Topic: Marketing Activities
Lesson Objective: by the end of this lesson, the learners should be able to:
- Mention and explain the types of warehouse;
- State the characteristics of an ideal warehouse;
- List the activities of a warehouse.
Lesson Summary/ Discussion
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Meaning and functions of Warehousing
TYPES OF WAREHOUSES
1. Private warehouses: This type of
warehouse belongs to the owner of
goods, usually a wholesaler, who
stored his goods in order to supply
to retailers in future. Goods are
produced in large quantities in
anticipation of future demand and
for the unknown customers. The
ultimate wholesaler finds it
necessary to purchase goods in
advance in large bulk and to store
them for future supply.
2. Public Warehouses: The warehouses which are operated to store goods from numbers of the general public are known as public warehouses. Any one can store his goods in these warehouses on payment of rent. An individual, a partnership firm or a company may own these warehouses.
To start such warehouses a licence
from the government is required.
The government also regulates the
functions and operations of these
ware-houses. Mostly, these warehouses are used by manufacturers, wholesalers, exporters, importers, government agencies, etc.
3. Bonded Warehouses: They are
types of warehouses in which
owners are licensed to accept
imported goods for storage before
payment of customs duties. By storing his goods in a bonded warehouse the importer gains some control without paying the duty. The goods in bonded
warehouses are under the strict
supervision of customs officers and
before the owner can interfere with
them, previous permission is necessary.
4. Government Warehouse: This
type of warehouse is mainly located
at the important sea ports and in
most cases it is owned by the Dock
Authorities. The general public can
also use this group of warehouse on
payment of fixed charges. If a customer cannot pay the rent within
the specified period of time, then
the authority can recover the rent by
auctioning off the goods.
5. Co-operative Warehouses: These
warehouses are owned, managed
and controlled by co-operative
SOcieties. They provide
warehousing facilities at the most
economical rates to the members of
CHARACTERISTICS OF IDEAL WAREHOUSING
Any warehouse is said be an ideal
warehouse if it possesses certain
characteristics, which are given below:
- Warehouse should be located at a convenient place near highways, railway stations, airports and seaports where goods can be loaded and unloaded easily.
- Mechanical appliances should be there for loading and unloading the goods. This reduces the wastage in handling and also minimises handling costs.
- Adequate space should be available inside the building to keep the goods in proper order.
- Preservation of perishable items like fruits, vegetables, eggs and butter, should have cold storage
- Warehouses meant for the facilities.
- Proper arrangement should be there to protect the goods from sunlight, rain, wind, dust, moisture and pests.
- provided inside the premises to facilitate easy and quick loading
- Sufficient parking space should be provided inside the premises to facilitate easy and quick loading and unloading of goods.
- Round the clock security arrangenment should be there to avoid theft of goods.
- The building should be fitted with latest fire-fighting equipment to avoid loss of goods due to fire out break.
ACTIVITIES OF WAREHOUSE
- Service: Warehouse provides service to customers. The importance of customer service is obvious. Having goods available in a warehouse when a customer places an order, particularly if the warehouse is in reasonable proximity to the customer, usually leads to customers’ satisfaction and enhances future sales.
- Contingencies: Warehouses also protect against contingencies such as transportation delays, vendor stock outs, or strikes.
- Smoothing: Warehouse provides smooth operations or decouple successive stages in the manufacturing process. Seasonal demand and the need for a production run long enough to ensure reasonable cost and quality are examples of smoothing, that is, preventing operations under Overtime conditions at low production levels.
See previous lessons in Marketing
- Mention and explain the types of warehouse.
- What are the characteristics of an ideal warehouse?
- List the activities of a warehouse.
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