DEPARTMENT OF MBA

MODULE -V
INTERNATIONAL DISTRIBUTION
Channels Of International Distribution :
Once a firm has decided to enter interpretational markets and identified the markets and the
products, it has to ensure smooth flow of goods from the place of manufacture to the ultimate
customers. For making the goods available from the producer or manufacturer in one country to
an overseas customer, a number of market intermediaries are involved for physical transfer of
goods. Besides, the firm receives the payment through the channel of such intermediaries.
Channels of distribution or marketing channels are the set of interdependent organizations
involved in the process of making a product or service available for use or consumption. The
distribution channels play a crucial role to make the products or service reach the end consumers.
Channel of distribution is defined as an organization of network of agencies and institutions,
which, in combination, perform all the activities required to link producers with users to
accomplish marketing task.
The major functions performed by distribution channels include:
 Physical flow of goods from the producer or manufacturer to the ultimate customers
 Transfer of ownership to the ultimate customer
 Realization of payment that flows from the ultimate customers through market
intermediaries to the producers· or manufacturers.
 Regular flow of information from the ultimate customers and within the channel
intermediaries
 Promotion flow from the manufacturers to the end customer and gathering customer
feedbacks.
Channels of international marketing distribution may be defined as a set of interdependent
organizations networked together to make the products or services available to the end
consumers in international markets. Managing distribution channels in international markets is
much more complex than managing them in domestic markets due to a number of factors,
including the following :
 The distribution system to international markets varies significantly from one country to
another. Therefore, a firm has to develop a thorough understanding of the distribution
channels in the target markets. For instance, prior to perestroika, the marketing channels
in the erstwhile USSR were controlled by the government. The Foreign Trade
Organization (FTO), a huge government body, was involved in bulk import and
distribution through a government controlled distribution network. However, after the
 disintegration of USSR, the private distribution channels were largely non existent in
CTS markets and international firm were required to create their own distribution
networks.
 Firms are more familiar with the marketing channels in their home market. Therefore
selection of distribution channels in overseas markets is a complex decision.
 Collecting information about the distribution channels in overseas markets requires
relatively more resources, both managerial and financial.
 Managing distribution channels in overseas markets is much more complex because of
the physical distance and also due to the marketing systems distance in the target
markets.
 Since a firm commits substantial resources to its overseas· marketing operations, the long
term commitment of channel members is an important aspect in channel design but one
which is difficult to assess.

Selection of a distribution channel -

is one of the most crucial decisions a firm has to make while entering international
markets. A firm may use the following criteria for the selection of channels of
international distribution : ··
• International marketing objectives of the firm
• Financial resource
• Organizational structure
• Experience in international markets
• Firm's marketing image
• Existing marketing channels of the firm
• Channel availability in the target market
• Speed of market entry required
• Legal implications
• Specific product need, if any
• Synergy with other elements of marketing mix.

Depending upon the firm's objectives and need, appropriate weights may be assigned to
each of the above criteria and final ratings based on weight age may be carried at for final
selection of an appropriate international distribution channel.
A firm has the following alternative channel strategies in terms of market coverage.
Exclusive Distribution - The firm opts for a single or a few market intermediaries.
Selection Distribution-
The firm has limited coverage of the market in terms of area and has a select number of
intermediaries.
Intensive Distribution-
The firm deals with as many numbers of intermediaries and outlets in the market as
possible.
TYPES OF INTERNATIONAL DISTRIBUTION CHANNELS-
The International Distribution channels may broadly be divided into two categories namely
direct and indirect channels, as depicted in Figure 11.3. A firm has got the option to make its
products available in the international market through either of the channels or a combination
thereof.
Indirect marketing channels are distribution systems that are owned not by international
marketers but by others, particularly by local people. Vertical indirect marketing channels, for
instance, are commonly used by international pharmaceutical companies, all of which typically
work closely with local wholesalers and retailers. Among these companies are such well-known
firms as Squibb and Merck. Horizontal indirect marketing channels are used by international
marketers desiring access to large numbers of retail establishments scattered throughout the
target markets. Indonesian textiles utilize this type of channel structure in their international
distribution. Pakistani, Korean, and Turkish textiles are also distributed this way. The presence
of a specific internal or external factor may determine the choice between a direct and indirect
structure. Sometimes, an internal factor, such as the company’s large size or a strong need for
distribution control, causes an international firm to opt for direct marketing channels. At other
times, an external factor, such as a legal barrier or a high level of competition, causes an
international form to utilize indirect channels.
Indirect Channels : Indirect channels, an international marketing firm has to deal with domestic
agents or market intermediaries without any direct dealing with a foreign based firm. Vas the
firm is not required to deal directly in overseas markets, indirect marketing channels offer the
following benefits.
• Since the firm has to deal with the market intermediary in the domestic market, it needs little
investment and marketing experience.
• Indirect distribution channels provide low cost opportunity to test products in the international
market.
However, indirect channels have certain limitations, which are as follows:
• As the firm has to heavily depend upon domestic market intermediary, its feedback from the
ultimate customers is limited.
• The firm has to part with relatively higher share of its profit margins by way of commissions
and other payments.
• The firm get little insight into the market even after operating for several years.
• The firm does not develop its own contacts with the buyers in the overseas market.
Direct Channels –
A direct international marketing channel is one that is owned and managed by the international
firm, which owns and operates all of its intermediary institutions and other facilities. Direct
marketing channels can be either vertical or horizontal. A vertical direct marketing channel is
one in which the international firm owns all manufacturing, wholesaling, retailing, and other
intermediary institutions. Examples include the worldwide distribution systems of IBM and
Xerox.
A horizontal direct marketing channel is one in which an international retailer both owns and
operates multiple retail outlets in a market. Sears and Benetton provide examples of this type of
distribution structure
Direct marketing channels involve selling of goods directly to a market intermediary or the end
users or customers in overseas markets. The major benefits of using direct channels are as
follows:
• The firm develops a closer relationship with overseas buyers as it comes in direct contact with
them.
• The firm develops an Insight in to the markets of operations which helps in restructuring its
marketing strategies as peer the market requirements.
• The firm's control over the export process is greater in direct marketing channels compared to
indirect marketing channels.
Channel Intermediaries in International Markets
Channel intermediaries in international markets,can be divided into two categories, agents and
merchant intermediaries. The agents do not take title or the goods and represent the principal
firms rather than themselves, whereas the merchant intermediaries take title or the goods and buy
and sell it on their own account. Agents work for a commission whereas distributors work on
margins. A brief description of various channel members in the international market is given
below.
Factors Pertaining to the Middlemen:
The following are the main factors concerned with the middlemen:
i. Services Provided by Middlemen – The selection of the middlemen is made keeping
in view their services. If some product is quite new and there is the need of its
publicity and promotion of sales, then instead of adopting the agency system, the
work must be entrusted to the representatives.
ii. Scope or Possibilities of Quantity of Sales – The same channel should be selected by
means of which there is the possibility of more sales.
iii. Attitude of Agents towards the Producers’ Policies – The producers generally prefer
to select such middlemen who go by their policies. Very often when the distribution
and supply policies of the producers are being disliked by the middlemen, the
selection of middlemen becomes quite limited.
iv. Cost of Channel of Distribution – While selecting the channel of distribution, the cost
of distribution and the services provided by the middlemen or agents too must be kept
into consideration. The producers generally select the most economical channel.
Factors Affecting Channels of Distribution – Factors to Consider When Choosing a
Distribution Channel:-
Some of the major factors affecting selection of channel are organization objectives, type of
product, nature and extent of market, existing channel for comparable product, buying habits of
consumers and channel availability. Company objectives need to be known before designing a
channel that whether it wants to have mass appeal and rapid penetration of its products or it
wants to be a niche player.
The choice of suitable distribution channel is one of the most important decisions to be taken
while marketing products because at the end of the day it will be the channel that will have an
impact on the time and costs of distribution and the volume of the sales generated by the
company.
Channel infrastructure has also been found to impact pricing and promotion efforts of the
distributors and often they clearly indicate the role to be played by the intermediaries in the
distribution chain.
We will delve into the various factors to be considered while choosing a distribution channels in
greater detail:
1. Product Related Factors:
The nature and type of products have an important role to play in the choice of the channel.
Some of the main characteristics of the products that are to be considered in this matter are:
i. Unit Value:
Products of low unit value are generally sold through intermediaries as direct selling of such
products have a negative impact on companies in question. Low priced and high turnover articles
like cosmetics and stationery items have been found to flow through long channels.
ii. Perishability:
Perishable products like eatables have a short channel length as they cannot be stored for long.
Similarly products of seasonal nature have short channel lengths. Products that are subject to
frequent changes in style and other aspects are also distributed through short channels. Products
that are considered durables are sold through agents and merchants.
iii. Bulk and Weight:
Heavy or bulky products are distributed through shorter channels so as to minimize the product
handling costs.
iv. Standardization:
Customized products are found to have short channels as they require direct contact between the
producer and the consumers. Standardized products on the other hand are found to be sold
through various intermediaries.
v. Technical Nature:
Those products that require demonstration or installation or rigid after sales service are often sold
directly to customers.
vi. Product Line:
Companies who have wide range of products are often found to set up their own retail outlets
since it is economical to them. However those companies that have very few products are often
found to sell those through middlemen.
vii. Age of Product:
New products or products that are at the introductory stage of the life cycle need greater
promotional effort and there are very few intermediaries to handle the same.
2. Market Related Factors:
The nature and type of customers is an important consideration for the choice of distribution
channel.
i. Consumer or Industrial Product:
Purpose of buying has an important impact on channel. However goods purchased for industrial
use are sold directly through agents. This is because industrial users buy large quantities and
manufacturers can effortlessly establish direct contact with them.
ii. Number and Location of Buyers:
When the number of customers (both existing and potential) are small the distribution channel
covers a small area while in case of products that have large number of products, the channels is
widely scattered having many wholesalers and retailers
iii. Size and Frequency of Order:
Direct selling is found to be appropriate in case of large and infrequent orders but in case of
small and frequent orders, intermediaries are generally preferred. Companies often use different
sorts of distribution channels for different types of products in their kitty
iv. Buying Habits of Customers:
The amount of time and effort customers are willing to spend on a product is an important
consideration. Customer expectations have to be considered in a big way while deciding upon
channel.
3. Company Related Factors:
Along with the objectives of a company, the nature and size of a company play an important role
in channel decisions.
i. Market Standing:
Reputed companies often have the liberty to eliminate intermediaries than the lesser known or
newly formed companies in the market.
ii. Financial Resources:
Large firms with sufficient funds have the ability to set up their own retail shops to sell directly
to customers but then in case of weak enterprises, they need to depend on middlemen for their
products to reach the end user.
iii. Management:
The competency level and the experience of the management have an influence on channel
decision. If management of a company have proper knowledge and experience of distribution, it
may prefer direct selling. Firms whose management lack know how about various aspects of
business have to depend on middlemen.
iv. Volume of Production:
Big firms with large output find it suitable to set up their own retail outlets but with companies
having small outputs, they find it economical to distribute through middlemen.

v. Desire for Control of Channel:

Firms interested in exercising proper control on the distribution chain intend at keeping short
distribution channels. This helps them to go for aggressive promotions and understand the target
audience in a better way. When such desires are absent in companies, they go on to employ
middlemen.
vi. Services Provided by Manufacturers:
When companies plan to sell directly to customers, they have to consider the after sale part too
but when firms are not in a position to offer such services, they have to depend on middlemen.
4. Middlemen Related Factors:
Middlemen or intermediaries play a defining role in the success of distribution policy set up by
companies. There are many companies who are not quite confident about the intermediaries and
coordinating with them and such companies aim at having direct contact with the end user.
i. Availability:
When competitive and cost effective middlemen are available, companies will like to go for
having suitable number of intermediaries in the distribution chain but then, when such scope is
not available, companies move out to have their own sales force reaching out to customers.
ii. Attitudes:
The success of marketing products depends on the attitudes of the middlemen. When middlemen
believe in the policies of the company and are interested to carry on the mission of the company,
they work as extensions of the company but then when such attitudes are absent and they rather
pose hurdles for the company, firms need to have their own method of distribution.
iii. Services:
When the middlemen are found to provide such services like financing, storage, promotion etc.,
it is always better for a company to have the middlemen in the distribution chain.
iv. Sales Potential:
Intermediaries with proper sales potential are always required by firms since that will ensure
greater penetration of products in a cost effective manner.
v. Costs:
There are costs involved in setting intermediaries and there are costs involved in having own
distribution chain but then the two types of costs need careful evaluation and comparison and the
necessary decision to be taken.
vi. Legal Constraints:
In certain products, government regulations play an important role in channel decisions. In cases
of drugs and liquors, they are to be distributed only through licensed shops.
Carrying on with the topic of middlemen, there are two major types of middlemen viz. Agent
middlemen and Merchant middlemen. Agent middlemen are functional middlemen do not take
the ownership and delivery of goods. They only assist in the buying and selling of goods.
Modes of Transportation-
Whenever a new company is to be established, the transportation function is to be kept in mind
before selecting the site of the company. To supply a product both between the countries and
within a country there are fundamentally three modes of transportation: air, water (ocean and
inland) and land (rail and truck).
The appropriate transportation mode depends on (i) market location, (ii) speed and (iii) cost.
A firm must first consider market location. Contiguous markets can be served by rail or truck as
the case may be. To supply goods between continents sea or air transportation is needed.
Speed is another consideration to decide the mode of transport. When speed is essential, air
transportation is preferred mode of distribution.
The cost is another factor to be considered in the selection of the transportation. Cost is directly
related to speed – a quick delivery costs more.
The three different modes of transportation are discussed in the following sub-sections.
Land-
Land transportation is the common mode of transport for any shipment whether local or
international. Some type of land transport is essential in moving goods to and fro an airport or
seaport. The land transportation involves rail or truck when the goods in large quantity are to
be moved for a long distance over land. However, rail can prove to be more economical than the
trucks. Europe and Japan have modern train systems that are capable of moving merchandise
efficiently. Developing countries like India have yet to provide an efficient and fast rail
transportation system to the business.
On the other hand, trucks are capable of going to more places. In addition, trucks may be needed
to take cargo to and from the railway station. When countries have joined boundaries, moving
cargo by truck or train is often a practical solution.
Air
Out of all the modes of transports the air accounts for only 1% of the total international freight
movement. It is the fastest growing mode and is becoming less confined to expensive products.
Air transport has the highest absolute rates but exporters have discovered that there are many
advantages associated with this mode. First, air transport speed up delivery, minimizes the time
the goods are in transit and achieves great flexibility in delivery schedules. Second, it delivers
perishables in prime condition. In India, the perishable goods like cut flower, mushrooms and
fruit are transported by air to carry out profitable export. Third, it can respond rapidly to
unpredictable and urgent demand.
Example: Quick replacement of broken machinery, equipment, or a component part can
be made by air.
Fourth, it reduces the minimum damage, packing and insurance costs. Finally it can help control
costly inventory and other hidden costs, including warehousing, time in transit, inventory
carrying cost, inventory losses and the paper work necessary to file claims for lost or damaged
goods. These costs will increase as the time in transit increases.
Water
Bulk shipping is important in international trade because it is one of the most practical and
important and efficient means of transporting petroleum, industrial raw materials, and
agricultural commodities over long distances. About 51% of the global bulk fleet consists of oil
tankers, while dry bulk carriers account for 43%. The remainder of the fleet is made up of
combination carriers, which are capable of carrying either wet (crude oil and refined petroleum
products) and dry (coal, iron, iron ore and grain) bulk cargo. The bulk shipping industry being
highly fragmented as no one organisation, which has more than 2% of the total fleet.
There are basically three types of shipping companies: (a) An ocean freight conference line is an
association of ocean carriers that have joined together to establish common rules with regard to
freight charges and shipping conditions, (b) An independent line is a line that operates and
quotes freight rates individually and independently without the use of a dual rate contract and
(c) Finally, a tramp vessel is a ship not operating on a regular route or schedule. Tramp steamers
do not have the established schedules of the other two types of carriers.
Advantages of air transport
Following are the advantages of air transport
High Speed
It is the fastest mode of transport and therefore suitable for carriage of goods over a long
distance. It require less time.
Quick Service
Air transport provides comfortable, efficient and quick transport services. It is regarded as best
mode of transport for transporting perishable goods.
No Infrastructure Investment
Air transport does not give emphasis on construction of tracks like railways. As no capital
investment in surface track is needed, it is a less costly mode of transport.
Easy Access
Air transport is regarded as the only means of transport in those areas which are not easily
accessible to other modes of transport. It is therefore accessible to all areas regardless the
obstruction of land.
No Physical Barrier
Air transport is free from physical barriers because it follows the shortest and direct routes where
seas, mountains and forests do not obstruct.
Natural Route
Aircrafts travels to any place without any natural obstacles or barriers because the custom
formalities are compiled very quickly. It avoids delay in obtaining clearance.
National defence
It plays a significant role in the national defense of the country because modern wars are
conducted with the help of aero planes. Airways has a upper hand a destroying the enemy in a
short period.
Disadvantage of air transport
Inspite of many advantages, air transport has some disadvantage also.
Risky
Air transport is the most risky form of transport because a minor accident may put a substantial
loss to the goods, passengers and the crew. The chances of accidents are greater in comparison to
other modes of transport.
Very Costly
Air transport is considered costlier as compare to other mode of transport. The operating cost of
aero-planes are higher and it involves a great deal of expenditure on the construction of
aerodromes and aircraft. Because of this reason the fare of air transport are high that common
people can’t afford it.
Small Carrying Capacity
The aircrafts have small carrying capacity and therefore these are not suitable for carrying bulky
and cheaper goods. The load capacity cannot be increased as it is found in case of rails.
Unreliable
Air transport is unreliable as it depends of the weather forecast. Normally if the weather is not
certain the flight may got delayed.
Huge Investment
Air transport requires huge investment for construction and maintenance of aerodromes. It also
requires trained, experienced and skilled personnel which involves a substantial investment.
Advantages of Road Transport
1. Road transports are economical.
2. It is safe. Damage to goods is generally much less in road transport because handling is
minimum.
3. It is flexible. It can reach the actual place of loading and unloading.
4. It gives access even to the common man.
5. It is the only option, if goods are to be delivered within a particular locality, e.g., if door
delivery is to be given by a dealer.
6. It offers wider coverage. Any domestic or national market can be reached by the mode of road
transport.
7. Loading and unloading of goods can be done more quickly.
8. When compared to all other modes of transport, packing expenses are the lowest in the case of
road transport.
9. The overhead expenses are also less in the case of road transport. Rail transport, for example,
requires the construction of railway stations, erection of signals and so on.
10. Road transport is the only suitable mode of transport for marketing goods in rural places.
Disadvantages of Road transport
The demerits of road transport are given below:
1. The carrying capacity is less.
2. Its efficiency is very much determined by the conditions of roads. Bad roads may cause such
problems as breakdown and result in delay in the consignment reaching the market place.
3. It is slow. The competitive nature of Indian markets makes it undependable.
4. The rates are not standardized.
5. It is not suitable for carrying goods to very long distances, i.e., for foreign destinations.
6. Goods sent by trucks get lesser protection against rain, storm and so on.
7. Accidents occur often in highways. This makes road transport highly unsafe.
8. This mode of transport is highly irregular. The truck operators, generally, do not adhere to
time schedule. Breakdowns and accidents further add to the problem.
Marine transportation-
Marine transportation drives 80–90% global trade, moving over 10 billion tonnes of containers,
solid and liquid bulk cargo across the world's oceans annually (Walker et al., 2019). Throughout
history, people and goods have moved between continents and across oceans by sea. Marine
transportation can effectively and efficiently move almost any goods, though the advent of air
travel proved preferable for perishable and high-value goods. The industrial revolution further
improved ship transportation by capitalizing on the capabilities of internal combustion engine-
power, and the subsequent adoption of containerization once again dramatically changed
maritime transportation in the name of efficiency.
The process of “containerization” was another shift for marine transportation as ships now need
not be designate to a specific good (since all are contained in a standard unit) and inter-modal
connections also became completely leveled (a container can move from a ship to a transport
truck bed to a rail car with ease). In this way, cargo capacities by various means of transportation
can be measured in container units, called the twenty-foot equivalent unit or TEU, due to a 20-
foot standard container. More often, the containers seen on trucks on highways and on large
transport ships are 40 feet in length, or forty-foot equivalent unit (FEU).
The inherent similarity and likeness of a container greatly assists with standardization in marine
transportation, going so far as to be regulated by international standardization regulators (ISO
1496-series). Thirdly, the marine transportation sector has been consistently raising the bar for
bigger ships with higher TEUs or FEUs, which enables and allows for an increase in trade
overall. Under the guise of globalization, this standardization brought about through the use of
containers is what revolutionized marine transport more recently.
The United Nations (UN) cites that as at the beginning of 2018, there were 94,171 commercial
vessels in the global fleet (See Fig. 1 for a detailed breakdown by ship type, and Table 1 for a
more detailed breakdown by country) (UNCTAD, 2018). Most operate on carbon-rich fuels such
as heavy diesel, and their emissions have negative environmental impacts.

Warehousing-
Warehousing is an important part of the retail supply chain. A warehouse is simply a storage
space where a business owner can store their products for later order deliveries. Warehousing
becomes a must thing, especially in businesses like e-commerce. Warehousing offers many
functions that we are covering in this article.
Functions of warehousing mean the wide range of activities, which are associated with the
physical distribution of goods from the end of the production line to the final consumers. The
most common functions of warehousing are purchasing of goods, inventory management,
storage, materials handling, protective packing, and transportation.
However, there are so many other important concepts linked to warehousing that must be learned
to understand the concept of warehousing to its fullest. Let’s learn warehousing, its functions,
advantages, disadvantages, roles and its process in detail.
To understand the concept and functions of warehousing, let’s first see what does warehousing
actually mean?
Warehousing Definition: According to the simple definition of warehousing, Warehousing is
concerned with the storing function of goods and commodities. Warehousing also refers to all
the activities which are connected with the safekeeping of goods until they are needed for
consumption.
In the words of R.E Murphy,
“Warehousing is concerned with storing function in the channel of distribution of goods”.
Or in a more simple definition, warehousing is a planned place for storing goods safely and
efficiently until they are required for consumption. Warehousing plays an important role to keep
the prices stable and make the goods available at the right time.
Because of the vast functions of warehousing, warehouses (sometimes known as distribution
centers) are used by distributors, manufacturers, importers, exporters, businesses, and
wholesalers.
The concept of warehousing can be made simpler by an example. We all buy some items in bulk
for our kitchen and then we store them for later use. Similarly, businessmen buy goods in bulk
and store them in their warehouses and provide them to the market when demanded.
It means warehousing lies at the center of the supply chain and plays a vital role in the success of
the supply chain concept.
Warehouses also play an important part when the products are being manufactured but the raw
material is not available. Let us explain this by an example.
For instance, sugarcane is not produced throughout the year but only for a few months. To
produce sugar, companies need sugarcane throughout the year.
This is where the functions of warehouses come into play and make the availability of the goods
on demand.
Difference between Warehouse and Warehousing
So far, we have used some of the warehousing terms that may confuse some students. Because,
at first, it seems warehouse and warehousing are the same terms. But in actuality, there is a
difference. Let us first clarify the difference here.
Warehouse means a physical location or building that keeps the products/goods safe inside while
warehousing is a concept that includes the whole process and functions of warehousing that we
are going to explain in a while in this article.
Apart from this, there is another term that you may have heard is, “Inventory Management”
which is also used with the warehousing management system.
In simple words, the difference between inventory management and warehouse management is
that warehouse management deals with the physical products stored inside the building like how
to store the goods to make the warehousing space-optimized and a lot of other related tasks.
While inventory management is related to keeping the records of the goods stored in the
warehouse. Inventory management also deals with managing the stock and the trends of the
goods’ demand.
Importance of Warehousing in Business
Not all businesses need warehouses, but some of the businesses can’t even run their operations
without warehousing like e-commerce where we have to store physical products so they can be
delivered quickly when demanded.
The major benefit is you don’t have to worry about increasing the prices of the products because
you can stock hundreds of products in warehouses and sell them when required. Otherwise, if
you are delivering products based on orders without having stocks in warehouses, then clearly
you may face incrasing prices issues.

This is where the functions of warehousing (that we are going to discuss in detail shortly) come
into play. The rule is simple, if you are selling physical products, then you need a physical
storage place.
Objectives of Warehousing
One of the major objectives of warehousing is to facilitate customers by storing the products as
close to customers as possible so they get their orders on time.
The other benefit is that warehousing reduces the cost and improves customer satisfaction by
ensuring speed of delivery and consistency of delivery.
Moreover, warehousing management also helps to keep track of inventory, stock status, and a lot
more other factors.
Elements of Warehousing
Depending on the types of warehouses, warehousing offers many benefits like storing goods or
storing goods with fulfillment features. However, to achieve such benefits, a warehouse must
have certain elements to keep operations effective.
The most important elements of warehousing are:
Racks and shelves systems for easy storage and access of products when needed while keeping
the space-optimized.
Security mechanism to keep the products safe from natural disasters and thefts.
Warehouse management system to control the inventory and keep track of the staff performance.
Climate control system so that the products stay fresh and safe. For example, edible products,
medical products, and other products that need to be frozen require a climate control system.
Equipment to move products from one place to another place. Such equipment includes forklifts,
conveyor belts, dock boards, truck restraints, dock seals and shelters, dock bumpers, and pallet
jacks, etc.
Easy and cost-effective access to the transportation system so that goods can easily be imported
or dispatched when needed.