Warehousing is a convenient place where goods are kept. It protects the products from dust, water, insects and sun. It creates the place and time utility. It also helps to maintain the stock so that there is no chances to be shortaged of products in the market. It means, it helps to regular flow of goods in the target market. As a result, there is no price fluctuation in the market. It also helps to take teh credit from the financial institutions. It accepts the risk and transfer to the insurance companies. Hence, it plays a vitakl role in marketing function. So respected office should take the correct decision on how to use, how much or what number of products should be kept on it.

Types of warehouses

The types of warehouses can be classified into the following categories.

1. Private warehouses: Those warehouse which are established and owned by private and large business for the private use is known as private warehouse. These type of warehouses are mainly established and owned by manufacturers to store their products until they are sold in the market. They are constructed near the factory building or near the market.

Private warehouses are mainly convenient to the owners. They are designed to meet the specific requirements of products storage and handling the needs of the company an organization. At present, the importance of such warehouse is decreasing because there are inadequate physical facilities more than other type of warehouse comparatively.

2. Co-operative warehouses: Those warehouse which are established and managed by co-operative societies are known as co-operative warehouses. The ownership of these warehouses are on the hands of few primary co-operative societies. Mainly those who can not invest the capital single to establish co-operative, they contribute equal capital and establish the co-operative warehouse. Services of such warehouse are first available to its members then to other people. Such warehouses are mainly established by the petty producers or farmers to store their products.

3. Public warehouses: Public warehouses are owned and managed by individuals, firms, companies or even public bodies like municipalities or government to store the products of general public. Licence should be taken from the government and should adopt the government rules and regulations to establish and operate teh public warehouses. They are run on commercial basis, so they are also known as commercial warehouses which offer specialized service to all the interested parties such as producers, traders, merchants even general public etc. against nominal charges.

4. Bonded warehouses: Bonded warehouses are those warehouses which are licensed by the government to accept imported goods for storage before custom duties are paid by the importers. These are mainly situated near the ports which are established by the government under the close supervision of custom authorities. Such warehouses plays significant role to promote international trade.

The importers have to enter into a bond with the custom officers, along with sureties, assuring the payment of duty before removing the goods from the bonded warehouses, which are known as 'bonded warehouses'. The goods in which custom duty is not paid, they are kept in the bonded warehouses, are known as goods in bond.

5. General Merchandise warehouse: The warehouse which provides the facility to store all kinds goods is known as general merchandise warehouse. Such types of warehouses are the most common type of warehouses. This is just a place to store for manufactured, semi- manufactured and new materials until they are required by producers, distributors, retailers, customers etc. It is a simple warehouse and does not provide any additional benefits to the product.

6. Speciality commodity warehouse: Speciality warehouse is constructed to store the certain goods which requires special treatment. It gives storage facility only for a particular products. Chemicals, fertilizers, petroleum products coffee, tobacco, cotton, wool etc. needs special warehouses with special facilities. The purpose of this warehouse is to keep the products of intrinsic value in original form.

7. Refrigerated warehouse: Refrigerated warehouse is established to store the perishable products such as fish, fruits, vegetables, dairy products etc. So that it is also known as cold store wares. It provides longer life to perishable products and maintains the intrinsic value of goods. These goods are available throughout the year dut to the establishment f cold storage houses. It also helps to maintain the reasonable price in the market. Generally, such type of warehouse is established at the consuming centre.

Posted by kumar gautam Sunday, April 4, 2010 0 comments

Grading

Grading is the process of dividing the products into lots which are similar characteristics in shape and size, type, weight, quality and performance etc. Products of different qualities should be separated into groups or lots and similar quality products are put into a grade. There are two types of grading; one is fixed grading which refers to storing out of goods on the basis of standard(size, quality etc) already set, to be followed from year to year. Next, variable grading refers to various standards for goods from year to year.
Importance:
The importance of grading are similar to the importance of standardization. They are easy sales, wider market, no risk, satisfaction, goodwill, easy claims against losses, easy loan facility, reasonable price, low transport cost, reduce sales cost, product information, mass production etc.
Bases for standardization and grading
There are four bases for standardization and grading. They are quantity, size, quality and colour.
a. Quantity: Quantity is one of the important base for the standardization and grading of the product. The standard weights and measures are kilo, meter, liter etc. Thet determine quantity which ensure smooth marketing operation. They are enforced by the government and its local bodies.
b. Size: This is another important base for the standardization and grading of the product. Size helps to determine the standard and grade of the product. Readymade garment, shoes, nut-belt, pipe, screw, etc. are sold in size standards.
c. Quality: Another base for the standardizatation and grading of the product is its quality. It is difficult to establish the standard. However high, medium and low quality are the bases for this purpose. Furniture, food items, cotton and medicines etc. are classified under this basis.





d. Colour: Some of the products are also standardized and graded on the basis of their colour. Mostly, agricultural products such as vegetables and fruits are standardized and graded on this basis.







Posted by kumar gautam Saturday, April 3, 2010 0 comments


Standardization means the establishment of certain standards of the qualities or the intrinsic physical properties of a commodity. It certifies that the products are of a certain quality. It is a model. It is a grade or a class. It is measured in units of qualities or characteristics of product of service. It may be based on a number of characteristics such as color, quality, weight and shape and size etc.
It plays important role in marketing as it assures for the quality uniformity of the product to the customers.
Elements/Functions of Standardization:
There are some elements/functions of standardization which are discuss briefly.
1. Determination of standard: Standard is a model. It is an example. It is a grade and class, which generally measures accepted fixed value. It consists of basic limits to the qualities of product. It may be based on a number of factors such as colour, quality, weight, shape and size and strength etc. To determine the standard of the product is major duty of Manager in the organization. Because it assures the customers for consuming or using the product through it's quality uniformity. There are three types of standard-
- Quality standard
- Quantity standard
- Standard of size and measurement
2. Grading: Simply, grading means the division of productd into classes of similar characteristics in size and quality. It separates the products on the basis of pre-determined norms or standards of shape and size, colour, degree fo cleanliness, acidity or other significant characteristics. It classifies the products in accordance with the needs of the standards. It indicates a certain standard of quality or performance, which facilitates to the people for easy using the goods and services.
3. Inspection: After grading the product, it is necessary to inspect the effectiveness of grading. The aim of checking or inspecting is to test the goods in order to determine the characteristics. It is the process to confirm the standard of the product. It helps whether it maintains or does not maintain the quality.
4. Labelling: A label may be a piece of paper including printed statement or a metal imprinted, may be a part of package or attached on it. It includes price, content, name, place, quality, weight etc. of products. The process of attaching the label is called labelling. It helps to know the detail information of products.
There are many importance of standardization but among them ten of them are listed below:
1. Easy sales
2. Wider market
3. No risk
4. Satisfaction
5. Good will
6. Easy claims against losses
7. Easy loan facility
8. Reasonable price
9. Low transport cost
10. Reduce sales cost
11. Product information
12. Mass production
13. Employment opportunity
14. Long period contract

Posted by kumar gautam Friday, April 2, 2010 0 comments

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