Warehouse functions pdf

To browse Academia. Skip to main content. By using our site, you agree to our collection of information through the use of cookies. To learn more, view our Privacy Policy. Log In Sign Up. Download Free PDF. Lisa Margareth. Download PDF. A short summary of this paper. They sell merchandise in bulk and directly out of their warehouse and hence eliminating the need to build and maintain costly retail stores. In case of loss or damage to the goods, the owner of goods can get full compensation from the insurance company.

Certain products have to be conditioned or processed to make them fit for human use, e. A modern warehouse provides facilities for processing, packing, blending, grading etc. The prospective buyers can inspect the goods kept in a warehouse. Warehouses provide a receipt to the owner of goods for the goods kept in the warehouse. The owner can borrow money against the security of goods by making an endorsement on the warehouse receipt. In some countries, warehouse authorities advance money against the goods deposited in the warehouse.

By keeping the imported goods in a bonded warehouse, a businessman can pay customs duty in installments. The private warehouses are owned and operated by big manufacturers and merchants to fulfill their own storage needs. The goods manufactured or purchased by the owner of the warehouses have a limited value or utility as businessmen in general cannot make use of them because of the heavy investment required in the construction of a warehouse, some big business firms which need large storage capacity on a regular basis and who can afford money, construct and maintain their private warehouses.

A big manufacturer or wholesaler may have a network of his own warehouses in different parts of the country. A public warehouse is a specialised business establishment that provides storage facilities to the general public for a certain charge.

It may be owned and operated by an individual or a cooperative society. It has to work under a license from the government in accordance with the prescribed rules and regulations. Public warehouses are very important in the marketing of agricultural products and therefore the government is encouraging the establishment of public warehouses in the cooperative sector.

A public warehouse is also known as duty-paid warehouse. Public warehouses are very useful to the business community. Most of the business enterprises cannot afford to maintain their own warehouses due to huge capital Investment.

In many cases the storage facilities required by a business enterprise do not warrant the maintenance of a private warehouse. Such enterprises can meet their storage needs easily and economically by making use of the public warehouses, without heavy investment. Public warehouses provide storage facilities to small manufacturers and traders at low cost. These warehouses are well constructed and guarded round the clock to ensure safe custody of goods.

Public warehouses are generally located near the junctions of railways, highways and waterways. They provide, therefore, excellent facilities for the easy receipt, despatch, loading and unloading of goods. They also use mechanical devices for the handling of heavy and bulky goods. A public warehouse enables a businessman to serve his customers quickly and economically by carrying regional stocks near the important trading centres or markets of two countries.

Public warehouses provide facilities for the inspection of goods by prospective buyers. They also permit packaging, grading and grading of goods. The public warehouses receipts are good collateral securities for borrowings. Bonded warehouses are licensed by the government to accept imported goods for storage until the payment of custom duty.

They are located near the ports. These warehouses are either operated by the government or work under the control of custom authorities. The goods are held in bond and cannot be withdrawn without paying the custom duty. The goods stored in bonded warehouses cannot be interfered by the owner without the permission of customs authorities. Hence the name bonded warehouse.

Bonded warehouses are very helpful to importers and exporters. If an importer is unable or unwilling to pay customs duty immediately after the arrival of goods he can store the goods in a bonded warehouse. He can withdraw the goods in installments by paying the customs duty proportionately. In case he wishes to export the goods, he need not pay customs duty.

Moreover, a bonded warehouse provides all services which are provided by public warehouses. Goods lying in a bonded warehouse can be packaged, graded and branded for the purpose of sale. You must be logged in to post a comment. Having this knowledge saves minutes on each package every day, which translates to hours saved each year.

If any employees are asking, " How much does it cost to ship a package? If you don't have a shipping label printer or packing slip template yet, make sure to acquire them.

Also buy some high quality warehouse labels so you know where any item is at a glance. It may sound obvious, but no warehouse operations are perfect. You may end up with a lot of unused stock, run out of packing materials early on, or experience order volatility with a particular product. Then, calculate the average time spent between each stage across one month, which will give you your receiving accuracy rate. Similar calculations can be used to measure efficiency throughout the rest of your warehouse, like for time spent on picking and packing.

There are multiple principles of warehousing that allow warehouses to run smoothly and deliver great results for clients. Identifying the target market, capacity, floor plan, and objectives of your warehouse are necessary actions. Use the following principles from our warehouse management guide :. Clarifying the objectives you have in building or contracting with a warehouse is crucial for success.

What you need your warehouse to accomplish may change over time, and this is natural. If you sell rare, sensitive, or otherwise high demand products , this should be included in your decisions, too. Storing thousands of products while ensuring the right ones are shipped at the right time is challenging. Picking and packing accuracy as it relates to order processing is paramount to customer happiness.

Providing quality training for employees empowers them to pick accurately from the start. Depending on the needs of your business, it may also be useful to develop quick reference sheets and post clear signage.

Warehouse inventory management software or an ERP from this list of ERP systems makes it even easier to track how much is stored and where. Achieving a low product touch frequency is also integral to accuracy. Low touch frequency means the goods entering your warehouse are handled as minimally as possible.

Here are three ways to sustain low touch frequency:. Operational efficiency is one of the most important principles of warehousing because daily success depends on it. Establishing a one-way warehouse flow is always smart. This method reduces bottlenecks, allows staff to move around comfortably, and ensures each RMA number and returns don't get mixed with new stock.

If you haven't yet created a one-way flow for your warehouse, skilled warehouse managers can help. Putting together a great warehouse manager job description is useful in attracting someone with relevant experience.

It's also wise to include a realistic warehouse manager salary in your job posting. Also, schedule time at least two to three times per year to conduct an ABC analysis. This is a systematic review of all the products you stock, based on their profitability for your business. A products generate most of your profit and are customer favorites; B products are loss leaders that are occasionally purchased; C products are actively creating losses and should be phased out of inventory as soon as possible.

You can find out which products to eliminate through a SKU rationalization. More than half of consumers ages expect same-day delivery. These statistics show fast shipping is a modern-day benchmark.

Your business should offer it wherever possible. You can also improve your shipping speed with the help of a warehouse management system. Warehouses have a lot going on each day. This includes receiving, stocking, picking and packing, administrative work, and eCommerce shipping.