Warehousing: Definition and Functions

• Warehousing and storage involves storing and assorting finished goods to maximize time utility at minimum cost.
• Storage is needed for raw materials and finished products.
• Storage involves proper management for preserving goods from production or purchase until actual use.
• Warehousing is storage done on a large scale and in a specified manner.
• Many private firms are turning to distribution centers instead of constructing warehouses.

Definition and Functions of Warehousing

• Robert Hughes stated that warehousing includes receiving and storing goods and preparing them for reshipment.
• Warehousing includes receiving, identifying, holding, assembling, and preparing to meet demand.

Functions of Warehousing

• Receiving of goods is a basic and important function that involves accepting responsibility for delivering goods and issuing receipts.
• Preparation of records involves the warehouse keeper checking items and preparing records.
• Records are maintained to avoid problems during delivery.
• Identification involves marking items separately with code numbers/tags.
• Identification helps to separate goods of different firms easily.
• Storing is a major function of warehousing.
• Goods are kept safely and properly protected like food crops, fruits, and vegetables.
• Packing is provided by the warehouse keeper if the owner requires facilities.
• Packaging is done reasonably according to the size and quantity of goods.
• The warehouse keeper checks and informs the concerned department about the goods via information about receipts.
• Goods are usually delivered in bulk.
• Keepers packs according to the customer's requirements if the owner wants a small quantity.
• The warehouse keeper searches efficiently and provides the goods to the owner on demand, in order to search the goods.
• In delivering goods documents are checked and prepared and goods are loaded over transport.

Consolidation, Break Bulk, and Cross Dock Warehousing

• Consolidation is when plant A [product A for Customer X], plant B [ product B for customer X], and plant C [product C for Customer X] all go to the consolidation warehouse and deliver to store Customer X [Product A+ Product B+ Product C].
• Break bulk warehousing involves delivery to customer X, customer Y, and customer Z, after going through the breakbulk warehouse.
• Cross docking warehouses receive many different products and ship them to many different customers.

Warehouse Alternatives

• Private warehouses are owned or leased by the product owner.
• There is full control with the product owner of private warehouses.
• Private warehouses can be integrated with the logistical system
• They provide a market presence to the product owner.
• There is no profit to be added to the cost.
• Public warehouses are available to companies on hire.
• Overheads are distributed over a large customer base in public warehouses.
• Warehousing is their core business so public warehouses offer expertise in management.
• Public warehouses offers location flexibility.
• They offer significant scale economies and benefits in transportation costs due to several users and resultant volume.

Materials used in warehouses

• Pallets are used as a support or platform for boards to stack the load.
• They are rigid frames on which the goods are placed, distributed homogeneously at height and on the pallet surface.
• The pallets and load are transported from one side of the racking or the warehouse to the other by forklifts or pallet trucks.
• Types of pallets include wooden, cardboard, metal, and plastic.
• A forklift is a motor-driven industrial truck used for lifting and moving goods on a pallet within a warehouse, storage facility or distribution centre.
• Platform trucks are simply a flat sheet of metal with wheels on the bottom and a handle on one end to allow the operator to push or pull the truck.
• Some platform trucks can hold more than 2,500 lbs.
• Operators must push the platform truck carefully and not push the merchandise, which is being pushed.
• Pallet jacks are useful for transporting heavy materials stacked on pallets.
• Pallet jacks feature two twin forks that slide underneath the pallet.
• Manual pallet jacks require the user to move the handle up and down with pumping force to create a hydraulic action that lifts the pallet.
• Hand trucks transport large items easily throughout the warehouse.
• A hand truck has a metal frame, toe plate, and handles.
• The operator slides the toe plate under an object and tilts the handles back, allowing them to wheel the object.
• Hand trucks are suited to move smaller objects, and use hydraulic action.