Warehousing or warehouses are large storage units used for the storage of finished goods. In some cases warehouse also store raw material from which finished good can be made. Distribution means distributing these finished goods to the consumer etc.
Warehousing is backbone of the logistic function in any company and is required to fulfill the objective of logistics.
A good warehouse must:
1. Maximize the utilization of space in warehousing
This can be done by storing consolidating products and storing them in bulks. Racks and shelves can be made use of in this process, or the item can be stocked one above another if they are not in danger of getting squashed etc. Practice of shelves and racks is especially famous in New Zealand.
2. Increases productivity of warehousing
This can be done by good information handling. If the user knows how much material is in stock and how much is required for production then it will save him form ordering the wrong stock and wasting money. It is also a good practice to keep the inventory list updated religiously for this method to avoid any confusion. Productivity increases when plant is working most efficiently and it starts and ends at the warehouse.
3. Asset utilization
All the assets in the warehouse; shelves, racks, pallets, computers and files for inventory etc. must be utilized to their maximum capacity.
4. Reduce Material handling and operating cost
This is done by reducing number of required material loading and unloading and material movement. The operating cost is reduced by making one station for loading and unloading so that less labor force is required for this purpose etc.
5. Reduce storage time in warehousing
Minimize the distance between unloading station and the storage station. This can also be done by providing easy access to the storage area so that items can be placed and withdrawn in short time. The way should be clear of any hurdles and extra items. Products not in use or those deteriorating should be disposed of accordingly.
Most of the companies in New Zealand follow these 5 golden rules on increase and meet the objective of their logistics and warehousing.