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International trade management

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Cover page Massey University College of Business 1. Introduction This essay is about the different types of warehousing solutions available to an organisation. It begins with the role and importance of warehousing in the logistics system and then with different measurements, different types of warehousing solution will be presented to organisations. 2. Analysis 2.1 Roles of warehouse When talk about warehouse, usually, people will have the idea that it is the place that can store raw materials and finished goods for some a period of time for a business organisation. For example, a manufacturer has to get a warehouse to store its raw material and inventory holds for sales and the warehouse capacity has to meet the normal operational needs of the organisation. Therefore, warehouse is a point in the logistics system where a firm stores or holds raw materials, semi-finished goods or finished goods for varying periods of time (Coyle, Bardi & Langley 2003) and warehousing includes a wide spectrum of facilities and locations. The warehouse performs several value-added functions in the logistics system. Warehouse can consolidate transportation and make it more economy. This function is more important when the organisation faces a lot less-than-truckload shipments. Warehouse can consolidate the LTL shipments and ship a volume unit to other destination. A second function of warehouse is the product mixing for customer order. ...read more.


incorporating public warehousing information into private plans, * Local deliveries * Unpacking, testing and order assembling operations * Improved protection from pilferage and natural hazards (Attwood1992) Currently, there is a growing trend of public warehousing to use contract or third-party warehouse. On the other hand, if the company has a stable demand and locates in the dense market area and the organisation wants to have control of its inventory, it is better for the organisation to have a private warehouse. If an organisation has multiple production lines produce various product, they can have a private warehouse because when the demand for one products decrease, they can use another product as replacement. So the warehouse is always fully used. In addition, the private warehouse should be located near the dense market area because less than load shipment will cost more. So, warehouse that closes to the market or the retailers will financially benefit the company. In addition, an organisation can have a better control if they have a private warehouse. The physical control will have fewer opportunities for the loss or damage to the goods. Further private warehousing can combine use of this facility with company's other regional needs. For example, the sales and customer services can be in the same building, therefore total cost will be lower than having two separate facilities. (Coyle, Bardi & Langley 2003)With the development of just-in-time inventory and distribution systems, private warehouse become more suitable for those need. ...read more.


The mechanised warehouse will use machines to do the stock handling while automated warehouse will use central computer to control all the stock handling and control. So there are many different types of warehousing solution based on different standards. 3. Conclusion Above all, warehousing solution is important in the whole logistics system and generally, warehousing solution can be divided into public and private warehouses according to the ownership. There are also centralised and decentralised warehouse when considering the location, type and functions of warehouses. Based on the facilities, warehouse can be categorised as simple , mechanised and automated warehouse. No matter which type warehousing solution the organisation, the organisation should let it to balance the imbalances between production and demand. The size, characteristics and types of the warehouses should be determined by the nature of the products, the length of time stock will be held, the area whether close or far away from the market, the cost of running and the characteristics of the demand or order pattern. (Gattorna & Walters 1996) 4. Reference John J. Coyle, Edward J. Bardi and C. John Langley Jr (2003) The Management of Business Logistic, A supply chain perspective, 7th edition, Mason, Ohio, South-Western Thompson Learning. Peter and Nigel Attwood (1992) Logistics of a Distribution System, Aldershot, England Grower Publishing Company Limited J. L. Gattorna & D.W. Walters (1996) Managing the Supply Chain, a strategic perspective, Hampshire England, Macmillan Press Ltd ?? ?? ?? ?? 7 ...read more.

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