PROJECT ON WAREHOUSING MANAGEMENT DOC

Title	PROJECT ON WAREHOUSING MANAGEMENT
Author	Jazu Lili
Pages	9
File Size	46 KB
File Type	DOC
Total Downloads	2
Total Views	196

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PROJECT ON WAREHOUSING MANAGEMENT - June 22nd, 2007 WAREHOUSING DEFINITION A warehouse is a commercial building for storage of goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. They are usually large plain buildings in industrial parts of towns. They come equipped with loading docks to load and unload trucks; or sometimes are loaded directly from railways, airports, or seaports. They also often have cranes and forklifts for moving goods, which are usually placed on ISO standard pallets INTRODUCTION Warehouse can play a key role in the integrated logistics strategy and its building and maintaining good relationships between supply chain partners. Warehousing afects customer service stock-out rates and frmms sales and marketing success. A warehouse smoothens out market supply and demand fuctuations. When supply exceeds demand, a demand warehouse stores products in anticipation of customers requirements when Demand exceeds supply the warehouse can speed product movement to the customer by performing additional services like marking prices, packaging products or fnal assembling etc. Warehousing can be defned as a location with adequate facilities where volume shipments are received from production center, which are then broken down into particular order and shipped onwards to the customer. Warehousing is an integral part of any logistics system. The warehouse is a link between producer and customer. Out-bound warehouse help consumers buy on demand without a near4by production plant warehousing cost are about 10% of total integrated logistics costs for most companies. TYPES OF WAREHOUSES 1. Private Warehousing 2. Public Warehousing 3. Contract Warehousing Private Warehousing A frm producing or owning the goods owns private warehouses. The goods are stored until they are delivered to a retail outlet or sold. Potential advantage of using a private warehouse is the ability to maintain physical control over the facility, which allows mangers to address loss, damage, and theft. When not in use they can rent it out. The construction and maintenance of private warehousing can be extremely costly. All the expenses have to be carefully analyzed and evaluated. These are: i. Fixed expenses and building and land acquisition costs which are high; ii. Expenses incurred on ensuring that warehouses are properly equipped with material- handling equipment like conveyors, fork lifts, hand trucks, racks and bins, and dock levelers; iii. The costs of salaries of staf required for peak activity periods which can be very high since retrenchment during slack periods may not be possible; iv. Extra payment to be made for work on Saturday and Sundays and holidays; v. Generator and other services charges are required to be taken into account....