WAREHOUSINGWAREHOUSING

Presented by,Presented by,

Mainak SahuMainak Sahu

BBA-FT 4BBA-FT 4thth Sem Sem

IntroductionIntroduction

A A warehousewarehouse is a commercial  is a commercial building for storage of goods. Warehouses are used building for storage of goods. Warehouses are used by manufacturers, importers, by manufacturers, importers, exporters, wholesalers, transport businesses, customs, exporters, wholesalers, transport businesses, customs, etc. They are usually large plain buildings in etc. They are usually large plain buildings in industrial areas of cities and towns. They come industrial areas of cities and towns. They come equipped with loading docks to load and unload equipped with loading docks to load and unload trucks; or sometimes are loaded directly trucks; or sometimes are loaded directly from railways, airports, or seaports. They also often from railways, airports, or seaports. They also often have cranes and forklifts for moving goods, which are have cranes and forklifts for moving goods, which are usually placed on ISO standard pallets loaded usually placed on ISO standard pallets loaded into pallet racks. into pallet racks.

Need for WarehousingNeed for WarehousingWarehousingWarehousing is necessary due the following reasons: is necessary due the following reasons:

((i)i)Seasonal ProductionSeasonal Production::   You know that agricultural commodities are harvested during You know that agricultural commodities are harvested during

certain seasons their consumption or use takes place certain seasons their consumption or use takes place throughout the year. Therefore, there is a throughout the year. Therefore, there is a needneed for proper  for proper storage or storage or warehousingwarehousing for these commodities, from where  for these commodities, from where they can be supplied as and when required.they can be supplied as and when required.

(ii)(ii)  Seasonal Demand:Seasonal Demand:There are certain goods, which are demanded seasonally, like There are certain goods, which are demanded seasonally, like woollen garments in winters or umbrellas in the rainy season. woollen garments in winters or umbrellas in the rainy season. The production of these goods takes place throughout the year The production of these goods takes place throughout the year to meet the seasonal demand. So there is a to meet the seasonal demand. So there is a needneed to store these  to store these goods in a warehouse to make them available at the time goods in a warehouse to make them available at the time of of needneed

(iii) (iii) Large-scale Production:Large-scale Production:In case of manufactured goods, now-a-days production In case of manufactured goods, now-a-days production

takes place to meet the existing as well as future demand of takes place to meet the existing as well as future demand of the products. Manufacturers also produce goods in huge the products. Manufacturers also produce goods in huge quantity to enjoy the benefits of large-scale production, which quantity to enjoy the benefits of large-scale production, which is more economical. So the finished products, which are is more economical. So the finished products, which are produced on a large scale, produced on a large scale, needneed to be stored properly till they  to be stored properly till they are cleared by sales.are cleared by sales.

(iv) (iv) Quick Supply:Quick Supply:  Both industrial as well as agricultural goods are Both industrial as well as agricultural goods are

produced at some specific places but consumed throughout the produced at some specific places but consumed throughout the country. Therefore, it is essential to stock these goods near the country. Therefore, it is essential to stock these goods near the place of consumption, so that without making any delay these place of consumption, so that without making any delay these goods are made available to the consumers at the time of goods are made available to the consumers at the time of their their need.need.

(v) (v) Continuous Production:Continuous Production:  Continuous production of goods in factories requires Continuous production of goods in factories requires

adequate supply of raw materials. So there is a adequate supply of raw materials. So there is a needneed to keep  to keep sufficient quantity of stock of raw material in the warehouse to sufficient quantity of stock of raw material in the warehouse to ensure continuous production.ensure continuous production.

(vi) (vi) Price Stabilization: Price Stabilization: To maintain a reasonable level of the price of the To maintain a reasonable level of the price of the

goods in the market there is a goods in the market there is a needneed to keep sufficient stock in  to keep sufficient stock in the warehouses. Scarcity in supply of goods may increase their the warehouses. Scarcity in supply of goods may increase their price in the market. Again, excess production and supply may price in the market. Again, excess production and supply may also lead to fall in prices of the product. By maintaining a also lead to fall in prices of the product. By maintaining a balance of supply of goods, balance of supply of goods, warehousingwarehousing leads to price  leads to price stabilizations.stabilizations.

Types of WarehousesTypes of Warehouses

Warehouses have been classified as under:Warehouses have been classified as under:

Private WarehousesPrivate Warehouses Public WarehousesPublic Warehouses Government WarehousesGovernment Warehouses Bonded WarehousesBonded Warehouses Co-operative WarehousesCo-operative Warehouses

Private WarehousePrivate Warehouse

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 WarehousePublic Warehouse

The warehouses which are run to store goods of the The warehouses which are run to store goods of the general public are known as public warehouses. Any general public are known as public warehouses. Any one can store his goods in these warehouses on one can store his goods in these warehouses on payment of rent. An individual, a partnership firm or payment of rent. An individual, a partnership firm or a company may own these warehouses. To start such a company may own these warehouses. To start such warehouses a license from the government is warehouses a license from the government is required. The government also regulates the functions required. The government also regulates the functions and operations of these warehouses. Mostly these and operations of these warehouses. Mostly these warehouses are used by manufacturers, wholesalers, warehouses are used by manufacturers, wholesalers, exporters, importers, government agencies, etcexporters, importers, government agencies, etc

Government WarehouseGovernment Warehouse

These warehouses are owned, managed and These warehouses are owned, managed and controlled by central or state governments or controlled by central or state governments or public corporations or local authorities. Both public corporations or local authorities. Both government and private enterprises may use government and private enterprises may use these warehouses to store their goods. these warehouses to store their goods. Central Central WarehousingWarehousing Corporation of India,  Corporation of India, State State WarehousingWarehousing Corporation and Food  Corporation and Food

Corporation of IndiaCorporation of India are examples of agencies are examples of agencies maintaining government warehouses.maintaining government warehouses.

Bonded WarehouseBonded Warehouse

These warehouses are owned, managed and These warehouses are owned, managed and controlled by government as well as private agencies. controlled by government as well as private agencies. Private bonded warehouses have to obtain license Private bonded warehouses have to obtain license from the government. Bonded warehouses are used to from the government. Bonded warehouses are used to store imported goods for which import duty is yet to store imported goods for which import duty is yet to be paid. Incase of imported goods the importers are be paid. Incase of imported goods the importers are not allowed to take away the goods from the ports till not allowed to take away the goods from the ports till such duty is paid. These warehouses are generally such duty is paid. These warehouses are generally owned by dock authorities and found near the portsowned by dock authorities and found near the ports

Co-operative WarehouseCo-operative Warehouse

These warehouses are owned, managed and These warehouses are owned, managed and controlled by co-operative societies. They controlled by co-operative societies. They provide provide warehousingwarehousing facilities at the most  facilities at the most economical rates to the members of their economical rates to the members of their society.society.

Warehousing CostsWarehousing Costs

There are generally three types of expenses involved There are generally three types of expenses involved and they should be understood, while calculating the and they should be understood, while calculating the costs:costs:

General Overhead CostsGeneral Overhead Costs Delivery CostDelivery Cost Labour CostLabour Cost

Warehousing Facility in IndiaWarehousing Facility in India

Some of the common facilities offered by Some of the common facilities offered by warehouses are:warehouses are:

Right temperature, humidity and other physical conditionsRight temperature, humidity and other physical conditions Fully racked systems.Fully racked systems. Bonded facilities.Bonded facilities. Complete security.Complete security. Receiving and transit sheds.Receiving and transit sheds. Truck rentals or free truck service for a set time period.Truck rentals or free truck service for a set time period. Home pick up and drop facility or door to locker facility.Home pick up and drop facility or door to locker facility. Secure scheduled destruction, if required by the client.Secure scheduled destruction, if required by the client.

ConclusionConclusion

Modern warehouses are also used at large by Modern warehouses are also used at large by exporters/manufacturers as a point of developing exporters/manufacturers as a point of developing retail outlets in a particular region or country. This retail outlets in a particular region or country. This concept reduces the end cost of the product to the concept reduces the end cost of the product to the consumer and thus enhance the production sale ratio. consumer and thus enhance the production sale ratio. Warehousing is an age old concept which can be used Warehousing is an age old concept which can be used as sharp tool by original manufacturers to reach out as sharp tool by original manufacturers to reach out directly to consumers leaving aside or bypassing directly to consumers leaving aside or bypassing importers or any other middle agencies or person. importers or any other middle agencies or person.

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