Warehousing Functions and Objectives

Warehousing is arguably one of the most vital auxiliary functions to trading, which facilitates time utility through abridgment of the time gap of the production with the consumption of goods. For an organization to be effectively and efficiently managed, its constituent elements need to be operated effectively and efficiently similar to individual small business units (SBUs) / facilities and together as an integrated whole corporate unit. Warehousing is also a key component in terms of distribution of goods across the supply chains, right from raw materials through to work-in-progress and finished goods. And therefore, its roles and objectives should be commensurate with those of the supply chain network. Neither is warehousing a separate activity, nor should be considered a weak connect to the entire supply chain network.

Warehouses can be of different shapes and sizes, with a storage capacity of a few thousand square meters to handle modest throughputs, to 100,000 pallets + range of throughputs, and hundreds of pallets per hour of throughputs.

Objectives of warehousing

Some of the traditional functions of warehousing are enlisted below:

• receiving
• identification and sorting
• dispatching to storage
• placing in storage
• storage
• retrieval from storage
• order accumulation
• packing
• shipping
• record keeping

During the designing stage of warehousing systems, it is necessary to maximise labour utilisation, equipment utilisation, space utilisation, protection of all materials, and accessibility of all materials.

The maximum protection of items can be assured through storage of goods in ample space with adequate equipment by well-trained personnel.

Function of Stores

The term ‘stores’ is referred to a physical location, whether it is a room or a building, etc., where materials of different varieties are stored or kept. Stores are also known as warehouse, or storehouse. The basic function of a storehouse is to receive, store and issue materials. Therefore, stores are divided into sections, including receiving, tools storing, raw materials storage, and finished materials storage. While stores networks are considerably complex, they offer the opportunity for enrichment.

The Stores function is an important element of materials department, with direct interface with all user departments in its day-to-day working. Stores enable uninterrupted service to manufacturing departments as well, and act as an intermediary between manufacturing and purchase departments on one hand, and between manufacturing and marketing departments on the other hand. To avoid any faulty forecasts, stores function is essential. It is an indispensable ingredient of all business and non-business firms, whether they are public or private, industrial- or service-oriented, or large or small.

Following are the prime functions of stores:

• Receive raw materials, part components, spares, tools, supplies, equipment and other materials, and maintain records thereof.
• Provide sufficient, proper and effective storage and preservation for all materials. This includes the physical supervision of the inflow of materials as per the invoice (or delivery challan) and proper maintenance of daily goods receipt records or register.
• Arrange for inspecting inflow of materials. This includes ensuring that goods inward notes are raised and distributed positively.
• Make the issuance of materials to the concerned departments and maintain accurate, up-to-date accurate records thereof.
• Ascertain that all documents related to issue and receipts of materials are dispatched to stock control department, accounts department and other relative departments. This includes verifying stock as per standard procedures.
• Make emphasis on accumulating stock, discrepancies, abnormal consumption, and take corrective action, as need be.
• Reduce surplus, obsolescence and scrap via proper coding, standardization, handling and preservation.
• Ascertain good housekeeping to lessen the need for material handling.
• Ensure the availability of a balanced flow of materials and economies of scale on capital invested in stock inventory.

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