What is Warehousing?
What is Warehousing? A guide to logistics
Types of Warehouses
- Public warehouse
- Private warehouse
- Bonded Warehouse
- Co-operative warehouse
- Government Warehouse.
Public Warehouse
Public warehouse is owned by
an individual or person for use of public but before structure of such
warehouse it required warehouse license which must be taken from government,
without license no person can start public warehouse this type of warehouse can be used by public after paying some rent.
Private Warehouse
Private warehouse is owned,
manage, and structured by private organization or company for self-use only
they can keep their goods and material. It also required license from
government before structuring the warehouse under Regulation 2(1)(c) of
Private Warehouse Licensing Regulations, 2016. There are many companies and
organization which have their private warehouse such as Sun Pharma, Tata,
Mahindra , Maruti , Amazon, Flipkart etc.
Bonded Warehouse
This type of warehouse is owned and managed by the government as well as private organizations or companies.
Bonded warehouse must be get permission under section 65 of the Customs Act,1962.
The goods which customs duty is still pending, or due must be stored in this type of the warehouse.
Bonded warehouse can use for branding, labelling, Packing, grading etc.
Cooperative Warehouse
This type
of warehouse is owned and managed by multiple organizations. They make a warehouse
for keeping their goods that is called co-operative warehouse. IFFCO (Indian
Farmers Fertilizer co-operative limited is best example of co-operative
warehouse.
Government Warehouse
Government Warehouse is owned by the
government or semi-government organizations only for storage of their goods and
material as well as customers, farmers also but when any person uses the
warehouse, he must pay some cost. There are so many warehouses which are
running in state, District and center level. Cold storage and FCI- Food corporation
of India is best example for it.
Process of Warehouse
Now we will see what the systems and process of Warehousing one by one.
Loading and Unloading of Goods or Materials
Loading and unloading of the vehicles is a crucial part of warehousing. In this part we should take care of our goods and services. It should be ensured and make this process easy so that there cannot be any chance of error that can cause goods damage, so we must monitor loading and unloading process. As per my knowledge and expertise a lot of goods damage occurred in loading and unloading.
Receiving of Goods (replenish the stocks)
In this process we received goods in our warehouse so It's necessary to inspect and check all the goods that must be as per Purchase order. Also, we must be arranged a quality inspection for checking the goods as per quality level from the quality department. The quality of the goods must be as per the mark and standard.
Putaway
In this process we keep the goods in their storage locations after proper sorting and labelling. In this process we need to ensure that putaway process of goods and material must be as per their specified locations so that we can easily get the goods or materials during requirements.
Picking and Packing
Taking goods from their storage locations and
packing the same for dispatch. In this process we need to take care of picking
up the goods or materials so that we can get the right goods for packing.
Also, we need to pay attention during packing of goods it must be as per goods
category level so that damage of goods can avoided. Picking and packing is an
important process of warehousing.
Sending goods to customers.
Sending goods to customers
as per sales order is the crucial part of warehousing. It ensures that the
right goods of the right quantity and right quality must be dispatched or sent
to the customer. So, we need to monitor each and everything in this process.
Storage of Goods
In this process we store the goods or
materials. We need to ensure that storage must be done as per goods or
materials specified conditions. We need to control the specified temperature as
per goods or materials in storage locations.
Inventory tracking
Inventory tracking the main process of warehousing.
We track the inventory with a warehouse management system of customized ERP
software.
Manage the stocks (Goods, materials)
Manage the stocks (goods or materials) that come under warehousing. In this process we need to monitor the stock level of goods as per stock level and forecast we need to replenish the stocks.
Importance of Warehousing
Now we are coming into the next element of warehousing, which is the advantage of warehousing:
- Better order Processing.
- Interrupted supply of goods or materials
- Better control of stock levels.
- Better Product control
- Avidness of stockouts
- Risk Minimization
Difference between Supply chain and Warehousing
Warehousing is the storage of goods in any location. It covers only storage, but the supply chain is broader than it. It covers suppliers, Manufacturers, retailers. Also, warehousing is part of the supply chain. The warehouse performs the task of picking, packing, loading, unloading , inventory tracking , order dispatch while supply chain performs the major task of operations such as Planning , Sourcing , Manufacturing, Distributions , Returns of the goods.
So, the supply chain is the core department of a company, but warehousing comes under the supply chain.
Difference between Warehouse and Distribution center.
Warehouses can only use receiving and storing of the goods while distribution center delivers the goods or materials to customers/ end users. There is no customer end user delivery from warehouse which means it can't deal with customer's goods delivery while distribution centers main role is to deliver the goods to customers and full filling the order cycle.
Conclusion:
Warehousing is an important department of a
company or organization which helps in the
storage of goods or materials. There are five types of warehouses. Each warehouse
is different from each other, and it plays a significant role in storage of goods
or materials as well as a significant role in the distribution of goods or
materials. It increases the productivity of
businesses. As per Wikipedia "a warehouse is a building for storing goods , warehouse is used by Manufacturer , Importers , Exporters, Wholesalers , transport business , custom etc."
FAQs:
What do you mean by warehousing?
Warehousing is the storage, picking, packing, sorting,
of the goods. It comes under the supply chain. It is an important department of
a company or organization.
What is the purpose of warehousing?
The purpose of warehousing is storage of goods in proper manner and conditions so that they can utilize during their orders.
What are the types of warehousing?
There are five types of warehousing , Public warehousing , Private Warehousing , Bonded Warehousing , Co-operative Warehousing , Government Warehousing.
What are the main parts of warehousing?
Main parts of warehousing are receiving and dispatching (sending) the goods or materials to customers.
Whay is it called warehouse?
According to the Online *Etymology Dictionary, the noun "Warehouse" first seen in the English language in 14th Century Britain , By adding the noun "Ware" with "House" . It came from either Dutch Warenhuis or German Warenhause . With the meaning a 'large impersonal institution, the word emerged colloquially in the United States in 1970.
What is data warehousing?
Data warehousing is used for collecting the many types of data not physical goods or materials called data warehousing such as sales data forecast data , vendor data , customer / Party data , Inventory data , Stock data , planning data, Manufacturing data etc.
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