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

2. Types of Warehouse Operation
Section 3

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

4. Warehouse Types
Local, regional, national, international stock holding points
Hold stock for local markets
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5. 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
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6. Ambient storage (room temp storage)
Photo – Newman Paperboard
Photo – Howard Tenens
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7. Hazardous Goods storage
Photo - EDIE
Photo – Transmare - chemie
Copyright D.G. Richards 2015

8. There are nine classes, some with divisions, as follows:
UN Class
Dangerous Goods
Division(s)
Classification 1
Explosives
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

9. 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

10. New Haz chem codes
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11. Temperature controlled storage
Photo by fordsproduce.com
Photo by Texas ice house
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12. Bulk storage
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13. Garment storage Photo by Asda Walmart Photo by Transformer
Copyright D.G. Richards 2015

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

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

16. Other Warehouse examples
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17. Warehouse types
Open spaces can also be classed as warehouses if products are stored for a period
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18. Returns/Recycling warehouse
J & M Re-cycling
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19. 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

20. 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