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