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WAREHOUSING AND WAREHOUSING AND MATERIAL HANDLING MATERIAL HANDLING

SYSTEMSYSTEM

Need for warehousingRole of warehousingWarehousing functionType of warehousing

WAREHOUSES :-WAREHOUSES :-

Warehouses helps the industries to keep the stock of goods, which can be lifted at the time of consumption.

NEED FOR WAREHOUSINGNEED FOR WAREHOUSINGThe need for warehousing arises because the demand for a product can not be predicted easily.There is always a time lag between the production and consumption.To improve supply – demand co-ordination and to lower overall costs.To keep the stocks, the warehouse as well as material handling system is needed.

ROLE OF WAREHOUSINGROLE OF WAREHOUSING

To economize on transportation and production costs.

To co-ordinate supply and demand

As a help on production. As a help in marketing.

Economy in transportation & Economy in transportation & production costs :-production costs :-

The economies of scale achieved in the high volume of production adequately compensate for warehousing changes, which are considered as additional costs. The higher production volume,lesser is the manufacturing cost per unit. The saving is much more then the warehousing and transportation charges.

Supply and demand co-Supply and demand co-ordination:-ordination:-

Warehousing enables the companies with highly seasonal production to co-ordinate the supply and demand effectively. the best example are air-conditioners, water-coolers, diwali gifts etc. These companies tend to stockpile production out in order to meet the surge in demand during peak season.

Production needProduction need :- :-

Some time warehousing is a part of production process. For example Fruits like mangoes and bananas need to be matured before they are consumed. Such product are kept in the warehouse for ageing. Also warehouse is used for delaying the payment of duties and taxes. The importer may not want to pay the import duties immediately.

Market need :-Market need :-

In today’s business environment, the speed of delivery is crucial, Buyers gives minimum possible lead time to seller and the seller who promises to deliver the fastest wins the order to achieve this. The good are kept in readiness near to the point of consumption. The improved customer services result in the increased sales.

WAREHOUSING FUNCTION :-WAREHOUSING FUNCTION :-

There are two important function of a

storage system ; inventory holding & material handling . Both these function are crucial to the warehouse. Material handling refers to those activities of loading and unloading and moving the product from one place within the warehouse to another , storage is simply the accumulation of inventory for a period of time.

Storage functionsStorage functions

a) Holding :- the duration for which the goods are likely to be kept in the storage.

b) Consolidation :- warehouse are also used for consolidation of cargoes originating from different places, but heading for the same destination.

c) Break bulk :-break-bulk operation are opposite of consolidation.

d) Mixing :-this is useful when a buyer purchases a product from a number of manufactures.

(Consolidation of cargo at the (Consolidation of cargo at the warehouse)warehouse)

ABC ltd.

LMN ltd.

PQR ltd.

XYZ ltd.

Manufacture

Manufacture

Manufacture

Manufacture

WarehousePort /

Airport

(Break- bulk distribution)(Break- bulk distribution)

ABC ltd.

LMN ltd.

XYZ ltd

Manufacture Warehouse

Customer

Customer

Customer

(Mixing operation)(Mixing operation)

Manufacture Warehouse

Manufacture

Manufacture

Country B

Country A

Material Handling FunctionsMaterial Handling Functions

Loading and Unloading :-

when the goods arrive at the warehouse, they have to be unloaded from the truck. For this function, Cranes, Forklift, trucks etc, are needed. Same equipments are also needed for loading operations.

Movement to and from storageMovement to and from storage :- :-

The cargo is moved several times between the loading and unloading points. The first movement could be from unloading points to storage area. Next could be storage to assembly area or direct to loading area.

Order FillingOrder Filling :- :-

This activity includes the retrieval of ordered material storage area according to sales order. This involves manual labors and individual packing of the small lots of material . Due to this it is the most critical area in the material-handling activity.

Importance Of Efficient Material Importance Of Efficient Material Handling SystemHandling System

Reduced operating expenses Optimised machine utilisation Increased space utilisation Reduced damage to inventory Increased customers service

levels Reduced accidents Improved flow of material

TYPE OF WAREHOHSESTYPE OF WAREHOHSES

Commodity warehouse :- These warehouses provide the facilities to store certain commodities such as grains, tobacco, cotton etc.

Bulk storage warehouse :- These warehouses specialize storage and handling of bulk products such as liquids, chemicals, oil, syrups etc.

Temperature-controlled warehouses:- Certain commodities need controlled conditions of temperatures humidity etc. Fruits, Vegetables, Frozen foods etc. Fall in this category. Such warehouses employ refrigeration equipments, air curtains and insulations etc. to maintain controlled conditions.

General merchandise warehouse :- these are the most common type warehouses, which handle a wide range of products. They also do not employ any special facilities or material handling equipments.

Warehouse Warehouse Management SystemManagement System

Smooth flow of goods into distribution Improved labor efficiency & utilization Up to 99.99 % inventory accuracy Reduction in slow moving inventory Improved space utilization Improves quality of services to customers

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