STORAGE AND WAREHOUSING

Presented ByChandan Singh

Dr. Rajendra Prasad Central Agricultural University, PusaMBA(AGB)/92/2015-16

CONTENTS

INTRODUCTION

FEATURES OF STORAGE & WAREHOUSING

TYPES OF WAREHOUSES

MAJOR AGRI-COMMODITIES TO BE STORED

IMPORTANCE OF STORAGE AND WAREHOUSING

MAJOR AGENCIES/INTITUTION/PLAYER FOR S&W

CONVENTIONAL METHODS OF S & W

MODERN TRENDS OF S & w

MERITS AND DEMERITS

CONCLUSION

INTRODUCTION

Storage involves proper management for preserving goods from the time of their production or purchase till actual use.

When this storage is done on a large scale and in a specified manner it is called WAREHOUSING

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

STORAGE PRACTICES IN INDIA

About 60 to 70% of food grains produced in India remain in the rural sector.Food grains are stores in traditional structures and containers made locally from available local market.

The common storage structure in rural areas are:

1. Gunny bags – made of burnt/ jute

2. Earthen containers – made of burnt clay of capacity ranging from 0.5 to 3 qtl.

3. Bamboo containers – indoor and outdoor structures constructed with split bamboo or locally

available plants with walls plasters with mud.

4. Underground structures – shallow underground pits with depths varying from 1 to 1.5m

depending upon the water table of the area.

FEATURES OF S & W

1. Proper location

2. Use of mechanical appliances to load and unload goods

3. Sufficient space

4. Proximity to the market

5. Parking facility

6. Safety measures

7. Economical

8. Proper management

1. PROPER LOCATION : For effective movement of goods and cost saving, warehouses should be established at places, which are convenient to both the buyer and the seller

2. USE OF MECHANICAL APPLIANCES : In the warehouses, mechanical appliances should be used to load and unload the goods.

3. SUFFICIENT SPACE : For an ideal warehouse, adequate space should be covered for maximum storage and to keep the goods in proper order.

4. PROXIMITY TO THE MARKET : The warehouses should be established at a place where market for raw materials and for selling finished goods is as close as possible

5. PARKING FACILITY : Parking along road, public places in the urban/suburban areas continue to be a harrowing experience for the traders who visit from outstations

FEATURES OF S & W

6. SAFETY MEASURES : A warehouse, which basically is used to store eatables or perishable goods like bread, butter, fruits, eggs and vegetables should be equipped with proper cold storage, moisture resistance etc facilities.

7. ECONOMICAL: The warehouse location, layout, construction and maintenance should be done in such a way that ensures maximum storage of goods at minimum expense.

8. PROPER MANAGEMENT : If warehouses are not managed properly, all the money spent will go waste.

PRIVATE WAREHOUSES

PUBLIC WAREHOUSES

GOVERNMENT WAREHUOSES

CO-OPERATIVE WAREHOUSES

BONDED WAREHOUSES

DISRIBUTION CENTERS OR

WAREHOUSES

COLD STORAGE

EXPORT AND

IMPORT

CLIMATE – CONTROLLED

FIELD WAREHOUS

ESAGRICULTURAL

WAREHOUSES

TYPES OF WAREHOUSES

1. PRIVATE HOUSES

OPERATED by a company for shipping and storing its own

products

OWNED AND MANAGED- manufacturers or traders

CONSTRUCTION- Farmers near their fields, Wholesalers and

Retailers near their business center's and Manufacturers near their

factories

COMPANIES – Stable inventory levels and long run expectations

SUITABILITY- Firms that require special handling and storage

features and want to control design and operation of the warehouse

2. PUBLIC WAREHOUSES

Used by SMALL FIRMS and LARGE FIRMS

Provide storage and physical distribution services on rental basis

Organizes to provide storage facilities to traders, manufacturers, agriculturists in return for a

storage charge

Licensed by Govt.

3. GOVERNMENT WAREHOUSES

OWNED, MANAGED AND CONTROLLED -Central or State Governments or public corporations

or local authorities

EXAMPLES- Central Warehousing Corporation of India, State Warehousing Corporation and Food

Corporation of India

If customer cannot pay rent within specified time authority can recover rent disposing of goods

4. CO-OPERATIVE WAREHOUSES Owned, Managed and Controlled – Co-operative societies

Facilities at most economical rates to members

Located-Punjab, Karnataka, Maharashtra and Andhra

5. BONDED WAREHOUSES

Licensed to accept imported goods for storage before payment of customs duty

Imported merchandise is stored and released only after payment of appropriate taxes

Cigarettes, Liquor, Other products are stored

Owned and Operated – PORT TRUSTS

Acts in two capacities viz LANDLORD and BAILEE OF GOODS

As landlord provides storage facilities on rent

6. DISTRIBUTION CENTERS / WAREHOUSES

Designed to move goods

Large and highly automated

Receive goods from various plants and suppliers, take orders, fill them efficiently deliver to

customers quickly

Located near the market owned or leased by manufacturers

Access to transport networks

7. COLD STORAGE Preserve perishability of goods against payment of a storage charge

Temperature variation is controlled to degree necessary for certain sensitive items

8. EXPORT AND IMPORT WAREHOUSES• LOCATION –near ports where international trade is undertaken

• Storage facilities for goods awaiting onward movements

• Facilities- packaging , inspection, marking etc.

9. CLIMATE-CONTROLLED WAREHOUSE• Handle storage of many products including need special handling conditions

• Freezers for frozen products, humidity controlled environment for delicate

products, produce or flowers, etc.

10. AGRICULTURAL WAREHOUSES

• Store agricultural produce grown in a certain area

• Location – Assembling or regulated markets

• Receive agricultural commodities either directly from farmers or through their

commission agents or from wholesalers

• Encourage speculative trading

MAJOR AGRI-COMMODITIES TO BE STORED

1. Wheat

2. Paddy

3. Pulses

4. Maize

5. Vegetables

6. Fruits

7. Dry fruits

8. Flowers

9. Spices

10. Oil seeds

11. Fertilizers

NEED AND IMPORTANCE

REGULAR SUPPLY QUALITY STOCK OF TRADE PRICE STABILISATION SEASONAL PRODUCTS PERISHABLE GOODS CONTINUOUS PRODUCTION SEASONAL DEMAND LARGE-SCALE PRODUCTION QUICK SUPPLY PROTECTION AND PRESERVATION OF GOODS EASY HANDLING USEFUL FOR SMALL BUSINESSES CREATION OF EMPLOYMENT FACILITATES SALE OF GOODS AVAILABILITY OF FINANCE

FUNCTIONS

STORAGE OF GOODSPROTECTION OF GOODSRISK BEARINGIDENTIFICATION OF GOODSFINANCINGPROCESSING

MAJOR AGENCIES/INTITUTION/PLAYER FOR S&W

1. Food corporation of India : Fci is not work for public it is only for govt.

2. State warehousing corporations: separate warehousing were set up for the state

govt for the separate use.

3. Central warehousing corporation : C W C is mainly used by the central govt but

some times . It used by state govt also.

CONVENTIONAL METHODS OF S & W

Historically, warehouses were a dominant part of the urban landscape from the start of the Industrial Revolution through the 19th century and into the twentieth century.

In ancient time we stored the commodity( wheat, rice, maize, pulses) in drum which made up of soil , bricks etc (kothi)

JUST IN TIME (JIT) system promotes product delivery directly from suppliers to

consumers without the use of warehouse Retailing trends led to development of WAREHOUSE-STYLE RETAIL STORES INTERNET BASED STORES do not require physical retail space but still require

warehouse to store goods Warehousing Companies are transforming into third-party logistics providers or 3PLs . RADIO FREQUENCY IDENTIFICATION (RFID) TRANSPORTATION MANAGEMENT SYSTEMS PICK-TO-LIGHT TECHNOLOGY VOICE-ACTIVATED RECEIVING ANG PACKAGING

Modern trends

MERITS AND DEMERITS

Maximum market coverage

Increased sales

Maximization of customer

services

Moderate transportation cost

Better control

Effect savings in freight charges

Maximum time utility

Huge investment in inventory

Chances of stock-out situation is high

Huge warehousing developments costs

Shortage of goods at one warehouse

from another require additional

transportation costs

Conclusion Warehouse are an important part of any supply chain

industry,

The Indian warehousing sector is progressively getting

redefined from the traditional concept of “Godowns” to

modern day set-up with technology but it needs up gradation

Measures to improve its utilization by farmers are needed.