UNIT 2 :-

FUNCTIONS OF WAREHOUSING:
Warehousing can also be defined as assumption of responsibility for the storage of goods.
By storing the goods throughout the year and releasing them as and when they are needed,
warehousing creates time utility.
1. Storage:
This is the basic function of warehousing. Surplus commodities which are not needed
immediately can be stored in warehouses. They can be supplied as and when needed by the
customers.
2. Price Stabilization:
Warehouses play an important role in the process of price stabilization. It is achieved by the
creation of time utility by warehousing. Fall in the prices of goods when their supply is in
abundance and rise in their prices during the slack season are avoided.
3. Risk bearing:
When the goods are stored in warehouses they are exposed to many risks in the form of
theft, deterioration, exploration, fire etc. Warehouses are constructed in such a way as to
minimize these risks.
The person keeping the goods in warehouses acts as boiler and warehouse keeper acts as
boiler. A warehouse keeper has to take the reasonable care of the goods and safeguard
them against various risks. For any loss or damage sustained by goods, warehouse keeper
shall be liable to the owner of the goods.
4. Financing:
Loans can be raised from the warehouse keeper against the goods stored by the owner.
Goods act as security for the warehouse keeper. Similarly, banks and other financial
institutions also advance loans against warehouse receipts. In this manner, warehousing
acts as a source of finance for the businessmen for meeting business operations.
5. Grading and Packing:
Warehouses nowadays provide the facilities of packing, processing and grading of goods.
Goods can be packed in convenient sizes as per the instructions of the owner.
 INTRODUCTION TO WAREHOUSE OPERATIONS:-
The goal of warehouse operations is to satisfy customers’ needs and requirements while
utilizing space, equipment, and labor effectively.

 Develop a Master Plan for Warehouse Operations

A master plan is an essential tool for managing warehouse operations. Without knowing
where you are now, you cannot effectively plan for where you need to be in the future. The
master plan should be divided into segments that document the procedures, rules, and
workflow for each function in the warehouse.
To develop your plan, follow these five basic steps in the sequence listed.
 Define the function you want or need to accomplish. (Set goals.)
 Determine how the function will be accomplished.
 Determine the equipment needed to accomplish the function.
 Define the function’s space requirements.
 Estimate the function’s support needs (e.g., personnel, software, and capital).
Include changes in workflow within the warehouse and/or other departments in the
organization.
Aspects to consider when managing Warehouse Operations:-
 planning the workload
 allocating resources
 space utilization & handling
 receiving goods;
 Storing goods.
 security
 inventory management
 handling
 occupational health and safety

 Equipment Planning:-

Before you can lay out the space needs of the warehouse functions, you will need to
determine the equipment and systems you will be using to accomplish each function. The
characteristics and volume of your shipments, the methodology you use to accomplish each
function, and the available investment capital will influence your equipment selections.

 Space Planning:-

The challenge in space planning is to find ways to utilize effectively and/or to increase
usable space in the warehouse. As you plan, always pay attention to unused space above
the systems you install. You might not need it now, but you should set up your systems to
accommodate its use in the future.
 Dock Operations
The basic dock functions are unloading and loading carrier shipments, checking the
shipments for damage, and verifying the counts stated on the delivery receipt. The driver
should note all damage and shortages on the delivery receipt before the receipt is signed.
You should not have more than one carrier waiting for a door at any given time, and the
wait should not exceed thirty minutes.

 Receiving Operations

The receiving function is the starting point for inventory control in the warehouse. The basic
functions of receiving include verifying product quantity, preparing receiving reports, and
routing those reports to designated departments. Receiving also should prepare received
products for movement into the storage and picking systems.
Receiving usually needs a desk, a computer, a filing cabinet, and other furniture or
equipment associated with the duties to be handled.
 Storage Operations
Storage functions are usually an extension of receiving department duties. The basic
functions of storage are the movement of products from the dock area to a holding location,
the recording of the location and quantity, and the updating of storage records so that the
product can be found easily when it is needed.

 Picking Operations

Picking operations is defined as the assembly of products ordered by customers. This is a

simple function, yet it is time consuming. As you evaluate and/or setup your picking
operations, efficiency should be a major goal. After all, customers expect their orders to be
processed quickly, not just accurately.

 Packing Operations

Packing is the process of packaging for shipment the products ordered by customers. If
packages are poorly packed, the possibility of damage increases greatly. The shipping carton
should be of such strength that it cannot be bent or crushed easily, and it should be packed
so that the products will not shift during transit.

The equipment needed in the packing area includes tape machines, box knives, and various
stamps.
 Shipping Operations

Shipping operations is where the final steps are taken to prepare orders for shipment via the
requested mode of transit. It is usually considered shipping’s responsibility to ensure that all
shipments are picked up the day they are ready to ship and that all shipping paperwork is
routed to the correct departments at the end of each shipping day.
 Customer-Returns Operations

The primary warehouse functions associated with customer returns include verifying what
was returned, deciding whether credit should be issued based on its condition and status,
and placing the numbers of products and associated quantities into a returns report that
can be used by the office to apply the credit due. The report may be entered directly into
the business software, a stand-alone software package, or handwritten.

STORAGE SYSTEMS:-

The way in which the goods are stored is called storage system. A warehouse storage
system is also called a warehouse management system because it refers to storage
equipment’s that are used to help you easily manage your warehouse and keep the workers
as well as the products and items inside the warehouse safe.
What are the common types of warehouse storage system and what are their uses?

 Storage cabinets. Storage cabinets are used to store small or big items depending on
the size of the cabinets.
  Pallet storage systems. This works just like a cabinet when it comes to storing items
and the only difference is that instead of cabinets, the items are stored in pallets and
they are stacked on racks to avoid mess.
 Mezzanine storage system. This type of storage system adds more space to the
warehouse to stack items high up.
 Automated system. This refers to any type of storage equipment’s in the warehouse
that are automated or can be operated automatically.

Benefits of a Warehouse Storage System

A warehouse storage system is considered as one of the best storage solutions because of
the many benefits it can offer to warehouse owners. These benefits are:

 A more organized warehouse. A warehouse storage system makes the warehouse

more organized. In fact, the organization of a warehouse is the main purpose of
these systems and so, they are created to provide warehouse owners and workers
the convenience of managing or maintaining a warehouse. It can be hard to maintain
or manage a warehouse especially if the products are in a total mess and since a
storage system can help you have a more organized warehouse, you will be saved
from the stress of maintaining a warehouse.
 A safer warehouse for products and workers. A warehouse storage system makes a
warehouse organized and an organized warehouse is a safer warehouse as it means
there is no mess that can threaten the safety of the workers while working. Plus,
with these systems, the products or goods are also kept safe and protected as they
are placed inside their proper places.
 Time and effort savings. Maintaining a warehouse can be very time-consuming
especially if you are manually keeping track of all the items and manually taking the
items out of other containers and back. But if you have a warehouse storage system,
you can save time and effort since it would be easier for you to keep track of the
items, store or take these items out of their containers.
 Space-savings. Since a warehouse storage system organizes a warehouse, it also
saves space since this system allows the stacking of items high up above instead of
cramming them all in one post making the warehouse crowded.

CENTRALIZED STORES:-
A centralized store is that store which receives materials for and issues them to all
departments, divisions and production floors of the company. Such a store is only one in the
company which receives materials for and issues to all who need them. The materials
required for all the departments and branches are stored and issued by only one store.

Advantages of Centralized Stores

The followings are the main advantages of centralized stores.

1. A better supervision of store is possible because the store is located under a single
supervision.
2. A better layout of store and its control are possible.
3. Less space is occupied.
4. Investment in stock is minimized.
5. It is economical for storing materials.
6. Safety of materials is possible according to the nature of materials.
7. Trained and specialized persons can be appointed.
8. Wastage of materials can be minimized.

Disadvantages of Centralized Store

The followings are the main disadvantages of centralized stores.

1. Delay in sending materials to the departments and branches.
2. Increase in material handling cost.
3. Greater risk of loss by fire.
4. Not suitable for a large company.

DECENTRALIZED STORES:-
-One of the biggest advantages of decentralizing your shipping and receiving is a reduction
in delay of material handling. Wherever your products are coming from, having a connected
network of warehouses and supply facilities will allow you to receive products more quickly
and get them out to your customers more quickly.
-Another reason manager’s turn to decentralized warehouses is the increased ability to
store products. This can come in handy a number of ways; you can store a higher volume of
the same products to keep up with demand, or you can stock a wider range of products to
better meet the needs of your customers, all while avoiding the concerns of taking up more
space on your wire shelving or storage solutions with products that might not sell as fast as
others.
-Of course, the biggest problem with decentralizing your warehousing is one of the most
obvious issues: increased operating costs. Even with all the benefits in stocking and shipping
that this approach brings, the fact of the matter is you’re still faced with the costs of
owning/renting, maintaining, and outfitting more than one warehouse, which can begin to
add up after a while.
PALLETIZED STORAGE SYSTEMS:-
Pallet rack is a material handling storage aid system designed to store materials
on pallets (or “skids”). Although there are many varieties of pallet racking, all types allow for
the storage of palletized materials in horizontal rows with multiple levels. Forklift trucks are
usually an integral part of any pallet rack system as they are usually required to place the
loaded pallets onto the racks for storage. Since the Second World War, pallet racks have
become an essential and ubiquitous element of most modern warehouses, manufacturing
facilities, retail centers, and other storage and distribution facilities.

Selective pallet racking system:-

Selective pallet racking is a common pallet racking system in use today. Selective pallet
racking systems typically come in one of two configurations: a roll formed, or clip-in
configuration, and a structural bolt-together configuration.

1. Roll formed selective rack is most commonly manufactured in a "teardrop" style (so
named as the holes on the column of the upright are shaped like a teardrop). Pallets
then rest on the horizontal load beams that are held in place by mounting clips.
Because the clips on teardrop configurations can be quickly moved, the shelves can
be easily adjusted to different heights to accommodate various load sizes. This is
convenient for a warehouse that needs to store a wide variety of product sizes.
2. Structural pallet rack systems are very similar to roll formed pallet rack systems
except the horizontal load beams are attached to the uprights with bolts and have
much greater weight-bearing capacity. The bolt fixings make this a form
of adjustable shelving - racks can be constructed, reconfigured, and dismantled and
reused as necessary.

Structural pallet racking can be designed into the structure of the building itself, so that the
upright columns are simultaneously used to support the roof of the storage facility, in which
case the structural pallet rack uprights replace the storage building’s vertical support I-
beams. This system is a rack supported building.

Selective pallet rack systems provide easy accessibility to all products at all times -
important if the inventory is rapidly depleted and restocked (called quick turnover). A
selective pallet rack system is commonly used in a "big-box" distribution application, as well
as in retail store inventory rooms, cold storage applications, wholesale stores, etc.

Many types of pallet storage racks are available with different designs to fulfill specific
functions or create specific advantages. To create the ideal pallet racking system, several
considerations should be taken into account:
 Desired storage density
 Floor space and building height
 Placement of building doors and columns
 Inventory accessibility
 Inventory rotation
 Item/load size and weight
 Optimal storage design
 Cost of materials and installation