Module 1-6 Random questions Flashcards
Importance of Warehousing in a Logistics System
Better Inventory Management
More efficient Packing and Processing
Superior Customer Service
Ensure Price Stabilization
Improved Risk Management
Most warehouses provide the equipment and supplies you need to store, move package and process orders from customers.
More efficient Packing and Processing
Warehousing allows for timely delivery and optimized distribution, leading to increased labor productivity and greater customer satisfaction
Superior Customer Service
Warehouse provide centralized location for the goods, making it easier to track and manage inventory
Better Inventory Management
Warehouses provides safe storage of perishable products; helps extend the product’s shelf life and ensures customer satisfaction
Improved Risk Management
warehouse allows you to store your products for a later date when the demand is high. This helps ensure price stabilization and reduces revenue losses.
Ensure Price Stabilization
Advantages of Warehousing
Improved Inventory Accuracy
Reduced Overhead Cost
Better Staffing Levels
Protection of Goods
Central Location
Superior Flow of Goods
Functions of warehousing
Storage
Price stabilization
Risk Bearing
Financing
Grading and packing
person keeping the goods in the warehouse
Bailor
warehouse keeper
Bailee
Types of warehouse
Private Warehouses
Public warehouses
Bonded warehouses
Other types of warehouses
What are the other types of warehouses?
Special Commodity Warehouse
Cold Storage or Refrigerated Warehouse
Institutional Warehouse
constructed and owned by the business enterprises in order to store the products produced by them; Exclusively owned and used by the producers themselves and are not meant for other manufacturing or business units
Private Warehouses
Used for imported goods which are not granted clearance on account of non-payment of customs duty by the importer of these goods; Situated near the ports
Bonded warehouses
Also known as duty paid warehouses; One which is open for public at large; May be owned by an individual or some agency whose main object is to provide storage facilities to people for certain fees or charges.
Public warehouses
Different institutions and bodies have their own warehouses on account of the nature of their operations; example, Banks, Railways, Food Corporation of India etc. has their own warehouses for conducting their activities
Institutional Warehouse
Constituted for storing a particular type of commodity; Ex: tobacco, cotton, wheat etc.
Special Commodity Warehouse
Used for storing perishable commodities like eggs, butter, fruits, vegetables, fish, meat, etc.
Cold Storage or Refrigerated Warehouse
10 Factors to Consider while Selecting a Warehouse
Location
Access
Client Profile
Storage Area
Association Membership
Experiences
Employees
Process
Risk
Technology
Roles of Warehouse
Raw material storage
Intermediate, postponement, customization or sub-assembly facilities
Finished Goods Storage
Consolidation centres and transit warehouses
Transhipment or break-bulk centres
Cross-dock centres
Sortation Centres
Fulfillment centres
Reverse Logistics centres
Public Sector Warehousing
Store raw materials and components either close to the point of extraction or close to the manufacturing point.
Raw material storage
Postponement and sub-assembly activities
*Specific packaging or labeling being changed or added, e.g for store ready items or printing in different languages
*Computer assembly to include different graphics cards, memory chips, software, etc;
*Product bundling for promotional activity
*country -specific items being added such as electrical plugs; and
*Special messages being added, eg stencilling of greeting messages on mobile phones.
Store products ready for sale, on behalf of manufacturer, wholesalers and retailers
Finished Goods Storage
Receive products from different sources and amalgamate them for onward delivery to the customer or onto a production line; Include just in time centers
Consolidation centres and transit warehouses
Receive products in large quantities from suppliers and break them down into manageable quantities for onward delivery to various location.
Transhipment or break-bulk centres
Used in the main by letter, parcel and pallet distribution companies
Sortation Centres
Warehouse designed and equipped specifically to manage large volume of small orders
Fulfillment centres