TYPES OF WAREHOUSES
The various types of warehouses are:
Private Warehouses
The warehouses which are owned and managed by the manufacturers or traders to store, exclusively, their own stock of goods are known as private warehouses.
Generally these warehouses are constructed by the farmers near their fields, by wholesalers and retailers near their business centres and by manufacturers near their factories.
The design and the facilities provided therein are according to the nature of products to be stored.
Public Warehouses
The warehouses which are run to store goods of the general public are known as public warehouses.
Any one can store his goods in these warehouses on payment of rent.
An individual, a partnership firm or a company may own these warehouses.
To start such warehouses a licence from the government is required.
The government also regulates the functions and operations of these warehouses.
Mostly these warehouses are used by manufacturers, wholesalers, exporters, importers, government agencies, etc.
Government Warehouses
These warehouses are owned, managed and controlled by central or state governments or public corporations or local authorities.
Both government and private enterprises may use these warehouses to store their goods.
Central Warehousing Corporation of India, State Warehousing Corporation and Food Corporation of India are examples of agencies maintaining government warehouses.
Bonded Warehouses
These warehouses are owned, managed and controlled by government as well as private agencies.
Private bonded warehouses have to obtain licence from the government.
Bonded warehouses are used to store imported goods for which import duty is yet to be paid.
In case of imported goods the importers are not allowed to take away the goods from the ports till such duty is paid.
These warehouses are generally owned by dock authorities and found near the ports.
Co-operative Warehouses
These warehouses are owned, managed and controlled by co-operative societies.
They provide warehousing facilities at the most economical rates to the members of their society.
CHARACTERISTIC OF IDEAL WAREHOUSES.
Any warehouse is said be an ideal warehouse if it possesses the below mentioned charechteristics:
Warehouse should be located at a convenient place near highways, railway stations, airports and seaports where goods can be loaded and unloaded easily.
Mechanical appliances should be there to loading and unloading the goods. This reduces the wastages in handling and also minimises handling costs.
Adequate space should be available inside the building to keep the goods in proper order.
Ware houses meant for preservation of perishable items like fruits, vegetables, eggs and butter etc. should have cold storage facilities.
Proper arrangement should be there to protect the goods from sunlight, rain, wind, dust, moisture and pests.
Sufficient parking space should be there inside the premises to facilitate easy and quick loading and unloading of goods.
Round the clock security arrangement should be there to avoid theft of goods.
The building should be fitted with latest fire-fighting equipments to avoid loss of goods due to fire.
FUNCTIONS OF WAREHOUSING
Receiving
Receiving is that activity concerned with the orderly receipt of all materials coming into the warehouse.
The necessary activities to assure that the quantity and quality of such materials are as ordered and
The payment to storage or to other organisational functions requiring them
Pre-packaging (optional)
Pre-packaging is performed in a warehouse when products are received in bulk from a supplier and subsequently packaged singly, in merchandisable quantities or in combinations with other parts to form kits or assortments.
An entire receipt of merchandise may be processed at once, or a portion may be held in bulk form to be done later.
This may be done when packaging greatly increases the storage cube requirements or when a part is common to several kits or assortments.
Put-away
Put-away is the act of placing merchandise in storage.
It includes both a transportation and a placement component.
Storage
Storage is the physical containment of merchandise while it is awaiting a demand.
The form of storage will depend on the size and quantity of the items in inventory and the handling characteristics of the product or its container.
Order picking
Order picking is the process of removing items from storage to meet a specific demand.
Its represents the basic service that the warehouse provides for the customer and is the function around which most warehouse designs are based.
Packaging and/or Pricing (optional)
Packaging and/or pricing may be done as an optional step after the picking process.
As in the pre-packaging function, individual items or assortments are boxed for more convenient use.
Waiting until after picking to perform these functions has the advantage of providing more flexibility in the use of on-hand inventory
Individual items are available for use in any of the packaging configurations right up to the time of need
Pricing is current at the time of sale
Pre-pricing at manufacture or receipt into the warehouse inevitably leads to some re-pricing activity as price lists are changed while merchandise sits in inventory
Sortation and/or Accumulation
Sortation of batch picks into individual orders and accumulation of distributed picks into orders must be done when an order has more than one item and the accumulation is not done as the picks are made.
Packing and Shipping
Packing and shipping may include the following tasks:
Checking orders for completeness
Packaging of merchandise in an appropriate shipping container
Preparation of shipping documents, including packing list, address label and bill of lading
Weighing of order to determine shipping charges
Accumulation of orders by outbound carrier
Loading trucks ( in many instances, this is a carriers responsibility
Transportation
In some cases warehouses provide transport arrangement to the bulk depositors.
It collects goods from the place of production and also sends goods to the place of delivery on request of the depositors
ADVANTAGES OF WAREHOUSING
Warehousing offers many advantages to the business community. Whether it is industry or trade, it provides a number of benefits which are listed below:
Protection and preservation of goods
Regular flow of goods
Continuity in production
Convenient location
Easy handling
Useful for small businessmen
Creation of employment
Facilitates sale of goods
Availability of finance
Reduces risk of loss
PROTECTION AND PRESERVATION OF GOODS
Warehouse provides necessary facilities to the businessmen for storing their goods when they are not required for sale.
It provides protection to the stocks, ensures their safety and prevents wastage.
It minimises losses from breakage, deterioration in quality, spoilage etc.
Warehouses usually adopt latest technologies to avoid losses, as far as possible
REGULAR FLOW OF GOODS
Many commodities like rice, wheat etc. are produced during a particular season but are consumed throughout the year.
Warehousing ensures regular supply of such seasonal commodities throughout the year.
CONTINUITY IN PRODUCTION
Warehouse enables the manufacturers to carry on production continuously without bothering about the storage of raw materials.
It helps to provide seasonal raw material without any break, for production of finished goods
CONVENIENT LOCATION
Warehouses are generally located at convenient places near road, rail or waterways to facilitate movement of goods.
Convenient location reduces the cost of transportation
EASY HANDLING
Modern warehouses are generally fitted with mechanical appliances to handle the goods.
Heavy and bulky goods can be loaded and unloaded by using modern machines, which reduces cost of handling such goods.
Mechanical handling also minimizes wastage during loading and unloading
USEFUL FOR SMALL BUSINESSMEN
Construction of own warehouse requires heavy capital investment, which small businessmen cannot afford.
In this situation, by paying a nominal amount as rent, they can preserve their raw materials as well as finished products in public warehouses.
CREATION OF EMPLOYMENT
Warehouses create employment opportunities both for skilled and unskilled workers in every part of the country.
It is a source of income for the people, to improve their standards of living
FACILITATES SALE OF GOODS
Various steps necessary for sale of goods such as inspection of goods by the prospective buyers, grading, branding, packaging and labelling can be carried on by the warehouses.
Ownership of goods can be easily transferred to the buyer by transferring the warehouse keeper’s warrant.
AVAILABILITY OF FINANCE
Loans can be easily raised from banks and other financial institutions against the security of the warehouse-keeper’s warrant.
In some cases warehouses also provide advance to the depositors of goods on keeping the goods as security.
REDUCES RISK OF LOSS
Goods in warehouses are well guarded and preserved.
The warehouses can economically employ security staff to avoid theft, use insecticides for preservation and provide cold storage facility for perishable items.
They can install fire-fighting equipment to avoid fire.
The goods stored can also be insured for compensation in case of loss
The various types of warehouses are:
Private Warehouses
The warehouses which are owned and managed by the manufacturers or traders to store, exclusively, their own stock of goods are known as private warehouses.
Generally these warehouses are constructed by the farmers near their fields, by wholesalers and retailers near their business centres and by manufacturers near their factories.
The design and the facilities provided therein are according to the nature of products to be stored.
Public Warehouses
The warehouses which are run to store goods of the general public are known as public warehouses.
Any one can store his goods in these warehouses on payment of rent.
An individual, a partnership firm or a company may own these warehouses.
To start such warehouses a licence from the government is required.
The government also regulates the functions and operations of these warehouses.
Mostly these warehouses are used by manufacturers, wholesalers, exporters, importers, government agencies, etc.
Government Warehouses
These warehouses are owned, managed and controlled by central or state governments or public corporations or local authorities.
Both government and private enterprises may use these warehouses to store their goods.
Central Warehousing Corporation of India, State Warehousing Corporation and Food Corporation of India are examples of agencies maintaining government warehouses.
Bonded Warehouses
These warehouses are owned, managed and controlled by government as well as private agencies.
Private bonded warehouses have to obtain licence from the government.
Bonded warehouses are used to store imported goods for which import duty is yet to be paid.
In case of imported goods the importers are not allowed to take away the goods from the ports till such duty is paid.
These warehouses are generally owned by dock authorities and found near the ports.
Co-operative Warehouses
These warehouses are owned, managed and controlled by co-operative societies.
They provide warehousing facilities at the most economical rates to the members of their society.
CHARACTERISTIC OF IDEAL WAREHOUSES.
Any warehouse is said be an ideal warehouse if it possesses the below mentioned charechteristics:
Warehouse should be located at a convenient place near highways, railway stations, airports and seaports where goods can be loaded and unloaded easily.
Mechanical appliances should be there to loading and unloading the goods. This reduces the wastages in handling and also minimises handling costs.
Adequate space should be available inside the building to keep the goods in proper order.
Ware houses meant for preservation of perishable items like fruits, vegetables, eggs and butter etc. should have cold storage facilities.
Proper arrangement should be there to protect the goods from sunlight, rain, wind, dust, moisture and pests.
Sufficient parking space should be there inside the premises to facilitate easy and quick loading and unloading of goods.
Round the clock security arrangement should be there to avoid theft of goods.
The building should be fitted with latest fire-fighting equipments to avoid loss of goods due to fire.
FUNCTIONS OF WAREHOUSING
Receiving
Receiving is that activity concerned with the orderly receipt of all materials coming into the warehouse.
The necessary activities to assure that the quantity and quality of such materials are as ordered and
The payment to storage or to other organisational functions requiring them
Pre-packaging (optional)
Pre-packaging is performed in a warehouse when products are received in bulk from a supplier and subsequently packaged singly, in merchandisable quantities or in combinations with other parts to form kits or assortments.
An entire receipt of merchandise may be processed at once, or a portion may be held in bulk form to be done later.
This may be done when packaging greatly increases the storage cube requirements or when a part is common to several kits or assortments.
Put-away
Put-away is the act of placing merchandise in storage.
It includes both a transportation and a placement component.
Storage
Storage is the physical containment of merchandise while it is awaiting a demand.
The form of storage will depend on the size and quantity of the items in inventory and the handling characteristics of the product or its container.
Order picking
Order picking is the process of removing items from storage to meet a specific demand.
Its represents the basic service that the warehouse provides for the customer and is the function around which most warehouse designs are based.
Packaging and/or Pricing (optional)
Packaging and/or pricing may be done as an optional step after the picking process.
As in the pre-packaging function, individual items or assortments are boxed for more convenient use.
Waiting until after picking to perform these functions has the advantage of providing more flexibility in the use of on-hand inventory
Individual items are available for use in any of the packaging configurations right up to the time of need
Pricing is current at the time of sale
Pre-pricing at manufacture or receipt into the warehouse inevitably leads to some re-pricing activity as price lists are changed while merchandise sits in inventory
Sortation and/or Accumulation
Sortation of batch picks into individual orders and accumulation of distributed picks into orders must be done when an order has more than one item and the accumulation is not done as the picks are made.
Packing and Shipping
Packing and shipping may include the following tasks:
Checking orders for completeness
Packaging of merchandise in an appropriate shipping container
Preparation of shipping documents, including packing list, address label and bill of lading
Weighing of order to determine shipping charges
Accumulation of orders by outbound carrier
Loading trucks ( in many instances, this is a carriers responsibility
Transportation
In some cases warehouses provide transport arrangement to the bulk depositors.
It collects goods from the place of production and also sends goods to the place of delivery on request of the depositors
ADVANTAGES OF WAREHOUSING
Warehousing offers many advantages to the business community. Whether it is industry or trade, it provides a number of benefits which are listed below:
Protection and preservation of goods
Regular flow of goods
Continuity in production
Convenient location
Easy handling
Useful for small businessmen
Creation of employment
Facilitates sale of goods
Availability of finance
Reduces risk of loss
PROTECTION AND PRESERVATION OF GOODS
Warehouse provides necessary facilities to the businessmen for storing their goods when they are not required for sale.
It provides protection to the stocks, ensures their safety and prevents wastage.
It minimises losses from breakage, deterioration in quality, spoilage etc.
Warehouses usually adopt latest technologies to avoid losses, as far as possible
REGULAR FLOW OF GOODS
Many commodities like rice, wheat etc. are produced during a particular season but are consumed throughout the year.
Warehousing ensures regular supply of such seasonal commodities throughout the year.
CONTINUITY IN PRODUCTION
Warehouse enables the manufacturers to carry on production continuously without bothering about the storage of raw materials.
It helps to provide seasonal raw material without any break, for production of finished goods
CONVENIENT LOCATION
Warehouses are generally located at convenient places near road, rail or waterways to facilitate movement of goods.
Convenient location reduces the cost of transportation
EASY HANDLING
Modern warehouses are generally fitted with mechanical appliances to handle the goods.
Heavy and bulky goods can be loaded and unloaded by using modern machines, which reduces cost of handling such goods.
Mechanical handling also minimizes wastage during loading and unloading
USEFUL FOR SMALL BUSINESSMEN
Construction of own warehouse requires heavy capital investment, which small businessmen cannot afford.
In this situation, by paying a nominal amount as rent, they can preserve their raw materials as well as finished products in public warehouses.
CREATION OF EMPLOYMENT
Warehouses create employment opportunities both for skilled and unskilled workers in every part of the country.
It is a source of income for the people, to improve their standards of living
FACILITATES SALE OF GOODS
Various steps necessary for sale of goods such as inspection of goods by the prospective buyers, grading, branding, packaging and labelling can be carried on by the warehouses.
Ownership of goods can be easily transferred to the buyer by transferring the warehouse keeper’s warrant.
AVAILABILITY OF FINANCE
Loans can be easily raised from banks and other financial institutions against the security of the warehouse-keeper’s warrant.
In some cases warehouses also provide advance to the depositors of goods on keeping the goods as security.
REDUCES RISK OF LOSS
Goods in warehouses are well guarded and preserved.
The warehouses can economically employ security staff to avoid theft, use insecticides for preservation and provide cold storage facility for perishable items.
They can install fire-fighting equipment to avoid fire.
The goods stored can also be insured for compensation in case of loss