WARE HOUSE ,STORAGE AND DISTRIBUTION MANAGEMENT


STORAGE

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.




WAREHOUSE

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.


DISTRIBUTION CENTRES

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 .

WAREHOUSE  STRATEGY

Options for any firm for warehousing are
  • Centralised  warehousing
  • Decentralised  warehousing

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

  • Administrative cost

  • Cost  incurred  in direct  and direct physical facilities

  • Taxes

  • Insurances  for risk coverages

  • Pilferage , deterioration  and obsolescence

CROSS DOCKING

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.  
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