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Old warehouses in Amsterdam, Netherlands

A warehouse (in India, godown from Malay godong^[1]) is a commercial building for storage of goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. They are usually large plain buildings in industrial areas of cities and towns. They usually have loading docks to load and unload goods from trucks. Sometimes warehouses are designed for the loading and unloading of goods directly from railways, airports, or seaports. They often have cranes and forklifts for moving goods, which are usually placed on ISO standard pallets loaded into pallet racks.

Nature of goods stored

Stored goods can include any raw materials, packing materials, spareparts, components, or finished goods associated with agriculture, manufacturing, or commerce.

Types of warehouse storage systems

19th century warehouses in Gloucester docks in the United Kingdom, originally used to store imported corn

Some of the most common warehouse storage systems are:

Pallet rack including selective, drive-in, drive-thru, double-deep, pushback, and gravity flow
Mezzanine including structural, roll formed, rack s
Vertical Lift Modules
Horizontal Carousels

Vertical Carousels

Processes of it

Major warehousing processes include:

Receiving
Inspection/ Acceptance
Proper Storage
Order preparation / picking
Dispatching/ Delivery
Inventory management (Checking as per System vs. Actual stock)
- It can be done daily, weekly, monthly or quarterly.

Warehouses frequently provide services, such as:

Co-packing
Kitting
Repair

A piece pick, also known as broken case pick, split-case pick, each pick, over-pack or pick/pack, is a type of order selection process where product is picked and handled in individual units and placed in an outer carton, tote or other container before shipping. Catalog companies and internet retailers are examples of predominantly piece-pick operations. Their customers rarely order in pallet or case quantities; instead, they typically order just one or two pieces of one or two items.

Material direction and tracking in a warehouse can be coordinated by a Warehouse Management System (WMS), a database driven computer program. Logistics personnel use the WMS to improve warehouse efficiency by directing putaways and to maintain accurate inventory by recording warehouse transactions.

Automation and optimization

Some warehouses are completely automated, and require only operators to work and handle all the task. Pallets and product move on a system of automated conveyors, cranes and automated storage and retrieval systems coordinated by programmable logic controllers and computers running logistics automation software. These systems are often installed in refrigerated warehouses where temperatures are kept very cold to keep product from spoiling, especially in electronic warehouse where they require specific temperature to avoid damaging the parts and also where land is expensive, as automated storage systems can use vertical space efficiently. These high-bay storage areas are often more than 10 meters (33 feet) high, with some over 20 meters (65 feet) high. Automated storage systems can be built up to 40m high.

For a warehouse to function efficiently, the facility must be properly slotted. Slotting addresses which storage medium a product is picked from (pallet rack or carton flow), and how they are picked (pick-to-light, pick-to-voice, or pick-to-paper). With a proper slotting plan, a warehouse can improve its inventory rotation requirements—such as first in, first out (FIFO) and last in, first out (LIFO)—control labor costs and increase productivity.^[2]

Modern trends

Traditional warehousing has declined since the last decades of the 20th century, with the gradual introduction of Just In Time (JIT) techniques. The JIT system promotes product delivery directly from suppliers to consumer without the use of warehouses. However, with the gradual implementation of offshore outsourcing and offshoring in about the same time period, the distance between the manufacturer and the retailer (or the parts manufacturer and the industrial plant) grew considerably in many domains, necessitating at least one warehouse per country or per region in any typical supply chain for a given range of products.

Recent retailing trends have led to the development of warehouse-style retail stores. These high-ceiling buildings display retail goods on tall, heavy duty industrial racks rather than conventional retail shelving. Typically, items ready for sale are on the bottom of the racks, and crated or palletized inventory is in the upper rack. Essentially, the same building serves as both warehouse and retail store.

Another trend relates to Vendor Managed Inventory (VMI). This gives the vendor the control to maintain the level of stock in the store. This method has its own issue that the vendor gains access to the warehouse.

Large exporters/manufacturers use warehouses as distribution points for developing retail outlets in a particular region or country. This concept reduces end cost to the consumer and enhances the production sale ratio.

Cool Warehouses/ Cold Storage

File:Meat And Fish Cold Store.jpg

Cold Store

Cold storages, preserve agricultural produce for a fixed period of time (varying from one day and extending upto several months) at low temperature. Refrigerated storage helps in eliminating sprouting, rottage and tuber moth damage and in reducing weight loss of the agricultural produce. The edible products are generally not stored for more than one year. Several cold storage store perishable products which require the storage temperature as low as -25 degree celsius.As a general practice, the arrangement of products within the cold storage is managed by the cold storage staff members and not by the product owner, therefore the responsibility to deliver the product in appropriate condition, remains in the hands of the cold storage owner or the insurance company.

Introduction

Cold Storage is a special kind of room, the temperature of, which is kept very low with the help of machines and precision instruments. The cold storage facilities are the prime infrastructural component for such perishable commodities. Besides the role of stabilizing market prices and evenly distributing both on demand basis and time basis, the cold storage industry renders other advantages and benefits to both the farmers and the consumers. The farmers get opportunity of producing cash crops to get remunerative prices. The consumers get the supply of perishable commodities with lower fluctuation of prices. Commercially apples, potatoes, oranges are stored on large scale in the cold storages. Other important costly raw materials like dry fruits, chemicals, essences and processed foods like fruit juice/pulp, concentrate dairy products, frozen meat, fish and eggs are being stored in cold storages to regulate marketing channels of these products.

Cooling Technology

File:Cold-Storage-for-Fruits.jpg

Cold Store Material

At present there are two popular refrigerants in the market. One is Freon and the other is Ammonia. Ammonia and Freon compressors are being manufactured indigenously. Ammonia refrigerant is cheaper, easily available and is of high latent heat of evaporation but it has certain disadvantages like being highly toxic in nature. It also forms explosive mixture when mixed with oil containing high percentage of carbon. Rooms of different temperature must be separated by insulation and should be protected from moisture. Whenever possible, one coating of foam glass with vapour proof material should be used against the outside wall. While fixing the insulation, the points to be kept in mind are:

(a) The surface to be insulated should be completely moistureproof and be reasonably even, free of lump or hole plaster on the walls. The ceiling must be cured before surface is insulated.

(b) Precaution must be taken to ensure that the moisture from outside can not penetrate through the wall, ceiling or floor
(c) The partition wall between two chambers should be insulated from both sides.

Fruits and vegetables which are to be kept in cold storage, are sorted out and the bad ones removed. The sorted material is packed preferably in wooden/ plastic carton boxes and then kept in cold storage chambers. The temperature and humidity is to be maintained depending upon the commodity kept in the store.

A cold storage unit incorporates a refrigeration system to maintain the desired room environment for the commodities to be stored. A refrigeration system works on two principles:

  1.Vapour absorption system (VAS)
  2.Vapour compression system (VCS)

VAS, although comparatively costlier, is quite economical in operation and adequately compensates the higher initial investment. Wherever possible such a system should be selected to conserve on energy and operational cost. However, it has its own limitations when temperature requirement is below 100 degree Celsius and many of the fruits and vegetables except seeds, mango, etc. require lower than 100C for long storage.

VCS is comparatively cheaper than VAS. There are three types of VCS systems available depending upon the cooling arrangements in the storage rooms i.e., diffuser type, bunker type and fin coil type. Diffuser type is comparatively costlier and is selected only when the storage room heights are low. The operational cost of such units are also higher. Bunker type is the cheapest and is preferred when storage room heights normally exceeds 11.5 m. Its operational cost is also low. Fin coil type, although about 5% costlier than the bunker type, is very energy efficient with low operational cost and higher space availability for storage of produce. Such system is used for units with room heights of 5.4m onwards.

Storage Food and Storage Conditions

Foods and many other commodities can be preserved by storage at low temperature, which retards the activities of microorganisms. Micro organisms are the spoilage agents and consist of bacteria, yeasts and molds. Low temperature does not destroy those spoilage agents as does high temperature, but greatly reduces their activities, providing a practical way of preserving perishable foods in their natural state which otherwise is not possible through heating. The low temperature necessary for preservation depends on the storage time required often referred to as short or long term shortage and the type of product.

In general, there are three groups of products:

  1. Foods that are alive at the time of storage, distribution and sale e.g. fruits and vegetables,
  2. Foods that are no longer alive and have been processed in some form e.g. meat and fish products, and
  3. Commodities that benefit from storage at controlled temperature e.g. beer, tobacco, khandsari, etc.

Living foods such as fruits and vegetables have some natural protection against the activities of micro organism. The best method of preserving these items is to keep the product alive and at the same time retard the natural enzyme activity which will retard the rate of ripening or maturity.

File:Cold-Storage-material.jpg

Cold Store Material

Preservation of non-living foods is more difficult since they are susceptible to spoilage. The problem is to preserve dead tissues from decay and putrefaction. Long term storage of meat and fish product can only be achieved by freezing and then by storing it at temperature below -15 deg Celsius. Only certain fruits and vegetables can benefit from freezing. However, for fruits and vegetables one should be very careful about the recommended storage temperature and humidity a deviation from which will have adverse effect on the stored product leading to even loss of the entire commodity.

Products such as apples, tomatoes, oranges, etc. cannot be frozen and close control of temperature is necessary for long term storage. Some product can also be benefited by storing under controlled atmosphere and modified atmosphere conditions.

Dairy products are produced from animal fats and therefore non living foodstuffs. They suffer from the oxidation and breakdown of their fats, causing rancidity. Packaging to exclude air and hence Oxygen can extend storage life of such foodstuffs.

Market Potential

Approximately 20-25% of the horticulture produce goes waste due to improper post harvest operations which reduces the growers share In the present marketing arrangements. The grower is getting hardly 25-35 % of a consumer spending. There is, therefore, a need to evolve a marketing system where growers and consumers both benefit. The efforts are also on the Value Addition activities where the fruits and vegetables are processed, that fetches higher remunerative prices of the produce

Demand and Supply

Location is a very critical aspect for the success of cold storage. It should be in close proximity of growing area as well as market and at the same time should be easily accessible for heavy vehicles round the year. Uninterrupted power supply is yet another pre-requisite.

Marketing Strategy

Many fruits and vegetables like pineapples, apples, plums, oranges, potatoes, brinjals, cauliflowers etc. are grown in Assam. Likewise, consumption of meat, chicken, fish etc. is also substantial. Hence, there is a good scope for a cold storage unit. A possibility of storing some milk products may also be explored. Different items are stored during different times requiring different temperatures. Hence, there is a need to divide total storage space in different temperature zones depending upon local needs.

Cold Storage and the Law

There are state and local laws which regulate the cold store industry, requiring safe working conditions for employees, and operational procedures must be in accordance with these laws. Those companies which do their homework and prepare in advance for inspections and other routine enforcement protocols will be able to continue operating at full capacity, ensuring greater customer service and more product flow seven days a week. As far as the working of cold storages in India is concerned there are no central acts. Cold storages are governed by respective state acts.

Internet impact

The internet has had an influence on warehouses. Internet-based stores do not require physical retail space, but still require warehouses to store goods. This kind of warehouse fills many small orders directly from end customers rather than fewer orders of many items from stores.

Having a large and complex supply chain containing many warehouse can be costly. It may be beneficial for a company to have one large warehouse per continent, typically located centrally to transportation. At these continental hubs, goods may be customized for different countries. For example, goods get a price ticket in the language of the destination country. Small, in-warehouse adjustments to goods are called value added services.

References

^ Cassell giant paperback dictionary, 1994
^ Effectively Slotting a Warehouse or Distribution Center by By Paul Hansen and Kelvin Gibson. Cygnus Supply and Demand Chain Executive. Accessed 2010-08-06.

External links

Warehousing Education and Research Council (WERC)
[1](NABARD)
[2](Cold Storage Law)
[3] (Cold storage Intro)
[4] (Market Potential)
[5]
[6] (Market Potential)

[1] Cassell giant paperback dictionary, 1994

[2] Effectively Slotting a Warehouse or Distribution Center by By Paul Hansen and Kelvin Gibson. Cygnus Supply and Demand Chain Executive. Accessed 2010-08-06.

[1]

[2]