enabling financing through warehouse receipts.
Commodity makets warehousing trading & settlementMedlin Rozario
The document discusses the role of warehouses in commodity trading and settlement. It notes that warehouses store commodities and play an important role in delivery-based commodity futures trading by providing storage. Warehouses issue negotiable warehouse receipts that allow the transfer of ownership of stored commodities and can be used as collateral for loans. The document also outlines key regulations around warehouse receipts and provides details on types of warehouses and major warehouse operators in India like the Central Warehousing Corporation.
The document discusses logistics and warehouse management. It provides an overview of logistics, lean principles, types of waste, and value stream mapping. It also discusses warehouse selection processes including proposal forms, checklists, negotiations, and automation technologies like conveyor systems, stacker cranes, sorters, and picking systems that can improve warehouse operations. Matrices for measuring transportation and fulfillment performance are also presented.
This document provides an overview of warehousing concepts including:
1) The need for warehouses to balance supply and demand and facilitate distribution.
2) Key considerations for warehouse setup such as site selection, management processes, and typical material flow.
3) The general workflow within warehouses including receipt of goods, putaway, storage, order picking, packing and dispatch.
4) Different types of material flows like "U flow" where receipt and dispatch are located at the same end to optimize dock resources.
Managing warehouse operations. How to manage and run warehouse operations by ...Omar Youssef
The document provides information about warehouse operations and goals. It discusses maximizing the effective use of space, equipment, labor and information. It outlines warehouse functions like receiving, storing, order picking and shipping. It also describes operational processes, inventory terms and costs, and opportunities to improve warehouse distribution. Controls are discussed around safety, fire prevention, theft and storing hazardous materials. Equipment and tools are also mentioned.
Warehousing refers to the large-scale storage of goods in a systematic manner from production until consumption. Warehouses are needed due to seasonal production and demand, large-scale production, the need for quick supply, continuous production, and price stabilization. The main types of warehouses are private, public, bonded, cooperative, and government. Warehouses provide storage, protection from damage, financing through warehouse receipts, some processing, risk bearing, and sometimes transportation. They benefit businesses by protecting goods, ensuring regular supply, enabling continuous production, providing convenient locations, and facilitating the sale of goods.
Warehouses are commercial buildings used for storage of goods by manufacturers, importers, exporters, and others. They come equipped with docks and cranes to load and unload trucks. Warehouses are needed for seasonal production and demand, large-scale production, quick supply to consumers, continuous production, and price stabilization. There are private, public, government, bonded, and cooperative warehouses that differ in ownership and use. Warehousing involves costs like overhead, delivery, and labor. Modern warehouses also function as retail outlets to reduce consumer costs.
This document provides an overview of a seminar on the role and importance of storage and warehouses in the agricultural sector in India. It discusses different types of storage structures, including underground, surface, and bag storage. It then covers the definition and importance of warehousing, as well as different types of warehouses. The remainder summarizes key government organizations that operate warehouses in India, including the Central Warehousing Corporation, State Warehousing Corporations, and Food Corporation of India.
International Transportation InfrastructureKoushik Ravi
This document discusses shipping management and marine insurance. It covers the components of transportation infrastructure including warehouses, their need and functions. Warehouses are needed for seasonal production and demand, large-scale production, quick supply, and continuous production. Their functions include storage, protection, risk bearing, financing, processing, grading, branding, and transportation of goods. The document also briefly outlines communication infrastructure like e-merchandising and electronic data interchange, and utilities infrastructure such as electricity, water, and energy.
Warehousing involves the storage of raw materials, work-in-progress, and finished products in warehouses. Warehouses serve several important functions such as facilitating mass production and distribution, stabilizing prices, equalizing supply and demand, and providing business financing. There are various types of warehouses classified by ownership (private, public, etc.) and commodities stored (general, refrigerated, etc.). Warehousing provides advantages like safeguarding merchant stock, reducing distribution costs, and creating employment. However, it also faces drawbacks like inadequate transport and storage facilities.
Find Bangalore Godowns for Rent, Warehouses Rental and post your Warehouse rental, warehouse for rent / lease in Hyderabad, Bhiwandi, Delhi, Mumbai and Chennai
Warehousing and inventory management involves receiving, storing, and shipping raw materials, work-in-progress, and finished goods between the point of origin and consumption. Warehouses play an important role in optimizing transportation and inventory costs while meeting customer service needs. Modern warehouses have evolved to focus on inventory flow rather than just storage. Key warehouse functions include consolidation, breaking bulk, cross-docking, and distribution center operations. Location, transportation access, labor, and automation are important considerations for warehouse management.
The document provides information about warehousing and storage. It discusses:
1) The need for storage arises for both raw materials and finished products to create maximum time utility at minimum cost.
2) Storage involves proper management to preserve goods from production until use. Large scale storage in a specified manner is called warehousing.
3) Warehouses now serve as distribution centers rather than just storage, ensuring a continuous supply of goods to meet changing market conditions.
The document discusses warehousing and storage. It defines warehousing as storing goods on a large scale in a specified manner. Warehousing ensures a continuous supply of goods to the market by addressing delays in transportation, uncertainties in production, and mismatches between production and use times. The objectives of warehousing are to facilitate the movement of goods throughout the supply chain and provide timely customer service at minimum cost. The document outlines various warehousing operations including receipt, storage, and delivery of goods as well as services provided.
The document discusses warehousing. It defines a warehouse as a storage structure constructed for protecting stored goods' quality and quantity. Warehouses are used by manufacturers, importers, exporters and others to store goods. They create time utility by bridging the time between production and consumption. Warehouses are important as they provide economic benefits through consolidation, act as assembly points, facilitate reverse logistics, enable storage and add value through inventory management. Location, functions, types and layout of warehouses are also covered.
Warehouses can be classified into private warehouses, public warehouses, government warehouses, bonded warehouses, and cooperative warehouses. Private warehouses are owned by product owners for storing their own goods, while public warehouses are licensed by the government and open for use by the general public. Government warehouses are owned and managed by government entities. Bonded warehouses store imported goods before import duties are paid, and cooperative warehouses are owned by cooperative societies for storing members' goods affordably. An ideal warehouse has characteristics like market proximity, adequate storage facilities, security, and trained workers to efficiently store and handle goods.
This group presentation is about Warehousing. Warehousing has developed from a mere creation of granaries to store food during famine to multi-million dollar facilities
nios std X business studies Ch 6 WarehousingSajina Nair
Warehouses are needed for seasonal production and demand, large-scale production, quick supply, continuous production, and price stabilization. The key types of warehouses are private, public, government, bonded, and co-operative. An ideal warehouse has a convenient location, mechanical handling devices, adequate storage space, cold storage, and protects goods from damage. Warehouses function to store goods, protect them, bear risks, provide financing, process goods, and facilitate transportation and trade.
Warehousing involves the storage of goods in a systematic manner to bridge the time gap between production and consumption. Warehouses consolidate materials from different production plants and distribute them to customers. They break bulk quantities into smaller units, stockpile surplus goods for future use, stabilize prices by equalizing supplies across seasons, and provide value-added services like transit mixing. Warehouses can be private, public, government, bonded, or cooperative.
This document discusses various aspects of inventory management. It begins with definitions of inventory and inventory management. It then discusses reasons for keeping business inventory, including time lags in the supply chain, seasonal demand, uncertainty, economies of scale, and appreciation in value. The document also covers principles of inventory proportionality, distressed inventory, FIFO vs LIFO inventory accounting methods, and stock rotation practices. The overall aim of the document is to provide an overview of key concepts and techniques for effective inventory management.
This document discusses physical inventory and warehouse management. It covers warehouse activities like receiving, storing, picking, and dispatching goods. Effective warehouse management aims to minimize costs and maximize customer service. Key aspects include warehouse layout, storage systems, inventory record accuracy, security measures, and auditing inventory through periodic physical counts and cycle counting. The accuracy of inventory records is important for supply chain planning and operations.
The document discusses stores and warehouse management. It begins by introducing stores functions like receiving, storing, retrieval, and issue of materials. It then discusses warehouse functions including storage, protection of goods, risk bearing, and financing. Finally, it discusses the role of packaging in logistics, including identifying products, improving efficiency, and protecting products during distribution. The key aspects covered are stores management processes, types of warehouses, basic warehouse operations, and the purpose of packaging.
Role of Inventory is very important in any business operations without thinking of its size, structure and market value.
Inventory helps in smooth functioning of the business..
The document discusses storage and warehousing. It defines storage as preserving goods from production until use, while warehousing refers to large-scale, systematic storage and organization of goods. It outlines the key features of warehouses including proper location, use of machinery, sufficient space, and safety measures. It also describes different types of warehouses like private, public, government, cooperative, and bonded warehouses. Finally, it discusses modern warehousing trends that use technologies like RFID and voice picking.
This document provides an overview of warehouse and inventory management. It discusses the reasons for warehousing, including supporting customer service and supply continuity. The document outlines key warehouse operating principles like design, handling technology, and storage planning. It also describes common warehouse activities, types of warehouses, and factors to consider in warehouse location strategies. Finally, the document defines inventory management and discusses inventory classification, record keeping, categories of inventory like safety stock and cycle stock, and the goals of holding inventory.
1. Warehousing refers to the large-scale storage and organization of goods from the time of production or purchase until use or sale. It bridges the time gap between production and consumption.
2. There are several types of warehouses including private, public, government, cooperative, and bonded warehouses. Each type serves different functions based on ownership and operations.
3. Effective warehousing requires strategic considerations around factors like customer demand patterns, inventory levels, peak seasons, and synergies with related industries and firms. The optimal strategy uses a mix of private and public warehouse facilities.
The document discusses the scope, purpose, objectives and responsibilities of stores functions. It defines stores as stocks or supplies reserved for future use, such as raw materials, work in progress, finished goods and consumables. The objectives of stores functions are to ensure uninterrupted supply of materials, receive, issue and store items, prevent overstocking and understocking, and protect materials from risks. Stores functions include receiving and inspecting incoming items, issuing items to departments, maintaining records, stocktaking, and storing items safely. The responsibilities of storekeepers are to receive, issue, and maintain records of items, while store managers are responsible for hiring employees, meeting targets, maintaining the store's image, and managing assets, inventory,
Beyond the Basics of A/B Tests: Highly Innovative Experimentation Tactics You...Aggregage
This webinar will explore cutting-edge, less familiar but powerful experimentation methodologies which address well-known limitations of standard A/B Testing. Designed for data and product leaders, this session aims to inspire the embrace of innovative approaches and provide insights into the frontiers of experimentation!
International Transportation InfrastructureKoushik Ravi
This document discusses shipping management and marine insurance. It covers the components of transportation infrastructure including warehouses, their need and functions. Warehouses are needed for seasonal production and demand, large-scale production, quick supply, and continuous production. Their functions include storage, protection, risk bearing, financing, processing, grading, branding, and transportation of goods. The document also briefly outlines communication infrastructure like e-merchandising and electronic data interchange, and utilities infrastructure such as electricity, water, and energy.
Warehousing involves the storage of raw materials, work-in-progress, and finished products in warehouses. Warehouses serve several important functions such as facilitating mass production and distribution, stabilizing prices, equalizing supply and demand, and providing business financing. There are various types of warehouses classified by ownership (private, public, etc.) and commodities stored (general, refrigerated, etc.). Warehousing provides advantages like safeguarding merchant stock, reducing distribution costs, and creating employment. However, it also faces drawbacks like inadequate transport and storage facilities.
Find Bangalore Godowns for Rent, Warehouses Rental and post your Warehouse rental, warehouse for rent / lease in Hyderabad, Bhiwandi, Delhi, Mumbai and Chennai
Warehousing and inventory management involves receiving, storing, and shipping raw materials, work-in-progress, and finished goods between the point of origin and consumption. Warehouses play an important role in optimizing transportation and inventory costs while meeting customer service needs. Modern warehouses have evolved to focus on inventory flow rather than just storage. Key warehouse functions include consolidation, breaking bulk, cross-docking, and distribution center operations. Location, transportation access, labor, and automation are important considerations for warehouse management.
The document provides information about warehousing and storage. It discusses:
1) The need for storage arises for both raw materials and finished products to create maximum time utility at minimum cost.
2) Storage involves proper management to preserve goods from production until use. Large scale storage in a specified manner is called warehousing.
3) Warehouses now serve as distribution centers rather than just storage, ensuring a continuous supply of goods to meet changing market conditions.
The document discusses warehousing and storage. It defines warehousing as storing goods on a large scale in a specified manner. Warehousing ensures a continuous supply of goods to the market by addressing delays in transportation, uncertainties in production, and mismatches between production and use times. The objectives of warehousing are to facilitate the movement of goods throughout the supply chain and provide timely customer service at minimum cost. The document outlines various warehousing operations including receipt, storage, and delivery of goods as well as services provided.
The document discusses warehousing. It defines a warehouse as a storage structure constructed for protecting stored goods' quality and quantity. Warehouses are used by manufacturers, importers, exporters and others to store goods. They create time utility by bridging the time between production and consumption. Warehouses are important as they provide economic benefits through consolidation, act as assembly points, facilitate reverse logistics, enable storage and add value through inventory management. Location, functions, types and layout of warehouses are also covered.
Warehouses can be classified into private warehouses, public warehouses, government warehouses, bonded warehouses, and cooperative warehouses. Private warehouses are owned by product owners for storing their own goods, while public warehouses are licensed by the government and open for use by the general public. Government warehouses are owned and managed by government entities. Bonded warehouses store imported goods before import duties are paid, and cooperative warehouses are owned by cooperative societies for storing members' goods affordably. An ideal warehouse has characteristics like market proximity, adequate storage facilities, security, and trained workers to efficiently store and handle goods.
This group presentation is about Warehousing. Warehousing has developed from a mere creation of granaries to store food during famine to multi-million dollar facilities
nios std X business studies Ch 6 WarehousingSajina Nair
Warehouses are needed for seasonal production and demand, large-scale production, quick supply, continuous production, and price stabilization. The key types of warehouses are private, public, government, bonded, and co-operative. An ideal warehouse has a convenient location, mechanical handling devices, adequate storage space, cold storage, and protects goods from damage. Warehouses function to store goods, protect them, bear risks, provide financing, process goods, and facilitate transportation and trade.
Warehousing involves the storage of goods in a systematic manner to bridge the time gap between production and consumption. Warehouses consolidate materials from different production plants and distribute them to customers. They break bulk quantities into smaller units, stockpile surplus goods for future use, stabilize prices by equalizing supplies across seasons, and provide value-added services like transit mixing. Warehouses can be private, public, government, bonded, or cooperative.
This document discusses various aspects of inventory management. It begins with definitions of inventory and inventory management. It then discusses reasons for keeping business inventory, including time lags in the supply chain, seasonal demand, uncertainty, economies of scale, and appreciation in value. The document also covers principles of inventory proportionality, distressed inventory, FIFO vs LIFO inventory accounting methods, and stock rotation practices. The overall aim of the document is to provide an overview of key concepts and techniques for effective inventory management.
This document discusses physical inventory and warehouse management. It covers warehouse activities like receiving, storing, picking, and dispatching goods. Effective warehouse management aims to minimize costs and maximize customer service. Key aspects include warehouse layout, storage systems, inventory record accuracy, security measures, and auditing inventory through periodic physical counts and cycle counting. The accuracy of inventory records is important for supply chain planning and operations.
The document discusses stores and warehouse management. It begins by introducing stores functions like receiving, storing, retrieval, and issue of materials. It then discusses warehouse functions including storage, protection of goods, risk bearing, and financing. Finally, it discusses the role of packaging in logistics, including identifying products, improving efficiency, and protecting products during distribution. The key aspects covered are stores management processes, types of warehouses, basic warehouse operations, and the purpose of packaging.
Role of Inventory is very important in any business operations without thinking of its size, structure and market value.
Inventory helps in smooth functioning of the business..
The document discusses storage and warehousing. It defines storage as preserving goods from production until use, while warehousing refers to large-scale, systematic storage and organization of goods. It outlines the key features of warehouses including proper location, use of machinery, sufficient space, and safety measures. It also describes different types of warehouses like private, public, government, cooperative, and bonded warehouses. Finally, it discusses modern warehousing trends that use technologies like RFID and voice picking.
This document provides an overview of warehouse and inventory management. It discusses the reasons for warehousing, including supporting customer service and supply continuity. The document outlines key warehouse operating principles like design, handling technology, and storage planning. It also describes common warehouse activities, types of warehouses, and factors to consider in warehouse location strategies. Finally, the document defines inventory management and discusses inventory classification, record keeping, categories of inventory like safety stock and cycle stock, and the goals of holding inventory.
1. Warehousing refers to the large-scale storage and organization of goods from the time of production or purchase until use or sale. It bridges the time gap between production and consumption.
2. There are several types of warehouses including private, public, government, cooperative, and bonded warehouses. Each type serves different functions based on ownership and operations.
3. Effective warehousing requires strategic considerations around factors like customer demand patterns, inventory levels, peak seasons, and synergies with related industries and firms. The optimal strategy uses a mix of private and public warehouse facilities.
The document discusses the scope, purpose, objectives and responsibilities of stores functions. It defines stores as stocks or supplies reserved for future use, such as raw materials, work in progress, finished goods and consumables. The objectives of stores functions are to ensure uninterrupted supply of materials, receive, issue and store items, prevent overstocking and understocking, and protect materials from risks. Stores functions include receiving and inspecting incoming items, issuing items to departments, maintaining records, stocktaking, and storing items safely. The responsibilities of storekeepers are to receive, issue, and maintain records of items, while store managers are responsible for hiring employees, meeting targets, maintaining the store's image, and managing assets, inventory,
Beyond the Basics of A/B Tests: Highly Innovative Experimentation Tactics You...Aggregage
This webinar will explore cutting-edge, less familiar but powerful experimentation methodologies which address well-known limitations of standard A/B Testing. Designed for data and product leaders, this session aims to inspire the embrace of innovative approaches and provide insights into the frontiers of experimentation!
4th Modern Marketing Reckoner by MMA Global India & Group M: 60+ experts on W...Social Samosa
The Modern Marketing Reckoner (MMR) is a comprehensive resource packed with POVs from 60+ industry leaders on how AI is transforming the 4 key pillars of marketing – product, place, price and promotions.
The Ipsos - AI - Monitor 2024 Report.pdfSocial Samosa
According to Ipsos AI Monitor's 2024 report, 65% Indians said that products and services using AI have profoundly changed their daily life in the past 3-5 years.
1. Lesson 11
Warehousing
We eat a variety of food in our daily life. Some of us may take rice, while others may take
chapati or roti as our main food. But have you ever thought from where the paddy or
wheat from which these food items are prepared comes from. We know that these food
grainsarenotproducedthroughouttheyear.Butweneedtoeatthemeveryday.Sohoware
thefarmersabletosupplythesecontinuouslytous?Youmightbethinkingthattheystorethe
food grains in a proper place and supply them at the time of need. Yes, you are right. Since
theproductiontakesplaceduringaparticularseasonandinspecificareas,thereisaneedto
store these grains systematically. In our home we may keep limited stock for our own
consumption. But there are certain places or stores, where these items are stored in huge
quantities in a proper and systematic way. In this lesson let us learn the details about these
stores.
11.1 Objectives
Afterstudyingthislesson,youwillableto:
! explainthemeaningofwarehousing;
! recognisetheneedforwarehousing;
! identifydifferenttypesofwarehouses;
! explainthecharacteristicsofidealwarehouses;
! describe the functions of warehouses; and
! enlisttheadvantagesofwarehouses.
11.2 Meaning of Warehousing
Weneeddifferenttypesofgoodsinourday-to-daylife.Wemaybuysomeoftheseitemsin
bulk and store them in our house. Similarly, businessmen also need a variety of goods for
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116
theiruse.Someofthemmaynotbeavailableallthetime.But,theyneedthoseitemsthroughout
the year without any break. Take the example of a sugar factory. It needs sugarcane as raw
material for production of sugar. You know that sugarcane is produced during a particular
period of the year. Since sugar production takes place throughout the year, there is a need
to supply sugarcane continuously. But how is it possible? Here storage of sugarcane in
sufficientquantityisrequired.Again,afterproductionofsugaritrequiressometimeforsale
or distribution. Thus, the need for storage arises both for raw material as well as finished
products. Storageinvolvesproperarrangementforpreservinggoodsfromthetimeoftheir
production or purchase till the actual use. When this storage is done on a large scale and in
a specified manner it is called ‘warehousing’. The place where goods are kept is called
‘warehouse’. The person in-charge of warehouse is called ‘warehouse-keeper’.
Warehousingreferstotheactivitiesinvolvingstorageofgoodsonalarge-scaleinasystematic
andorderlymannerandmakingthemavailableconvenientlywhenneeded.Inotherwords,
warehousing means holding or preserving goods in huge quantities from the time of their
purchase or production till their actual use or sale.
Warehousingisoneoftheimportantauxiliariestotrade.Itcreatestimeutilitybybridgingthe
time gap between production and consumption of goods.
11.3 Need for Warehousing
Warehousingisnecessaryduethefollowingreasons.
(i) SeasonalProduction-Youknowthatagriculturalcommoditiesareharvestedduring
certain seasons, but their consumption or use takes place throughout the year.
Therefore, there is a need for proper storage or warehousing for these commodities,
from where they can be supplied as and when required.
(ii) Seasonal Demand- There are certain goods, which are demanded seasonally, like
woollengarmentsinwintersorumbrellasintherainyseason.Theproductionofthese
goods takes place throughout the year to meet the seasonal demand. So there is a
need to store these goods in a warehouse to make them available at the time of need.
3. Warehousing :: 117
117
(iii) Large-scale Production - In case of manufactured goods, now-a-days production
takesplacetomeettheexistingaswellasfuturedemandoftheproducts.Manufacturers
also produce goods in huge quantity to enjoy the benefits of large-scale production,
which is more economical. So the finished products, which are produced on a large
scale, need to be stored properly till they are cleared by sales.
(iv) Quick Supply - Both industrial as well as agricultural goods are produced at some
specificplacesbutconsumedthroughoutthecountry.Therefore,itisessentialtostock
these goods near the place of consumption, so that without making any delay these
goods are made available to the consumers at the time of their need.
(v) Continuous Production- Continuous production of goods in factories requires
adequate supply of raw materials. So there is a need to keep sufficient quantity of
stock of raw material in the warehouse to ensure continuous production.
(vi) Price Stabilization- To maintain a reasonable level of the price of the goods in the
market there is a need to keep sufficient stock in the warehouses. Scarcity in supply
ofgoodsmayincreasetheirpriceinthemarket.Again,excessproductionandsupply
may also lead to fall in prices of the product. By maintaining a balance of supply of
goods,warehousingleadstopricestabilisation.
Intext Questions 11.1
Statewhichofthefollowingstatementsaretrueandwhicharefalse.
(i) Warehousingremovesthehindranceoftime.
(ii) Warehousingisnotanimportantauxiliarytotrade.
(iii) Theobjectivesofwarehousingmaybetocarryoverthesurplusgoods,forconsumption
infutureduringtheperiodofscarcity.
(iv) Warehousing is not used to store the goods of seasonal nature.
(v) Warehousingisnotusefulforlargescaletrading.
(vi) Warehousinghelpsincontinuousproductionofgoodsinthefactories.
11.4 Types of Warehouses
After getting an idea about the need for warehousing, let us identify the different types of
warehouses.
Youhavelearntthatwarehousingcaterstothestorageneedsofdifferenttypesofcommodities.
Inordertomeettheirrequirementvarioustypesofwarehousescameintoexistence,which
maybeclassifiedasfollows.
i. PrivateWarehouses
ii. PublicWarehouses
iii. GovernmentWarehouses
iv. Bonded Warehouses
v. Co-operative Warehouses
4. Business Studies
118
We shall now discuss each of these.
i. Private Warehouses - The warehouses which are owned and managed by the
manufacturersortraderstostore,exclusively,theirownstockofgoodsareknownas
privatewarehouses.Generallythesewarehousesareconstructedbythefarmersnear
theirfields,bywholesalersandretailersneartheirbusinesscentresandbymanufacturers
neartheirfactories.Thedesignandthefacilitiesprovidedthereinareaccordingtothe
nature of products to be stored.
ii. 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
warehousesonpaymentofrent.Anindividual,apartnershipfirmoracompanymay
own these warehouses. To start such warehouses a licence from the government is
required. The government also regulates the functions and operations of these
warehouses. Mostly these warehouses are used by manufacturers, wholesalers,
exporters,importers,governmentagencies,etc.
iii. 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.
CentralWarehousingCorporationofIndia,StateWarehousingCorporationandFood
CorporationofIndiaareexamplesofagenciesmaintaininggovernmentwarehouses.
iv. 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. Incase 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.
v. Co-operativeWarehouses-Thesewarehousesareowned,managedandcontrolled
byco-operativesocieties.Theyprovidewarehousingfacilitiesatthemosteconomical
rates to the members of their society.
11.5 Characteristics of Ideal Warehouses
In the above section you have learnt about different types of warehouses. In each of these
warehouses adequate arrangements are made to keep the goods in proper conditions.
However,anywarehouseissaidbeanidealwarehouseifitpossessescertaincharacteristics,
whicharegivenbelow:
i. Warehouse should be located at a convenient place near highways, railway stations,
airports and seaports where goods can be loaded and unloaded easily.
ii. Mechanicalappliancesshouldbetheretoloadingandunloadingthegoods.Thisreduces
thewastagesinhandlingandalsominimiseshandlingcosts.
iii. Adequate space should be available inside the building to keep the goods in proper
order.
5. Warehousing :: 119
119
iv. Ware houses meant for preservation of perishable items like fruits, vegetables, eggs
andbutteretc.shouldhavecoldstoragefacilities.
v. Proper arrangement should be there to protect the goods from sunlight, rain, wind,
dust, moisture and pests.
vi. Sufficient parking space should be there inside the premises to facilitate easy and
quickloadingandunloadingofgoods.
vii. Round the clock security arrangement should be there to avoid theft of goods.
viii. Thebuildingshouldbefittedwithlatestfire-fightingequipmentstoavoidlossofgoods
due to fire.
Intext Questions 11.2
Fillintheblankswithsuitablewordsgiveninbrackets.
(i) FoodCorporationofIndiamaintains___________warehouses.(government,private,
bonded)
(ii) Warehouses used exclusively by the traders to store there own goods are known as
___________ warehouses. (bonded, public, private)
(iii) License from the government is not required to start a ____________ warehouse.
(Bonded,Private,Public).
(iv) Bonded warehouses are generally found near ____________________. (industrial
area, ports, commercial centers)
(v) Goods, for which import duty is not paid, are kept in ___________ warehouses.
(private,public,bonded)
11.6 Functions of Warehouses
Youhavelearntthatwarehousespreservegoodsonalarge-scaleinasystematicandorderly
manner. They provide protection to goods against heat, wind, storm, moisture, etc. and
also cut down losses due to spoilage, wastage etc. This is the basic function of every
warehouse. In addition to this, warehouses now a days also perform a variety of other
functions.Inthissectionletuslearnaboutthevariousfunctionsofwarehouses.
Warehousesperformthefollowingfunctions-
i. Storage of goods
ii. Protection of goods
iii. Riskbearing
iv. Financing
v. Processing
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vi. Gradingandbranding
vii. Transportation
We shall now discuss each of these functions.
i. Storage of goods- The basic function of warehouses is to store large stock of goods.
These goods are stored from the time of their production or purchase till their
consumptionoruse.
ii. Protectionofgoods-Awarehouseprovidesprotectiontogoodsfromlossordamage
duetoheat,dust,windandmoisture,etc.Itmakesspecialarrangementsfordifferent
products according to their nature. It cuts down losses due to spoilage and wastage
duringstorage.
iii. Risk bearing - Warehouses take over the risks incidental to storage of goods. Once
goods are handed over to the warehouse-keeper for storage, the responsibility of
these goods passes on to the warehouse-keeper. Thus, the risk of loss or damage to
goods in storage is borne by the warehouse keeper. Since it is bound to return the
goods in good condition, the warehouse becomes responsible for any loss, theft or
damage, etc. Thus, it takes all precautions to prevent any mishap.
iv. Financing-Whengoodsaredepositedinanywarehouse,thedepositorgetsareceipt,
which acts as a proof about the deposit of goods. The warehouses can also issue a
document in favour of the owner of the goods, which is called warehouse-keeper’s
warrant. This warrant is a document of title and can be transferred by simple
endorsementanddelivery.Sowhilethegoodsareincustodyofthewarehouse-keeper,
thebusinessmencanobtainloansfrombanksandotherfinancialinstitutionskeeping
this warrant as security. In some cases, warehouses also give advances of money to
the depositors for a short period keeping their goods as security.
v. Processing - Certain commodities are not consumed in the form they are produced.
Processing is required to make them consumable. For example, paddy is polished,
timberisseasoned,andfruitsareripened,etc.Sometimeswarehousesalsoundertake
theseactivitiesonbehalfoftheowners.
vi. Gradingandbranding-Onrequestwarehousesalsoperformthefunctionsofgrading
and branding of goods on behalf of the manufacturer, wholesaler or the importer of
goods.Italsoprovidesfacilitiesformixing,blendingandpackagingofgoodsforthe
convenienceofhandlingandsale.
vii. Transportation- In some cases warehouses provide transport arrangement to the
bulk depositors. It collects goods from the place of production and also sends goods
to the place of delivery on request of the depositors.
11.7 Advantages of Warehousing
Warehousingoffersmanyadvantagestothebusinesscommunity.Whetheritisindustryor
trade, it provides a number of benefits which are listed below.
i. Protection and Preservation of goods- Warehouse provides necessary facilities to
thebusinessmenforstoringtheirgoodswhentheyarenotrequiredforsale.Itprovides
protectiontothestocks,ensurestheirsafetyandpreventswastage.Itminimiseslosses
Endorsement: Transfer
of any document or
instrument to another
person by signing on its
back or face or on a slip
of paper attached to it.
7. Warehousing :: 121
121
frombreakage,deteriorationinquality,spoilageetc.Warehousesusuallyadoptlatest
technologies to avoid losses, as far as possible.
ii. Regularflowofgoods-Manycommoditieslikerice,wheatetc.areproducedduring
aparticularseasonbutareconsumedthroughouttheyear.Warehousingensuresregular
supplyofsuchseasonalcommoditiesthroughouttheyear.
iii. Continuity in production- Warehouse enables the manufacturers to carry on
productioncontinuouslywithoutbotheringaboutthestorageofrawmaterials.Ithelps
toprovideseasonalrawmaterialwithoutanybreak,forproductionoffinishedgoods.
iv. Convenient location- Warehouses are generally located at convenient places near
road,railorwaterwaystofacilitatemovementofgoods.Convenientlocationreduces
the cost of transportation.
v. Easyhandling-Modernwarehousesaregenerallyfittedwithmechanicalappliances
to handle the goods. Heavy and bulky goods can be loaded and unloaded by using
modernmachines,whichreducescostofhandlingsuchgoods.Mechanicalhandling
alsominimizeswastageduringloadingandunloading.
vi. Useful for small businessmen- Construction of own warehouse requires heavy
capitalinvestment,whichsmallbusinessmencannotafford.Inthissituation,bypaying
a nominal amount as rent, they can preserve their raw materials as well as finished
productsinpublicwarehouses.
vii. Creation of employment - Warehouses create employment opportunities both for
skilledandunskilledworkersineverypartofthecountry.Itisasourceofincomefor
thepeople,toimprovetheirstandardsofliving.
viii. Facilitatessaleofgoods-Variousstepsnecessaryforsaleofgoodssuchasinspection
of goods by the prospective buyers, grading, branding, packaging and labelling can
becarriedonbythewarehouses.Ownershipofgoodscanbeeasilytransferredtothe
buyer by transferring the warehouse keeper’s warrant.
ix. Availability of finance- Loans can be easily raised from banks and other financial
institutions against the security of the warehouse-keeper’s warrant. In some cases
warehouses also provide advance to the depositors of goods on keeping the goods
assecurity.
x. Reduces risk of loss - Goods in warehouses are well guarded and preserved. The
warehousescaneconomicallyemploysecuritystafftoavoidtheft,useinsecticidesfor
preservation and provide cold storage facility for perishable items. They can instal
fire-fighting equipment to avoid fire. The goods stored can also be insured for
compensation in case of loss.
Intext Questions 11.3
Statewhichofthefollowingstatementsaretrueandwhicharefalse.
(i) The basic function of warehousing is to store the goods.
(ii) The loss occuring in a warehouse is not borne by the warehouse-keeper.
(iii) Warehouse-keeper’s warrant can serve as a security for loans from bank.
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(iv) Warehousinghelpsincontinuousproductionandregularsupplyofthegoods.
(v) Warehousingdoesnotcreateanyemploymentopportunities.
11.8 What You Have Learnt
!!!!! Warehousing refers to storing of the goods on large scale in a systematic and orderly
manner from the time they are produced until they are consumed. It removes the
hindranceoftime.Itisanimportantauxiliarytotrade.
!!!!! The need for warehousing arises due to
i. Seasonal production of goods
ii. SeasonalDemand
iii. Large-scaleProduction
iv. QuickSupply
v. ContinuousProduction.
vi. PriceStabilization
Privatewarehouses
Publicwarehouses
!!!!! Types of Warehouses Governmentwarehouses
Bonded warehouses
Co-operative warehouses
!!!!! Characteristics of an ideal warehouse
i. Convenientlocation
ii. Useofmechanicaldevicesforhandlinggoods
iii. Adequate space for storage of goods
iv. Coldstoragefacilityforperishableitems
v. Protectionofgoodsfromsunlight,rain,wind,dust,moistureandpests
vi. Sufficientparkingspaceforvehicles
vii. Roundtheclocksecurity
viii. Availabilityoffirefightingequipment.
!!!!! Functions of warehouses
i. Storage of goods
ii. Protection of goods
iii. Riskbearing
iv. Financing
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123
v. Processing
vi. Gradingandbranding
vii. Transportation
!!!!! Advantages of warehousing
i. Protection and Preservation of goods
ii. Regularflowofgoods
iii. Continuityinproduction
iv. Convenientlocation
v. Easyhandling
vi. Usefulforsmallbusinessmen
vii. Creationofemployment
viii. Facilitates sale of goods
ix. Availabilityoffinance
x. Reduces risk of loss
11.9 Terminal Exercise
1. WhatismeantbyWarehousing?
2. Explaintheneedforwarehousing.
3. Describe any six characteristics of an ideal warehouse.
4. Classifythevarioustypesofwarehouses.Explainthembriefly.
5. Distinguishbetweenpublicandprivatewarehouse.
6. Explainthefunctionsofwarehouses.
7. Whatismeantbypublicwarehouse?Stateanythreefunctionsofapublicwarehouse.
8. Describe the advantage of warehouses to the businessmen.
9. How is a bonded warehouse useful for the importers?
10. Warehousing is one of the important auxiliaries to trade. Explain this statement in
about 60 words.
10.10 Key to Intext Questions
11.1 (i) True
(ii) False
(iii) True
(iv) False
(v) False
(vi) True
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11.2 (i) Government
(ii) Private
(iii) Private
(iv) Ports
(v) Bonded
11.3 (i) True
(ii) False
(iii) True
(iv) True
(v) False.
Activity For You
Make a comparative statement of the functions of a store and a warehouse. How does a
store differ from a warehouse?
(Hints: Make comparision on the basis of Storage capacity, Storage conditions,
Ownership,Facilitiesavailable)