Warehousing Types

The object is to select a type that provides the firm with the ability to achieve the least total cost necessary to efficiently and effectively execute logistics functions while facilitating attachment of enterprise strategic performance targets. The optimal warehouse decisions should permit the firm to leverage inventory levels and transportation models that effectively support marketing, sales, order processing and inventory planning in quest for competitive advantage. Warehouse can be categorized into categories on various variables.

1. On the basis of the ownership
   1. Company owned warehouses
   2. Public warehouses
   3. Contract warehouses
2. On the basis of operations
   1. Planned or base warehouses (centralized warehouses)
   2. Distribution centre warehouse (decentralized warehouses)
3. Other popular types of warehouses
   1. General merchandise warehouse
   2. Refrigerated or cold storage warehouses
   3. Special commodity warehouse
   4. In bond warehouses (shops)
   5. Open bonded warehouses
   6. Bonded warehouses
   7. Free trade zones
   8. Combination warehouses

Distributing Centres

• Special kind of warehouse designed to speed the flow of goods and avoid unnecessary storing costs.
• Speeds bulk breaking to reduce inventory carrying cost.
• Helps to centralize control and coordination of logistics activities.
• Products may immediately move (cross docking) from a truck or train at an incoming loading dock to an outgoing loading dock.

Location

The location of a warehouse depends upon the characteristics of the firm in question like the distribution channel, the resources a company has, the customer service level etc. depending upon these variables a company can opt for either of the three locations;

1. Market oriented – Warehouse which is located near to target market or customers. This facilitates; a. short delivery movement b. speed of service to the customers.
2. Production oriented – Warehouse which is nearer to the production point, and only after processing the goods are shipped. This facilitates a. economies in transportation cost b. the products once received in production oriented warehouses are then shipped in assorted lots to retailers.
3. Intermediately oriented – These warehouse not only service the market by decreasing the lead time but also provide the facility of transport cost.

In order to locate a warehouse at the most optimum position we should consider two scenarios; i.e.

1. Single depot location
2. Multiple depot location

Transportation system

Transportation is just one part of complex international supply chains. However, today, with growing challenges in our transportation system, we must avoid that transportation becomes the weakest link in the chain, and threatens the efficiency of conception, production, and distribution of our products. This is the reason why people responsible for logistics and supply chains have a keen interest in understanding today’s transportation challenges. As the final user of freight transport, they want to participate in the debate and in new ideas on the future of the transport system. The transportation system, and transport policy, is well advised to better understand the requirements of modern logistics today. Responding to the challenge of smoother, more efficient transportation for increasingly sophisticated supply chains will improve the overall performance of the transport system. It will eliminate waste and thus gives an opportunity, by responding more intelligently to transport demand, to reduce the negative impacts of transport. Because the logistics sector is of such fundamental importance to transportation, and logistics cannot work without transportation.