Warehousing:

This happens to be another important facet of logistics chain and works side-by-side with transportation. It is that segment of logistics function that deals with storage and handling of inventories beginning from supplier receipt to consumption point. The management of this includes the maintenance of accurate and timely information associating to inventory status, location and disbursement. Factors influencing the warehousing decisions are following :

• Type of distribution system
• Lead time and uncertainty in manufacturing and transport
• Quantity and potential for obsolescence
• Competitiveness
• Economic condition

Warehousing performs a variety of roles as mentioned below:

Material Handling

It involves storing, receiving and shipping of materials.

Storage

This maximizes customer services by developing product and location positioning.

Transfer of Information

It ensures timely and accurate information on inventory status, equipment, space utilization, and manpower availability and transport capacity.

In order to develop an effective warehousing strategy the following areas ought to be addressed:

• Documentation of presents warehouses operations.
• Documentation of the storage facilities and put forth requirements over the planning horizon.
• Recognize the shortfalls in the warehouses that are available including the deficiencies.
• Alternate warehousing plan to meet contingencies in strategy.
• Selection of the best alternative.
• Update the warehouse strategic plan.