The Vital Role of Warehousing - Research Paper Example

Warehousing Abstract Every business organization requires well built and structured warehouse where goods can be stored while awaiting sales. Warehousing is an essential service for producers, wholesalers and retailers of goods. There different types of warehouses depending on the kind of goods that are handled in specific business organizations. Some goods improve in value with the time when they are in the warehouses while others depreciate. An active economy requires well managed, furnished and equipped warehouses in order to facilitate the rate of handling goods and clearing process.

It is worth noting that warehouse system has been changing with significant change in time, more so the advancement in technology. Currently, warehousing has taken a new look and shape as plans and negotiations are done via internet and telephone services. This paper will therefore settle upon random analysis of warehousing with particular focus on the technological advancement. Introduction Warehousing refers to commercial building majorly reserved for storage of goods. Warehouse users range from importers, exporters, manufacturers, distributors, retailers, and farmers among other business oriented sectors.

There has been increasing transformation on warehousing with regard to the ways of handling goods. In the current electronic commerce generation, almost every activity in the warehouses is performed by machines and computers. Introduction of advanced technology in the sector of warehousing has led to massive loss of job opportunities to many citizens across the world. Technological development has made it easy for the storage of perishable goods in the warehouses for a long time without necessarily going bad.

Advanced technology has also eased transactions and agreements through the use of computers. Furthermore, technological advancement has made it easy for the door to door delivery services, which is also coupled with the developed transport systems. Mechanization of goods has reduced handling of goods, which at times result into spoilage of the goods. Frazelle (2002) confirms that there are warehouse plays a vital role in the supply chain of a nation. In the views of Frazelle (2002), there are several classifications of warehouses depending on the kind of goods on hold and environment of the business organization.

The first classification of warehouses in the views of Frazelle (2002) is one that holds raw materials at the manufacturing and processing points waiting for induction in the processing line. Another kind of warehouse is the work in process warehouse. (Frazelle, 2002). Work in process warehouse stores goods that have undergone partial completion and set in process along various points in the production line. Finished goods store is that holds finished goods out of production line and waiting for distribution to the various points of sales.

Frazelle adds that finished goods stores are usually located near or adjacent to the production plant and operates on the basis of receiving goods from the production plant and releasing the same goods out of the business organization. Another kind of warehouse in the views of Frazelle (2002) is one that deals with distribution of goods. Distribution warehouse collects and accumulate goods from various manufacturers while waiting for transportation to the customers’ common point of collection.

Local warehouse is a store in the field used by business organization to shorten customers’ movements and establish quick response to the demand of customers. Frazelle (2002) confirms that local warehouse allows customers to pick single goods at times the goods may dropped to the customers’ point on a daily basis. Frazelle (2002) admits that running of warehouses has been a big problem to the business managers since they desire to maintain high services to the customers yet cutting operation costs.

Balancing of the two key factors in the operation of warehouse has not been easy and success has based on individuals’ entrepreneurial skills. However, Frazelle (2002) raises the confidence of managers and advices managers to raise their level of executing services on smaller transactions. The managers of warehouse are also advised to encourage storage and handling of more items in a single store as this will help in financing particular services. In addition, managers are required to raise the level of value addition for the products under question in order to attract more customers and lift the sales margin.

Moreover, managers are encouraged to magnify their business operation by accepting and processing international orders. Frazelle (2002) confirms that warehouses play significant roles in the business world. Among the roles of warehousing is receiving of goods. Frazelle (2002)) explains that warehouses collects goods flowing inside the warehouse and confirms that quantity and quality of the goods received before passing them to the store or setting on sales to customers. Warehousing also qualifies the function of packaging of goods upon reception from the supplier.

Frazelle (2002) exemplifies that upon receiving bulky goods, warehouses may require to break the quantity of goods and assort the goods according to particular. Packaging of goods also helps in organization of store and creation of sufficient spaces for effective handling of goods. Putaway warehouse service involves handling of merchandise and locating proper placement point of the product within the warehouse (Frazelle 2002). Sorting of orders is another key function of warehousing, whereby items in an order are sorted according into different groups depending on the features and method of storage required.

Warehouses carries the cross checking to verify completeness of each order. In addition, warehousing assumes the role of packaging goods in the shipment containers in line with preparation of transit documents that contain addresses and bills of lading. Moreover, warehouses do the weighing of packed merchandise to determine the costs of shipping. In the reports of Frazelle (2002), warehouses provide storage for physical goods that are ready for consumption. The method of storage of a particular sample of goods depends on the size and quantity of the specific goods, features of the goods and the container in which it is packed.

Warehouses also carry the function order distribution to the customers to meet the contemporary demand in market. In order to operate a successful warehouse, there are some principles that a manager has to define. Among the important principles is profiling. Frazelle (2002) reports that profiling helps in the creation and maintenance of orders through identification of certain problems that inconvenience the business along with possible solution to the existing problems. It is also essential for managers to set benchmark of performance and practices of a warehouse and compare with the world class standards of warehousing to identify the infrastructural gaps that may hinder effective performance of the warehouse.

Activity profiling in a warehouse setup refers to the processes designed to assist in quick identification of problems that alter with the flow of information into the warehouse and reveal the existing opportunities for improving the problems. Frazell (2002) admits that profiling has positive implications on a business organization especially when properly handled. Profiling of warehouse offers business organizations opportunities to identify new areas of investment. Frazelle (2002) elucidates that profiling speculates the accuracy of activities carried in a warehouse as it may involve comparison of data handled by different individuals in the same organization.

In addition, profiling provides rooms for viable decision making that are basic to continued positive performance of the business. Activity profiling encourages creativity and innovation among the employees, a case that can improve the performance of the business. Moreover, activity profiling encourages appropriate planning and designing of the warehouse in a position of effective handling of goods. In conclusion, warehousing refers to the storage of goods in special buildings. Warehouses are classified according to the nature of merchandise on hold and the strategic location store.

It therefore follows that there are raw material and component stores that accumulates raw materials within the manufacturing plant while waiting for induction into processing line. There is also work in process stores, which handles unfinished goods at different points along the production or assembly line. From the actual manufacturing, goods are passed to the finished goods warehouse located within the production plant waiting for distribution to respective customers. Distribution warehouses are located near consumers with sole aim of availing the goods at the very near access points for customers.

It is also noteworthy that running warehouse is uneasy task since it requires to fulfill the two competition and essential components of warehouse. Normally, management of warehousing desires to satisfy consumers’ ultimate interest, which goes at some costs. Reference Frazelle, E. (2002). World-class warehousing and material handling. New York: McGraw Hill Publishers.