STORAGE AND WAREHOUSING Presented By Chandan Singh Dr. Rajendra Prasad Central Agricultural University, Pusa MBA(AGB)/92/2015-16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INTRODUCTION Storage 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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: 1, Gunny bags — made of burnt jute 2. _ Earthen containers ~ made of burt clay of capacity ranging from 0.5 to 3 qt. 3 Bamboo containers — indoor and outdoor structures constructed with split bamboo or locally available plants with walls plasters with mud. 4, Underground structures ~ shallow underground pits with depths varying from I to 1.5m depending upon the water table of the area,es Aaweene 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FEATURES OF S & W 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 warchouses 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6. SAFETY MEASURES : A warehouse, which basically is used to store catables or perishable goods like bread, butter, fruits, eggs and vegetables should be equipped with proper cold storage, moisture resistance ete 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. & PROPER MANAGEMENT : If warehouses are not managed properly, all the money spent will go waste.TYPES OF WAREHOUSES PRIVATE PUBLIC GOVERNMENT CO-OPERATIVE WAREHOUSES WAREHOUSES | WAREHUOSES WAREHOUSES BONDED DISRIBUTION COLD ee ND MenEHOUeES WAREHOUSES _ ee IMPORT FIELD CLIMATE — 1 AGRICULTURAL CONTROLLED Hier tet WAREHOUSES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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. GOVERNMENT WAREHOUSES » OWNED, MANAGED AND CONTROLLED -Central or State Governments or public corporations ‘or local authorities EXAMPLES- Central Warehousing Corporation of India, State Warchousing Corporation and Food Corporation of India Ifcustomer cannot pay rent within specified time authority can recover rent disposing of goods4, CO-OPERATIVE WAREHOUSES, Owned, Managed and Controlled — Co-operative societies ‘® Facilities at most economical rates to members Located-Punjab, Kamataka, 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 4 Owned and Operated ~ PORT TRUSTS 4 Acts in two capacities viz LANDLORD and BAILEE OF GOODS ‘ As landlord provides storage facilities on rent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 change + Temperature variation is controlled to degree necessary for certain sensitive items8. EXPORT AND IMPORT WAREHOUSES + LOCATION -near ports where international ade is undertaken + Storage facilities for goods awaiting onward movements + Facilities- packaging , inspection, marking ete. 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, ete.10. AGRICULTURAL WAREHOUSES ‘Store agricultural produce grown in a certain area Location ~ Assembling or regulated markets agricultural commodities either direetly from farmers or through their ‘commission agents or from wholesalers Recei Encourage speculative tradingMAJOR AGRI-COMMODITIES TO BE STORED Wheat Paddy Pulses Maize Vegetables Fruits Dry fruits Flowers cen eanewene Spices 10. Oil seeds 11. FertilizersNEED AND IMPORTANCE * REGULAR SUPPLY QUALITY ‘ STOCK OF TRADE + PRICE STABILISATION * SEASONAL PRODUCTS PERISHABLE GOODS *% CONTINUOUS PRODUCTION 4 SEASONAL DEMAND + LARGE-SCALE PRODUCTION * QUICK SUPPLY *% PROTECTION AND PRESERVATION OF GOODS 4 EASY HANDLING * USEFUL FOR SMALL BU * CREATION OF EMPLOY! *% FACILITATES SALE OF GOODS * AVAILABILITY OF CEFUNCTIONS » STORAGE OF GOODS >» PROTECTION OF GOODS »RISK BEARING > IDENTIFICATION OF GOODS » FINANCING » PROCESSINGMAJOR AGENCIES/INTITUTION/PLAYER FOR S&W 1. Food corporation of India : Fei is not work for public it is only for govt. 2. 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.CONVENTIONAL METHODS OF S & W ¥ Historically, warchouses were a dominant part of the urban landscape from the start of the Industrial Revolution through the 19th century and into the twentieth century. ¥ Inancient time we stored the commodity( wheat, rice, maize, pulses) in drum which made up of soil , bricks ete (kothi)Modern trends > 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 ‘TERNET 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MERITS Maximum market coverage > Increased sales > Maximization of customer services Moderate transportation cost > Better control > Effect savings in freight charges > Maximum time utility vv ¥ DEMERITS Huge investment in inventory Chances of stock-out situation is high Huge warehousing developments costs Shortage of goods at one warchouse from another require additional transportation costs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.