Cargo Storage and Warehousing
Cargo Storage and Warehousing
Cargo Storage and Warehousing
INTRODUCTION
Meaning of warehousing
Warehousing is when you purchase goods from a manufacturer and store them
before they are shipped to another location for fulfillment. You may store these
goods in a warehouse, spare room, or other facilities. This all depends on how
much stock you have, and how big your business is. If you’ve a small business
your warehousing option doesn’t need to include transport access.
Warehousing is the act of storing goods that will be sold or distributed later. While
a small, home-based business might be warehousing products in a spare room,
basement, or garage, larger businesses typically own or rent space in a building
that is specifically designed for storage.
This brings us to the current period. Here in the 21st century, we are currently
witnessing the next major development in warehousing– automation. Whereas in
the past when heavy boxes full of goods would have to be moved by humans,
automated machines now handle most of the heavy lifting. These warehouses
usually only require a few human operators to schedule tasks while the machines
handle the rest. Products move on automated conveyors and are organized
completely by automated machinery. Although most warehouses today are still
operated predominantly by real people, the trend of warehousing automation is
growing.
It’s clear that warehousing is continuing to evolve and grow. Warehousing
technology is getting more advanced and more efficient, and it doesn’t seem to be
slowing down. Since 1967, Build Industries has been serving the warehousing and
packaging needs of the San Fernando Valley with cutting edge technology. The
team at Build Industries are experts in providing state-of-the-art efficient
warehousing and packaging solutions.
Logistics and warehousing
Logistic is the process of planning, controlling and implementation of storage
goods from the starting points and movement of the final product. Warehousing is
a planned space for the handling and storage of goods and material. By storing the
goods throughout the year and releasing them as and when they are needed,
warehousing creates time utility.
Warehousing is holding inventory in a location. Logistics is the entire process of
obtaining material from sources to putting it in the hands of users. Logistics
includes transportation, information systems, warehousing and distribution,
procurement, finance, performance metrics and so on.
Activities of warehousing
Warehouse happens to be a key function and destination of in the over-all supply
chain planning and execution. It has its purpose not only receiving and distributing
materials/goods but to many companies it is a strategic function too.
In general, a typical warehousing can be seen to be performing the following
activities:
1. Receiving goods
Accepts goods from outside transportation or attached factory
Check goods vs order/bill
Check the quantity
Check for damage
Damage reports
Inspect goods, if required
9. Quality assurance
It needs to be followed in all the stages of operation
TOPIC 2: TYPES OF WAREHOUSING
Types of warehousing
Private Warehouses:
The private warehouses are owned and operated by big manufacturers and
merchants to fulfill their own storage needs. The goods manufactured or
purchased by the owner of the warehouses have a limited value or utility as
businessmen in general cannot make use of them because of the heavy
investment required in the construction of a warehouse, some big business
firms which need large storage capacity on a regular basis and who can
afford money, construct and maintain their private warehouses. A big
manufacturer or wholesaler may have a network of his own warehouses in
different parts of the country.
Examples:
(a) Warehouses constructed by farmers/producers near their fields/places of
work.
(b) Warehouses owned and managed by wholesalers and retailers close to
their selling centers.
(c) Warehouses constructed by manufacturers near their production units.
(d) Warehouses taken on rent by retail stores.
(e) Retailers may have several regional warehouses to cater the needs of
their stores.
Public Warehouses:
A public warehouse is a specialised business establishment that provides
storage facilities to the general public for a certain charge. It may be owned
and operated by an individual or a cooperative society. It has to work under
a license from the government in accordance with the prescribed rules and
regulations.
Public warehouses are very useful to the business community. Most of the
business enterprises cannot afford to maintain their own warehouses due to
huge capital Investment. In many cases the storage facilities required by a
business enterprise do not warrant the maintenance of a private warehouse.
Such enterprises can meet their storage needs easily and economically by
making use of the public warehouses, without heavy investment.
They provide, therefore, excellent facilities for the easy receipt, despatch,
loading and unloading of goods. They also use mechanical devices for the
handling of heavy and bulky goods. A public warehouse enables a
businessman to serve his customers quickly and economically by carrying
regional stocks near the important trading centres or markets of two
countries.
For example, before festivals or before marriage seasons, retailers may order
extra merchandise to avoid ‘out of stock’ situations. These warehouses are
typically regulated by the government bodies. Costs incurred by the private
firms for the use of public warehouses are considered as variable. These
warehouses are mainly used by manufacturers/producers, exporters and
importers.
Bonded Warehouses:
Bonded warehouses are licensed by the government to accept imported
goods for storage until the payment of custom duty. They are located near
the ports. These warehouses are either operated by the government or work
under the control of custom authorities.
4. Co-operative Warehouses
As the very name implies, these warehouses are owned, managed and
controlled by co-operative societies. These societies provide storage
facilities on the most economical rates to their members only. The basic
purpose to run such warehouses is not to earn profit but to help their
members.
5. Distribution centres
This type of storage facility usually has large space, which enables fast
movement of large quantities of stores for short period. While, on the other
hand, conventional warehouses hold goods for long time, say 2 months or 1
year.
These warehouses basically by nature, serve as points in the distribution
system at which goods are procured from different suppliers and quickly
transferred to various customers. These centers provide computerized
control, which make movement of goods quick, fast and reliable.
In order to minimize delivery time, these storage facilities are found close to
transportation centers. In some cases, distribution centers handle the goods
for less than a day period such as in case of fast foods or perishable
products. Most of the goods enter in the early morning (dawn time) and is
transferred/distributed by the evening time.
Practically all products you use in your day-to-day life have passed through
the Port of Antwerp. And every product requires its own method of
transport, or packaging. Five types of cargo can be distinguished: container
cargo, liquid bulk, dry bulk, breakbulk and ro-ro.
Container cargo
Toys, televisions, DVDs, clothing, meat and computers; containers are the
best way to transport these and many similar products. By efficiently loading
the goods, they can be transported simultaneously in large quantities. One
twenty foot container can hold the shopping of 300 trolleys! Or 3,000 game
computers! Or 1,000,000 pencils! And the goods are well protected against
the elements by the container's metal walls. The fixed size of the containers
also has a major advantage. The standard sizes mean containers fit on sea-
going vessels, lorries, inland barges and train wagons.
Liquid bulk
Crude oil, petrol, fuel oil, vegetable oils and even wine; all liquid products
which are often transported on big tankers or through a pipeline to the next
destination. A lot of liquid bulk passes through the Port of Antwerp every
year. For the refineries, crude oil is the raw material they need to produce
new goods, such as fuel oil, petrol and kerosene. These products also find
their way as liquid bulk to the next destination. People heat their houses with
fuel oil or aircraft at Brussels Airport use kerosene from the Port of
Antwerp.
Dry bulk
Dry bulk refers to grain, coal, iron ore, cement, sugar, salt and sand. They
are not packaged separately, but transported in large quantities in the hold of
a ship, wagon or lorry. A lot of the dry bulk arriving in Antwerp is processed
into construction products. Blast furnaces use iron ore and coal to produce
steel. But there are also tastier examples. A lot of yeast arrives in bulk in
Antwerp, which is used to make beer or whisky.
Breakbulk
Paper, wood, bags of cocoa, rolls of steel, parts of wind turbines; these are
all products that can be transported in a container or simply put on a vessel.
The name says it, it breaks easily. To be able to lift general cargo, it is often
packaged on pallets, in crates or racks. A crane or forklift truck can easily
load or discharge the goods. Antwerp's dockworkers have considerable
expertise with this kind of work and an outstanding reputation, which has
allowed Antwerp to grow into the leading breakbulk port in the world.
Ro-ro
Ro-ro refers to 'roll on / roll off'. This name explains how the cargo is
discharged and loaded. This concerns cargo that can be driven which is only
done by especially trained drivers. Ro-ro is used for cars, busses, trucks,
agricultural vehicles and cranes. To transport as many of these vehicles in
one go, enormous ro-ro vessels have been built. Some ro-ro vessels have
enough room for more than 8,500 cars! In the Antwerp port area, ro-ro is
chiefly on the Left bank.
Manufacturing
Manufacturing firms can warehouse their inventory to coincide with
production needs. Raw materials are the basic components of production.
Similar raw materials can be grouped together based on when they will be
needed on the assembly line. Work in process is your inventory that is not
yet completed. These units can be stored until they are ready to return to the
production line. Finished goods are completed inventory that is ready for
sale to your customers. Finished goods can be displayed on your store
shelves or warehoused near the loading dock in anticipation of future sales.
Hazardous Materials
Hazardous materials you use in your manufacturing operations must be
stored safely, according to federal and state regulations. Some hazardous
materials with special storage requirements are compressed gas, fuels,
alcohol-based products, corrosive materials and toxic materials. Your
hazardous materials must be stored in separate containers in a temperature-
controlled environment. This inventory is best stored in a separate
warehouse from your other materials.
Perishables
You will need a temperature-controlled warehouse to store perishable
inventory such as flowers, food and beverage. You can store nonconsumable
flowers and plants together until they are sold. State and federal agencies
highly regulate inventory meant for human consumption. In many states,
you must obtain a license from the state before you can store perishable food
in a warehouse. To ensure food safety, the state will periodically inspect
your warehouse to see whether your inventory is properly stored.
Retail
Retail inventory can be stored in a warehouse until you receive a customer’s
order. Retail inventory is the finished goods you buy to resell at a profit.
You can sell your inventory directly from the warehouse, through your retail
outlets or online. Merchandise will flow in and out of your warehouse based
on the method you use, such as first in, first out, or last in, first out. Using an
inventory system helps you track how fast your items sell.
Storage requirements
Decide on the level of stock required and ensure good stock management.
Determine storage space requirements based on the level of stock required.
Select a warehouse that meets adequate design requirements including
security, access, size, ventilation, location and utilities.
Ensure all goods are received by the storekeeper and inspected on delivery.
Ensure the warehouse space is organised to facilitate effective storekeeping
and comply with safety standards, and allow sufficient space for delivery
and packing.
Implement good piling/stacking practices.
Implement an appropriate rotary system for the order of stock coming in and
out, considering expiry dates.
Ensure food storage complies with a food safety checklist.
If good quality warehouse options are not available, consider emergency
storage solutions such as containers and Rubb halls.
Implement minimum standards for warehouse management tools, including
the use of waybills, and other standard warehouse and inventory
management documentation.
Put in place adequate warehouse staffing including storekeeper and loaders.
Consider sharing warehouse space with other NGOs as a cost-saving
measure but ensure very clear delineation of space, controls and liabilities.
Supply the warehouse with adequate levels of materials and equipment.
Ensure safety measures are in place including safety equipment and
practices.
Put controls in place to minimize security risks to warehouse and stock.
Commodity organization
Class 1 - Explosives
The Australian Standard that outlines the requirements for the storage and
handling of explosives is AS2187.1-1998 - Explosives - Storage transport
and use - Storage.
This standard outlines the design requirements for internal portable
magazines and explosives cabinets. The main requirements for these
explosive storage devices include;
Fully welded steel or aluminium sheet metal construction no less than 1.1
mm thick.
Internally lined with wood that is securely fastened to the steel or aluminium
Fitted with a close fitting lid secured by steel hasp, staple and hinges.
Fitted with a lock and handles for lifting
Painted both internally and externally
Class 2 - Gases
The Australian Standard that outlines the requirements for the storage and
handling of gases in cylinders is AS 4332-2004 - The storage and handling
of gases in cylinders.
This standard outlines the design and construction requirements for gas
cylinder storage cages used for the storage of:
Division 2.1 - Flammable Gas
Division 2.2 - Non-flammable non toxic gas
Division 2.3 - Toxic Gas
The indoor storage of gases in cylinders must be avoided wherever possible.
The main design requirements for gas cylinder storage cages include:
Must be constructed from a non-combustible material.
Doors must open outwards
A natural ventilation system that consists of at least 2 opposing walls with
louvers. The total area of the vents shall be at least 0.1m2 per one metre of
wall length.
Must be fitted with restraining chains and bars to protect the gas cylinder
from being knocked over or falling.
Double walled sheet metal construction with at least 40mm air gap between
the walls.
Self-closing closing fitting doors that latch at 2 or more points.
The inner base of the cabinet shall form a liquid tight spill containment
sump that is at least 150 mm deep. Cabinets with a storage capacity
exceeding 250L must have a spill containment sump that has the capacity to
hold at least 25% of the aggregate storage capacity of the cabinet.
Perforated shelves to allow for free air-movement within the cabinet.
The main design requirements for outdoor chemical storage containers used
for the storage of flammable liquids include:
A liquid tight spill containment sump in the base of the store. The capacity
of this spill containment sump depends on the aggregate storage capacity of
the chemical storage container. Specific details on the spill containment
capacity can be found here.
A natural ventilation system comprising of at least two walls of fixed
louvers having at least 50% of its area as opening.
The relevant dangerous goods signage to warn workers and visitors of the
risks associated with the flammable liquids being stored.
Class 4 - Flammable Solids
The Australian Standard that outlines the requirements for the storage and
handling of flammable solids is AS/NZS - The storage and handling of class
4 dangerous goods.
This standard outlines the design and construction requirements
for cabinets used for the storage and handling of:
Division 4.1 - Flammable Solids
Division 4.2 - Spontaneous Combustibles
Division 4.3 - Substances which in contact with water emit flammable gases
The main requirements for indoor storage cabinets used for the storage of
class 4 dangerous goods include:
The cabinet shall be of a double walled sheet steel construction having a
thickness of at least 0.75mm. The gaps between the walls shall be at least
40mm.
The doors of the cabinet shall be self-closing close-fitting and capable of
releasing in the event of build up of pressure inside the cabinet.
The cabinet must have a base with a spill containment sump that is at least
150mm deep and capable of holding at least 100% of the largest package
stored inside the cabinet.
Any shelves within the cabinet must be perforated to allow for free air-
movement within the cabinet.
The cabinet must have a double walled sheet steel construction with at least
a 40mm air gap between the walls
The doors shall be self-closing close-fitting and capable of automatically
releasing in the event of a build up of pressure within the cabinet.
The cabinet must have a liquid-tight spill containment sump in its base that
is at least 150 mm deep and capable of holding 25% of the cabinets total
storage capacity.
The cabinet must have a dual skinned sheet metal construction of at least
0.75mm thick. The gap between the two sheet metal walls must be at least
40mm.
The cabinet must have self-closing close-fitting doors that automatically
release in the event of a build up of pressure within the cabinet.
The inner base of the cabinet shall form a liquid tight spill containment
sump that is at least 150 mm deep. This spill containment sump must be
designed to prevent packages being stored in the compound.
The walls, door, floor and roof of the cabinet shall be a double walled sheet
steel construction. The sheet steel must be at least 0.75mm thick and the gap
between the two walls must be at least 40mm.
The cabinet must have lockable doors.
The doors of the cabinet must be self-closing and close-fitting.
The base of the cabinet must form a liquid tight spill containment sump that
is capable of holding at least 25% of the total capacity of the cabinet.
METHODS OF STORAGE
Methods of storage