This document provides an overview of warehousing. It defines warehousing as the storage of goods and preparation for reshipment. It describes the four main types of historical warehouses and notes that warehousing involves receiving, identifying, holding, assembling, and preparing goods to meet demand. The document outlines the types of warehousing including private, public, bonded, and government warehousing. It discusses factors to consider like ownership, location, size, and products. The functions of warehousing are receiving, record preparation, identification, storage, packing, and delivery. Benefits include consolidation, breaking bulk, processing, and storing goods to reduce costs.

1. WAREHOUSING
Presented by –
Mohd Kamran Yusuf (12mba41)
Syed Mohd Arbaz Ali (12mba40)

2. 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

3. Historically a dominant part of urban
landscape
Used from the start of industrial revolution
Typically of four types
 Overseas warehouses
 Packaging warehouses
 Railways warehouses
 Canal warehouses

4. 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

5. KINDS OF WAREHOUSING
 Private 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

6.  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

7. B A S I C WA R E H O U S E D E C I S I O N S
Ownership
Private
Public
How Many
Centralized
Decentralized
What Size
Where (location)
What
Products, where
Interior Layout

8. 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

9. Public vs. Private Warehouse
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

10. F U N C T I O N S O F WA R E H O U S I N G
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

11. 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.

12. 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

13. 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

14. Factors to be Considered
It is desirable to maximize the following factors1.
Space utilization
2.
Equipment utilization
3.
Labour utilization
4.
Accessibility of all materials
5.
Protection of all materials

15. Benefits of Warehousing
Warehousing reduces the cost in four ways1.
Consolidation of materials
2.
Breaking the bulk materials
3.
Processing
4.
Storing

16. Thank You