warehousing Flashcards
Consolidation
consolidating warehouse receives and consolidates materials from a number of manufacturing plants destined to a specific customer on a single transportation shipment
The benefits are the realization of the lowest possible transportation rate and reduced congestion at a customer’s receiving dock
Break Bulk
Packaged but non-containerized cargo. Loose cement, grains, ores, etc., are termed bulk cargo, whereas cargo shipped as a unit (bags, bales, barrels, boxes, cartons, drums, pallets, sacks, vehicles, etc.) is termed break bulk.
receives combined customer orders from manufacturers and ships them to individual customers
cross-dock facility
Cross-docking is a practice in logistics of unloading materials from an incoming semi-trailer truck or railroad car and loading these materials directly into outbound trucks, trailers, or rail cars, with little or no storage in between.
Just like breakbulk, it involves multiple manufacturers.
Retail chains make extensive use of cross-dock operations to replenish fast-moving store inventories
Processing/Postponement
Warehouses can also be used to postpone, or delay, production by performing processing and light manufacturing activities. A warehouse with packaging or labelling capability allows postponement of final production until actual demand is known.
Vegetables can be processed and canned in “Brights” at the manufacturer. Brights are cans with no preattached labels. hence does not have to be committed to a specific customer
Stockpiling
The direct economic benefit of this warehousing service is secondary to the fact that seasonal storage is essential to select businesses.
Service benefits gained through warehouses
Five basic service benefits are achieved through warehousing: spot stock, assortment, mixing, product support, and market presence
Spot Stock
For manufacturer with limited or highly seasonal product lines
Rather than placing inventories in warehouse facilities on a year-round basis or shipping directly from manufacturing plants, delivery time can be substantially reduced by advanced inventory commitment to strategic markets.
Assortment warehouse
one which may be utilized by a manufacturer, wholesaler, or retailer-stocks product combinations in anticipation of customer orders.
The assortments may represent
- multiple products from different manufacturers: stock products from a number of clothing suppliers so that customers can be offered assortments
- special assortments as specified by customers.
differential between stock spotting and complete line assortment
is the degree and duration of warehouse utilization. A firm following a stock spotting strategy would typically warehouse a narrow product assortment and place stocks in a large number of small warehouses dedicated to specific markets for a limited time period. The distribution assortment warehouse usually has a broad product line, is limited to a few strategic locations, and is functional year-round.
Mixing
Warehouse mixing is similar to the break bulk process except that several different manufacturer shipments may be involved.
A classification of private warehouses, on the basis of the range of specialized operations performed, is as follows:
- General merchandise
- Refrigerated,
- Special commodity
- Bonded warehouse.
General Merchandise Warehouses:
used to store goods that are readily handled, are packaged, and do not require a controlled environment, such as paper, small appliances, and household supplies.
Bonded Warehouses
These warehouses are licensed by the government to store goods prior to payment of taxes or duties. The facility of warehousing of imported goods in Customs Bonded Warehouses, without payment of Customs duty otherwise leviable on import, is permitted under the Customs Act, 1962.
Excise duty
State Excise” duty
Central Excise” duty
a tax on manufacture or production of goods
Excise duty on alcohol, alcoholic preparations, and narcotic substances is collected by the State Government and is called “State Excise” duty
The Excise duty on rest of goods is called “Central Excise” duty.
The Central Warehousing Corporation (CWC)
was set up in
set up in 1957 under the Agricultural Produce Development and Warehousing Corporations Act, 1956
