ROLE OF WAREHOUSING

Warehouse Retailing
-is a concept of selling large quantities of goods at discounts deeper than those
provided in conventional supermarkets or wholesalers.
-They offer very low prices and little or no customer service at all. The value
provided to customers (that include ultimate consumers and small retail outlets) is in
the form of discounts and it is overall a rather no-frills experience.
RETAIL WAREHOUSING
 Retail warehouses are large, single-level stores, typically
with a minimum of 1000 square metres gross retail floor
space, normally selling goods for home improvement or
gardening, furniture, electrical goods, carpets and so on.
They are most commonly found in the fringe of towns or
in out of town locations.
 Retail warehouses may be stand-alone buildings, or may
be located on trading estates or parks. Generally, an
agglomeration of at least three retail
warehouses constitutes a retail warehouse park. They
generally offer a significant amount of car parking,
which may be shared with other retail warehouses.
RFID IN RETAIL
 RFID in retail involves the placement of RFID Tags on
items that emit signals to RFID readers which are then
processed by software, generating real-time results for
stock taking, transactions, inventory levels, or individual
customer purchase order history.
 RFID in retail simplifies the typical retail inventory process
which is very manual, time-consuming, and only done at
predetermined intervals. Item tracking is one of the
major ways that retailers use RFID. RFID in retail can be
used to prevent theft and track items that are frequently
moved and often misplaced. RFID technology allows
retailers to track their inventory throughout the retail
supply chain, from the warehouse shelves all the way to
the sales floor.
WHY YOU SHOULD USE RFID IN
RETAIL
 - Asset tracking:
prevent theft and track assets that are frequently moved
and often misplaced.
 - Stock Management:
ensure that products are always in sufficient supply to
meet consumer demand.
 - Supply chain management:
help improve product visibility.
 - Payments and checkouts:
retailers can use RFID to shorten queues and speed up the
checkout process.
-
WHY YOU SHOULD USE RFID IN RETAIL
 Security:
Access control and prevention of theft.
 Data improvements:
Improvement in overall accuracy.
 Cycle count:
Significantly faster and more accurate.
 Store operations:
Instantaneous and continuous monitoring of item movement.
Retailing
Retail
is the sale of goods or service from a business to a consumer for their
own use. A retail transaction handles small quantities of goods whereas
wholesale deals with the purchasing of goods on a large scale. Retail
transactions are not to be confused with online transactions; goods must
be sold from a single point directly to a consumer for their end users.

Retailer
is a person or business that you purchase goods from. Retailers
typically don’t manufacture their own items. They purchase goods from
a manufacturer or a wholesaler and sell these goods to consumers in
small quantities.
Retailing
RETAILING
is the distribution process of a retailer obtaining goods
or services and selling them to customers for use. This
process is explained through the supply chain.

‘RETAIL LOGISTICS’
is the organist process of managing the flow of
merchandise from the source of supply to the customer.
FUNCTIONS OF RETAIL LOGISTICS SYSTEM

1. The increased product variety in stores has forced the retailer to follow
an effective logistics system. It takes care of the
 flow of merchandise from the producer or intermediary to the warehouse,
 arrangement of transport to the retail units till the merchandise is sold and
delivered to the customers.

2. The system satisfies the customer by taking the right product to the right
customer, at the right place and at the right time. This requires a planned
approach right from the starting point till the point of delivery.

3. Profitability of the present and future are maximized by the logistics

system by means of fulfillment of orders in a cost effective way.
FUNCTIONS OF RETAIL LOGISTICS SYSTEM
4. It ensures the availability of infrastructure such as warehousing,
transport, inventory and administration. The inter relationship that exists
between these elements are effectively coordinated.

5. Retail logistics system strives to add value for the customer. For this
purpose, the cost elements in the supply chain are brought under the
direct control of the retailer. Depending on sales volume, retailers create
central or regional distribution centres. They decide on major investment
in property, plant and equipment with associated overheads.

6.
FUNCTIONS OF RETAIL LOGISTICS SYSTEM
6. The functions incorporated in the retail logistics are summarized.
 The physical movement of goods
 the holding of the goods in stock holding points
 the holding of goods in quantities required to meet demand from the
consumers
 the management and administration of the process in modern complex
distribution system.
The top challenges facing the industry (Retailing)
 Fuel Costs. One of the highest costs contributing to the ‘cutting
transportation cost’ concern is fuel prices. Higher fuel prices are
likely to increase transportation costs for US shippers this year by
pushing up fuel surcharges. Rising US diesel fuel prices are escalating
surcharges added to freight rates, which is reversing a two-year
trend that cut into the revenue and earnings of truckers as fuel
prices plummeted.

 Business Process Improvement. Not withstanding the need for new

technology, which we discuss in number eight on this list, it has
become an increasing challenge for the logistics industry to stay on
top of new advances in business processes. Taking advantage of
these new opportunities sounds enticing but adoption and
onboarding can be overwhelming.
The top challenges facing the industry (Retailing)
 Improved Customer Service. Customers want full transparency into
where their delivery is at all times. These days, the location of a
package is as interconnected as your social network. In fact, as
customer expectations have increased, their willingness to pay for fast
shipping has decreased with just about 64 percent of consumers
unwilling to pay anything extra for less than two-day shipping.

 Economy. With high fuel prices comes a greater credit crisis and rising
inflationary demands that take a greater toll on the US economy. This
industry is then pressured by increasing compliance regulations,
declining demand, additional capacity with additional increases in key
cost centers.
The top challenges facing the industry (Retailing)
 Driver Shortage & Retention. Hiring and retention remain an issue
despite the lower demand mentioned above.
 Government Regulations. Carriers face significant compliance
regulations imposed by federal, state and local authorities.
 Environmental Issues. The anti-idling and other emission reduction
regulations brought about by state and local governments has
created concern that the compliance costs could exceed benefits.
 Technology Strategy & Implementation. While the industry
understands and supports many of the benefits of these technologies,
some questions remain as to how they will pay for it and who will help
implement the improvements.
An Ideal warehouse constitutes of the following
features:
(1) Proper Location:
 For effective movement of goods and cost saving, warehouses
should be established at places, which are convenient to both the
buyer and the seller. These warehouses should be set up near
railway stations, major highways, seaports and airports, where
goods can be loaded and unloaded conveniently. It is also
recommended to have go downs in open places so that the
vehicles can move around easily.

(2) Use of Mechanical Appliances:

 In the warehouses, mechanical appliances should be used to load
and unload the goods. It not only results in safety of men and
material but also reduces wastages in handling goods and overall
handling costs.
3) Sufficient Space:
ADVERTISEMENTS:
For an ideal warehouse, adequate space should be covered for
maximum storage and to keep the goods in proper order. Each
trader (big or small) would want that all of his merchandise should
be accommodated in one warehouse so that he need not travel to
different places to manage the loading and unloading of his goods.

4) Proximity
The warehouses should be established at a place where market for
raw materials and for selling finished goods is as close as possible.
This is the reason that big warehouses are close to commercial
places or bus stands.
An Ideal warehouse constitutes of the following features:
5) Parking Facility
Parking along road, public places in the urban/suburban areas continue to be a
harrowing experience for the traders who visit from outstations. Hence, in
warehouses, proper arrangements should be made inside the premises to assist
quick loading, unloading and safe parking.

6) Safety Measures:
 A warehouse, which basically is used to store eatables or perishable goods like
bread, butter, fruits, eggs and vegetables should be equipped with proper cold
storage, moisture resistance etc facilities. Further, efforts should be made to
secure the warehouse against possibilities of theft and damage from heat,
rainwater, insects, pests and fire. The use of fire extinguishers, safety alarms,
budgets and round the clock security arrangements should be there to secure
warehouses from unforeseen mis-happenings.
An Ideal warehouse constitutes of the following
features:
 Economical’
The warehouse location, layout, construction and maintenance
should be done in such a way that ensures maximum storage of
goods at minimum expense.

 Proper Management
If warehouses are not managed properly, all the money spent
will go waste. Mismanagement may lead to theft, loss, errors and
omissions of goods stored by various traders. Hence, a strict
control over the warehouse is essential on permanent basis. A
permanent officer should be appointed for proper arrangements
of incoming and outgoing goods.
Key benefits of warehousing includes: (Logistics)

1. Storage Facility:
This brings higher returns for your business. Manufacturing or the
purchasing of goods in bulk always makes sense in a business point of
view.

2. Convenience:
Distribution is an important part of any business, customers should
never experience out of stock situations. Having one central warehouse
that stores all your goods feeding your distribution process will have you
constantly in control of the stock available as well as what is needed in
the near future. This is called safety stocking, ensuring your business
doesn’t run into unexpected problems such as faulty stock or shipment
delays.
Key benefits of warehousing includes: (Logistics)

3. Additional Revenue:
Owning your own storage facility could provide revenue by leasing
out warehouse space. The ability to manufacture or buy goods in bulk
also allows for greater revenue returns. These are both great ways to save
money and expand your business.

4. Distribution:
Warehousing and the placement of the warehouse can directly
impact on your distribution. The further away your storage facility or
warehousing is situated from your suppliers or manufacturers, the more
your distribution costs will rise. Strategic placement of the facility can
dramatically affect your transportation costs, in turn affecting your own
product. Alternatively, some countries such as Germany use warehouses
as their storage and retail facility.
BENEFITS OF WAREHOUSING
1. Production support
Timely, consistent production support can dramatically
reduce your production lead times.

2. Opportunity to expand
If you’re not restricted by the need to store all materials,
components and finished products at your manufacturing
facility, you’re able to focus on your core business: producing
your products. By outsourcing storage and distribution to a
warehouse or distribution center, your business is better able
to use existing space for product development and process
improvement.
BENEFITS OF WAREHOUSING
3. Packing and processing
Today’s warehouses and distribution centres do a lot more
than simply store your products. A good warehouse will provide
picking, packing and shipping services as well as inventory
management.

4. Price stabilization
Warehousing ensures a regular supply of goods into the
marketplace by being able to store goods when supply exceeds
demand and then releasing them when demand exceeds just-in-
time production. Maintaining consistent stock levels helps prices
to stay stable, making it easier for businesses to forecast
production, profit and loss.
BENEFITS OF WAREHOUSING
5. Financing
Using a warehouse can help with your financing arrangements because
the business owner can borrow money against the security of the materials or
goods in the warehouse. Then there’s the additional benefits offered by
bonded warehouses – facilities that are licensed by the government to
accept imported goods for storage until customs duty can be paid. Storing
imported goods or materials to be exported in a bonded warehouse helps
control costs by paying customs duty proportionally.
6. Spot Stocking
This benefit is particularly useful for manufacturers that produce seasonal
products. Spot Stocking is also a warehousing technique favoured by the
agricultural sector. Instead of using a warehouse facility year-round or shipping
direct from the manufacturer, Spot Stocking uses a number of warehouses
simultaneously in a range of locations, close to key markets to reduce
transport time and immediately meet customer demands.
BENEFITS OF WAREHOUSING
7. Minimize business risk
Goods kept in a warehouse are insured at the risk of the
warehouse owner. Storing goods at an off-site warehouse
minimizes inventory loss from theft, fire, damage, etc and transfers
this risk to the warehouse. It’s their insurance claim and the
warehouse insurance company who will be paying any
compensation.