WAREHOUSING

AND
STORAGE
F U N C T I O N S O F M AT E R I A L
M A N A G E M E N T

ANDREA MAE C. LABOS

BGT MDT 1B
  Warehousing and Storage is an act of

Warehousing & storing and assorting the finished

Storage goods so as to create maximum time

utility at minimum cost.

“Warehousing is the
storage of goods for
profit.”
Warehousing
Warehouses are bigger and can
handle much greater loads of items.
They often have cranes and forklifts
for moving goods

What?
It is a structure or building design
keeping in mind raw material and
finished goods it is going to store.
ALTERNATIVE WAREHOUSE
strategies

Private Contract
Warehouse Public Warehouse
Warehouse
 It is owned and managed by the same enterprise
Private warehouses provide more control
that owns the merchandise handled and stored at
since the enterprise has absolute decision-
the facility. It is less costly than public
making authority over all activities and
warehousing because private facility costs do not
priorities in the facility.
have a profit markup.

A public warehouse , is operated as an  (1) general merchandise

independent business offering a range of services (2) refrigerated
-such as storage, handling, and transportation- on (3) special commodity
the basis of a fixed or variable fee. (4) Bonded
(5) household goods and furniture

It is a long term, mutually beneficial

Contract warehousing, which is
arrangement which provides unique and
evolving from the public warehouse
specially tailored warehousing and logistics
segment, provides benefits of both the
services exclusively to one client, where the
private and public alternatives.
vendor and client share the risks associated
with the operation.
WAREHOUSING
MANAGEMENT
Storage involves making of
proper arrangement for retaining
goods in perfect state without
losing properties and qualities
till these are needed by the
ultimate consumer and taken to
the market.

AIMS:
To control the movement and
storage of materials within a
warehouse.
 9 FUNCTIONS

• Receiving of goods
• Preparations of records
• Identification
• Storing
FUNCTIONS OF • Packing
WAREHOUSING • Information about receipts
MANAGEMENT • Breaking of bulks
• Search the goods
• Delivery of goods
WAREHOUSING
MANAGEMENT
SYSTEM What?
A warehouse management system
(WMS) is a software application
used to monitor and control
warehouse operations and materials
right from the point they are received
into the warehouse, when they are
stored, and finally to when they
reach the end-customer.
FUNCTIONS TRACKING STOCK
PICKING AND
SHIPPING
OF WMS

MANAGERIAL
LAYOUT DESIGN
INFORMATION

REAL - TIME LABOUR

INSIGHTS MANAGEMENT
STORAGE
What?
It is the marketing function that involves
holding goods between the time of their
production and their final sale.

Storage facilities generally consist of

many smaller units of various sizes. It
can be used by individuals and
businesses.
Storage Management
Storage involves making of proper
arrangement for retaining goods
in perfect state without losing
properties and qualities till these
are needed by the ultimate
consumer and taken to the
market. It creates both time and
place utilities.
.

AIMS:
To preserve goods from the time
they are produced till they are
needed for consumption.
Importance
Creation of Form Utility

Stabilizing Prices

Regular Production

Finish Ability To Face Natural Calamities

Creation of Time Utility

Reduction of Risk

Creation of Place Utility

Saving in Transportation
Cost
Finance Function
Economies of Large Scale
“The need for storage arises
mainly because of the time
gap between production and
consumption of goods.” 
NEED FOR
STORAGE