WAREHOUSING

BY: SHIVANI TAYA

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Warehousing

 Warehousing is the process of proper storage

and handling of goods and cargo using
scientific methods, making them available
conveniently when needed.

 Warehouse is a commercial building used for

storage of goods.

 Defining it; Warehouse if performance of

administrative and physical functions
associated with storage of goods.

 Warehousing decision is one of the most

crucial factors in trade.

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Need of warehousing

 Seasonal production of certain commodities.

 Seasonal demand of certain products.
 Large scale production.
 Quick supply.
 Continuous production.
 Price stabilization.
 Bulk breaking.
 Cross docking.
 Assortment.
 Coupling/Decoupling.

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Functions of a Warehouse

 Storage of goods.
 Protection of goods.
 Risk bearing.
 Financing.
 Processing.
 Grading and branding.
 Transportation.

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Types of Warehouses

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Private Warehouses

 These are owned by the manufacturers or traders/distributors.

 Private warehouses are used to store exclusively owned goods.
 These are usually preferred by-
 Farmers near their field.
 Wholesalers/distributors/retailers near their territory.
 Manufacturers near their factory.
 Exporters/importers near ports.

Advantages: Disadvantages:
 Better control over movement and storage  Comparatively higher operation costs.
of goods.  Inflexibility in storing different products.
 Less chances of error.
 Product specific storage techniques can be
opted.

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Public Warehouses

 Store goods for general public.

 Anyone can store goods after paying rent.
 Can be owned by partnership firms/companies or Government.
 License from Government is compulsory to start a public warehouse.
 Operations of these warehouses are also regulated by Government agencies.

Advantages:
 Less expensive and more efficient.
 Flexibility in storing various items.
 Better utilization of money as user pays only
for space consumed by him.
Disadvantages:
 Lack of expertise in handling specific goods.
 Chances of error are frequent due to
common storage of all cargo.

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Government Warehouses

 Owned, governed and managed by Central or State Government.

 Can be used by both Government and private parties to store their goods.
 These are thus the form of public warehouses owned by Government.

Advantages: Disadvantages:
 Better security and safety of goods due to  Comparative more paperwork is to be
role of Government. accomplished.
 Less expensive and more efficient.
 Flexibility in storing various items.
 Better utilization of money as user pays only
for space consumed by him.

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Bonded and Co-operative Warehouses

BONDED WAREHOUSES CO-OPERATIVE WAREHOUSES

 Owned, managed and controlled by  Managed by co-operative societies.
Government as well as private  Provide warehousing facilities to their
agencies. members on most economical prices.
 Private bonded warehouses have to
obtain a license from the Government.
 These are also used to store imported
goods whose duty has not been paid
yet.
 Bonded warehouses are thus generally
found near the ports.

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Characteristics of and ideal warehouse

 It should be conveniently located near highways, railway stations, air ports, sear
ports etc for loading and unloading of goods.
 Mechanical appliances should be there to lift, load and unload goods.
 It should be spacious enough.
 Food storage warehouses should have enough facilities to prevent food from
perishing.
 Proper arrangement to save goods from sunlight, dust, rain, moisture and pests
should be available.
 Sufficient parking space should be there to facilitate quick and easy loading and
unloading of goods.
 Security arrangements should be strict and round the clock.
 Modern and tested fire fighting equipments should be installed in the premises.

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Advantages of warehousing

 Protection and preservation of goods.

 Regular flow of goods.
 Continuity in production.
 Easy handling.
 Ease of access.
 Employment generation.
 Facilitates sale of goods.
 Financing on stored goods.
 Reduces risk of loss.

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The Central Warehousing Corporation of India

 Was set up in 1957 to provide logistics support to agricultural sector.

 It is today one of the biggest public warehouse operators in the country offering
services to clients from diverse sectors.
 Operates 492 warehouses, including 72 bonded warehouses, throughout the
country with a capacity of 10.65 million tonnes.

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CWC – Services Provided

 Scientific storage of over 200 items including hygroscopic and perishable items with
around 5,850 trained staff.
 Import and export warehousing facilities at its 36 Container Freight Stations in ports
and inland stations.
 Bonded warehousing facilities.
 Handling, transportation and storage of ISO containers.

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CWC – Rail Side Warehousing

 Evolved to reduce burden on road traffic and use cost effective and widespread rail
network.
 Avoid losses to cargo caused due to multiple handling.
 Started in year 2002, with a pilot project of Rail Side Warehousing Facility at
Whitefield, Bangalore in association with South Western Railway.
 A subsidiary in the name of “Central Rail Side Warehouse Company Ltd.” was
incorporated on 10.07.2007, under the Companies Act 1956 which commenced its
business on 24.07.2007.

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