Storage and warehousing

Storage and warehousing

1. STORAGE AND WAREHOUSING Presented By Chandan Singh Dr. Rajendra Prasad Central Agricultural University, Pusa MBA(AGB)/92/2015-16

2. CONTENTS INTRODUCTION FEATURES OF STORAGE & WAREHOUSING TYPES OF WAREHOUSES MAJOR AGRI-COMMODITIES TO BE STORED IMPORTANCE OF STORAGE AND WAREHOUSING MAJOR AGENCIES/INTITUTION/PLAYER FOR S&W CONVENTIONAL METHODS OF S & W MODERN TRENDS OF S & w MERITS AND DEMERITS CONCLUSION

3. INTRODUCTION S torage involves proper management for preserving goods from the time of their production or purchase till actual use. When this storage is done on a large scale and in a specified manner it is called WAREHOUSING Warehousing refers to the activities involving storage of goods on a large-scale in a systematic and orderly manner and making them available conveniently when needed

4. STORAGE PRACTICES IN INDIA About 60 to 70% of food grains produced in India remain in the rural sector. Food grains are stores in traditional structures and containers made locally from available local market. The common storage structure in rural areas are: Gunny bags – made of burnt/ jute Earthen containers – made of burnt clay of capacity ranging from 0.5 to 3 qtl. Bamboo containers – indoor and outdoor structures constructed with split bamboo or locally available plants with walls plasters with mud. 4. U nderground structures – shallow underground pits with depths varying from 1 to 1.5m depending upon the water table of the area .

5. FEATURES OF S & W Proper location Use of mechanical appliances to load and unload goods Sufficient space Proximity to the market Parking facility Safety measures Economical Proper management

6. PROPER LOCATION : For effective movement of goods and cost saving, warehouses should be established at places, which are convenient to both the buyer and the seller USE OF MECHANICAL APPLIANCES : In the warehouses, mechanical appliances should be used to load and unload the goods. SUFFICIENT SPACE : For an ideal warehouse, adequate space should be covered for maximum storage and to keep the goods in proper order. PROXIMITY TO THE MARKET : The warehouses should be established at a place where market for raw materials and for selling finished goods is as close as possible PARKING FACILITY : Parking along road, public places in the urban/suburban areas continue to be a harrowing experience for the traders who visit from outstations FEATURES OF S & W

7. 6 . SAFETY MEASURES : A warehouse, which basically is used to store eatables or perishable goods like bread, butter, fruits, eggs and vegetables should be equipped with proper cold storage, moisture resistance etc facilities. 7 . ECONOMICAL : The warehouse location, layout, construction and maintenance should be done in such a way that ensures maximum storage of goods at minimum expense . 8 . PROPER MANAGEMENT : If warehouses are not managed properly, all the money spent will go waste .

8. TYPES OF WAREHOUSES

9. 1. PRIVATE HOUSES OPERATED by a company for shipping and storing its own products OWNED AND MANAGED - manufacturers or traders CONSTRUCTION - Farmers near their fields, Wholesalers and Retailers near their business center's and Manufacturers near their factories COMPANIES – Stable inventory levels and long run expectations SUITABILITY - Firms that require special handling and storage features and want to control design and operation of the warehouse

10. 2. PUBLIC WAREHOUSES Used by SMALL FIRMS and LARGE FIRMS Provide storage and physical distribution services on rental basis Organizes to provide storage facilities to traders, manufacturers, agriculturists in return for a storage charge Licensed by Govt. 3. GOVERNMENT WAREHOUSES OWNED, MANAGED AND CONTROLLED -Central or State Governments or public corporations or local authorities EXAMPLES - Central Warehousing Corporation of India, State Warehousing Corporation and Food Corporation of India If customer cannot pay rent within specified time authority can recover rent disposing of goods

11. 4 . CO-OPERATIVE WAREHOUSES Owned, Managed and Controlled – Co-operative societies Facilities at most economical rates to members Located-Punjab, Karnataka, Maharashtra and Andhra 5. BONDED WAREHOUSES Licensed to accept imported goods for storage before payment of customs duty Imported merchandise is stored and released only after payment of appropriate taxes Cigarettes, Liquor, Other products are stored Owned and Operated – PORT TRUSTS Acts in two capacities viz LANDLORD and BAILEE OF GOODS As landlord provides storage facilities on rent

12. 6. DISTRIBUTION CENTERS / WAREHOUSES Designed to move goods Large and highly automated Receive goods from various plants and suppliers, take orders, fill them efficiently deliver to customers quickly Located near the market owned or leased by manufacturers Access to transport networks 7 . COLD STORAGE Preserve perishability of goods against payment of a storage charge Temperature variation is controlled to degree necessary for certain sensitive items

13. 8. EXPORT AND IMPORT WAREHOUSES LOCATION –near ports where international trade is undertaken Storage facilities for goods awaiting onward movements Facilities- packaging , inspection, marking etc. 9. CLIMATE-CONTROLLED WAREHOUSE Handle storage of many products including need special handling conditions Freezers for frozen products, humidity controlled environment for delicate products , produce or flowers, etc.

14. 10. AGRICULTURAL WAREHOUSES Store agricultural produce grown in a certain area Location – Assembling or regulated markets Receive agricultural commodities either directly from farmers or through their commission agents or from wholesalers Encourage speculative trading

15. MAJOR AGRI-COMMODITIES TO BE STORED Wheat Paddy Pulses Maize Vegetables Fruits Dry fruits Flowers Spices 10. Oil seeds 11. Fertilizers

16. NEED AND IMPORTANCE REGULAR SUPPLY QUALITY STOCK OF TRADE PRICE STABILISATION SEASONAL PRODUCTS PERISHABLE GOODS CONTINUOUS PRODUCTION SEASONAL DEMAND LARGE-SCALE PRODUCTION QUICK SUPPLY PROTECTION AND PRESERVATION OF GOODS EASY HANDLING USEFUL FOR SMALL BUSINESSES CREATION OF EMPLOYMENT FACILITATES SALE OF GOODS AVAILABILITY OF FINANCE

17. FUNCTIONS STORAGE OF GOODS PROTECTION OF GOODS RISK BEARING IDENTIFICATION OF GOODS FINANCING PROCESSING

18. MAJOR AGENCIES/INTITUTION/PLAYER FOR S&W Food corporation of India : Fci is not work for public it is only for govt. State warehousing corporations : separate warehousing were set up for the state govt for the separate use. 3. Central warehousing corporation : C W C is mainly used by the central govt but some times . It used by state govt also.

19. CONVENTIONAL METHODS OF S & W 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 . In ancient time we stored the commodity( wheat, rice, maize, pulses) in drum which made up of soil , bricks etc ( kothi )

20. JUST IN TIME (JIT) system promotes product delivery directly from suppliers to consumers without the use of warehouse Retailing trends led to development of WAREHOUSE-STYLE RETAIL STORES INTERNET BASED STORES do not require physical retail space but still require warehouse to store goods Warehousing Companies are transforming into third-party logistics providers or 3PLs . RADIO FREQUENCY IDENTIFICATION (RFID) TRANSPORTATION MANAGEMENT SYSTEMS PICK-TO-LIGHT TECHNOLOGY VOICE-ACTIVATED RECEIVING ANG PACKAGING Modern trends

21. MERITS AND DEMERITS Maximum market coverage Increased sales Maximization of customer services Moderate transportation cost Better control Effect savings in freight charges Maximum time utility Huge investment in inventory Chances of stock-out situation is high Huge warehousing developments costs Shortage of goods at one warehouse from another require additional transportation costs

22. Conclusion Warehouse are an important part of any supply chain industry, The Indian warehousing sector is progressively getting redefined from the traditional concept of “ Godowns ” to modern day set-up with technology but it needs up gradation Measures to improve its utilization by farmers are needed.