Storage are the godowns for keeping and storing of raw materials , components semi -finished goods , tools, maintenance , repairing and operating equipments and operating equipments related to production functions.
Storage warehouse may be located at any point but usually have strong relationship with production facilities .Operations of storage are all closely related to problems of demand and supply.storages are most frequently used by firms to meet seasonal demands and supply patterns to level out production activities.
Warehouses are the godowns for keeping and storing finished goods facilitating to the marketing and distribution functions of firms.
In logistics and supply chain perspective ,ware house performs the storing function ,where goods are stored in bulk quantities and from there a new and different small assortment of goods is selected and moved forward to be dispersed to the next level . Hence , ware house are generally located near the market for smooth and quick flow of finished goods to the customers.
The distribution centre is a new idea in supply chain management ,referring to dynamic , full service warehouse primarily related to the market .It emphasis on the movement of goods rather than their storage .The emphasis of distribution centres is on quick movement of goods as per customer requirement along with other logistical support including documentation ,assortment , information sharing ,intact delivery of goods , credit facility and located near to the market .
Options for any firm for warehousing are
FACTORS FOR SELECTION OF NUMBER AND LOCATION OF WAREHOUSE
Number of geographical locations of market targeted by the firm .
Location of production centres
Transportation infrastructure facilities
Nature , quality and quantity of goods stored
Availability of financial resources
ELEMENTS OF WAREHOUSING COSTS
Cost of procurement/rental of space
Handling and transfer cost
Cost incurred in direct and direct physical facilities
Insurances for risk coverages
Pilferage , deterioration and obsolescence
This concepts have been used by all major retailers eg carre four ,wal-mart, relaince fresh etc It requires good to transferred to vehicles scheduled for dispatch to customer s immediately from goods received from manufacturer immediately .In other words goods are moved from a receiving dock to a shipping dock without intermediate storage or the most products are stationed for very short span .The success of cross docking requires good co -ordination between all element of supply chain. Back