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Warehousing Management

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Warehousing Management
A warehouse is a commercial building for storage of goods. Warehouses are used by manufacturers, exporters, wholesalers, retailers, transport business, etc. They are usually large plain building with loading bays to load and unload goods from truck. They often have cranes and forklifts for moving the goods placed on pallets.

The main function of warehouse today is serves much more than traditional function of storage. Some of the main function of warehouse serves today like; receive goods and accept responsibility by update records. Identify goods label, color code, etc. Sort of goods received based on the identification for appropriate storage area. Dispatch/put away sorted goods to a appropriate storage place. Hold goods with security against pilferage. Selecting, retrieving and packing of goods according to customer order for dispatch. Assemble the goods of a customer’s order and update the record. Dispatch goods to the right transport. Prepare records and advices of stocks and replenishment requirements.

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Other than the above function the warehouse performs, there are also economic benefits for having a warehouse. The economic benefits of warehousing occur when overall logistics cost are reduced. For example, if having a warehouse reduce the overall transportation cost by an amount greater than required investment and operational cost, then the total cost will be reduced. When total cost reductions are achievable, the warehouse is economically justification. The four basic economic benefits are: consolidation and break-bulk, sorting, seasonal storage and reverse logistics.

Consolidation occurs when a warehouse pull together small shipments from a number of sources and combine them into larger, more economical, shipping loads intended for same location. Small, flexible shipment in. Large, economical shipments out. The benefits of consolidation are the lower in transportation cost as goods

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