INTRODUCTION TO WAREHOUSE CONCEPTS

 

Warehouse is an essential limb of an industrial unit. It is the depository of all materials required by an industrial unit and supplies materials as when required. Different types of materials are required for different operations in a production unit.

Warehouse is a storage structure constructed for the protection of the quality and quantity of the stored produce.

 

The need for a warehouse arises due to the time gap between production and consumption of products. Warehousing or storage refers to the holding and preservation of goods until they are despatched to the consumers.

By bridging this gap, storage creates time utility. There is a need for storing the goods so as to make them available to buyers as and when required.

Storage enables a firm to carry on production in anticipation of demand in

future. Warehouses enables the businessmen to carry on production throughout the year and sell their products, whenever there is adequate demand. Need for warehouses arises also because some goods are produced only in a particular season but are demanded throughout the year. Similarly, certain products are produced throughout the year but demanded only during a particular season.


Types of Warehouses:

Warehouse is the most common type of storage though other forms do exist (e.g., storage tanks, computer server farms). Some warehouses are massive structures that simultaneously support the unloading of numerous in-bound trucks and railroad cars containing suppliers’ products while at the same time loading multiple trucks for shipment to customers.

 


There are Five types of warehouses :

Private Warehouse : This type of warehouse is owned and operated by channel suppliers and resellers and used in their own distribution activity. For instance, a major retail chain may have several regional warehouses supplying their stores or a wholesaler will operate a warehouse at which it receives and distributes products.

Public Warehouse :  The public warehouse is essentially space that can be leased to solve short-term distribution needs. Retailers that operate their own private warehouses may occasionally seek additional storage space if their facilities have reached capacity or if they are making a special, large purchase of products. For example, retailers may order extra merchandise to prepare for in-store sales or order a large volume of a product that is offered at a low promotional price by a supplier.

Automated Warehouse : With advances in computer and robotics technology, many warehouses now have automated capabilities. The level of automation ranges from a small conveyor belt transporting products in a small area all the way up to a fully automated facility where only a few people are needed to handle storage activity for thousands of pounds/kilograms of product. In fact, many warehouses use machines to handle nearly all physical distribution activities such as moving product-filled pallets (i.e., platforms that hold large amounts of product) around buildings that may be several stories tall and the length of two or more football fields.
 
 

Climate-Controlled Warehouse : Warehouses handle storage of many types of products including those that need special handling conditions such as freezers for storing frozen products, humidity-controlled environments for delicate products, such as produce or flowers, and dirt-free facilities for handling highly sensitive computer products.
 
Distribution Center : There are some warehouses where product storage is considered a very temporary activity. These warehouses serve as points in the

distribution system at which products are received from many suppliers and quickly shipped out to many customers. In some cases, such as with distribution centers handling perishable food (e.g., produce), most of the product enters in the early morning and is distributed by the end of the day.

 
 
 
 

 

 
 

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