Role of Warehouses

Functions of Warehouse:

• To provide storage for raw materials and components of the manufacturing process
• To protect goods from theft , deterioration and damage and weathering.
• To help in stockpiling. Production can be done ahead of demand.
• To provide packaging, grading, sorting and labelling before sale of goods.
• To keep prices stable
• To provide product collection and distribution.
• To offer special facilities
• To break bulk quantities into smaller quantities.
• To inspect goods before prospective buyers purchase them.
• To meet unexpected demand

Importance:

• Just in time supply and delivery of goods
• Storage of surplus goods which can be sold later for profit
• Prevent business from running out of supply thus helping to maintain stable rate of inventory turnover.
• Reduces transport and distribution costs

Seasonal production:

• Seasonal production means to produce goods at certain times of the year for which there is a stable demand throughout the year.Warehouses store these goods and release them throughout the year to retailers to maintain supplies and stable prices.
• Seasonal demand means to produce goods throughout the year for which there is demand at only certain times of the year.Warehouses store these goods and release them when demanded to maintain price stability.

International Transport

• Ports are usually controlled by port authorities.These may be owned by government or privately-owned enterprises or by city councils or joint ventures.

Port authority:An organisation that controls a port

• Ports should be situated whre there is permanent deep water.They need to be protected from natural hazards.
• Itvis important to have giid facilities at the port so as to ensure swift movement of goods into and out of the country.
• Ports should be able to handle ships of different sizes.Seaports are point of entry to a country.

Services provided at seaports:

1. Clear waterways and marked channels.There may be need of dredging, the removal of debris, protecting the environment of port.
2. Tugs and pilots for moving ships
3. Wharves with cranes, gantries and dock labour yo load and unload cargo and containers.
4. Container terminals with special handling equipment for containers
5. General warehouses for non-dutiable goods, bonded warehouses for dutiable goods,cold storage warehouses for perishables
6. Outside storage area for stacked containers awaiting loading
7. Repair facilities with wet and dry docks.
8. Good infrastructure.There must be access by rail or road from port to other major cities.
9. Facilities where customs authority and immigration authority can operate
10. Office space for the port authority and freight forwarders
11. Maintenance of Road and rail track within the port area
12. Parking area for cars and trucks
13. Passenger terminals and ferry terminals

• Airport authorities operate airports.They are responsible for management and maintenance of airport.

Airport authority:An organization that controls airport.Example:British Airport authority.

Transport

• Logistics is the  management of flow of goods from producer and manufacturer to consumer ot marketplace.
• Transport is a crucial part of this process so that customers do not run out of supplies
• The growth of containerisation has aided this process
• Transport has helped to create an interdependent world. It encourages countries to specialise and benefit from comparative advantage
• Effective transport leads to expansion of business.They look for markets far away especially abroad.
• Transport also moves people.They get wider choice of job. They can earn more money by travelling to a firm which pays higher value for their skills. It is used to visit shops and for leisure.  

Advantages of Road transport:

• Flexible form of transport.It can be adjusted as regards timetable and frequency of visits.
• Door to Door delivery without trans-shipment.
• Fast and cost-effective for short distance.Recent developments have made it more suitable for long distance also.
• Accessible to a wider range of area

Disadvantages:

• Slow for long distances
• Unsuitable for carrying bulk
• High cost of operating
• Traffic jams cause delay
• Limitations on time given to drivers for which they can use vehicles.These laws are imposed by govt.
• Increased social costs have to be paid by taxpayer when a truck damages a road. 
• Causes a lot of pollution 

Advantages of rail

1. Suitable for bulk and heavy goods 
2. Companies can own company trains to transport their own goods.These are part of marshalling yards.
3. Give easy access to passengers to reach CBD as they are located on city centres.
4. Causes less air pollution compared to road transport.
5. Less workers needed to operate than road transport

Disadvantages:

1. The need for trans-shipment of goods.
2. Slow and expensive for short distances 
3. Cannot go everywhere
4. High cost of maintenance and set up
5. Rail is inflexible in terms of timetable
6. Train crash recieves more publicity than truck crash on roads.

Communication

Advantages of Oral Communication:

• It can develop into a discussion
• It can be enhanced by non-verbal communication
• It gives immediate impact
• It can be interactive

Disadvantages:

• It may take a long time
• There is no written record
• Non-verbal signals may conflict with verbal saying
• Some people are better communicators than others
• The conversation may not be planned

Advantages of Written Communication:

• Permanent record
• Time for planning a reply is given
• Evidence in case of dispute
• Technical and complex information can be supplied
• It can be supplemented by visual, numerical data
• Identical copies can be sent to many people
• Less chance of misunderstandings

Disadvantages:

• Time-taking process
• No instant feedback
• May be badly written
• May not be read in full
• May be costly
• Difficult to explain complex information

Telephone is a means of communication that enables a conversation to take place without bejng visible to one another.
Advantages:

• One to one communication with instant feedback
• Discussion can take place
• Immediate contact
• Personal approach

Disadvantages:

• person called may not be available
• No record of conversation
• Costly over long distances
• time difference may cause difficulty with international calls
• Signal may be poor

Insurance

Effecting Insurance Cover:

• Consider the kind of insurance required
• Contact insurance company either by broker or direct
• A prospectus is given which tells details about cover offered
• Complete proposal with utmost good faith
• Insurance company will make sure that the insured has insurable interest
• The premium is calculated.
• A cover note is issued that provides immediate cover
• Insurer will draw up the policy
• Excess is set up.the insured agrees to pay first portion of a loss.
• The insured should check the conditions and exclusions

Exclusion clauses show what is not included in the policy for which claim cannot be made

When a policy is about to lapse,renewal notice is sent.

Proposal form is application for insurance

Main purposes:

• Apply for insurance
• Basis of contract
• Means of advertising
• Request for quotation
• Documentary proof of information
• Legal offer to proposer
• Assess the risk

Key information:

• Details of insurer and insured
• Type of policy
• Nature of risk
• Insurance record of proposer
• Declaration of proposer and date

Trends in Advertising

• Digital billboards enable advertisements to change but make use of LED.They combine sound with visual display
• Internet advertising has increased markets.Some retailers sell online only.Others sell online as well as in physical outlets.
• Traders jave their own website.Types of website:

1. Informative:Details about goods and services offered
2. Transaction:Answer questions of consumer.Buying and selling can take place.
3. Interactive:Combine information with transaction

• Pop ups are small tabs that show up when a webiste is opened.
• Traders also pay search engines so that when people search, their website is placed first
• Emails may be tracked and sent to potential buyers.Promotions may be offered.
• A portal gathers information and directs consumers about websites where more information can be found
• Although newspaper reading and advertising has reduced, it is still in use where internet service is not developed.People who trust print media more than electronic  media also prefer it
• Mobile advertisement uses cellphone.It is important because:

1. Huge worldwide reach
2. Rapid development in technology
3. More usage than PC
4. People use mobile phones yo check advertisements