Storage and Warehousing Techniques Warehouse Management, 3rd edition by Gwynne Richards Published November 2017 (Kogan Page) Copyright D.G. Richards 2015

Types of Warehouse Operation Section 3

Functions of a warehouse Inventory holding point - Stock is held to fulfil orders / demand. Provide a buffer stock, preparation for a new product launch, facilitate long production runs Storage of Customs and excise goods under bond Other types Sequencing centre - Just in time related techniques Consolidation centre - Product lines from various locations are consolidated into complete customer orders. Cross-dock centre - Goods are received and shipped onwards without storage. Sortation centre - Goods are sorted by customer or region. (parcels/pallets) Sub-Assembly facility - Final assembly of goods prior to distribution e.g. postponement or labelling. Trans-shipment point - Goods are sorted into smaller vehicle loads for delivery to the customer – break-bulk centre. Fulfilment centre e-commerce and catalogue sales Returned goods centre - To handle returned / faulty goods. Copyright D.G. Richards 2015

Warehouse Types Local, regional, national, international stock holding points Hold stock for local markets Copyright D.G. Richards 2015

Cross dock operation A C A B C B A C B A C B A Grid Outbound Inbound   Inbound Outbound   A Grid C A B C B A C B A C B A Copyright D.G. Richards 2015

Ambient storage (room temp storage) Photo – Newman Paperboard Photo – Howard Tenens Copyright D.G. Richards 2015

Hazardous Goods storage Photo - EDIE Photo – Transmare - chemie Copyright D.G. Richards 2015

There are nine classes, some with divisions, as follows: UN Class Dangerous Goods Division(s) Classification 1 Explosives 1.1 - 1.6 Explosive 2   Gases   2.1 Flammable gas 2.2 Non-flammable, non-toxic gas 2.3 Toxic gas 3 Flammable liquid   4 Flammable solids 4.1 Flammable solid 4.2 Spontaneously combustible substance 4.3 Substance which in contact with water emits flammable gas 5 Oxidising substances 5.1 Oxidising substance 5.2 Organic peroxide 6 Toxic substances 6.1 Toxic substance 6.2 Infectious substance 7 Radioactive material 8 Corrosive substances Corrosive substance 9 Miscellaneous dangerous goods Copyright D.G. Richards 2015

Packaging and Labelling The consignor is responsible for ensuring that the packaging conforms to the regulations for the product. The packaging can be as simple as a cardboard box or paper bag for low risk powders in small quantities to very sophisticated double skinned stainless steel packages for more complex high risk products. In general the package needs to be UN approved and compatible with the product but for every UN number there is a list of packaging options available to the packer. Having packed the product the package has to be labelled, this is not about the product labelling or CHIP labelling which has health and safety advice for the user, but a rather simple class warning symbol. On small packages a 100 mm square coloured diamond with a symbol, these can be larger on IBC’s and road tankers. I have illustrated a couple of examples below: Copyright D.G. Richards 2015

New Haz chem codes Copyright D.G. Richards 2015

Temperature controlled storage Photo by fordsproduce.com Photo by Texas ice house Copyright D.G. Richards 2015

Bulk storage Copyright D.G. Richards 2015

Garment storage Photo by Asda Walmart Photo by Transformer Copyright D.G. Richards 2015

Archive Storage – Abandoned Salt mines Copyright D.G. Richards 2015

Fulfilment Centres Photo by BBC News - Amazon Copyright D.G. Richards 2015

Other Warehouse examples Copyright D.G. Richards 2015

Warehouse types Open spaces can also be classed as warehouses if products are stored for a period Copyright D.G. Richards 2015

Returns/Recycling warehouse J & M Re-cycling http://your.asda.com/sustainability-store-waste/waste-not-want-not-2 Copyright D.G. Richards 2015

Customs warehousing - advantages Customs warehousing is a procedure that enables the suspension of Import Duty and/or VAT. Delay paying import duty and/or VAT and excise duty on your stocks of imported goods. If you want to re-export you don’t pay import tax If you do not know the ultimate destination of the imported goods and want to delay having to declare imported goods to another customs procedure, for example release for free circulation Certain countries operate Free Trade Zones on a similar principle Copyright D.G. Richards 2015

HM Revenue and Customs requirements The warehouse will be used primarily for the storage of goods There is a genuine economic need Your stock records are adequate to verify the receipt, storage, handling and disposal of the goods and they must be able to show at all times the current stock of goods that are held under the customs warehouse procedure. You must be solvent and have a compliant revenue record You must use it regularly Copyright D.G. Richards 2015