Module 5: WAREHOUSING

OBJECTIVES
By the end of this module, learners will be able to:
- discuss the concept and nature of a warehouse
- classify different types of warehouses
- determine the most appropriate type of warehouse
LEAD-IN
A. Look at the handling equipment in receiving goods below. Match each
equipment to the right picture.
A. ladders B. containers C. rack
D. pallets E. Hand truck/hand trolley F. Pick stackers
G. Pallet truck H. Forklift I. Reach truck

1. 2
.

3. 4
.

5. 6
. .

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 7. 8
.

9. .

B. For what purpose is / Which defines each equipment?

1. It is a portable platform made of either wood, plastic or metal used for the storage
and in the transportation of goods.
2. These are used for picking and stacking goods at high level in the truck or warehouse,
can be driven to any location in warehouse.
3. Provides a motorized means of movement of goods available in a range of sizes with
carrying capacity from 1 to 40 tons.
4. These are used to move goods from the offloading bay and move within the
warehouse.
5. Used to facilitate climbing to pick or stack light goods.
THEORY
A. BASIC CONCEPTS
Warehousing refers to the activities involving storage of goods on a large-scale in a
systematic and orderly manner and making them available conveniently when needed. In other
words, warehousing means holding or preserving goods in huge quantities from the time of
their purchase or production till their actual use or sale. According to the Chartered Institute of
Purchasing and Supply Chain Management the term warehousing is used to describe the storage
of goods such as raw materials, parts or finished products that will be sold or distributed through
an organization. The primary purpose of the warehousing facility is to receive, store, and
process goods for the eventual shipment and distribution to manufacturing operations, other
businesses, and consumers.
A Warehouse
The Chartered Institute of Logistics and Transport describes a warehouse as a temporary
storage location for inventory, which ultimately acts as a buffer to smooth out differences
between the supply and demand for goods and services. A warehouse is a planned space for the
storage and handling of goods and material. In general, a warehouse is a point in the logistics
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system where a firm stores or holds raw materials, semi-finished goods, or finished goods for
varying periods of time.
Warehousing
Warehousing has become an important enabler of globalized production networks, and
quite often short lead times. Volume and mix flexibility, postponed customizing in terms of
assembly/packaging, as well as corporate profitability, have been achieved through
warehousing outlets serving some particular trade area.
More specifically, warehousing is necessary due to the following reasons:
• Seasonal Production — It is known that most agricultural commodities are harvested
during certain seasons, but their consumption or use takes place throughout the year. Therefore,
there is a need for proper storage or warehousing for these commodities, from where they can
be supplied as and when required.
• Seasonal Demand — There are certain goods which are demanded seasonally, like
woollen garments in winter or umbrellas in the rainy season. The production of these goods
takes place throughout the year to meet the seasonal demand. So, there is a need to store these
goods in a warehouse to make them available at the time of need.
• Large-scale Production — In the case of manufactured goods, nowadays production
takes place to meet the existing as well as future demand of the products. Manufacturers also
produce goods in huge quantities to enjoy the benefits of large-scale production, which is more
economical. So, the finished products, which are produced on a large scale, need to be stored
properly till they are cleared by sales.
• Quick Supply — Both industrial as well as agricultural goods are produced at specific
places but consumed throughout the country. Therefore, it is essential to stock these goods near
the place of consumption so that, without any delay, these goods are made available to
consumers at the time of their need.
• Continuous Production — Continuous production of goods in factories requires an
adequate supply of raw materials. So, there is a need to keep a sufficient quantity of stock of
raw materials in the warehouse to ensure continuous production.
• Price Stabilisation — To maintain a reasonable level of prices of goods in the market,
there is a need to keep sufficient stock in the warehouses. Scarcity in the supply of goods may
increase their price in the market. Again, excess production and supply may also lead to a fall
in prices of the product. Through maintaining a balance of supply of goods, warehousing leads
to price stabilisation.
B. FUNCTIONS OF WAREHOUSING
Transportation/Shipment Consolidation
Transportation or shipment consolidation is an economic benefit of warehousing. A
warehouse can collect products from several suppliers that are all sending goods to the same
destination. Instead of shipping many small deliveries from different places, the warehouse
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combines these goods into one large shipment and sends them together. This is usually cheaper
and more efficient than transporting many small loads.
With this system, the consolidation warehouse receives materials from different
factories and groups them into a single shipment for a particular customer. By combining
shipments, transport companies can use their vehicles more fully and reduce the number of
loading and unloading operations.
In some situations, warehouses also help arrange transportation for customers who store
goods there. They may collect products from the production site and deliver them to the final
destination when the depositor requests it.

Figure 5.1. Demonstration of Shipment Consolidation

Break Bulk

Figure 5.2. Demonstration of Shipment Consolidation

Break-bulk warehouse operations are similar to consolidation, but goods are usually not
stored for long periods. A break-bulk warehouse receives large combined shipments from
manufacturers. These shipments are then divided into smaller orders and sent to different
destinations, such as individual customers. In this process, the warehouse splits the bulk
shipment, sorts the products into separate orders, and arranges local delivery for each
destination. Because the long-distance transport is done in one large shipment, transportation
costs are lower and it is easier to track the shipment.

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 Product Mixing
In a product mixing system, large shipments of goods are sent from different production
sites, such as factories, to a warehouse. These shipments are usually transported as full
truckloads, which helps reduce transportation costs. When the shipments arrive at the
warehouse, they are unloaded and reorganized. The warehouse then combines different
products in the right quantities for each customer or destination. If the production sites are
located in different places, product mixing in a warehouse can reduce total transportation costs
and also lower the need for many separate warehouses.
Cross-Docking
Cross-docking is a warehouse operation where goods are received from several
suppliers or factories and quickly sent to customers without being stored.
When the shipments arrive at the receiving dock, they are immediately sorted according
to customer orders. After sorting, the goods are moved directly across the warehouse to trucks
waiting at the shipping dock. These trucks then deliver the products to the appropriate
customers. Because the goods are transferred quickly and not stored in the warehouse, cross-
docking helps reduce storage time, handling costs, and delivery delays.

Figure 5.2. Demonstration of Shipment Consolidation

Cross-docking is a distribution method where goods move directly from the receiving
area to the shipping area in a continuous process. There is little or no handling of the goods,
and they are not stored in the warehouse. Because the products move quickly through the
facility, cross-docking eliminates the need for storage. This system is also known as flow-
through distribution, since goods simply flow through the warehouse from arrival to dispatch.
Grading and Branding
On request, warehouses also perform the functions of grading and branding of goods on
behalf of the manufacturer, wholesaler, or importer. They also provide facilities for mixing,
blending, and packaging of goods for convenient handling and sale.
Keeping Buffer Stock
The economic benefit of stockpiling comes from the need to store products for seasonal
reasons. For example, items such as lawn furniture and toys are produced throughout the year,
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but they are mostly sold during a short selling season. Similarly, agricultural products are
harvested only at certain times, but people consume them all year. Because of this, warehouses
are needed to store these goods until they are required in the market.
Stockpiling also creates an inventory buffer, meaning that inventory is kept in storage
to support the later stages of the supply chain. This buffer allows companies to produce goods
efficiently, even when supply and demand change. It helps the production and distribution
system work smoothly despite normal variations in operations and can also take advantage of
economies of scale, such as producing large quantities at lower costs.
Value-Added Processing
Warehouses can also be used to postpone, or delay, production by performing value-
added processing tasks such as:
• Packaging and labelling
• Kitting (i.e., repackaging items to form a new item, e.g., beauty products)
• Light manufacturing or final assembly (e.g., assembling a computer unit from
components delivered by different suppliers)
• Pricing and invoicing
A warehouse with packaging or labelling capabilities allows postponement of final
production until actual demand is known. For example, vegetables can be processed and canned
in brights at the manufacturer. Brights are cans with no pre-attached labels. The use of brights
for a private-label product means that the item does not have to be committed to a specific
customer or packaging configuration at the manufacturer’s plant. Once a specific customer
order is received, the warehouse can complete final processing by adding the label and
finalising the packaging.
C. TYPES OF WAREHOUSING
1. Private Warehouses
These warehouses are owned and managed by manufacturers or traders to store their
own stock of goods exclusively. Generally, such warehouses are constructed by farmers near
their fields, by wholesalers and retailers near their business centres, and by manufacturers near
their factories. The design and facilities provided depend on the nature of the products to be
stored.
2. Public Warehouses
Public warehouses are run to store goods of the general public. Anyone can store goods
in these warehouses by paying rent. An individual, partnership firm, or company may own such
warehouses.
To start a public warehouse, a government licence is required, and the government also
regulates their functions and operations. These warehouses are commonly used by
manufacturers, wholesalers, exporters, importers, and government agencies.

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 3. Government Warehouses
These warehouses are owned, managed, and controlled by central or state governments,
public corporations, or local authorities. Both government and private enterprises may use these
warehouses to store their goods.
4. Bonded Warehouses
These warehouses are owned, managed, and controlled by the government as well as
private agencies. Private bonded warehouses must obtain a licence from the government.
Bonded warehouses are used to store imported goods for which import duty has not yet been
paid. Importers are not allowed to remove goods from the ports until such duty is paid. These
warehouses are generally owned by dock authorities and located near ports.
5. Co-operative Warehouses
These warehouses are owned, managed, and controlled by co-operative societies. They
provide warehousing facilities at the most economical rates to the members of their society.
6. Fulfilment / Consolidation Warehouses
Fulfilment or consolidation warehouses are facilities where products are generally
received in large quantities and shipped out in a large number of smaller, mixed shipments.
Such pick and pack operations require specialised inventory management and picking
procedures. Accurate location tracking is essential in these warehouses.
7. Warehouses Providing Value-Added Services
Some warehouses provide a wide range of value-added services. This requires the
warehouse to apply labour and, in some cases, special equipment to the customer’s products —
such as repackaging, further processing, or labelling. These activities not only modify the
product but also require additional billing. Such services are typically performed alongside
other regular warehouse functions.
Other classifications
Table 5.1. Other classifications of warehouses

Divided by Groups of division

missions 1. main/central warehouse

2. departmental/ functional warehouses/ sub warehouses

construction 1. open
2. half-open
3. closed

function 1. distribution
2. production
3. contract

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technology applied 1. manual
2. mechanized
3. automatized

Usable height 1. Low height

2. Medium height
3. High-bay

Logistics Branches 1. Procurement logistics warehouses

2. Manufacturing logistics warehouses
3. Distribution logistics warehouses

Participants in Logistics 1. Manufacturers’ Warehouses

System 2. Trading Companies’ Warehouses
3. Carriers’ Warehouses
4. Forwarders’ Warehouses
5. 3PLs’ Warehouses

Form of 1. Internal Warehouses

property 2. Commercial Warehouses
3. Leased Warehouses
4. State and Municipal Warehouses

warehouses functions 1. Warehouses for Long-Term Storage

2. Warehouses for Goods Transhipment
3. Warehouses for Goods Distribution
4. Warehouses for Seasonal Storage
5. Warehouses for Customs Clearance

types of products 1. Warehouses of raw materials

2. Warehouses of fabric.
3. Warehouses of components.
4. Warehouses for work-in-progress.
5. Warehouses for finished/ready to use products
6. Warehouses of packing materials.
7. Warehouses of disposed products.
8. Warehouses of equipment.

storage conditions 1. Unheated Warehouses

2. Heated Warehouses
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 3. Cold Warehouses
4. Multi-Temperature Warehouses

degree of 1. Non-mechanized
mechanization 2. Mechanised
3. Automated
4. Self-operative

technical 1. open
characteristics 2. with a canopy
3. closed

membership in material flows closed

open

Classes Class A, B, C, D

D. WAREHOUSING OPERATIONS

Figure 5.3. Warehousing Operations

Warehousing operations refer to the processes that take place in a warehouse revolving
around the movement of goods and tracking inventory. The goal of warehouse operations is to
satisfy customers’ needs and requirements while utilizing space, equipment, and labor
effectively. The goods must be accessible and protected. Breaking it down, warehouse
operations cover a number of important areas, from the receiving, organization, fulfilment, and
distribution processes. These areas include:
1. Receiving involves control over the delivery to your warehouse of the correct
quantity of the desired
2. Putaway is delivering goods to the optimal place in the warehouse. Here the correct
identification of each SKU (stock keeping unit) and getting it to the most relevant spot is
important. Storage conditions also matter to ensure the safety of goods and employees. Slotting
and space management techniques as well as overall warehouse design are critical to
streamlining these operations and using space most effectively.
3. Picking is the process of collecting goods from the storage place according to the
customer’s order. It is thought of as the costliest, most time-consuming, and most error-prone.
Here, mobile scanning devices and voice systems can save tons of time and reduce errors
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significantly. It’s also worth considering adopting one of the picking methodologies, such as
cluster picking, zone picking, wave picking, etc.
4. Packing is putting the ordered items together, checking their quality, and getting the
product ready for shipment. At this point, it’s important to have all the necessary data on the
order and also the type/amount of packing material required for each order.
5. Shipping or dispatching is sending goods to the customer and making sure they are
delivered safely and on time. Here, again, proper scheduling, labor management, and tracking
systems are key to satisfying customer demands.
6. Returns is something most companies wish would never happen, but unfortunately,
they are also a part of the game due to various reasons. Returned units have to be properly
identified, sorted, and dealt with, whether it is by putting them back on the shelf, sent to repair,
discarded, returned to the manufacturer, etc.
E. KEY WAREHOUSE DOCUMENTS NAD PERSONEL
Advanced Shipping Notice (ASN)
An Advanced Shipping Notice (ASN) is a document that gives detailed information
about a shipment before it arrives. Its purpose is to inform the customer that the goods have
been shipped so they can prepare to receive them.
An ASN is usually sent electronically through Electronic Data Interchange (EDI) or
Extensible Mark-up Language (XML). It includes information such as: when the order will be
shipped, which items are included, the quantity of each item, shipment details (weight, number
of boxes, packaging), transportation mode and carrier information.
Waybill
A Waybill is a warehouse document that confirms the release or transfer of goods. It is
also used as a base document for financial transactions, such as paying suppliers or forwarders
and recording accounting entries. The Warehouse Manager must ensure the Waybill is correctly
completed, signed, and filed.
A Waybill is also a carrier document that shows information such as the load, weight,
size, and destination of the goods. It is used as a delivery document when goods arrive at the
receiving warehouse.
Goods Receiving Note (GRN)
A Goods Receiving Note (GRN) is a standard warehouse document used to confirm that
goods have been received. It is also used for financial transactions, such as paying the supplier
and recording accounting entries.
Bin / Stack Card
A Bin/Stack Card is attached to a storage location (bin or stack) in the warehouse. It
shows beginning stock balance, goods received and issued and current stock balance. Each bin
or stack should contain only one type of item from one Purchase Order (PO). The card helps

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with picking and stock counting. It must be updated every time goods move in or out, and the
warehouse staff must record the Material Stock Request (MSR) number and sign the card.
Stock Card
A Stock Card is a warehouse document that combines information from several
Bin/Stack Cards for the same item and Purchase Order if the items are stored in different
locations. It must be regularly updated and kept in the warehouse.
Stock Card vs. Bin/Stack Card
Bin/Stack Card: shows stock information for one specific storage location. Stock Card:
shows total stock of an item by combining information from multiple bins or stacks. In small
warehouses, one Stock Card may contain the same information as a Bin/Stack Card.
Incoming Shipment Report
The Incoming Shipment Report summarizes all incoming shipments to the warehouse
by: item, Waybill or consignment number, Purchase Order number, It helps the warehouse
control incoming inventory and check that the Warehouse Management System (WMS) has
been updated.
Outgoing Shipment Report
The Outgoing Shipment Report summarizes all outgoing shipments from the warehouse
by Waybill or consignment number and Purchase Order number. It helps control outgoing
inventory movements and verify that the WMS records are correct.
Stock Report
The Stock Report shows the inventory levels of all items in the warehouse by Purchase
Order. It is usually prepared weekly, depending on inventory turnover and demand changes.
The report is used by the warehouse and headquarters to monitor stock levels for operations,
finance, and procurement planning. It also serves as a backup record if the WMS system is
unavailable.
Layout & Storage Plan
The Layout & Storage Plan shows where items are stored in the warehouse and where
new items can be placed. It helps with picking operations, stock verification, consolidation,
warehouse space planning. The Warehouse Officer must define the format and ensure the plan
is regularly updated.
Warehouse Keeper’s Receipt
A Warehouse Keeper’s Receipt is a document confirming that a warehouse has received
goods from the owner. It is not a document of title, so it cannot be transferred to another person.
Dock Warrant / Warehouse Warrant
A Dock Warrant or Warehouse Warrant is a document of title to goods issued by dock
authorities. It confirms that the goods are stored with them. This document is transferable,
meaning another person can use it to take delivery of the goods if it is properly assigned.
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 Consignment Note
A Consignment Note is a document used when goods are sent by railway. It contains
the terms and conditions of transport and must be completed and given to the railway company
when the goods are shipped.
Bill of Lading (B/L)
A Bill of Lading (B/L) is used in sea transportation. It serves two main purposes: A
receipt confirming that goods have been loaded on the ship; and A contract of carriage
between the shipper and the shipping company.
In order to operate effctively, there are different personnel requirements in the warehouse.
Receiver
The Receiver at a warehouse receives incoming shipments, inspects, checks documents,
verifies purchase order and confims the condition and quantity of the goods delivered.
Forklift Operators
Shipments have to be moved around the warehouse using fork lift trucks, and the person
who does that is the Forklift Operator. They move incoming shipments to the proper places for
storage, and they move outgoing shipments to the loading dock. Forklift Operators may also
assist in organizing inventory, often by moving items located on high shelves.
Material Handlers
Material Handlers help with picking, packing, and inventory in a warehouse. A Material
Handler needs to have experience operating a forklift but they’re also expected to do more
around the warehouse. Thy’ll often be asked to operate other motorized machines and vehicles;
including cherry pickers, pallet trucks, and industrial lift trucks. They usually assist with
stacking and palletizing products, as well as loading filing machines.
Delivery Drivers
Safely drive company vehicle and successfully handle and deliver packages to
customers on time.
Security Guards
• Secure premises by patrolling property and monitoring surveillance equipment
• Monitor and secure gates/doors, and record incidents daily
• Conduct screening of personnel in a professional mannor
• Keep safety a top priority, and report any safety hazards
• Monitor behaviour and report unusual activity
• Complete reports by recording observations, information and surveillance activities
• Monitor parking lot, warehouse, and main office
• Ensure all orders/policies are being followed in terms of security
• Respond to alarms by investigating and assessing the situation

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 Packaging Operators
The packaging operators ensure efficient operation of case forming, case packing,
labelling and all other downstream equipment. They ensure equipment is supplied with required
materials (e.g., adhesives, shrink wrap, labels). In addition, they:
• Perform package quality checks as required and comply with all standard safety
practices, safety rules, and all Company rules and policies.
• Maintain accurate records and logs as required and perform operator-related
preventative maintenance duties as required.
Warehouse Clerical Support Administrator
Enters, verifies, maintains, and corrects data on a computer or handheld scanning
device. Creates all work assignments for warehouse personnel. Completes reports including
detention logs, product audits, receiving variance logs, and trailer shipping logs. Manages
direct-to-client orders using multiple systems, email, and phone correspondence.
In addition, verifies, maintains, and audits issues concerning vendor appointments,
shipment quality, damage, and third-party logistics delivery issues. They are also responsible
for all entry of third-party logistics claims and damages.
Order Picker/Packers
Pick and confirm orders efficiently and accurately. Pack orders efficiently and correctly
to prevent damage and ticket or label orders as specified.
Warehouse Manager
Typical responsibilities of the job include:
• Ensure proper allocation and utilization of space
• Processing orders
• Operating mechanical and IT systems
• Liaising with transport companies, suppliers, and clients
• Training, supervising, and appraising staff
• Maintaining statistical and financial records
• Devising rotas for staff
• Ensuring that quality objectives and delivery deadlines are met
• Managing budgets
• Administering stock control
• Ensuring compliance with health and safety legislation.
E. WAREHOUSING ACTIVITIES
Warehousing has an important role to play in the logistics system of organisations. In a
warehouse, a number of varied activities are performed to ensure adequate fulfilment of
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consumer needs. In combination with other logistics activities, it provides the required customer
service levels. Though there are multiple warehousing activities, most of them can be
categorised into product movement, product storage and information transfer.
1. Product movement

Figure 5.4. Product Movement Activities

Product movement refers to the physical movement of goods during warehouse

operations. One important activity is receiving and putaway. This process includes unloading
goods from transportation vehicles, counting and verifying the products according to records,
checking for any damage, and updating inventory records. The goods are then sorted and
sometimes repacked into smaller units before being moved to appropriate locations in the
warehouse, such as storage areas, outbound shipping areas, or consolidation zones.
Another important activity is order filling or order picking. This process involves
identifying and retrieving products from their storage locations according to customer orders.
Workers collect the required items, combine them as needed, and pack them for shipment. Other
tasks may include preparing delivery lists and packing slips. Order picking is often one of the
most time-consuming and labour-intensive activities in a warehouse.
Cross-docking is another product movement activity. In this process, goods received
from suppliers are quickly sorted and transferred directly to outbound vehicles for delivery to
customers. The main objective is to move goods from the inbound receiving dock to the
outbound shipping dock without storing them. In practice, however, goods may stay in the
warehouse for a short time, usually one to three days, before being shipped.
The final activity in product movement is shipping. This includes preparing completed
orders for delivery by moving them to transport vehicles and loading them onto carriers.
Workers also check the order contents and sequence to ensure accuracy. In addition, goods are
classified and packed properly to prevent damage during transportation, and inventory records
are updated accordingly.
2. Product storage
Product storage refers to keeping inventory in a warehouse for a certain period of time.
The length of storage and the storage location may vary depending on the purpose of storing
the goods. Warehouses usually perform four main storage functions: holding, consolidation,
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product mixing, and break-bulk operations. The design and layout of a warehouse often depend
on which of these functions are most important.
Product storage can generally be divided into long-term storage and temporary storage.
Long-term or semi-permanent storage occurs when goods are stored for long periods because
supply is greater than immediate demand. For example, arms and ammunition may be stored
for possible use during wartime. In contrast, temporary storage is used for short periods to
support normal inventory replenishment. For instance, products such as Coca-Cola bottles may
be stored in a warehouse for delivery the next day.
Modern logistics systems often focus on fast product movement, so storage time is
reduced whenever possible. Systems such as cross-docking mainly rely on temporary storage
because goods move quickly through the warehouse.
3. Information transfer
Information transfer is another essential activity in warehouse operations. Managers
need accurate and timely information to control warehouse activities effectively. This activity
works together with product movement and product storage to ensure efficient operations.
Through effective information transfer, warehouse managers can track important details
such as product locations, inventory levels, inbound shipments, and outbound shipments.
Information systems also help monitor warehouse throughput, staff activities, and the use of
warehouse space.
Today, many organisations use modern technologies to improve the speed and accuracy
of information transfer. These technologies include barcodes, Electronic Data Interchange
(EDI), and internet-based systems. By using these tools, companies can manage warehouse
operations more efficiently and make better decisions.
F. GOODS PICKERS
Goods picking, also known as order picking, is the process of collecting products from
storage locations to fulfil customer orders. In many organisations, especially small and
medium-sized businesses, this process uses a large amount of labour and resources. Even basic
daily operations such as locating items and preparing orders for shipment involve some form
of picking process.
As businesses grow and the number of daily orders increases, the efficiency and
accuracy of the picking process become more important. A process that works well for a small
number of orders may not be effective when the order volume increases significantly.
Therefore, improving and optimising the picking process can increase productivity, reduce
costs, and improve customer satisfaction.
There are two main types of order picking methods: manual picking methods and
automated picking methods.
Manual picking methods involve collecting products without the use of automated
systems or machines. Workers perform all picking activities themselves. Common manual
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picking methods include picker-to-part (piece picking), zone picking, wave picking, and pick-
to-box picking. These methods are often used by organisations that handle fast-moving goods
and a large number of Stock Keeping Units (SKUs), because they require relatively low
investment in equipment and technology.
In contrast, automated picking methods use computerised systems, machines, or
robotics to assist in picking operations. Many organisations invest in automation because labour
costs in picking activities are high. Automated systems can improve efficiency, speed, and
accuracy in warehouse operations.
One example of an automated system is the sorting system, also known as a conveyor
system. In this method, items are placed on a conveyor in the storage area and automatically
sorted according to customer orders. Workers in the picking area then collect the sorted items
to complete the orders. This system reduces the time workers spend walking through the
warehouse to collect products.
Another example is the pick-to-box system, where multiple picking stations are
connected by conveyor belts. Workers stay at their stations and place the required items into
boxes as the boxes move through different picking zones. Once the order is complete, the box
is ready for shipment. This system improves efficiency by reducing worker movement,
although the initial setup cost may be high.
The voice-directed picking system is another advanced method. In this system, workers
use headsets connected to a computerised voice system that provides instructions on what items
to pick, where to find them, and how many units are required. Workers confirm task completion
by speaking predefined commands or reading verification codes. This method helps maintain
high picking accuracy.
Other specialised automated systems are also used in warehouses. For example, the
Zone Picking System (ZPS) assigns each worker to a specific zone in the warehouse. Orders
move through different zones using a conveyor belt, and each worker picks the required items
from their assigned area. Another system is the automated case picking system, which uses
automated cranes to handle large and heavy cases. These cranes can lift, transport, store, and
retrieve goods from high storage racks, allowing warehouses to use vertical space efficiently
while reducing the risk of worker injuries.
G. STORAGE EQUIPMENT
The main reason for storing products in a manufacturing warehouse is to help other
production activities work more efficiently and reduce the cost per unit. When products are
stored properly, companies can spread their fixed costs over a larger number of products. For
example, storing work-in-progress items allows companies to use batch production, which
reduces setup costs per unit. Similarly, storing a full truckload of products in a warehouse can
reduce transportation costs per unit because shipping in large quantities is usually cheaper.

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 There are several other reasons why companies store products in warehouses. In some
cases, storage is part of the processing of products. For example, products such as wine must
be stored for a certain period because they continue to change or improve during storage.
Warehouses are also used to bridge time gaps, ensuring that products are available whenever
they are needed. For instance, spare machine parts may be stored so that they can be quickly
used when equipment requires maintenance. In addition, storage may be used for security
purposes, such as safely storing sensitive materials like nuclear products.

Figure 5.5. Common Types of Storage Equipment

Block Stacking (No Equipment)
Block stacking is the simplest and least expensive storage method. It is commonly used
for bulk storage and involves stacking products directly on the warehouse floor without using
racks or other equipment. This method maximises space utilisation but limits accessibility
because only the top and front items of the stack can be easily reached. The items at the bottom
of the stack must be strong enough to support the weight of the products above them.
Selective Pallet Rack

The selective pallet rack is one of the most common storage systems used in
warehouses. In this system, pallets are placed on load-supporting beams within a rack structure.
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Additional equipment such as decking or special attachments can also be used to store items
like drums, coils, or skids.
Selective pallet racks can be used in three main ways. Standard storage uses a
counterbalanced lift truck and allows single-deep pallet storage. Narrow aisle storage uses
special narrow-aisle lift trucks to increase storage density. Deep reach storage allows pallets to
be stored deeper than one level, usually in double-deep arrangements.
Drive-through Rack
In a drive-through rack system, pallets are placed on rails that are supported by upright
beams. Forklift trucks can drive directly into the rack structure to place or remove loads. These
racks are open at both ends, allowing goods to move through the rack from one side to the other.
This system usually follows the First-In-First-Out (FIFO) inventory method.

Figure 5.6. Drive-through rack

Drive-in Rack

Drive-in racks are similar to drive-through racks but are closed at one end. Forklifts
enter from only one side to place or retrieve goods. Because items are removed from the same
side where they are stored, this system generally follows the Last-In-First-Out (LIFO) inventory
method.

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 Flow-through Rack
In a flow-through rack system, loads are placed on slightly inclined tracks or rollers that
allow products to move forward using gravity. Goods are loaded from the higher end of the
rack and move automatically to the lower end. This system typically follows the FIFO method,
making it useful for products with expiration dates or strict rotation requirements.
Push-back Rack
A push-back rack is similar to a flow rack but works differently in terms of loading and
unloading. In this system, products are loaded and removed from the same side, and the rack is
closed at the back. When a new pallet is added, it pushes the previous pallet backward along
the rack. This method follows the LIFO system.

Sliding Rack
A sliding rack system uses movable racks that slide along guide rails on the floor. This
design allows warehouses to create only one mobile aisle, which can be moved to access
different rows of racks. Sliding racks help save space while still providing access to stored
items.
Cantilever Rack
A cantilever rack uses horizontal arms extending from vertical supports to hold loads.
This type of rack is ideal for storing long or bulky items, such as pipes, bars, lumber, or steel
rods. Unlike pallet racks, cantilever racks do not have front vertical supports, making it easier
to load and unload long items.
Stacking Frame
A stacking frame is a storage structure designed to allow products to be stacked safely
without crushing the items below. These frames can be interlocked to create multiple stacking
levels. When they are not needed, they can be disassembled and stored compactly. Stacking
frames are often used for multi-level block stacking.

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 Storage Carousel
A storage carousel consists of a series of rotating bins or baskets arranged either
horizontally or vertically. These bins rotate so that items move to the operator instead of the
operator moving to the items. Each level of the carousel can rotate independently, either
clockwise or anticlockwise. Storage carousels can be operated manually using push buttons or
automatically using computer control systems.
Automatic Storage/Retrieval Systems (AS/RS)
Automatic Storage/Retrieval Systems (AS/RS) are advanced computer-controlled
systems used to store and retrieve products automatically. These systems combine storage
racks, transportation mechanisms, and computer control systems. Special machines called
storage/retrieval (S/R) machines move both horizontally and vertically to access storage
locations. AS/RS systems operate efficiently in narrow aisles and allow fast and accurate
handling of inventory.

Miniload AS/RS
Miniload AS/RS systems are designed to store and retrieve small items, such as tools or
parts stored in bins or drawers. These systems allow picking and replenishment at the end of
the aisle. They usually handle loads between 200 and 750 pounds and can reach storage heights
between 12 and 20 feet. When used for small part delivery in processes such as assembly or
testing, they are sometimes called microload AS/RS.
Man-on-Board AS/RS
In a Man-on-Board AS/RS, an operator rides on the storage/retrieval machine to pick
items directly from shelves, drawers, or bins. These systems combine automatic and manual
controls. The machines are similar to turret trucks or order pickers, and when outside the aisle
they can operate like regular industrial trucks.
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 Mezzanine

A mezzanine is a structure built inside a warehouse to create additional storage space

above the ground level. It is a cost-effective way to increase storage capacity without expanding
the warehouse building. Mezzanines require a large amount of vertical space, typically at least
14 feet of clearance, and are often used for activities that do not require much headroom, such
as block storage.
H. WAREHOUSE SAFETY
Warehouses can be dangerous working environments if proper safety measures are not
followed. Workers often handle heavy goods, operate machinery such as forklifts, and move
around large storage areas that may contain obstacles, chemicals, or high shelves.
Good health and safety management is essential in warehouse operations. It helps
protect employees from accidents and injuries while also improving productivity. When safety
procedures are followed properly, organisations can reduce the costs associated with workplace
accidents, damaged goods, and operational delays.
Key principles of warehouse safety:
Risk assessment and control
Safe systems of work
Regular training and supervision
Reporting and investigation of accidents
Health and safety concerns
Fire Safety
Hazards:
Flammable materials such as packaging, pallets, and fuel
Electrical faults or overheating equipment
Poor housekeeping leading to fire spread

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 Preventive Measures:
Keep fire exits and routes clear at all times
Install fire alarms, extinguishers, and sprinkler systems
Conduct regular fire drills and evacuation training
Store flammable materials safely, away from heat sources
In Case of Fire:
Raise the alarm immediately
Evacuate through designated routes
Do not use lifts or return for belongings
Report to the assembly point and wait for instructions
Slips, Trips, and Falls
Hazards:
Wet or oily floors
Loose packaging, debris, or cables on the floor
Uneven surfaces or poor lighting
Preventive Measures:
Clean up spills immediately and use warning signs
Keep walkways clear of obstructions
Ensure adequate lighting in all areas
Wear appropriate safety footwear with non-slip soles
Manual Handling
Hazards:
Lifting or carrying heavy or awkward loads
Repetitive movements or poor posture
Sudden or jerky motions
Preventive Measures:
Use mechanical aids such as trolleys, pallet jacks, or forklifts
Follow correct lifting techniques (bend knees, keep back straight, hold load close to body)
Avoid twisting while lifting
Ask for help with heavy or bulky items
Safe Lifting Steps (Remember the 5 Ps):
Plan the lift
Position your feet correctly
Pick up with your legs, not your back
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 Proceed carefully
Put down safely
Working at Height
Hazards:
Falling from ladders, platforms, or racks
Falling objects hitting workers below
Preventive Measures:
Use properly maintained ladders and access equipment
Do not overreach or stand on unstable surfaces
Wear safety harnesses where necessary
Mark and cordon off areas below elevated work
Golden Rule:
Never work at height without proper training or safety equipment.
First Aid and Emergency Response
Importance:
Prompt first aid can prevent minor injuries from becoming serious and save lives in
emergencies.
Basic First Aid Procedures:
Report all injuries immediately to the supervisor or first aider
Know the location of the first aid kit and emergency contact numbers
For serious injuries, do not move the person unless they are in immediate danger
Ensure at least one trained first aider is present during every shift
Promoting a Safety Culture
A strong safety culture involves everyone:
Management must provide safe equipment and training
Supervisors must monitor safety practices
Employees must follow procedures and report hazards
Encouraging open communication about safety helps prevent accidents before they
happen.
G. VIETNAMESE CONTEXT 36
Looking for the ideal warehouse for lease in Vietnam involves more than just finding a
space to store goods—it’s about finding a strategic asset that enhances operational efficiency
and supports business growth.

36
[Link]
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 As factory tenants, selecting the right warehouse is pivotal to optimizing logistics and
ensuring seamless production workflows. From ample space and optimal ceiling heights to
efficient layout designs and secure loading docks, each feature plays a crucial role in daily
operations.
In this blog post, we’ll explore the top five features factory tenants should prioritize
when evaluating warehouses for lease in Vietnam, empowering you to make informed decisions
that drive success.
Feature 1: Adequate Space and Ceiling Height of the Warehouse for Lease in
Vietnam
When searching for a warehouse for lease in Vietnam, factory tenants must prioritize
adequate space and ceiling height to ensure operational efficiency and future scalability.
Sufficient Space of the Warehouse for Lease
Factory tenants need to consider both current and future space requirements.
A warehouse for lease in Vietnam must accommodate existing inventory, machinery, and
workflow without causing congestion. It’s essential to measure the space accurately and assess
whether it can handle the volume of goods and equipment your operations demand. Insufficient
space can lead to operational bottlenecks and inefficiencies, hampering productivity.
Optimal Ceiling Height of the Warehouse
Ceiling height is equally critical when evaluating a warehouse for lease in Vietnam.
High ceilings offer the advantage of vertical storage, which maximizes space utilization. This
feature is particularly beneficial for factory tenants needing to store large quantities of materials
or operate machinery that requires ample vertical clearance. Additionally, higher ceilings
contribute to better air circulation and lighting, enhancing the overall work environment.
Evaluation Tips When Inspecting a Warehouse for Lease in Vietnam
When assessing a warehouse for lease in Vietnam, measure both the floor space and
ceiling height. Consider how these dimensions align with your operational needs. Factor in
potential business expansion to avoid the need for a premature move. Adequate space and high
ceilings are key elements that contribute to the efficiency and scalability of your operations.
For factory tenants, selecting the right warehouse for lease in Vietnam involves more
than just finding a storage space. It’s about choosing a facility that supports your business’s
growth and operational efficiency. Make sure the warehouse you lease has both the space and
the ceiling height necessary to meet your current and future requirements.
Feature 2: Efficient Layout of the Warehouse for Lease in Vietnam
Operational Efficiency of the Warehouse for Lease
A well-designed layout ensures smooth workflows and reduces unnecessary movement
within the warehouse. For tenants looking for a warehouse for lease in Vietnam, it’s important
to consider how the space is organized to facilitate easy access to goods and equipment.

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Efficient layouts minimize time spent on locating and moving items, leading to faster
processing times and reduced labor costs.
Flow of Goods in the Warehouse for Rent in Vietnam
The layout should support a logical flow of goods from receiving to storage, processing,
and shipping. When evaluating a warehouse for lease in Vietnam, ensure that the design
accommodates your business’s specific needs, such as designated areas for different types of
inventory and seamless movement pathways.
Customization Potential of the Warehouse for Lease in Vietnam
An adaptable layout is beneficial for growing businesses. When choosing a warehouse
for lease in Vietnam, look for spaces that can be reconfigured as your operations expand or
change. Flexible layouts allow for adjustments without significant disruptions, making it easier
to scale your operations efficiently.
Examples of Ideal Layouts of the Warehouse for Rent
Ideal layouts vary depending on the type of business. For instance, distribution centers
may benefit from cross-docking layouts, while manufacturing units might need linear or U-
shaped designs. Understanding these differences and applying best practices ensures that
the warehouse for lease in Vietnam meets your operational requirements.
In short, prioritizing an efficient layout when selecting a warehouse for rent in Vietnam
can significantly enhance your business operations, leading to increased efficiency and
productivity.
Feature 3: Loading Docks and Access Points of the Warehouse for Lease in
Vietnam
Loading Docks of the Warehouse for Rent
For factory tenants evaluating a warehouse for lease in Vietnam, the presence of well-
placed and sufficient loading docks is critical. These docks are essential for the efficient loading
and unloading of goods, reducing turnaround times and improving overall productivity.
Multiple docks can significantly streamline operations, especially during peak times, by
preventing bottlenecks and facilitating a smooth flow of goods.
Access Points of the Leased Warehouse
Strategic access points are another crucial feature to consider when looking for
a warehouse for lease in Vietnam. These points should provide easy entry and exit for delivery
trucks, minimizing delays and ensuring efficient internal movement. Properly positioned access
points contribute to smoother logistics and can greatly reduce handling times and labor costs.
Best Practices When Inspecting the Right Warehouse for Lease
When assessing dock size and placement, consider the dimensions of your delivery
trucks and the frequency of shipments. A leased warehouse in Vietnam should have docks that
are wide enough to accommodate your largest trucks and positioned to optimize internal

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workflow. This ensures quick and efficient loading and unloading, minimizing downtime and
potential damage to goods.
To maximize efficiency, ensure that the warehouse for lease in Vietnam aligns with
your logistical needs by thoroughly inspecting the loading docks and access points. Prioritizing
these features will enhance your operational efficiency, save time, and improve overall
productivity.
Feature 4: Climate Control in the Warehouse for Lease in Vietnam
Temperature and Humidity Control Inside the Warehouse for Rent
Ensuring precise temperature and humidity levels is crucial for warehouse tenants in
Vietnam, especially those handling perishable or sensitive goods. Consistent climate control
helps maintain product quality and extends shelf life, essential for businesses like food storage
or pharmaceuticals.
Energy Efficiency Inside the Leased Warehouse
Modern warehouses for lease in Vietnam should prioritize energy-efficient climate
control systems. These systems not only reduce operational costs but also align with
environmental sustainability goals. Look for warehouses equipped with high-efficiency HVAC
systems and consider how they contribute to overall energy consumption.
Evaluation Tips When Inspecting the Warehouse for Rent in Vietnam
When inspecting potential warehouse spaces, pay close attention to the existing climate
control infrastructure. Check if the HVAC systems are well-maintained and capable of meeting
your specific temperature and humidity requirements. Evaluate insulation quality and how well
the systems can handle the local climate conditions in Vietnam, ensuring they provide reliable
performance year-round.
Feature 5: Security Systems of the Warehouse for Lease in Vietnam
Security Needs for Leased Warehouse in Vietnam
Warehouse tenants in Vietnam understand the critical need for robust security systems
to safeguard their valuable inventory and equipment. The bustling nature of logistics and
industrial zones in Vietnam necessitates proactive security measures to prevent theft and ensure
operational continuity.
How Many Types of Security Systems Needed?
When evaluating warehouses for lease in Vietnam, tenants should look for facilities
equipped with comprehensive security systems. These typically include surveillance cameras
strategically positioned to monitor critical areas, alarm systems that promptly alert to
unauthorized access, and access control systems to regulate entry and exit points.
On-Site Security Personnel
Opting for warehouses with on-site security personnel offers added protection and peace
of mind. Trained guards not only deter potential intruders but also provide quick response to
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security incidents. Their presence can significantly reduce the risk of theft and damage,
especially during non-operational hours.
Assessment Tips for Evaluating Security Features in the Warehouse for Rent in
Vietnam
Before finalizing a lease agreement, tenants should conduct a thorough assessment of
the warehouse’s security infrastructure. This involves checking the functionality and coverage
of surveillance cameras, testing alarm systems for responsiveness, and reviewing the
effectiveness of access control measures.
Additionally, verifying the qualifications and reliability of on-site security personnel is
crucial for ensuring round-the-clock protection.
COMPREHENSION QUESTIONS
1. The role of warehousing in supply chains has evolved over time. Explain the new
roles of warehousing from a global supply chain context.
2. You have been appointed as a manager of a new manufacturing company. The
company is considering opening a warehousing facility. Briefly highlight the importance of
warehousing.
3. Warehouses provide different functions to different clients. Using a warehouse
familiar to you, discuss the functions provided in that warehouse.
4. Using examples from your country, explain the various types of warehouses.
5. Why is it important to classify warehouses? Give any five major factors that are
considered when classifying warehouses.
6. Describe any five (5) key warehousing documents.
7. In your opinion, which of the five features discussed (space and ceiling height, layout,
loading docks, climate control, or security) is the most important when choosing a warehouse
for lease in Vietnam? Explain your reasons with examples.
PRACTICE
A. VOCABULARY
Task 1: Match the words/ phrases with their correct picture.
1. pallet

A B C

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2. racks

A B C D
3. trolley

A B C D
4. Roll-
cage
pallet

A B C
5.
barcode

A B C
6.
barcode
scanner

A B C

138
7. forklift

A B C
8. hand
pallet
truck

A B C

9. tote
bin

A B C
10. belt
conveyor

A B C
11.
towing
tractor

A B C

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12.
scissor
lift

A B C
13. ramp

A B C
14.
walkie
stacker

A B C
15.
mezzanin
e

A B C
Task 2: Match the following halves of sentences.

List 1 List 2

1. Order
a. provides storage facilities for semi-finished products
Management System

b. refers to assimilating and accumulating products in a specified

2. Stock rotation
quantity prior to shipment to fulfil customer’s orders

140
 List 1 List 2

3. Order picking c. the oldest units are arranged in inventory before the newer ones

4. Work-in-progress d. includes product information, the quantity, and any auxiliary

warehouse services like gift wrapping that the customer has chosen for that order

e. imported goods are stored in a secure area before the customs or

5. Bonded warehouse
import duty is paid by the importer

Task 3. Read the following passage and fill in the diagram with the right word.
The manager receives a bulk of ordered goods. On receiving the goods, the warehouse
manager needs to check whether the goods have arrived as per the order placed or not. If there
is some correction, then the manager needs to inform his seniors. After that, the warehouse
manager sends goods for storage where they are categorised and stored in a proper storage
system. When goods are required for production/sales purposes, the warehouse manager needs
to check their availability and sort them according to the order. Not only this, but the manager
also needs to transport goods to the production centre/store through a proper medium. Thus,
there are a set of activities that are common to most warehouses. These are as follows:
Receiving: This includes tasks related to the receipt of all incoming products at the
warehouse, ensuring that the quality and quantity of the received products are as ordered, and
then disbursing the products to storage.
Pre-packing (if required): This happens when products are received in bulk from the
supplier and are required to be packaged individually in merchandisable quantities.
Transporting to the appropriate storing place: This is also referred to as put away.
This includes material handling, location identification and placement.
Storage: The method of storage depends on the size, quantity and the handling
characteristics of the product.
Order picking: This task involves physical picking of the product from the storage
place to meet the demand.
Packaging or pricing (if required): This refers to activities normally left till the last
moment to avoid re-pricing as the inventory sits in storage.
Sorting: This includes the shipment of products as per their packaging and destination.
Consolidation and shipping: This includes checking orders for completeness and
preparing shipping documents, such as bills of lading, weighing shipments, loading trucks and
related tasks.
Claim settlements: Any transit damage material and material rejection claim
settlements are done in the warehouse to control shrinkage.

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 B. READING 37
Task 1
a. Read the letter, then choose the correct answers.
John P. Sandford, CEO
Sandford Logistics
5325 Gateway Drive
El Paso, TX 79903
November 11, 2014
Dear Winnie,
You will soon manage the largest warehouse facility in the area. The space has a great
deal of storage potential. Here are some possible scenarios.
Central storage is popular. Given concerns over scheduling, centralized storage may be
the best option. It is convenient, and we have the space to accommodate it. However, we believe
that continuous flow is preferable. This way, we can ensure more efficient processing
operations. I suggest either in-line storage or point-of-use storage. These are decentralized
methods. They offer more choices for dispensing materials and for temporary storage.
Automated storage and retrieval storage (AS/RS) is not an option. It is too costly. There
are also periodic accidents with inventory when computers fail. We cannot afford any losses.
In any case, I recommend ample use of vertical space. Floor stock is often stored best
this way. It is easy to reach, but doesn’t take up floor space.
Please feel free to contact me with your thoughts.
Regards,
John

37
Adapted from Virginia, E., et al. (2016). Career paths: Logistics. Express Publishing/DTP Education JSC.
142
 1. What is the main purpose of the letter?
A. to examine storage area options
B. to explain how to store floor stock
C. to discuss problems with AS/RS
D. to describe how to use vertical space
2. Which of the following is NOT a storage option?
A. automated storage and retrieval storage
B. point-of-use storage
C. in-line storage
D. central storage
3. Why does the writer think that centralized storage is a good option?
A. It allows for continuous flow.
B. It does not take up floor space.
C. There is plenty of storage space.
D. It offers more temporary storage
b. Match the words or phrases (1–8) with the definitions (A–H).
1. ___ floor stock 2. ___ centralized
3. ___ decentralized 4. ___ vertical space
5. ___ central storage 6. ___ in-line storage
7. ___ point-of-use storage 8. ___ automated storage and retrieval storage
A a system that unites storage items into one, or a few, large areas
B storage space that is designed by using the length of a space
C not being focused around a center
D a decentralized storage system that places items along flow paths
E inventory that has not yet been placed on shelves
F being focused around a center
G a system that automatically places and takes items from storage locations
H a system that refers to final, workplace storage, or staging locations
Task 2
Storage Analysis
Storage equipment is used to hold and handle materials between operations. There are
four handling methods. Each requires different equipment:
Simple storage allows easy access for put-away, picking, and retrieval. Yet, it
requires more space per unit. This is due to larger aisle allowances and less vertical space.
Simple storage uses bin shelving and pallet racking. Complex staging is good for temporary
accumulation, presentation, or picking. It is good for low-flow materials with large
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inventories. Sometimes, it is mechanized for speed. Complex staging often uses shuttle
systems.
High-density storage minimizes space by using more vertical space. However, it is
slower and costlier than other methods. Bulk floor stacking is an example of high-density
storage. Live storage uses conveyor belts and live rollers. Its purpose is to allow easier
accumulation.
All storage methods require handling costs. Holding costs and occupancy costs,
including housekeeping, may also be incurred. Logisticians also need to consider intangibles.
These include needs for expandability and versatility.
a. Read the textbook excerpt. Then, choose the correct answers.
1. What is the main purpose of the excerpt?
A. to list examples of mechanical equipment
B. to explain how to minimize space during storage
C. to describe handling methods and their costs
D. to contrast simple storage with complex staging
2. Which of the following is NOT a storage cost?
A. handling B. holding
C. occupancy D. accumulation
3. Why do logisticians sometimes use live storage?
A. to permit easier accumulation of materials
B. to include versatility and expandability
C. to use more vertical space during storage
D. to allow for larger aisle allowances
b. Match the words or phrases (1–7) with the definitions (A–G).
1. __ live storage 2. __ simple storage
3. __ complex staging 4. __ high-density storage
5. __ holding cost 6. __ handling cost
7. __ occupancy cost
Definitions:
A. a system that allows easy access for putting away items, picking, or retrieval
B. the price that is paid to put an item in storage and to retrieve it
C. the cost of using a space
D. a system that is designed to reduce space per storage position
E. the price that is paid to keep a stock of goods in storage
F. the process of storing items on a conveyor belt or live rollers
G. a mechanical system for short-term accumulation, presentation, and picking
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 Task 3

Warehouse loading docks are a hazardous environment. Safety precautions should be

taken to reduce the risk of injuries or fatalities from occurring.
Vehicle restraints and/or wheel chocks are required to prevent trailer creep.
Ensure dock seals are in good condition. They prevent rain and snow from making
surfaces slippery.
Dock lights to provide lighting so workers can see where they are going. Replace any
burnt out lights.
Trailer stands must be used on unhitched trailers to prevent tipping during loading or
unloading.
Make sure dock levelers are at the right height between the dock and the trailer. Do not
transport loads across the dock leveler which exceed its weight capacity.
Check dock bumpers to verify they are in good condition. Weather and general use can
cause wear and tear to occur over time.
Approaches, apron space, and landing strips must be clearly marked for drivers.
Use wheel risers to avoid unsafe below dock loading.
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 Ensure drivers are aware of loading dock traffic lights. They always need to check the
lights before moving their vehicles.
Any malfunctioning equipment or unsafe practices should be reported to the loading
dock supervisor.
a. Read the poster. Then, mark the following statements as true (T) or false (F).
1. __ Dock bumpers are used to keep out rain and snow.
2. __ Workers can choose to use both vehicle restraints and wheel chocks.
3. __ Dock levelers have a stated weight capacity
b. Match the words or phrases (1–8) with the definitions (A–H).
1. __ approach 2. __ dock seal
3. __ wheel chock 4. __ apron space
5. __ trailer creep 6. __ dock light
7. __ landing strip 8. __ traffic light
A. a foam block which a truck trailer presses against during loading
B. movement of a truck trailer away from a dock due to the forces created during
loading
C. the area in front of a bay door where a truck parks
D. a signaling device with a red and green light placed on a loading dock
E. the path a truck follows to reach a loading dock
F. a wedge made from a sturdy material that is placed behind a vehicle’s wheels
G. the area needed to maneuver and position truck trailers into place
H. a movable light which is used for illuminating the interior of a truck trailer during
loading
C. LISTENING38
Task 1.

a. Listen to the first part from a presentation about a new warehouse

management system. Now say which of these statements is true ( )
false ( ).

1. The existing system is not very efficient.

2. They could centralize inventories in one Canadian warehouse.
3. Cycle times can be reduced by at least half.
4. They could reduce warehouse area from four floors to one.
5. Print on demand allows them to print invoices in several languages.

38
Adapted from Grussendorf, M. (2009). English for Logistics (Express Series: Oxford Business English). Oxford University Press.

146
 b. Listen again and complete the sentences.
1. I think this new warehouse area management system WMS 2X would help us cut
costs and ____________________ our processes.
2. One great advantage of WMS 2X is that we could reduce the number of warehouses
____________________ across Canada.
3. Another interesting feature of WMS 2X is customer order ____________________.
4. Warehouse ____________________ could be improved as well by transferring
departments.
5. WMS 2X would also help us reduce warehouse area and ground _______________.
6. The could be achieved by installing an automated storage and __________ system.
7. The new system would also enable us to _____________ the material flow at any
given moment.
8. This allows printing of labels, brochures and customer ___________ in 25 languages.
Task 2. Listen to the rest of the presentation and complete the sentences

1. After the goods have arrived at the packing location, ______________ to scan in the
barcode of the shipping box.
2. ______________ you enter the packing location dialogue.
3. OK, I got that. What is ______________ ?
4. Well, ______________ you can access all positions in the picking container.
5. ______________ the package is complete, the system will automatically calculate
the weight.
6. That is ______________ . The system will automatically print the shipping labels.
7. And now we ______________ of this process.
8. ______________ the order has been completed, the delivery note is printed
automatically.

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 Task 3. Put the steps in this integrated packing location system in the correct
order (1–8). Then listen and check.
……You scan the barcode of the shipping label.
……The system calculates the weight of the package.
……You enter the system.
…..You choose means of transport.
……You can put together packages.
……The shipping labels are printed.
……You can see and access all positions in the container.
……The order is complete – system prints delivery note.
D. SPEAKING
Work with a partner and describe a process from your own job in your own words.
Partner A:
- invoices are automatically generated
- accurate stock control and warehouse tracking
- hand-held laser scanners provide speed and accuracy
- processing of picked goods
Partner B
- preparation and printing of shipping labels
- inter-warehouse transfers
- handling of returns
- scanning of case label barcodes
E. WRITING
Task 1. Complete the sentences using the correct active or passive form of the
verbs in brackets.39
a. After the unit load ____________ (check), it goes into automated storage.
b. As soon as an appropriate location ___________ (identify) by the warehouse
management system, a put-away instruction ____________ (must, issue).
c. After the vehicle driver ____________ (report) to the gatehouse, the vehicle
documentation ____________ (check) by staff.
d. Then the packages _______ (process), i.e. they _____ (may, label) with bar codes.
e. The goods ________ (check) on unloading.
f. After that, staff ____________________ (direct) the driver to an unloading bay or a
parking area.

39
Adapted from Grussendorf, M. (2009). English for Logistics (Express Series: Oxford Business English). Oxford University Press.

148
 Now put the steps in the goods receiving process in the correct order 1–6.

Task 2. Some steps are missing from the warehouse process flowchart. Complete
it with give phrases.
Packing Pick List carrier
WMS inspected Order Consolidation
Customer Places Order

Order Received in System
(1. _______/ Order Management System)

Order Processing
(Order verified, inventory checked)

2. _______ Generated

Order Picking
(Items collected from storage locations)

3. _________
(Items from different zones combined)

4. __________
(Items packed, labeled, documentation added)

Quality Check
(Order accuracy and packaging 5. _______)

Shipping Preparation
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 (Shipping label, carrier selection, staging)

Loading
(Goods loaded onto truck / 6. ________)

Shipment Dispatched

Customer Receives Order
Task 3: Write a short description of the the warehouse process in task 2.
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

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 CASE STUDY40
Read the case about a businessman changing his business strategies and answer
the questions.
Hungary had a centrally planned economy for over 50 years, with most economic
activity controlled by the government. By the 1990s commercial and industrial organisations
were inefficient, outdated and falling further behind competitors from other countries. Political
and economic reforms started in the 1990s with the aim of transferring most organisations back
to the private sector. Transport had been tightly controlled, but was substantially privatised and
deregulated.
Janos Cendor was keen to take advantage of new developments, and started a trucking
company. He took over an existing depot with all its facilities, with plans for transforming this
into a modern and competitive company. Initially, he had considerable problems. His facilities
were decaying, his vehicles were falling apart, he was overstaffed, and working practices were
outdated. In the past the depot had focused on trade with countries in the former Soviet bloc,
and now had to look for other trading partners in the West.
By 1997 Janus was making progress, and was profiting from the huge increase in trade
between Hungary and countries within the European Union. He had modernised his depot,
replaced vehicles and was making progress with staff. In early 2001 he was planning a new
warehouse near to the Austrian border to import consumer goods, and export agricultural
produce. However, competition from other transport companies was increasing, and European
operators were introducing new ideas. So Janus planned his new warehouse to play a leading
role in moving his company forward; it would be a flagship operation that would have a clear
advantage over competitors.
The problem facing Janus is that, like everyone else, he does not know exactly what the
future will hold. He read reports which suggested that warehouses of the future would
concentrate on:
better service to give complete customer satisfaction
concentration of operations in fewer logistics centres
reducing stocks by improved materials flow
paperless electronic transactions
flexibility giving customised operations
cross-docking
third-party warehousing
automation of material movements
more skilled employees to manage new operations.

40
Adapted from Waters, D. (2003). Logistics: An Introduction to Supply Chain Management. Palgrave Macmillan
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 1. How do you think the changing economic conditions in Hungary changed logistics
in the region?
2. If Janus asked for your advice on the facilities needed by his new warehouse, what
kind of operations would you suggest? What are the benefits of the new operations? Would
these give a sustainable competitive advantage?
MODULE REVIEW
Warehousing refers to the systematic storage and management of goods from the time
they are produced or purchased until they are needed for sale or use. A warehouse acts as a
temporary storage location that balances differences between supply and demand. In modern
supply chains, warehousing supports global production networks, improves flexibility, and
helps companies respond quickly to market needs.
Warehouses are necessary for several reasons. They store goods produced seasonally,
such as agricultural products, and ensure that goods with seasonal demand, such as winter
clothing, are available when needed. They also support large-scale production by storing
finished goods, ensure quick supply near consumption areas, maintain continuous production
through raw material storage, and help stabilize prices by balancing supply and demand.
Warehouses perform many functions in logistics systems. These include shipment
consolidation, break-bulk operations, product mixing, and cross-docking to improve
transportation efficiency. Warehouses may also provide value-added services such as
packaging, labeling, kitting, and light assembly.
Warehouse operations include receiving goods, storing them in appropriate locations,
picking items for customer orders, packing, shipping, and handling returns. Effective operations
rely on accurate information systems and proper documentation. Modern warehouses
increasingly use automation, specialized storage equipment, and advanced information
technologies to improve efficiency, reduce costs, and provide better customer service in supply
chains.

USEFUL LANGUAGE BOX

Equipment Handling & Storage Languages

I'm going to show them ...

We need equipment ... / Yes, but if ...
I'm convinced that ...
I really think you'll ...
It's not as convenient as ... but, it best suits ...
This is the price of ...
That basically means that ...
Such as the needs for ...

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 Describing a Warehouse

The warehouse is located in / close to / adjacent to ___.

It covers an area of ___ square metres.
The facility is divided into several sections, including ___.
Goods are stored according to their type / value / turnover rate.
The layout allows efficient movement of goods.
The warehouse is equipped with modern handling equipment such as ___.
Temperature-controlled areas are available for perishable goods.
The storage system includes pallet racks / shelves / bins / automated systems.

Talking about Storage Systems

We use a FIFO (First In, First Out) system to manage stock rotation.
Products are stored in pallet racking / shelving / bulk storage.
The warehouse operates on a just-in-time basis.
Inventory is monitored through a Warehouse Management System (WMS).
The use of barcodes / RFID tags helps track goods accurately.
Goods are categorized by SKU (Stock Keeping Unit).
Automated guided vehicles (AGVs) handle internal transport.

Describing Processes and Operations

- Incoming goods are checked and recorded on arrival.

- Items are labelled and stored in designated locations.
- Orders are picked according to customer requirements.
- Finished goods are packed, labelled, and prepared for dispatch.
- The dispatch area is located near the loading docks.
- Returned goods are inspected and restocked if possible.
- Regular stocktaking ensures accuracy and prevents shortages.

Talking about Safety and Maintenance

All staff must follow the warehouse safety rules.

Safety signs are clearly displayed in all areas.
Fire exits and emergency routes must remain clear.
Workers are required to wear personal protective equipment (PPE).
Regular maintenance checks are carried out on equipment.
The warehouse complies with health and safety regulations.

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 Making Recommendations

It is recommended to implement a warehouse management system.

We should consider reorganizing the layout to improve efficiency.
Investing in automation could reduce errors in picking.
More training sessions should be provided for new staff.
The company needs to upgrade its storage facilities to meet demand.

GLOSSARY

Terms Definitions

A commercial building used for storing goods before they are

Warehouse distributed or sold.

The process of keeping goods in a warehouse until they are

Storage needed.

A warehouse designed to receive goods, store them briefly, and

Distribution Centre quickly dispatch them to retailers or customers.

The planning and management of the movement and storage of

Logistics goods, information, and resources.

The network of organisations involved in producing and

Supply Chain delivering a product to the end consumer.

The total amount of goods and materials held in stock by a

Inventory business.

The process of managing inventory levels to meet customer

Inventory Control demand without overstocking.

The act or process of storing goods in a systematic and

Warehousing organised manner.

Cold Storage A warehouse used to store perishable goods at low

Warehouse temperatures.

A secure storage facility where imported goods are held until

Bonded Warehouse customs duties are paid.

A warehouse available for use by multiple companies on a

Public Warehouse rental or contract basis.

A warehouse owned and operated by a company for its own

Private Warehouse products.

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 A warehouse that uses robotics and computer systems for
Automated Warehouse storage and retrieval of goods.

A technology-driven warehouse that uses AI, IoT, and data

Smart Warehouse analytics to improve efficiency.

Distribution A facility primarily focused on the rapid movement of goods to

Warehouse customers or retailers.

Consolidation A warehouse that combines small shipments from different

Warehouse suppliers into larger loads for distribution.

A logistics practice where goods are unloaded from one

transport and loaded directly onto another with minimal storage
Cross-Docking time.

The process of selecting goods from storage to fulfil customer

Picking orders.

The process of preparing goods for shipment, including

Packing wrapping, sealing, and labelling.

The process of accepting goods into the warehouse, checking

Receiving their condition and quantity.

The process of sending out goods from the warehouse to their

Dispatch destination.

The movement, protection, storage, and control of materials

Material Handling throughout the warehouse.

FIFO (First In, First An inventory method where the oldest stock is sold or used
Out) first.

LIFO (Last In, First An inventory method where the most recently received stock is
Out) sold or used first.

The arrangement of warehouse space to optimise efficiency

Layout Design and safety.

The total time taken to complete one full process, such as

Cycle Time receiving to dispatching.

Space Utilisation The measure of how effectively warehouse space is used.

Extra inventory kept to prevent stockouts due to demand

Safety Stock fluctuations or delays.

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 Additional activities performed in the warehouse such as
Value-Added Services labelling, packaging, or assembly.

Warehouse
Management System A software system that manages warehouse operations,
(WMS) inventory, and workflows.

When goods are produced only in certain seasons but

Seasonal Production consumed all year.

Seasonal Demand When goods are used mainly in certain seasons.

Maintaining steady prices by storing excess goods in

Price Stabilisation warehouses.

Combining small shipments into one large shipment to reduce

Consolidation costs.

Break Bulk Dividing a large shipment into smaller parts for delivery.

Combining various products from different sources for

Product Mixing distribution.

Co-operative
Warehouse Owned by a group (co-operative) to serve members at low cost.

Putaway Moving received goods to their proper storage locations.

Returns Handling goods sent back by customers.

A document that certifies goods have been transferred or

Waybill released.

Goods Receiving Note

(GRN) Confirms that goods have been received.

Stock Card / Bin Card Records inventory movements and balances.

Person responsible for managing warehouse operations and

Warehouse Manager staff.

Forklift Operator Operates forklifts to move goods.

Security Guard Protects warehouse premises and records incidents.

Order Picker/Packer Picks, packs, and labels orders accurately.

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