INTRODUCTION

AMAAN :
A hearty Good Morning to one and all present here. And our
topic for today is Warehousing. In today’s fast-paced business
world, the movement of goods and products is essential for the
success. This is where Warehousing comes in handy. But what
does warehousing mean? Warehousing refers to the process of
storing goods until they are ready for transportation to retailers,
distributors, or customers.

Today we will see what are the types of warehouses, its

functions, key features etc so we all can understand how it
plays an important role in the supply chain management.
SO LET’S DIVE IN !!

TYPES OF WAREHOUSES
MUDRA AND HARSHAD :

MUDRA— So we both we will be sharing about the types of

warehouses.
Basically, There are 5 types of Warehouses :
1. Private Warehouses
2. Public Warehouses
3. Bonded Warehouses
4. Government Warehouses
5. Co-operative Warehouses
MUDRA —
1. Private Warehouses : The private warehouses are owned
and operated by big manufacturers and merchants to ful l
their own storage needs. Big business rms that need large
storage capacity on a regular basis and who can a ord the
money, construct and maintain their private warehouses.

2. Public Warehouses : A public warehouse provides

storage facilities to the general public for a certain charge.
It works under a license from the government in
accordance with the prescribed rules and regulations.
Public warehouses provide storage facilities to small
manufacturers and traders at a low cost. Public
warehouses are generally located near the junctions of
railways, highways, and waterways.

3. Bonded Warehouses : Bonded warehouses are licensed

by the government to accept imported goods for storage
until the payment of customs duty. These warehouses work
under the control of customs authorities. The warehouse
keeper is required to give an undertaking or 'Bond' that it
will not allow the goods to be removed without the consent
of the customs authorities.
Harshad —
1. Government Warehouses : These warehouses are owned,
managed, and controlled by central and state governments
or public authorities. It is di cult for small farmers,
businessmen, traders to own a warehouse, so these
government warehouses assist them in storing
their goods at a nominal charge.

2. Co-operative Warehouses : These warehouses are

owned, managed, and controlled by cooperative societies.
They mainly provide warehousing facilities at the most
economical rates. These types of warehouses are very
useful for farmers and traders and the general public.
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Preksha —
So as we saw the types of warehouses, now let’s begin with
the functioning of warehouses. We will understand the concept
of it through an act……

ACT-1
Amaan is a CONSUMER
Mahidhar is a SUPPLIER OF FINISHED GOODS
Mudra is EMPLOYEE OF THE INSURANCE POLICY
And Harshad works in the warehouse (worker)
{ I, Preksha will be the narrator }

So here the act begins.

Mahidhar enters the Warehouse and hand over goods to
Harshad. After receiving the goods he inspected the goods
and recorded the quantity of it.
(Here the rst step or process began, i.e. Receiving of
goods. It included the inspection and the recording of
goods).

ACT-2
Next day, Harshad got a call from his boss that Amaan will
be coming in two days to pick his goods and the Payment
is already received by him. Harshad began selecting goods
which were ordered by Amaan. And started packing and
labelling them up…..
Harshad - Oh I forgot ! Boss told me to go to Mudra , to
claim the goods which were lost by theft last week.

(Here, few more steps/processes took place like

Picking, i.e. selecting of goods, Labelling and Packing
which is preparing goods for shipment)
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ACT-3
Harshad goes to Mudra to claim the insurance. Mudra
investigated how did the goods get destroyed and asked
few more Questions.
She told Harshad ———
[ MUDRA’s Dialogue ] : You have taken the policy of
Property All-Risk which covers the claims related to
theft and natural disasters. So you will get a claim of it.

Preksha — ( Here, nothing related to the functioning of

warehouse happens, but this was related to the
Insurance Policy of Warehouses— The policies can be
broadly classi ed into two categories: Property All-Risk
(PAR policy) and Cargo Insurance policy, which covers
the commodities stored in the warehouse. The PAR
policy covers claims related to theft and natural
disasters. The Cargo Insurance policy covers goods
stored in the warehouse. )

ACT-4
Harshad was ready with goods to gave them to Amaan.
Amaan came and took away his goods.

Preksha — ( At last, the process ends with the shipping

of goods )
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 So to summarise it , The working or functioning of
Warehouses has 6 steps/processes which are Receiving,
Storing, Picking, Packing, Shipping, and Returns.
Receiving involves inspecting and documenting incoming
goods. Storing is organising and storing goods in the
appropriate location. Picking is retrieving goods for order
ful lment. Packing ensures proper packaging. Shipping
coordinates transportation. Returns handle and process
returned goods. Understanding these processes ensures
e cient warehouse operation.

Amaan—
Now, Mahidhar will be sharing upon the topic : Relation
between Warehousing and Market Price.

Mahidhar —
The relationship between market price and warehousing can be
summarized in four key points:

1. Supply Management :— Warehousing allows businesses

to manage supply by storing excess inventory during
periods of low demand and releasing it when demand
rises. This ability to control supply helps stabilize market
prices, preventing extreme price uctuations due to sudden
shortages or oversupply.

2. Cost Impacts :— The costs associated with warehousing,

including storage fees, insurance, and labor, directly impact
the overall cost of goods. Higher warehousing costs can
lead to increased market prices as businesses pass these
expenses on to consumers.
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 3. Inventory as a Bu er :— Warehousing serves as a bu er
against supply chain disruptions, such as transportation
delays or production issues. By maintaining inventory
reserves, businesses can continue to meet market demand
without causing signi cant price spikes.

4. Strategic Market Timing :— Warehousing enables

businesses to time the release of products strategically.
By holding inventory during periods of low prices and
selling when prices are higher, companies can maximize
pro ts.

These four points demonstrate how warehousing plays

a crucial role in in uencing market prices through
supply management, cost control, bu ering against
disruptions, and strategic timing.

Harshad—
So at-last i would like to share some basics precautions
related warehousing.
1. Ensure Safety Equipment are being used.
2. Ensure Safety Equipment are being used.
3. Control Electrical Hazards
4. Clearly label designated hazardous zones
5. Inspect Ladders before use
6. Be emergency ready
7. Implement Safeguards
8. Respiratory Protective Equipment should be used.
9. Proper Safety Procedures should be kept in mind.
10. Preventive Maintenance should be done properly.
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