FOROÑAS, Aldrein John O.

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What is Warehousing?

Warehousing is the act of storing goods that will be sold or distributed later. While a small, home-based business might
be warehousing products in a spare room, basement, or garage, larger businesses typically own or rent space in a
building that is specifically designed for storage.

Warehousing Elements

Whether the purpose is strictly storage or storage plus order fulfillment, warehouses use specific elements that help
manufacturers, distributors, and retailers monitor inventory and store it safely. An overview of basic elements includes:

 Shelving and rack systems that offer maximum storage capacity and easy product access.

 A climate control system for the product being stored. This is particularly important for frozen products or those
requiring refrigeration, including certain pharmaceutical or laboratory products, and others that degrade if
exposed to too much heat.

 Inventory control software that tells the product owner – who isn’t necessarily the building owner – where all
individual units are in the system at all times.

 Equipment that can move products from point A to point B – forklifts, pallet jacks, bins that hold products for
orders, and conveyor belts, for example.

 Shipping supplies for order fulfillment.

 People who load products into a warehouse and others (“pickers”) who fill orders in a true distribution center,
plus those who manage the facility and operation.

 Security to protect stored products.

 Access to cost-effective transportation to bring products in or move them out as orders are fulfilled. That often
means easy access to interstates, rail lines, or airports.

A warehouse is a commercial building generally used for storage of goods and warehousing is the process of proper
storage and handling of goods and cargo using scientific methods in the warehouse and making them available easily
and smoothly when needed. In recent days, warehousing is considered as one of the most important aspect of trade.

Need for warehousing

 Some commodities are produced in a particular season only. To ensure their off season availability, warehousing
is required.

 Some products are produced throughout the year but their demand is seasonal. Warehousing is important in
such cases.

 For the companies which opt for large scale production and bulk supply, warehouse is an unavoidable factor.

 Warehousing help companies ensure quick supply of goods in demand.

 Production of goods and their movement of goods are important for the companies for continuous production
of goods.

 Warehousing is also important for price stabilization. For necessary goods, the Government stores them in the
warehouses and controls its supply in the market as per the price fluctuations.
  Vital need of warehousing is for bulk breaking. Consider a trade agent who imports goods from a country for a
large number of buyers in his own country. He first takes the goods to his warehouse and breaks it into small
parts for supply to the buyers.

 As far as cost saving is considered, warehousing helps the traders with cross docking. All the goods are
consolidated in the warehouse and then stuffed into containers according their destination. This is mainly
beneficial for small traders who export low quantity of goods.

Major functions of a warehouse

 Storage of goods

 Protection of goods

 Risk bearing

 Financing

 Processing

 Grading and branding

 Transportation

TYPES OF WAREHOUSE

1. Private Warehouses:

These are owned and managed by the channel suppliers (manufacturers/traders) and resellers and are used exclusively
for their own distribution activities.

Examples:

(a) Warehouses constructed by farmers/producers near their fields/places of work.

(b) Warehouses owned and managed by wholesalers and retailers close to their selling centers.

(c) Warehouses constructed by manufacturers near their production units.

(d) Warehouses taken on rent by retail stores.

(e) Retailers may have several regional warehouses to cater the needs of their stores.

(f) Warehouses owned/leased by a wholesaler where it stores and distributes. Maintaining private warehouses involves
fixed as well as variable costs. Examples of fixed costs are basically the investments made in terms of insurance, capital,
interests and taxes. The variable costs on the other hand, include maintenance costs and operating costs.

Therefore, due to large expenses, private companies prefer to have assistance of public warehouses and will go for
private warehouses under following situations:

(i) Wide presence and firm commitment in the region and necessity to have permanent base in an area.

(ii) Considering long term strategic advantage

(iii) Scope of optimum utilization is assured for long periods.

(iv) To build advantage over competitors.

2. Public Warehouses:

These warehouses are owned by government and semi government bodies and are made available to private firms to
store goods on payment of rent. The public warehouses are usually set up to help small traders who are not in position
to have their own warehouses due to financial constraints.

Therefore, in order to promote trade and industry, central or state governments come forward to cater such storage
needs of traders/retailers. Anyone can avail these facilities to solve its short-term distribution needs. Retailers
sometimes due to increased sales even find their private warehouses insufficient if their facilities have reached capacity
or if they are making a special, huge purchase of products for some reasons.

For example, before festivals or before marriage seasons, retailers may order extra merchandise to avoid ‘out of stock’
situations. These warehouses are typically regulated by the government bodies. Costs incurred by the private firms for
the use of public warehouses are considered as variable. These warehouses are mainly used by
manufacturers/producers, exporters and importers.

3. Bonded Storage:

These warehouses are owned, managed and controlled by government as well as private agencies. Bonded warehouses
are storage facility used to store imported goods for which import duty is still to be paid. The bonded warehouses run by
private agencies have to obtain license from the government.

In actual, this enables the government bodies to hold control on private firms to pay their taxes on time. Without paying
duties, importers cannot take over or open the goods. Globally, it has been seen that these warehouses are found near
the ports and are usually owned by dock authorities. Bonded warehouses are subject to two types of taxes: (a) Excise
duty and (b) Custom duty.

4. Co-operative Warehouses:

As the very name implies, these warehouses are owned, managed and controlled by co-operative societies. These
societies provide storage facilities on the most economical rates to their members only. The basic purpose to run such
warehouses is not to earn profit but to help their members.

5. Distribution Centres:

This type of storage facility usually has large space, which enables fast movement of large quantities of stores for short
period. While, on the other hand, conventional warehouses hold goods for long time, say 2 months or 1 year.

These warehouses basically by nature, serve as points in the distribution system at which goods are procured from
different suppliers and quickly transferred to various customers. These centers provide computerized control, which
make movement of goods quick, fast and reliable.

In order to minimize delivery time, these storage facilities are found close to transportation centers. In some cases,
distribution centers handle the goods for less than a day period such as in case of fast foods or perishable products.
Most of the goods enter in the early morning (dawn time) and is transferred/distributed by the evening time.
Common terminologies used in warehousing

3PL: Stands for third party logistics, which is a business’s use of an outside company to manage a warehouse or group of
warehouses.

Advanced Shipping Notification: A document that is sent to a warehouse management system from a supplier that
provides information about a pending shipment.

Barcode: A marking made up of a series of bars and spaces used for identification of products in which a scanner is used
to read the encoded information.

Batch picking: A process of order picking in which all the items for multiple orders is picked by a single picker.

Bill of Lading: A document that details items in a shipment that acts as a receipt given by the carrier of the shipment to
the recipient of the shipment.

Cross Docking: Refers to the practice of moving products directly from the receiving area to the shipping area for
distribution rather than being put away and stored for a period of time.

Discrete picking: A process of order picking in which the picker pick all the items for one particular order.

Line: The products in an order that share the same SKU or UPC number.

Order: All the products that are including on one transaction from a customer.

Purchase Order: A purchase order is a document that is sent from a buyer to a supplier requesting an order for
merchandise. The purchase order usually lists the type of item, quantity, and agreed-upon price.

Putaway: This refers to removing incoming orders from the location where it is received to the final storage area and
recording the movement and identification of the storage location where it has been placed.

Receiving: The process involving the physical receipt of merchandise, its inspection for accuracy and to identify any
damage, the determination of where the stock will be stored, delivery to that location, and the completion of receiving
reporting.

Replenishment: The process that involves moving stock from a secondary storage area to a fixed storage location. This
could also refer to the process of moving stock between distribution centers or from suppliers to meet customer
demand.

QR Code: A Quick Response (QR) code is a scannable code, made up of various black and white squares, that allows
cameras or smartphones to read it and take the user to a stored URL or other information.

Unit: One particular physical item or product.

WMS (warehouse management system): The software solution that keeps track of all warehouse operations including
receiving, putaway, picking, shipping, and inventory.

Zone picking: A process of order picking in which different pickers pick items of an order from specific assigned storage
areas to be assembled for shipping later.
Warehouse Abbreviations
3PL: Third party logistics

ADC: Automated data collection

APS: Advanced planning and scheduling

ASN: Advanced shipment notifications areused to notify a customer of a shipment. Often including purchase order
numbers, SKU numbers, lot numbers, quantity, pallet or container number, carton number

ASRS: Automated Storage Revival system

ASP: Application service provider

AIDC: Automatic identification & data collection

BOM: Bill of material is a list materials required to produce an item

CCD: Charged coupled device is a barcode scanner that takes digital image of the barcode instead of laser scanning, can
only scan at short distance of a couple of inches

COGS: Cost of Goods Sold

CPG: Consumer Packaged Goods

DC: Distribution Centre

EPC: Electronic product codeis the RFID version of the UPC barcode. EPC is intended to be used for specific product
identification

FMCG: Fast Moving Consumer Goods

FIFO: First in first out

GVW – Gross Vehicle Weight

LIFO: Last-in-first-out

NIFO – Next In First Out

POD – Point of Delivery

RFID: Radio frequency identification

SCM – Supply Chain Management

SKU: Stock keeping unit

SSCC: Serial Shipping Container Code

VNA: Very narrow aisle

WIS: Warehouse Inventory system

WS: Warehouse storage

WD: Warehouse Distribution

WMS: Warehouse Management Solution

WHM/WHS/WHSE: Warehouse
A Definition of Warehouse Operations

Rick Stinchcomb of the University of Oklahoma Press defines warehouse operations as such: “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. Meeting this goal requires constant planning and ongoing change.”

Breaking it down, warehouse operations covers a number of important areas, from the receiving, organization,
fulfillment, and distribution processes. These areas include:

Receiving of goods

Cross-docking of goods

Organizing and storing inventory

Attaching asset tracking solutions (like barcodes) to assets and inventory

Integrating and maintaining a tracking software, like a warehouse management system

Overseeing the integration of new technology

Selecting picking routes

Establishing sorting and packing practices

Maintaining the warehouse facility

Developing racking designs and warehouse infrastructure

Of course, the aforementioned points represent just a fraction of what many modern warehouse operations
managers face. That said, they constitute the fundamentals of warehousing, elements that serve as the building
blocks for all warehouses, big and small.

How Warehouse Operations Work

While many factors come into play when considering warehouse operations, ostensibly, today’s key factor concerns
customer experience. Since the rise of Amazon and its nearly autonomous fulfillment centers, consumers have grown
accustomed to two-day, one-day, or sometimes even hourly shipping times.

These expectations force warehouse operations to keep customers’ needs at the forefront. Operations can achieve this
by investing in a software system, like a WMS, WES, or CRM that give all members of the supply chain, including
customers, a picture of the retailer’s inventory levels. The operations manager, along with planners and other
management, can use the purchase data to organize the warehouse floor in such a way that the most popular or quick-
moving SKUs are strategically placed.

Once the inventory and infrastructure plans have been inked, management must also consider factors like new
technology integration, picking routes, safety, personnel management, and more. Attention must also be paid to the
organization’s fleet, whether it be internal or otherwise. It is the job of the warehouse operations personnel to ensure
that all inventory is picked, packed, and ready to be loaded for shipment in the most efficient way possible.
Warehouse Operations Best Practices

Maintaining a reliable, safe, and modern warehouse can be possible for operations of all sizes and budgets, provided
that the basic best practices are followed. These include:

Safety – According to OSHA, the fatal injury rate for warehousing is “higher than the national average for all
industries.” Because of this fact, agencies, like OSHA, pay extra close attention to common warehouse operations
pitfalls, including improper licensing/training procedures, faulty infrastructure, poor recordkeeping, facility maintenance
issues, and more. Following the established safety rules ensures that the health of the associates and the business
remain secured.

Organization – Supply Chain 247 preaches the importance of storing all materials in standardized bins, and in
locations that are strategic and well-labeled. The publication also recommends that all operations who can, should
implement cross-docking procedures in order to reduce “cycle time and material handling costs.”

Communication with the planning team – Too often, organizations experience communication breakdowns between
the personnel working on the floor and those working in the corporate office. While a planning team might be aware
that factors like globalization could affect inventory cycle times, the warehouse might not learn of this until the 11th
hour, when it can only survive, not strategize. This common scenario can be remedied by more frequent meetings and
daily communication within a cloud-based software system.

As you can see, modern warehouse operations have evolved into a rather involved field, but that doesn’t mean that the
basics have changed. Always put the customer first, focus on fulfillment times, and keep a regimented study on facility
safety and organization. By following these steps, you, too, will have the tools you need to run an efficient enterprise.
FOROÑAS, Aldrein John O. BSCA 2A

Development of Entrepreneurship in the Philippines

Entrepreneurship in Philippine: Setting

History of Entrepreneurship in the Philippines Entrepreneurship, in general, started during the dawn of civilization, when
one artisan trades one of his crafts for another item during the age of barter system or trades his craft for gold coins
when coinage replaced the barter system. This system went unchanged up until the Middle Ages, when banking was
considered another form of entrepreneurship, wherein bankers would lend kings and clergymen funds for their projects.

Definition of an Entrepreneur/ship

But the term entrepreneur became first used during the 16th century, denoting that an entrepreneur is a person who
undertakes a business venture. The term was refined during the 17th and 18th centuries when the industrial revolution
was gaining speed in developed countries and in their colonies. Even in the Philippines, then a colony of Spain, the
business atmosphere is taking shape. With the Manila-Acapulco trade system, many businessmen were becoming
successful. But mainly it was a one-sided affair, wherein only Filipinos of Spanish descent can have opportunities.
According to wikipedia, Entrepreneurship is the process of designing, launching and running a new business, which is
often initially a small business. Entrepreneurship has been described as the "capacity and willingness to develop,
organize and manage a business venture along with any of its risks to make a profit.

Background of Entrepreneurship in the Philippines

San Miguel Brewery can trace back its history to Spanish-Filipino entrepreneurs Enrico Barretto and Pablo Roxas who
were granted royal grants by Spain. Bank of the Philippine Islands and Meralco can also be traced back to its start as
royal grants by Spain. That changed during the American occupation. Americans were espousing many freedoms,
including free enterprise. During the pre-war years, many companies, mainly with American help, came into fruition.
Companies like PLDT, Globe Telecom, Squires Bingham & Co. and the franchising of Coca-Cola helped many
entrepreneurs and also helped the shaping-up of the economy during those times. Even during times of war and the
Japanese occupation, many entrepreneurs risked their investments just to make money and make their lives
comparatively secure. Examples of these are theatre and music club owners and restaurateurs, who previously tended
to Americans, came to serve Japanese officers and diplomats. Philippine Airlines was started before the attack on the
Philippines by the Japanese, and San Miguel brewery continued making beverages even though the war is in full swing.

Entrepreneur People in the Philippines and Their Companies

Entrepreneurship in the Philippines greatly diversified after the war and during the times of Martial Law. Companies like
ABS-CBN, Petron, GMA Network, Metrobank, Max’s, FPIC, ICTSI, Jollibee, SM Prime and JG Summit Holdings were
founded either after the war or during the Marcos presidency and helped not only the economy of the country, but also
helped reconstruct the infrastructure of the country and helped it rise up to competitive status globally. Even in the
present condition in the country’s economy, many entrepreneurs still strive and risk just helping not only themselves,
but others as well.

One good example would be Joey Conception’s GoNegosyo and other social entrepreneurship efforts. Many see profit
from the age of electronics. IP E-Games and Level-Up were companies who saw the potential in the internet and gaming
industry, and industry that is quickly gaining ground in the country. The companies mentioned in this paper are mainly
now corporate giants, who have been know throughout the country, but in the world of entrepreneurship, the small-fry
and unnamed in this paper are the ones who are shaping the economy.

The Philippines is an entrepreneurial country. According to recent statistics, small and medium-sized enterprises (SME),
including micro-enterprises, account for 99 percent of all business establishments and 60 percent of the exporting firms
in the Philippines. According to the Department of Trade and Industry, SME’s currently employ about 55 percent of the
Philippine labor force and contribute 30 percent to total domestic sales volume.
Philippines’ Entrepreneurship: Conclusion

If this is true, then entrepreneurship is the key to the success of the economy of the country, and that people should try
to risk and venture into business in order to not only help themselves, but also others and the whole country as well.
These small enterprises are the bricks that build our economy.

Historical development of entrepreneurship in Philippine setting.

San Miguel Brewery can trace back its history to Spanish-Filipino entrepreneurs Enrico Barretto and Pablo Roxas who
were granted royal grants by Spain. Bank of the Philippine Islands and Meralco can also be traced back to its start as
royal grants by Spain. That changed during the American occupation. Americans were espousing many freedoms,
including free enterprise. During the pre-war years, many companies, mainly with American help, came into fruition.
Companies like PLDT, Globe Telecom, Squires Bingham & Co. and the franchising of Coca-Cola helped many
entrepreneurs and also helped the shaping-up of the economy during those times. Even during times of war and the
Japanese occupation, many entrepreneurs risked their investments just to make money and make their lives
comparatively secure. Examples of these are theatre and music club owners and restaurateurs, who previously tended
to Americans, came to serve Japanese officers and diplomats. Philippine Airlines was started before the attack on the
Philippines by the Japanese, and San Miguel brewery continued making beverages even though the war is in full swing.

Entrepreneurship in the Philippines greatly diversified after the war and during the times of Martial Law. Companies like
ABS-CBN, Petron, GMA Network, Metrobank, Max’s, FPIC, ICTSI, Jollibee, SM Prime and JG Summit Holdings were
founded either after the war or during the Marcos presidency and helped not only the economy of the country, but also
helped reconstruct the infrastructure of the country and helped it rise up to competitive status globally. Even in the
present condition in the country’s economy, many entrepreneurs still strive and risk just helping not only themselves,
but others as well.

One good example would be Joey Conception’s GoNegosyo and other social entrepreneurship efforts. Many see profit
from the age of electronics. IP E-Games and Level-Up were companies who saw the potential in the internet and gaming
industry, and industry that is quickly gaining ground in the country. The companies mentioned in this paper are mainly
now corporate giants, who have been know throughout the country, but in the world of entrepreneurship, the small-fry
and unnamed in this paper are the ones who are shaping the economy.

The Philippines is an entrepreneurial country. According to recent statistics, small and medium-sized enterprises (SME),
including micro-enterprises, account for 99 percent of all business establishments and 60 percent of the exporting firms
in the Philippines. According to the Department of Trade and Industry, SME’s currently employ about 55 percent of the
Philippine labor force and contribute 30 percent to total domestic sales volume.

10 Famous Successful Filipino Entrepreneurs

1. SOCORRO C. RAMOS

National Book Store, Inc.

Ms. Socorro C. Ramos started working as a salesgirl when she was 18 yrs. old in Goodwill Bookstore in Escolta. She was
good in selling, that’s why she became in charge of the store. When she was married to Jose Ramos, they put up The
National Book Store. Her vision was to extend the National bookstore not only here in Luzon but also to Visayas and
Mindanao for cheaper access to books and school supplies. Before, the National Book Store was a general merchandise
store. Until later on, it was selling books, greeting cards, and school supplies. Today, more than 70 National Book Store
can be found nationwide.
2. TONY TAN CAKTIONG

Jollibee Foods Corporation

Jollibee was formerly selling Magnolia Ice Cream, then it was recognized as selling chicken and burger. Tony Tan
Caktiong, the president and CEO of Jollibee, was a name to remember, not only here in the Philippines but also in other
parts of the country, like in US, Hongkong, China, Indonesia, and Japan. He had received several awards in the business
and the likes. The success of Jollibee according to Mr. Caktiong is sharing to people what they had achieved. Jollibee had
been known to be a happy and hardworking insect. It is the favorite place to dine in of many Filipinos especially the kids.

3. Lucio Tan

Philippine Airlines

Lucio Tan’s story was from rags to riches tale. Before working in the tobacco industry, his business was a scrap. His
dream was to become a scientist but his fortune was bound to become an entrepreneur. His hard work made him
successful and became famous. Now, he owns Asia Brewery, Tanduay, Fortune Tobacco, Philippine Airlines, Allied Bank,
and many more to mention.

4. ATTY. FELIPE L. GOZON

GMA Network, Inc.

Atty. Felipe L. Gozon is the chairman, president, and CEO of GMA Network. He was credited for the success of GMA
Network in radio and TV broadcasting, filmmaking, and music recording. He was Master Entrepreneur in 2004. Because
of the leadership of Atty. Gozon, he made GMA as one of the top networks in the country today. Currently, GMA had
via-satellite broadcasting in Asia and in other parts of the world.

5. Henry Sy

ShoeMart

Henry Sy was born on December 25, 1923, in Xiamen China. In his early twenties, he used to sell American shoes. Then
after three years, he was able to have his first shoe mart store. SM group of companies was one of the biggest
companies in our country and the man behind it was Henry Sy. His self-discipline, perseverance, and hard work made
him what he is today. In almost every part of the country (as well as in Asia), there is SM mall.According to Henry Sy Sr.,
success will not last if you do not care of it. That’s the secret of their success.

6. Jaime Zobel de Ayala

Ayala Corporation

Jaime Zobel de Ayala was before president and chairman of Ayala Corporation. He was considered as one of the richest
persons tied with Henry Sy in 2007. He had received many awards and the latest was Entrepreneur of the Year 2012. His
strategy for being successful in this business was getting partners with those who are in need in the community. He
believes that gaining profits was not really the concern of every businessman, but to help the poor people.

7. Alfredo Yao

Zest-O Corporation

Alfredo Yao came from a poor family and became rich due to hard work and determination. He didn’t finish his
education at Mapua Institute of Technology. He experienced to work in the printing press and then ventured to this
business for 20 years. Then, he shifted to a juice manufacturing business. Zest-O became hit to mothers because of its
being convenient to be placed in every lunch box of the children. Today, Zest-O was one of the leading juice
manufacturers in the country, in China, New Zealand, Singapore, and many others.

8. Mariano Que

Mercury Drugstore

Mariano Que first worked in a drugstore. When he was given the opportunity, he invested his 100 pesos in the
sulfathiazole tablets. He sold his products to the people by making use of the wooden pushcart. After saving a lot of
money, he was able to built Mercury. It was made known to the people as selling safe medicines and opened for 24/7.
Mercury, like any other leading drug stores, had many stores nationwide.That was because of the innovations he made
in his products.

9. Cecilio K. Pedro

Lamoiyan Corporation

Cecilio K. Pedro finished his business management degree in Ateneo de Manila University. He founded the Lamoyan
Corp. which produces toothpastes like “Hapee” and “Kutitap.” This made toothpaste affordable to the masses. He
survived in the industry because of being tough and innovative to fight for the multinational companies. His company
had received an award, “Most Outstanding Program for Equal Employment Opportunity,” giving importance to those
who have difficulty in hearing to work in his company.

10. Corazon D. Ong

CDO Foodsphere, Inc.

Corazon D. Ong is the founder of CDO Foods. It was a hobby of Ms. Ong to make processed meats products such as
corned beef, hotdog, meatloaf and hamburger patties. She was a dietician by profession. So she understood what the
preferences of most Filipinos are. Today, CDO Foodsphere, Inc. was recognized as the leading supplier of meat toppings.
Why?? Because nowadays we have many working mothers and it is convenient on their part to have foods which can be
cooked easily.

Sources:

https://essaylead.com/history-of-entrepreneurship-in-the-philippines-6290/

Reference:

https://essaylead.com/history-of-entrepreneurship-in-the-philippines-6290/

https://ourhappyschool.com/education/10-famous-successful-filipino-entrepreneurs