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Warehouse and storage
- 1. A Presentation on Warehousing ByA.Partheepan BBA
- 2. Warehousing Warehousing andstorage is an act of storing and assorting the finished goods so as to create maximum time utility at minimum cost Need for storage arises both for raw material as well as finished products Storage involves proper management for preserving goods from the time of their production or purchase till acrual use
- 3. Concept of warehousing Theconcept of distribution warehouse or a distribution centre is vastly different from the earlier concept of a godown for storage The establishment of warehouse is ensuring a continuous and uninterrupted supply of goods
- 4. Purpose of Warehousing Toprovide desired level of customer service at the lowest possible total cost It is the part of the firm’s logistics system that stores products at and between point of origin and point of consumption and provides infto to management on the status of items being stored
- 5. Functions of warehousing ReceivingGoods: A warehouse accepts the merchandise delivered by a transporter or an attached factory and then accepts the responsibility for the merchandise Identifying Goods: The appropriate stock keeping units are identified and a record made of the number of each item received Storing Goods: The incoming goods are sorted out for appropriate storage area in the warehouse
- 6. Functions of Warehousing Despatchinggoods to storage: The goods are kept aside when they can be founder later when needed Holding Goods: The goods are kept in storage under proper protection untill needed in warehouse Marshalling Goods: The several items making up a single order are brought together and checked for completeness and order records are prepared or modified
- 7. Functions of Warehousing Dispatchingof goods : The consolidated order is packaged suitably and directed to the rigjt transport vehicle Preparing records and advices: The number of orders received the items received and on hand etc.. Are recorded for replenishment action and stock control and the demand and receipt data are forwarded to a control centre loacted elesewhere
- 8. Reasons for Warehousing Service related Maintain source supply Support customer service policies Meet changing market conditions Overcome time and space differentials Provide customers with the right mix of products at all times Cost related Achieve production economies Achieve transportation economies Take advantage of quantity purchase discounts and forward buys Least logistics cost of a desired service
- 9. Objective of warehousing Theprimary objective of warehousing is movement of goods To maintain the flow of goods throught the system these goods may be raw materials or finished products To set uo a network of warehouses closest to the customer locations to service markets better and minimize cost Provide timely customer service Keep track of items so they can be found readily and cocorrectlyminimize the total physical effort thus the cost of moving goods into and out of storage Provide communication links with customers
- 10. Role of warehousing 1. Ensureprotection against delays and uncertainities in transportation arising from a variety of factors 2. Eliminating lack of sophistication in production control and consequent uncertainnities in the availability of product at the desired time and place 3. Providing for adjustment between the time of production and the time of use because production and use can be seldom 4. Serving as reservoir of goods receiving surplus goods when production exceeds demend and releasing them when a scsrcity is anticipated
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- 12. Procedures to improve material handling Flowchart of present operations should be prepared this chart should trace the flow to goods from the end of the production line or from another warehouse For each movement the volume of each product moved the method of movement the unit handling cost and the average distance moved must be worked out snd ascertained New methods must be evaluated by balancing benefits with costs
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- 15. Types of warehouses Bondedwarehouses : Private and public warehouses acan be bonded under the customs and excise act and municipal corporation regulations Field warehouses : Fiels warehouses are those which are managed by a public warehousing agency in the premises of a factory or company Cold storage : cold storage facilities are provided for perishables against payment of a storage charge for the space utilized by different parties Agriculrural warehouses : these warehouses are meant for storing agricultural product grown in certain area
- 16. Types of warehouses Distributionwarehouses : these warehouses are loacted close to the manufacturing concerns or consuming areas Buffer storage warehouses : these warehouses are built at startegic locations with adequate transport and communication facilities Export and import warehouses : these warehouses are located near the ports from where international trade is undertaken
- 17. Warehouse loaction Market servicearea and cost of distribution from the warehouse to the market area Transportation rates prevailing in the area and distribution costs per unit Competition by rival companies and whether they have warehouses in the same area Availability of power water gas sewerage disposal and their cost Labour supply and labour costs in the area Real estate excise and government taxes assessed in the area
- 18. Warehouse building plan A warehousehas to be planned and designed bearing in mind the kinds of goods are likely to be stored the type of handling equipment that are likely to be used and the height upto which the stacks may be bubuilt 1. Site 2. Cleanliness 3. Foundation 4. Pavement 5. Roof 6. Floor and walls 7. Doors 8. Windows 9. Ventilations 10. Drain pipes
- 19. Capacity of warehouse The capacityof warehouse affected by number of factors Type of material to be handling Handling system to be used Asitle rerequirements Stock layout arrangements Dock requirements Local requirements
- 20. Selection of warehouses Ceilingheight : ceiling heights depends on construction costs material handling costs and load stacking characteristics Length and with of warehouse : The length and width of the warehouse building has to be decided based on the material movement High truck dicks capacity : Inward rail consignments or empty wagons arrive at the warehouse in batches Warehouse security form : Theft and house breaking Fire Riots and civil commotion Moisture insects and rodents
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