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What are warehouses?

A warehouse as a place used for the storage or accumulation of goods. The function of storage can be carried out successful with the help ...

Friday, 7 July 2017

Warehousing Act comes into force, receipts now negotiable


The much-awaited Warehousing (Development and Regulation) Act, 2007 has come into force with effect from October 25, 2010. The Act, legislated by Parliament three years ago, makes warehouse receipts negotiable. 


The introduction of a negotiable warehouse receipt system in the country will not only help farmers avail better credit facilities and avoid distress sales but also safeguard financial institutions by mitigating risks inherent in credit extension to farmers.  .. 


The pledging/collaterisation of agricultural produce with a legal backing in the form of negotiable warehouse receipts will lead to an increase in the flow of credit to rural areas, reduce the cost of credit and spur related activities like standardisation grading, packaging and insurance and in development of chain of quality warehouses. 
The government has also decided to constitute a Warehousing Development and Regulatory Authority under the Act with effect from Tuesday (October 26) with the publication of the relevant notification in the official Gazette. 

Besides mandating the negotiability of warehouse receipts, the Act prescribes the form and manner of registration of warehouses and issue of negotiable warehouse receipts including electronic format. 


The Warehousing Development and Regulatory Authority, an official statement said Tuesday, will comprise a chairperson and not more than two members. Significantly, the regulatory authority will register and accredit warehouses intending to issue negotiable warehouse receipts and put in place a system of quality certification and grading of commodities with a view to protecting the interests of holders of warehouse receipts against negligence, malpractices and fraud. 



Source :
http://economictimes.indiatimes.com/news/economy/policy/warehousing-act-comes-into-force-receipts-now-negotiable/articleshow/6818228.cms

Thursday, 6 July 2017

GST may trigger consolidation in warehousing space

The goods and services tax (GST) regime could usher in consolidation in the Indian warehousing space, property consultants and analysts said.
With the government pushing for an April 2017 rollout of the single tax structure, many manufacturers who had built or leased warehouses in nearly every state to avoid duplication of taxes don’t see the need to extend their lease arrangements, and can instead own or lease large warehouses in a few strategic locations.
Warehouses across the country mostly facilitate operations of ecommerce firms, automotive companies, and manufacturers of consumer electronics, pharmaceuticals and fast-moving consumer goods. These manufacturers are now looking at having fewer but larger warehouses at locations such as Mumbai, Delhi, Ahmedabad, Chennai, Bengaluru and Hyderabad.
“Instead of having warehouses in all the cities, we will look at a cluster of states where it will be easier to send goods across the country without having to make the customer wait,” said Pravin Shah, chief executive (automotive) of Mahindra & Mahindra. However, he said that his company was waiting for the GST rates to be finalised to chalk out a strategy on consolidating warehousing space.
Experts said that warehouses in tier-I markets may find business, but it will be difficult for those in smaller cities to sustain in the medium to longer term. While some see opportunity to set up new larger warehouses in emerging manufacturing hubs and strategic locations, others are looking at options to convert idle warehouses in smaller cities into residential and commercial assets.
Amazon and Flipkart didn’t respond to ET’s queries, while ShopClues refused to comment.
Meanwhile, the looming shift in strategy is catching the attention of developers. Indospace, a joint venture between private equity firm Everstone Capital Advisors and Realterm Global, is planning to develop big projects at manufacturing clusters with an investment of over $1billion over the next fourfive years to more than double the project pipeline to about 50 million square feet from the current 20 million sq feet.
“There will be a consolidation in this market with the passage of GST, as there will be more focus on setting up warehouses in the manufacturing hubs. This will lead to cost efficiency with reduced cost on transportation, labour and real estate,” said Indospace’s partner Brian Oravec.
“Ecommerce companies in our network are already in the consolidation process with Amazon and Flipkart, and are moving into lar ge warehouses of around 350,000 sq ft from their earlier spaces measuring 50,000 sq ft on an average,” said Mumbai-based Prakhhyat Infraprojects’ proprietor Sumit Bhalotia.
“The warehouses that will become redundant will be bought out by smaller players or will make way for office or residential complexes, as it would not be viable to run with low demand and high rentals,” says Samantak Das, chief economist at Knight Frank.
The government is setting up inter-state industrial corridors such as the Delhi-Mumbai industrial corridor and freight corridors such as the western and eastern dedicated freight corridors. Analysts said that more manufacturing activities will be taken up along these routes, which in turn will increase warehousing demand.
Further, with direct sale, companies’ inventory of goods will also reduce by nearly a third, as goods will move from manufacturing hubs to the dis tributors directly, instead of it being stocked. This will lead to efficiency in the supply chain and cost, said Balbirsingh Khalsa, national director (industrial services and landlord representation), Knight Frank.
The total warehousing space requirement in the top seven markets is expected to grow at a compounded annual growth rate (CAGR) of 8% -from 621 million sq ft in 2016 to 839 million sq ft by 2020 -estimated the Indian Warehousing Market Report 2016 by property consultant Knight Frank.

Source: http://economictimes.indiatimes.com

Wednesday, 5 July 2017

How many warehouses does Amazon have and where are they located?

In terms of Europe, there are presently 30 fulfilment centres that are operational throughout the EU. This figure, certainly in the UK, is consistently rising as the business continues to branch out.
As Amazon's market share and geographical reach increase, so too does their tightening of operational regulations. They require every shipment to be booked in and it can be a full time job just to manage the intake into Amazon alone. There are supply chain companies that specialise in getting consignments into the various Amazon depots, because of their existing journeys. This means there's a good chance that you can use one of their regular delivery slots instead of booking extra vehicles with perhaps empty space making it less efficient.
If you consider exporting your goods to Europe you can contact our trusted partners Express Road Freight (Netherlands) for some friendly advice.
As of May 2013, Amazon has 49 fulfillment centers spread across 8 countries. Here is the split by country -
  • United States – 14 spread across 14 states
  • Canada – 2
  • France – 3
  • Germany – 7
  • Italy – 1
  • United Kingdom – 8
  • China – 8
  • Japan – 6
The distribution network of Amazon is one of a kind, the company made headlines in March 2015 when it announced to extend its one-hour delivery service to Baltimore and Miami, this service was formerly available only in New York. The company has warehouses as huge as 1 million sq. ft and its website has more than 65 million visits each month making it the world’s largest online retailer. However, Amazon does not publish comprehensive information about it’s fulfillment centers. But for sellers in Amazon’s Fulfillment by Amazon Program (FBA) this can mean a huge headache when it comes time to collect and remit sales tax. To get an idea of where Amazon might expand to next, research firm Piper Jaffray created a map that shows all of Amazon's fulfillment centers in the US as well as its existing same-day shipping regions.
As of April 2015 they reportedly had 96 ware houses in US alone but the number is speculated to be even bigger, they have furthermore invested a lot in emerging markets and have 4 warehouses  in India, 9 in Germany and 12+ in China. They recently announced about $20B to expand their distribution network in these countries.
For more details on their warehouse locations in US visit Amazon Fulfillment Center Locations

How to manage an effective warehouse

Just because your warehouse is big and full of boxes doesn't mean it can't be fine-tuned into a slick operation
Smart businesses run efficiently. The less time and effort that's wasted getting a task done, the more healthy the bottom line will eventually look. That goes for all processes, and your warehouse is no different. Just because it's big and full of boxes doesn't mean it can't be fine tuned into a slick operation.
The first thing you'll want to get right is your floorplan. Ideally, this is done at the very beginning, but even if you're already running a fully operational setup, the potential efficiency savings could mean that rearranging your layout is still worth considering.
Only a small fraction of the companies that approach him believing they need to move into larger premises really do need to. The rest have enough space already, they're just using it badly.
"Inefficiency just happens. You start with a big empty shell that's high and deep and you slowly begin to fill it as your company grows. Most of the company's efforts are concentrated on generating sales, naturally, and the warehouse gets forgotten. Before long, your warehouse is full, but it's wasted space and you've got a lot of unused potential."
By using your space efficiently, your staff can get jobs done quicker and can complete more jobs in a day, you save on purchase or rent by not expanding unnecessarily, and you can go longer before the huge burden of relocating into bigger premises.
"There are a lot of shelving options. Two-tier or mezzanine, fixed or mobile. If you can squeeze your rows of shelving together, and only open them up when access is required, you can save 50% of your floor space."
One of the most commonly overlooked aspects is product placement.  "Is your number one product the easiest to get to? If your pickers are regularly travelling the length of the warehouse to get to your biggest sellers, you're wasting time compared to keeping everything nearby."
Successful warehouses often employ full-time warehouse managers, but professionals can be hired in to assess your requirements. We offers a simulation tool, which tracks all movements and gives insight into who is travelling where, what's most popular and what changes would improve efficiency.
Once your goods are in the optimal location it's important to keep detailed records with a good inventory control system, which is a process for managing the location, stock on hand and movement history of all items in the warehouse.
Good warehouse organisation increases your capacity to process the company's input and output, and in turn, your revenue potential. A solid working environment with minimal waste will also help motivate your workforce, and working more accurately keeps customers happy.
"All warehouse operations strive to achieve the highest levels of inventory accuracy,"  "The simple principle is that all physical movement or change in status of an item must be reflected in a transaction on the system. The transaction must be time- and date-stamped and referenced to the request that generated the movement.
"To assist operatives in achieving the level of accuracy required, the use of barcode and radio frequency identification technologies provide a quick, simple and accurate way of identifying products and creating stock-movement transactions on the system.
"Operatives also benefit from the ability of the system to optimise both their route around the warehouse when carrying out stock put away and order-picking tasks and the location of products based on usage, size and so on to provide the most efficient stock-location layout."
And even once your warehouse layout has been optimised, and all stock location and movement is tracked in detail, there is further technology available that speeds up the work of the pickers.
The domestic appliance and parts distributor holds approximately 100,000 product types on site and has access to around 1.5 million lines. The firm is based at a six-acre national distribution centre which processes over 180,000 orders on average per month.
To service the demand of the e-commerce boom, the company expanded its floor space and recruited more staff. In addition, it added, including headsets for pickers, and linked it to a custom built warehouse management system.
The system services up to 14 orders within a single route. Items are placed into a box that then passes by a barcode reader, automatically diverting it to the next relevant picking zone. This in turn updates the system and instructs the picking to take place via a voice command.
The system used at Connect Distribution has been configured to operate by priority, automatically directing the picker to the most urgent pick and enabling the company to fulfil a high volume of next-day deliveries.
"Voice has undoubtedly become a mainstream warehouse technology, yet in our relatively traditional industry, implementing it has given us an edge compared with other distribution companies. Crucially, it has enabled us to deliver a higher quality of service and fulfil the high degree of same-day dispatch orders we receive."

Tuesday, 4 July 2017

How to take Warehouse on Lease

Industrial space is property that generally includes places such as warehouses, light manufacturing buildings and factory/office multi-use buildings. These facilities are typically used for research and development, product production and service, and the storage and distribution of goods. Leasing commercial space is more complex than leasing an apartment or house. A commercial lease doesn't have a standard lease form, and you'll need to sign a commercial lease agreement. You and the owner will work together to create a tailored lease that permits you to operate your business in the industrial space you're interested in. Learning how to find and lease an industrial work space can help you get your business up and running smoothly.


Part 1

Finding Industrial Space

1 - Choose a type of property. 

There are many different types of industrial space, and conducting your search for property will require you to determine what type of property best fits your needs. Industrial property is generally divided into three categories: warehouse property, manufacturing property, and flex (mixed use) property. Within those categories there are many different types industrial property, and knowing your business's needs will determine your property type.
Warehouse - this type of facility is used for storage and/or distribution.
Manufacturing facility - this property is used for creating, converting, or assembling materials
Distribution facility - this is a specific type of warehouse that specializes in distributing goods, rather than creating or assembling them.
Truck terminal - this is a specific type of distribution facility where goods are transferred from one truck to another. Manufacturing and storage do not take place at this type of facility.
Flex facility - this property involves some type of mixed-use facility, which may allow for multiple businesses of varying natures or a single business that uses the property for multiple purposes.
Service center/showroom - this type of flex facility is often associated with machinery and automobiles, and may be comprised of repair facilities, a showroom for various product models, or both.

2 - Search online for property listings. 

Once you know what type of property your business needs, you'll need to search multiple listings to compare prices and floor plans. You can find listings on many real estate websites, or search online for industrial property in your area. Even similar space/floor plans will have different characteristics, so it's important to research and inquire about the needs for your business. Common qualities that are sought in industrial spaces include:
Energy-efficient fluorescent lighting
  • Well-maintained sprinkler systems
  • Including early suppression
  • Fast response (ESFR) systems, 
  • Roofs and flooring that can support heavy 
  • Industrial equipment 
  • High ceiling clearance
  • Sufficient parking

3 - View multiple properties in person. 

Even after extensive viewing online, you should always examine properties in person. Photographs may be misleading, and you'll want to visit the property to ensure that you can see your business making good use of the space. But don't stop at one property - some experts advise having at least two or three ideal properties within your price range. That way if one of the properties doesn't work out for any reason, you've got at least one backup that you know you'll be happy with

Part 2

Evaluating Lease Terms

1 - Ask about hidden expenses. 

Some industrial property owners charge additional fees and expenses, such as maintenance fees and upkeep charges for shared facility space. In addition, you'll want to inquire about how utilities are measured and costs divided among tenants.
Some property owners measure utility usage individually for each tenant. Others divide the cost of utilities each month by each tenant's rented square footage.
Find out about utilities, fees, and other expenses before you agree to sign the lease. If the terms are unfavorable, you may be able to negotiate better terms or simply walk away without any obligations.

2 - Know your rental obligations. 

Some industrial landlords cover the costs of repairs and maintenance, but many do not. Unlike residential property, where repairs are typically the responsibility of the property owner, commercial property varies considerably in terms of maintenance obligations.
If you will be responsible for maintenance and repairs, your landlord will need to specify the details of this arrangement (verbally and in the lease, should you sign it), and must disclose how much those costs are expected to average.

3 - Research your prospective landlord. 

Before you commit to a lease with someone, you should do some investigative research into that person's record as a property owner. Has he had numerous complaints from the Better Business Bureau or similar consumer protection groups? Has he had any legal problems or court cases brought on by former tenants? Is he currently restructuring a loan with no signs of financial stability? All of these factors are important to know, as they may be the difference between a property you can work from for years to come and a property you'll have to vacate in six months.
Search online for your landlord's name, and cross check his name with consumer protection groups. You may also want to browse the archives of your local newspaper to see if any court cases have been brought against him by current or former tenants.[21]
Ask your prospective landlord if he's willing to submit to a credit check. Explain that you're interested in a secure, reliable facility, and that a credit check could help secure a long-term partnership.



Part 3

Negotiating a Lease Agreement

1 - Request a pro forma lease copy. 

Before you agree to sign a lease, ask to see a pro forma lease. This will lay out the standard terms of that property owner's rental agreement. It should clarify any lingering questions you might have about the particulars of that property.

2 - Ask the landlord for concessions. 

Don't be afraid to try and bargain with the landlord. Most commercial property owners are hurting from the space being vacant, and in many ways it is a renter's market much of the time. The landlord may say no, but if you pitch these concessions as an incentive to rent for a long period of time, he may jump at the chance to secure a long-term tenant.
Try negotiating the price of the lease, or see if the landlord is willing to work with you by offering money for repairs, subsidized renovation, or even a period of free rent.
You should also negotiate some kind of limit on future rent increases. Tell the landlord that favorable terms will make you more likely to stay for a long-term occupation, which is ultimately mutually beneficial to both landlord and renter.

3 - Ask about add-on clauses. 

Depending on the nature of your business and what you predict will happen in the future, you may want to ask your prospective landlord about certain add-on clauses. These can include terms that permit subletting, co-tenancy, and exclusivity of the property.
Subleasing clauses would allow you to rent out some of your space to other businesses, in the event that you decide to scale back operations or dissolve your business before the lease is up for renewal.
Co-tenancy clauses ensure that your business can continue, even if other tenants renting that property terminate their own businesses and/or vacate the property. They should also give you an option to terminate the lease if the landlord does not meet the co-tenancy clause terms.
Exclusivity clauses ban the landlord from renting out space on your property to direct competitors who might threaten your business.

4 - Hire an attorney. 

Before you actually sign the lease, have an attorney read the terms of the rental agreement closely. You should also review the lease yourself, but a lawyer will have a better understanding of real estate and business laws, and should be able to determine if the lease is fair and legal.

5 - Sign the lease. 

If your attorney believes the lease is fair to you and meets all the necessary legal requirements of an industrial/commercial lease agreement, then it's safe to sign the lease. You can then begin moving your operations into the rental space and start growing your business.

Godown Inc is one of the leading company providing warehouse on rent in India

What Is the Career Path in Warehousing and Logistics

If you’re thinking about taking the steps toward a new employment opportunity in warehousing and logistics, it might be a good idea for you to take some time to map out what your career path might look like. It’s smart to plan for your future, and looking forward to what’s to come will help you make the right steps towards a successful and happy career. While everyone’s journey will look different, here are a few of the major milestones to look forward to during your new career in warehousing and logistics.

Training:

For many areas in warehousing and logistics, it’s best if you have either a relevant certification or proper training in that area. Well-trained jobseekers make the best employees, so it’s always best to plan for your future path with an education.
While some jobs in this area require a college degree, you could also take the certification route. Most certifications will give you both theoretical and hands-on experience, so it can just be a matter of whichever one suits your lifestyle the best. For example, if you have an interest in working with your hands, finding a certification that specializes in logistics could give you a chance to learn all about the quality standards of the supply chain industry while also providing a solid practical foundation for a future career. Looking into local colleges that offer these types of programs could be the first step you take on the path to your future in warehousing and logistics.

Develop Skills:

While a good education is an important factor on any good resume, what employers really want are the skills and experiences to get the job done right. Before you start your career in warehousing and logistics, it’s a good idea to start small—begin with a part time job to gain valuable insight into the industry.
If you’re interested in ending up in food manufacturing, working weekends at a bakery will give you a great overall picture of how the system works. If you’d like to work in consumer electronics, tinkering around with whatever electronics you have can expose you to some of the most important elements of device creation. Nothing looks better on a resume than actual experience and concrete knowledge of the industry, and taking the initiative to learn the ins and outs of your chosen field before your job begins will look most appealing to a future employer.

Partner with Recruitment Specialists:

So you’ve got the education, the skills and the experience—now what? A lot of job seekers don’t know what the next step is on the path to finding their career. While you might spend time searching job boards and contacting various companies, the easiest and most efficient way of starting your next employment opportunity in warehousing and logistics is to partner with a recruitment specialist. Recruitment specialists take the hassle out of job-hunting because they’re experts at what they do. Matching you with the right company and with the right position is their main priority, making all of your hard work pay off with your dream job.
One of the best advantages to working with recruitment specialists is their exclusive access to some of the best warehousing and logistics jobs in the country. Job boards can be a great place to search for employment, but recruitment specialists have built trusting relationships with employers that can’t be found elsewhere, giving you a head up over your competitors. With the right training, skills, and experience, your journey to a career in warehousing and logistics will lead to success with a recruitment specialist.

Career in Warehouse Logistics

Supply Chain / Logistics / Transport / Warehousing / Courier / Distribution


The supply chain, logistics, transport, warehousing, courier and distribution industry is the very backbone of business and sits within the Shipping and Logistics sector. Without this critical element of commerce, goods would not move from supplier to buyer and then ultimately to the consumer.

This fast moving and vital part of industry, holds many career opportunities in all kinds of disciplines from being a warehouse person, to planning the distribution of goods to worldwide destinations. Undoubtedly, the supply, storage and distribution of goods is what makes business work and so the industry itself attracts people from all kinds of backgrounds and professions. This is the perfect industry if you want to start your career path and don’t necessarily have the best qualifications, as there are many opportunities to start in very basic roles and work your way up.

What kind of jobs are available within the Supply Chain / Logistics / Transport / Warehousing / Courier / Distribution industry?

This industry, which is part of Shipping and Logistics is perfect for someone who wants a real hands on job, as there are many opportunities within warehousing and distribution that can give the job holder a real sense of involvement. The different kinds of jobs in this industry include:
  • Logistics Coordinator
  • Supply Chain Coordinator
  • Logistics Manager
  • Transport Manager
  • Transport Planner
  • Warehouse Manager
  • Distribution Manager
  • Routing/Scheduling Clerk
  • Distribution Services Manager
  • Traffic Operator

Tips on How to Land a Job in Logistics

Even though the logistics industry is growing, finding a job in this field takes a bit of preparation on your part. Let us help you get a foot in the door and navigate the process from start to finish by following our tips, tricks, and how-to’s.

Tip #1: Determine your career goals.

To reach your career goals in logistics, you must define your ambitions. Do you want to run the company, or do you want to specialize in a particular field? What are your short-term and long-term goals? Sit down and write out a career plan detailing what you want to achieve, then brainstorm ideas for how you’ll get there.

Tip #2: Network, get feedback, and find a mentor.

The cliché is true: It’s not what you know, it’s who you know (though knowing stuff definitely helps). Discuss your career aspirations with someone who currently works in the job you’d like to have, such as a coworker, a family friend, or a connection made through networking. If you currently work at a logistics company, have a discussion with your boss or a human resource staffer about what you need to do to earn a promotion and set yourself on the right career track. Ask your mentor or coworkers to introduce you to others in the field or at specific companies you’d like to work for. If you attended a school with a career office, contact them to ask for advice and connections to alumni.

Tip #3: Determine what you’re qualified for now.

Entry-level job titles in logistics include van driver, dispatcher, scheduler, expeditor, merchandise buyer assistant, and clerk for distribution, operations, traffic, or import/export. Some entry-level jobs, such as operations research analyst or process associate, may require a Bachelor’s degree or other certifications, so determine your skill sets and educational needs before you begin applying for jobs. You’ll save yourself time and rejection-related heartache if you limit the scope of your search to what you can realistically accomplish at this point in your career. If you’ve been working in the logistics field for a year or more, assess your experience based on your inside knowledge of the industry. Salary.com is an excellent resource for researching job descriptions, requirements, and expected salaries.

Tip #4: Seek out general knowledge and formal education.

Read newsletters and trade publications of associations like the American Society of Transportation and Logistics, and the Warehousing Education and Research Council. After you’ve whetted your appetite and gained a working knowledge of the current prevailing logistics ideas and technologies, take it a step further: Research educational programs in your area or online that offer logistics or logistics management programs. Keep your career plan from step #1 (with feedback from step #2) handy in order to structure your search based on your current skills and long-term goals.
Having a relevant education is critical for anyone interested in a logistics career. Logistics degree programs cover subjects such as management, managerial decision-making, distribution and logistics and supply chain management. Given the broad scope of the field, some programs are referred to as an operations management degree or logistics and supply chain management degree. Some schools offer a degree in transportation and logistics.
It’s important to find the right program for your career goals. Below you’ll find a list of accredited schools that offer a number of quality degree options.

Type of Warehouses


There are three types of warehouses as described below:
Private Warehouses: 
A private warehouse facility is owned and managed by the same enterprise that owns the merchandise handled and stored at the facility.
public warehouse, in contrast, is operated as an independent business offering a range of services - such as storage, handling, and transportation-on the basis of a fixed or variable fee.
The major benefits of private warehousing include control, flexibility, cost, and other intangible benefits.
Private warehouses provide more control since the enterprise has absolute decision-making authority over all activities and priorities in the facility.

The private warehouses are owned and operated by big manufacturers and merchants to fulfill their own storage needs. The goods manufactured or purchased by the owner of the warehouses have a limited value or utility as businessmen in general cannot make use of them because of the heavy investment required in the construction of a warehouse, some big business firms which need large storage capacity on a regular basis and who can afford money, construct and maintain their private warehouses. A big manufacturer or wholesaler may have a network of his own warehouses in different parts of the country.

Public Warehouses:
A public warehouse is a specialized business establishment that provides storage facilities to the general public for a certain charge. It may be owned and operated by an individual or a cooperative society. It has to work under a license from the government in accordance with the prescribed rules and regulations.
Public warehouses are very important in the marketing of agricultural products and therefore the government is encouraging the establishment of public warehouses in the cooperative sector. A public warehouse is also known as duty-paid warehouse.
Public warehouses are very useful to the business community. Most of the business enterprises cannot afford to maintain their own warehouses due to huge capital Investment. In many cases the storage facilities required by a business enterprise do not warrant the maintenance of a private warehouse. Such enterprises can meet their storage needs easily and economically by making use of the public warehouses, without heavy investment.
Public warehouses provide storage facilities to small manufacturers and traders at low cost. These warehouses are well constructed and guarded round the clock to ensure safe custody of goods. Public warehouses are generally located near the junctions of railways, highways and waterways.
They provide, therefore, excellent facilities for the easy receipt, despatch, loading and unloading of goods. They also use mechanical devices for the handling of heavy and bulky goods. A public warehouse enables a businessman to serve his customers quickly and economically by carrying regional stocks near the important trading centres or markets of two countries.
Public warehouses provide facilities for the inspection of goods by prospective buyers. They also permit packaging, grading and grading of goods. The public warehouses receipts are good collateral securities for borrowings.
Bonded Warehouses:
Bonded warehouses are licensed by the government to accept imported goods for storage until the payment of custom duty. They are located near the ports. These warehouses are either operated by the government or work under the control of custom authorities.
The warehouse is required to give an undertaking or ‘Bond’ that it will not allow the goods to be removed without the consent of the custom authorities. The goods are held in bond and cannot be withdrawn without paying the custom duty. The goods stored in bonded warehouses cannot be interfered by the owner without the permission of customs authorities. Hence the name bonded warehouse.
Bonded warehouses are very helpful to importers and exporters. If an importer is unable or unwilling to pay customs duty immediately after the arrival of goods he can store the goods in a bonded warehouse. He can withdraw the goods in installments by paying the customs duty proportionately.
In case he wishes to export the goods, he need not pay customs duty. Moreover, a bonded warehouse provides all services which are provided by public warehouses. Goods lying in a bonded warehouse can be packaged, graded and branded for the purpose of sale.



What are warehouses?

A warehouse as a place used for the storage or accumulation of goods. The function of storage can be carried out successful with the help of warehouses used for storing the goods.
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.
Functions of Warehousing:
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. Contract of bailment operates when the goods are stored in wave-houses. 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.
Importance of Warehousing In the Development of Trade and Commerce:
Warehousing or storage refers to the holding and preservation of goods until they are dispatched to the consumers. Generally, there is a time gap between the production and consumption of products. By bridging this gap, storage creates time utility.
There is need for storing the goods so as to make them available to buyers as and when required. Some amount of goods is stored at every stage in the marketing process. Proper and adequate arrangements to retail the goods in perfect condition are essential for success in marketing. Storage enables a firm to carry on production in anticipation of demand in future.
A warehouse is a place used for the storage or accumulation of goods. It may also be defined as an establishment that assumes responsibility for the safe custody of goods. Warehouses enable the businessmen to carry on production throughout the year and to sell their products, whenever there is adequate demand.
Need for warehouse arises also because some goods are produced only in a particular season but are demanded throughout the year. Similarly certain products are produced throughout the year but demanded only during a particular season. Warehousing facilitates production and distribution on a large scale.
Benefits from Warehouses:
1. Regular production:
Raw materials need to be stored to enable mass production to be carried on continuously. Sometimes, goods are stored in anticipation of a rise in prices. Warehouses enable manufacturers to produce goods in anticipation of demand in future.
2. Time utility:
A warehouse creates time utility by bringing the time gap between the production and consumption of goods. It helps in making available the goods whenever required or demanded by the customers. Some goods are produced throughout the year but demanded only during particular seasons, e.g., wool, raincoat, umbrella, heater, etc. on the other hand, some products are demanded throughout the year but they are produced in certain region, e.g., wheat, rice, potatoes, etc. Goods like rice, tobacco, liquor and jaggery become more valuable with the passage of time.
3. Store of surplus goods:
Basically, a warehouse acts as a store of surplus goods which are not needed immediately. Goods are often produced in anticipation of demand and need to be preserved properly until they are demanded by the customers. Goods which are not required immediately can be stored in a warehouse to meet the demand in future.
4. Price stabilization:
Warehouses reduce violent fluctuations in prices by storing goods when their supply exceeds demand and by releasing them when the demand is more than immediate productions. Warehouses ensure a regular supply of goods in the market. This matching of supply with demand helps to stabilize prices.
5. Minimization of risk:
Warehouses provide for the safe custody of goods. Perishable products can be preserved in cold storage. By keeping their goods in warehouses, businessmen can minimize the loss from damage, fire, theft etc. The goods kept in the warehouse are generally insured. In case of loss or damage to the goods, the owner of goods can get full compensation from the insurance company.
6. Packing and grading:
Certain products have to be conditioned or processed to make them fit for human use, e.g., coffee, tobacco, etc. A modern warehouse provides facilities for processing, packing, blending, grading etc., of the goods for the purpose of sale. The prospective buyers can inspect the goods kept in a warehouse.
7. Financing:
Warehouses provide a receipt to the owner of goods for the goods kept in the warehouse. The owner can borrow money against the security of goods by making an endorsement on the warehouse receipt. In some countries, warehouse authorities advance money against the goods deposited in the warehouse. By keeping the imported goods in a bonded warehouse, a businessman can pay customs duty in installments.
Type of Warehouses:
There are three types of warehouses as described below:
Private Warehouses:
The private warehouses are owned and operated by big manufacturers and merchants to fulfill their own storage needs. The goods manufactured or purchased by the owner of the warehouses have a limited value or utility as businessmen in general cannot make use of them because of the heavy investment required in the construction of a warehouse, some big business firms which need large storage capacity on a regular basis and who can afford money, construct and maintain their private warehouses. A big manufacturer or wholesaler may have a network of his own warehouses in different parts of the country.

Public Warehouses:
A public warehouse is a specialized business establishment that provides storage facilities to the general public for a certain charge. It may be owned and operated by an individual or a cooperative society. It has to work under a license from the government in accordance with the prescribed rules and regulations.
Public warehouses are very important in the marketing of agricultural products and therefore the government is encouraging the establishment of public warehouses in the cooperative sector. A public warehouse is also known as duty-paid warehouse.
Public warehouses are very useful to the business community. Most of the business enterprises cannot afford to maintain their own warehouses due to huge capital Investment. In many cases the storage facilities required by a business enterprise do not warrant the maintenance of a private warehouse. Such enterprises can meet their storage needs easily and economically by making use of the public warehouses, without heavy investment.
Public warehouses provide storage facilities to small manufacturers and traders at low cost. These warehouses are well constructed and guarded round the clock to ensure safe custody of goods. Public warehouses are generally located near the junctions of railways, highways and waterways.
They provide, therefore, excellent facilities for the easy receipt, despatch, loading and unloading of goods. They also use mechanical devices for the handling of heavy and bulky goods. A public warehouse enables a businessman to serve his customers quickly and economically by carrying regional stocks near the important trading centres or markets of two countries.
Public warehouses provide facilities for the inspection of goods by prospective buyers. They also permit packaging, grading and grading of goods. The public warehouses receipts are good collateral securities for borrowings.
Bonded Warehouses:
Bonded warehouses are licensed by the government to accept imported goods for storage until the payment of custom duty. They are located near the ports. These warehouses are either operated by the government or work under the control of custom authorities.
The warehouse is required to give an undertaking or ‘Bond’ that it will not allow the goods to be removed without the consent of the custom authorities. The goods are held in bond and cannot be withdrawn without paying the custom duty. The goods stored in bonded warehouses cannot be interfered by the owner without the permission of customs authorities. Hence the name bonded warehouse.
Bonded warehouses are very helpful to importers and exporters. If an importer is unable or unwilling to pay customs duty immediately after the arrival of goods he can store the goods in a bonded warehouse. He can withdraw the goods in installments by paying the customs duty proportionately.
In case he wishes to export the goods, he need not pay customs duty. Moreover, a bonded warehouse provides all services which are provided by public warehouses. Goods lying in a bonded warehouse can be packaged, graded and branded for the purpose of sale.


Warehouse

Warehouse is a facility where commodities meant for marketing are accepted for storage on rental basis on behalf of producers, traders and farmers. The purpose of warehousing is to ensure better price by avoiding distress sale by creating a negotiable instrument for the commodities stored to get loans from the banks and lenders, ensure continuous supply of commodities and by following scientific method of storage avoiding wastage and commodity losses due to natural calamities, pests and other problems. The Warehouse Man, the establisher of the warehouse acts as a custodian between the owner and the lender guaranteeing the quantity and quality of the commodities offered for storage . The warehouse man has to get a license from the district collector for running a warehouse and a weigher grader license for weighment and grading the commodities to assess the market value of the merchandise offered for storage and analyzes the same for storage worthiness.
Traditionally, agri products being more susceptible to damages during storage,( there is an estimation that about more than 15℅ of the agri products are getting damaged due to lack of scientific warehousing facility) and the Indian farmers were at the mercy of private money lenders for farm operations and to resort distress sale to repay the loans and in a perpetual debt trap often resulting in sale of the cland even! The warehousing facility provided an opportunity for them to avoid distress sale by keeping in warehouse, get loans from the bank to meet the expenses and sell the produce whenever market conditions are favorable.
The warehouse offers facilities of handling, transport, packing and other related ones.
Industrialization especially after 1980, required large scale imports of raw materials and machinery consisting of heavy custom duty of more than 200℅ in some cases which was a drag on the limited finances and loans of more than 24℅rate of interest. To help the industries, government of India allowed public custom bonded warehouses to keep the duty payable stocks in a bonded warehouse immediately on landing in India by submitting a double duty bond to the customs department. As said above, the warehouse man gets license from customs and acts as a custodian between the department and the importer to release stocks only to the extent of the duty cleared and it is the responsibility of the warehouse man for all safety and security of stocks offered for storage.
Warehousing and logistics cost to the production cost of commodities is on higher side in India compared to the developed nations, meaning there's a great scope for better and innovative management of warehousing and integrated logistics using modern technology. The biggest problem is the high cost of Land, structure and the manual handling, lack proper knowledge and the services of this sector need to get proper importance like other infrastructures. Please don't hesitate to contact for any further information in this regard.


History of Warehouse

A warehouse is a commercial building for storage of goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. They are usually large plain buildings in industrial areas of cities, towns and villages.

They usually have loading docks to load and unload goods from trucks. Sometimes warehouses are designed for the loading and unloading of goods directly from railways, airports, or seaports. They often have cranes and forklifts for moving goods, which are usually placed on ISO standard pallets loaded into pallet racks. Stored goods can include any raw materials, packing materials, spare parts, components, or finished goods associated with agriculture, manufacturing and production. In Indian English a warehouse may be referred to as a godown.

History :
The origins of the warehouse are difficult to pinpoint. Early civilizations relied on storage pits rather than large structures to protect seeds and surplus food. Sociologists like Alain Testart have argued that these early storage techniques were essential to the evolution of societies.

Some of the earliest examples of warehouses that resemble the buildings of today are Roman horrea. These were rectangular buildings, built of stone, with a raised ground floor and overhanging roof to keep the walls cool and dry. Roman horrea were typically used to store grain, but other consumables such as olive oil, wine, clothing and even marble were also stored inside.

Though horrea were built throughout the Roman empire, some of the most studied examples are found in or around Rome, particularly at Ostia, a harbor city that served ancient Rome. The Horrea Galbae, a warehouse complex in the southern part of ancient Rome, demonstrates that these buildings could be substantial, even by modern standards. The horrea complex contained 140 rooms on the ground floor alone, covering an area of some 225,000 square feet (21,000 m²). As a point of reference, less than half of U.S. warehouses today are larger than 100,000 square feet (9290 m²).

As attested by legislation concerning the levy of duties, medieval merchants across Europe commonly kept goods in household storerooms, often on the ground floor or one or more storeys below the ground. However, dedicated warehouses could be found around ports and other commercial hubs to facilitate overseas trade. Examples of these buildings include the Venetian fondaci, which combined a palace, warehouse, market and living quarters for lodging travelers. A number of representative medieval warehouses can also be seen in King's Lynn, U.K., where a complex of buildings, including dwelling-houses, shops, counting houses and warehouses, once served the Hanseatic League.

During the industrial revolution the function of warehouses evolved and became more specialized. Some warehouses from the period are even considered architecturally significant, such as Manchester's cotton warehouses. Always a building of function, in the past few decades they have adapted to mechanization, technological innovation and changes in supply chain methods.



Warehouse function :
Historically, warehouses were a dominant part of the urban landscape from the start of the Industrial Revolution through the 19th century and into the twentieth century. The buildings remained when their original usage had changed. There are four identifiable types of warehouses. The cotton industry rose with the development of the warehouse, and all five types were represented in Manchester in the United Kingdom. Warehouses of that period in Manchester were often lavishly decorated, but modern warehouses are more functional.

Warehouses allow transport optimization along the supply chain, and allow companies to work with an optimal inventory (economic order quantity) regarding service quality. For example, at the terminal point of a transport system it is necessary to stockpile produce until a full load can be transported. Warehouses can also be used to store the unloaded goods from the vessel.

In industries whose goods require a period of maturation between production and retail, such as viniculture and cheese making, warehouses can be used to store the goods in large quantities.

Display of goods for sale :
These displayed goods for the home trade. This would be finished goods- such as the latest cotton blouses or fashion items. Their street frontage was impressive, so they took the styles of Italianate Palazzos.

Richard Cobden's construction in Manchester's Mosley Street was the first palazzo warehouse. There were already seven warehouses on Portland Street when they commenced building the elaborate Watts Warehouse of 1855, but four more were opened before it was finished. It was this type of warehouse that inspired the Germans in Düsseldorf and Munich to name their prestigious department stores Warehouse.

Overseas warehouses :
These catered for the overseas trade. They became the meeting places for overseas wholesale buyers where printed and plain could be discussed and ordered. Trade in cloth in Manchester was conducted by many nationalities.

Behrens Warehouse is on the corner of Oxford Street and Portland Street. It was built for Louis Behrens & Son by P Nunn in 1860. It is a four storey predominantly red brick build with 23 bays along Portland Street and 9 along Oxford Street. The Behrens family was prominent in banking and in the social life of the German Community in Manchester.

Packing warehouses :
The main purpose of packing warehouses was the picking, checking, labeling and packing of goods for export. The packing warehouses: Asia House, India House and Velvet House along Whitworth Street were some of the tallest buildings of their time.

Railway warehouses :
Warehouses were built close to the major stations in railway hubs. The first railway warehouse to be built was opposite the passenger platform at the terminus of the Liverpool and Manchester Railway. There was an important group of warehouses around London Road station (now Piccadilly station).In the 1890s the Great Northern Railway Company’s warehouse was completed on Deansgate: this was the last major railway warehouse to be built.

The London Warehouse Picadilly was one of four warehouses built by the Manchester, Sheffield and Lincolnshire Railway in about 1865 to service the new London Road Station. It had its own branch to the Ashton Canal. This warehouse was built of brick with stone detailing. It had cast iron columns with wrought iron beams.

Canal warehouses :
All these warehouse types can trace their origins back to the canal warehouses which were used for trans-shipment and storage. Castle field warehouses are of this type- and important as they were built at the terminus of the Bridgewater Canal in 1761.

Storage and shipping systems :
Some of the most common warehouse storage systems are:

Pallet racking including selective, drive-in, drive-thru, double-deep, pushback, and gravity flow
Mezzanine adds a semi-permanent storey of storage within a warehouse
Vertical Lift Modules are packed systems with vertically arranged trays stored on both sides of the unit.
Horizontal Carousels consist of a frame and a rotating carriage of bins.
Vertical Carousels consisting of a series of carriers mounted on a vertical closed-loop track, inside a metal enclosure.
A "piece pick" is a type of order selection process where product is picked and handled in individual units and placed in an outer carton, tote or other container before shipping. Catalog companies and internet retailers are examples of predominantly piece-pick operations. Their customers rarely order in pallet or case quantities; instead, they typically order just one or two pieces of one or two items. Several elements make up the piece-pick system. They include the order, the picker, the pick module, the pick area, handling equipment, the container, the pick method used and the information technology used. Every movement inside a warehouse must be accompanied by a work order. Warehouse operation can fail when workers move goods without work orders, or when a storage position is left unregistered in the system.

Material direction and tracking in a warehouse can be coordinated by a Warehouse Management System (WMS), a database driven computer program. Logistics personnel use the WMS to improve warehouse efficiency by directing pathways and to maintain accurate inventory by recording warehouse transactions.

Automation and optimization :
Some warehouses are completely automated, and require only operators to work and handle all the task. Pallets and product move on a system of automated conveyors, cranes and automated storage and retrieval systems coordinated by programmable logic controllers and computers running logistics automation software.[citation needed] These systems are often installed in refrigerated warehouses where temperatures are kept very cold to keep product from spoiling, especially in electronics warehouse where they require specific temperature to avoid damaging the parts, and also where land is expensive, as automated storage systems can use vertical space efficiently. These high-bay storage areas are often more than 10 meters (33 feet) high, with some over 20 meters (65 feet) high. Automated storage systems can be built up to 40m high.

For a warehouse to function efficiently, the facility must be properly slotted. Slotting addresses which storage medium a product is picked from (pallet rack or carton flow), and how they are picked (pick-to-light, pick-to-voice, or pick-to-paper). With a proper slotting plan, a warehouse can improve its inventory rotation requirements—such as first in, first out (FIFO) and last in, first out (LIFO)—control labor costs and increase productivity.

Pallet racks are commonly used to organize a warehouse. It is important to know the dimensions of racking and the number of bays needed as well as the dimensions of the product to be stored. Clearance should be accounted for if using a forklift or pallet mover to move inventory.

Modern trends :
Modern warehouses commonly use a system of wide aisle pallet racking to store goods which can be loaded and unloaded using forklift trucks.

Traditional warehousing has declined since the last decades of the 20th century, with the gradual introduction of Just In Time techniques. The JIT system promotes product delivery directly from suppliers to consumer without the use of warehouses. However, with the gradual implementation of offshore outsourcing and off shoring in about the same time period, the distance between the manufacturer and the retailer (or the parts manufacturer and the industrial plant) grew considerably in many domains, necessitating at least one warehouse per country or per region in any typical supply chain for a given range of products.

Recent retailing trends have led to the development of warehouse-style retail stores. These high-ceiling buildings display retail goods on tall, heavy duty industrial racks rather than conventional retail shelving. Typically, items ready for sale are on the bottom of the racks, and crated or palatalized inventory is in the upper rack. Essentially, the same building serves as both warehouse and retail store.

Another trend relates to Vendor-managed inventory (VMI). This gives the vendor the control to maintain the level of stock in the store. This method has its own issue that the vendor gains access to the warehouse.

Large exporters and manufacturers use warehouses as distribution points for developing retail outlets in a particular region or country. This concept reduces end cost to the consumer and enhances the production sale ratio.

Cross docking is a specialized type of distribution center (DC) in that little or no inventory is stored and product is received, processed (if needed) and shipped within a short timeframe. As in warehousing, there are different types of cross docks.

Reverse logistics is another type of warehousing that has become popular for environmental reasons. The term refers to items that are going from the end user back to the distributor or manufacturer.

Cool warehouses and cold storage
Cold storage preserves agricultural products. Refrigerated storage helps in eliminating sprouting, rotting and insect damage. Edible products are generally not stored for more than one year. Several perishable products require a storage temperature as low as −25 °C.

Cold storage helps stabilize market prices and evenly distribute goods both on demand basis and time basis. The farmers get the opportunity of producing cash crops to get remunerative prices. The consumers get the supply of perishable commodities with lower fluctuation of prices.

Ammonia and Freon compressors are commonly used in cold storage warehouses to maintain the temperature. Ammonia refrigerant is cheaper, easily available and has a high latent heat of evaporation but it is also highly toxic and can form an explosive mixture when mixed with oil containing high percentage of carbon. Insulation is also important, to reduce loss of cold and to keep different sections of the warehouse at different temperatures.

There are two main types of refrigeration system used in cold storage warehouses, a Vapour absorption system (VAS) and Vapour compression system (VCS). VAS, although comparatively costlier, is quite economical in operation and adequately compensates the higher initial investment.

The temperature necessary for preservation depends on the storage time required and the type of product. In general, there are three groups of products, foods that are alive (e.g. fruits and vegetables), foods that are no longer alive and have been processed in some form (e.g. meat and fish products), and commodities that benefit from storage at controlled temperature (e.g. beer, tobacco).

Location is a very critical aspect for the success of cold storage. It should be in close proximity of a growing area as well as a market, be easily accessible for heavy vehicles, and have uninterrupted power supply.

Cold storage and the law :
There are state and local laws that regulate the cold storage industry, requiring safe working conditions for employees, and operational procedures must be in accordance with these laws. Companies that are aware of and comply with applicable regulations are more likely to pass inspection, avoid notices of violation, and will be able to continue operating at full capacity, ensuring greater customer service and uninterrupted product flow.

Warehousing education :
There are few non-profit organizations which are focused on imparting knowledge, education and research in the field of warehouse management and its role in the supply chain industry. The Warehousing Education and Research Council (WERC) and International Warehouse Logistics Association (IWLA) in Illinois, United States. They provide professional certification and continuing education programs for the industry in the country. The Australian College of Training have government funded programs to provide personal development and continuation training in warehousing certs II – V (Diploma), they operate in Western Australia online and face to face, or Australia wide for online only courses.