Warehousing
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Transcript of Warehousing
WAREHOUSING
Presented by –
Mohd Kamran Yusuf (12mba41)
Syed Mohd Arbaz Ali (12mba40)
WAREHOUSE
A commercial building for storage of goods
Used by importers, exporters, wholesalers
Situated in industrial areas of cities, towns
and villages
Designed for loading and unloading of good
Historically a dominant part of urban
landscape
Used from the start of industrial
revolution
Typically of four types Overseas warehousesPackaging warehouses Railways warehouses Canal warehouses
WAREHOUSING
According to Robert Hughes-“warehousing is the set of activities that are involved in receiving and storing of goods and preparing them for reshipment “
Warehousing is not only concerned with storage
facilities but also involved in various other activities
like – Receiving, identifying, Holding Assembling and preparing to meet the demand
KINDS OF WAREHOUSINGPrivate warehousing-
• Owned and leased by the firm• Complete control over activities• Used for special storage and handling needs• Used by firm to move product to large areas
Public warehousing• Operated by professionals• Provides services to firm for a particular fees• No fixed investment involved • Used by firms keeping in views the locations and
fright rates
Bonded warehousing• Licensed to accept imported goods before payment of custom duties• Importer gains some control without paying some duties• Goods under the strict supervision of custom officer• Permission is necessary before the owner can interfere with the goods
Government warehousing• Mainly located at important seaport• Owned by the Dock Authorities• Available to general public on payment of fixed charges• Authority can recover the rent by disposing goods if customer can not
pay in time
Ownership
Private Public
How Many
Centralized Decentralized
What Size
Where (location)
What Products,
whereInterior Layout
BASIC WAREHOUSE DECISIONS
Public vs. Private Warehouse
• Public warehouse is all variable cost , as throughput volume increases the company has to rent space
• Private warehouse has a fixed cost element , which is attributed to property taxes and depreciation and cost structure, variable portion increased more slowly than the public warehouse because of profit and cost of marketing the public facility
Firms characteristics Private Public
Throughput volume High Low
Demand variability Stable Fluctuating
Market density High Low
Special physical control
Yes No
Customer service required
High Low
Security High Low
Multiple use Yes No
Public vs. Private Warehouse
FUNCTIONS OF WAREHOUSING
1. Receiving of goods:-• Basic important function of warehousing • Accepts and assumes the responsibility to deliver the
goods• Issues the receipts of the goods
2. Preparations of records:-• Warehouse keeper check the items and prepares the
records• Records maintained properly to avoid problems at the
time of delivery
3. Identification:-• All the items are marked separately• Code numbers/tags attached for identification• Identification helps to separate goods of different firms
easily
4. Storing:-• Major function of warehousing • Goods are kept safely in warehouse• Helps in proper protections of goods e.g. food crops ,
fruits, vegetable etc.
5. Packing:-• Provided by the warehouse keeper if owner
requires such facilities• Packaging is done in a reasonable way according
to size and quantity of goods
6. Information about receipts:-• Warehouse keeper checks and informs about the
goods to the concerned department
7. Breaking of bulks:-• Generally goods delivered in bulk • If owner wants in small quantity, keepers packs
according to the requirements of customer
8. Search the goods:-• Warehouse keeper searches efficiently and provides
the goods to the owner, whenever he demands
9. Delivery of goods:-• Documents are checked and prepared and • Goods are loaded over transport
Factors to be Considered
It is desirable to maximize the following factors-
1. Space utilization
2. Equipment utilization
3. Labour utilization
4. Accessibility of all materials
5. Protection of all materials
Benefits of Warehousing
Warehousing reduces the cost in four ways-
1. Consolidation of materials
2. Breaking the bulk materials
3. Processing
4. Storing
Thank You