Warehousing

BY- AMIT KUMAR CHAUHAN 13MT07INDOO1

•What is a warehouse?Traditional concept of warehouse• Store or godown• Place where unneeded items are storedModern concept of warehouse• A facility – where value addition takes place

•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.

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Functions of warehouse1. Receiving goods & inspection – receive and

accept responsibility2. Identifying goods – place, label, color code3. Sorting goods- sort out the received goods for

appropriate storage area4. Allotment of space – on the basis of frequency

of movement of goods6. Order picking - items are selected and grouped 7. Marshaling goods- check the items of a single

order for completeness and order records are updated

8. Dispatching goods- consolidated order is packaged and directed to right transport

9. Preparing records for shipping

Classification of warehousesThey are classified according to following parameter:•Degree of centralization•Nature of the product •Legal status •Bonded warehouse

Private WarehousesOPERATED by a company for shipping and

storing its own productsCONSTRUCTION- Farmers near their fields,

Wholesalers and Retailers near their business centre's and Manufacturers near their factories

SUITABILITY- Firms that require special handling and storage features and want to control design and operation of the warehouse

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Advantages of private warehousesBetter control over movement and storage

Chances of errors are less as products are handled

by its own employees who have full knowledge

Designing is done according to suitability of owner

Greater flexibility with respect to storage and

material handling needs

Public WarehousesProvide storage and physical distribution services

on rental basisused by small firms and large firmsin India owned and operated – Central

Warehousing Corporation and State Warehousing Corporation

SUITABILTY – seasonal production or low volume storage needs, companies with inventories maintained in many locations, firms entering new markets

Advantages of public warehouseMore efficient and less expensiveFixed cost distributed among many usersFlexible to meet space requirements for different

usersCompanies have a wide choice of locations and

warehouse typesOperators generally offer relatively standardized

services to all clients.

Contract WarehousesContract warehousing combines the best

characteristics of both private and public operations.

The long-term relationship and shared risk result in lower cost than typical public warehouse arrangements.

Contract warehouse operations can provide benefits of expertise, flexibility, and labor, equipment, and information resources across a number of clients.

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Bonded warehouseThese warehouses are owned, managed and

controlled by private as well as public agencies. Bonded warehouses are licensed by the

government to store goods prior to payment of taxes or duties.

They exert very tight control over all movements of the items.

For example, cigarettes ,liquors and imported goods are often stored in bonded warehouses.

This tactic saves the firm money.

Selection of warehousesChoice of warehouse is depends upon the following factors:• demand • no of items handled• mode of transportation• geographical location• seasonality of product • standardization in packaging , handling

Design of warehouseThe design of location would take into account the following factor:1- layout2- storage space3- stock location

Straight line flow pattern

shipping

Order assembly

storage

Receipt and

inspection

Shipment in Shipment out

storage

Order assembly

Receiving and shipping

Shipment in

Shipment out

Storage space 1. Rectangular building layout are normally most efficient.2. Goods should move the shortest possible distance3. Loading and unloading docks should be positioned on the long sides.

Stock location To reduce the effort and time , the items should be located according to:1. Frequency of movement 2. Functional relationship3. physical similarity4. Working stock and reserve stock

Location of WarehouseCriteria affecting the decision on location of

warehouse are: (1) availability of land (2) cost of land (3) proximity to market (4) labour availablity (5) government taxes (6) availability of utilities (7) suitable climate condition

SCHAEFER logistic working for AUDI Volkswagen Korea

Thank You !