Logistics lecture-12-warehousing-3
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This document discusses various topics related to warehousing. It describes different types of warehouses such as private, public, and contract warehouses. It also discusses warehousing costs including receipt, handling, dispatch, storage, construction, and operational costs. The document provides factors to consider when deciding which type of warehouse to use such as investment, control, flexibility, and risk. It outlines a warehouse decision model and discusses factors that affect warehouse site selection like market proximity, infrastructure, accessibility, and product characteristics. Finally, it lists some warehousing strategies such as capacity switching, hub networking, cobbling, and outsourcing.
Logistics lecture-12-warehousing-3
- 1. Logistics Management (Part of ORL) BBA (Semester 4) Faculty : Ravi Kumar Singh, International School of management Patna Lecture-12 : Warehousing
- 2. Lecture-12 : Warehousing Topics to be discussed- ● Types of Warehouses ● Warehousing Costs ● Warehousing Decisions ● Warehousing Location Analysis ● Warehousing Strategies ISM Patna/Logistics_1_Ravi_K_Singh
- 3. TYPES OF WAREHOUSES ● On the basis of Ownership: ○ Private Warehouses ○ Public Warehouses ○ Contract warehouses ● On the basis of Service: ○ Bonded Warehouse ○ Field Warehouse ○ Cold Storage /Refrigerated Warehouse ○ Distribution Warehouse ○ Buffer Storage Warehouse ○ Export & Import warehouse
- 4. WAREHOUSING COSTS 1. Receipt, Handling and Despatch (RHD) Cost • 2. Storage Cost (rental) • 3. Construction and Installation Cost • 4. Operational & Administrative Costs
- 5. Which Warehouse to use… Influencing Factors Private WH Public WH Contract WH Investment Very high None Very less Controls High Low Medium Operation Flexibility High Low Medium Cost per unit stored Inversely related to volumes Low Inversely related to volumes Risk High Low Medium
- 7. Warehouse Site Selection Decision (Location Analysis) Decision regarding site selection revolves around two major factors- 1. Level of Service & 2. Cost to serve Specific factors affecting site selection are: a) Market proximity b) Infrastructural facilities c) Accessibility d) Safety & Security e) Availability of space with respect to price of land f) Nature of the product g) Value Density of product h) Taxes and levies i) Govt. Regulation
- 8. Warehousing Strategies 1) Capacity Switching 2) Hub Networking 3) Cobbling 4) Outsourcing