Future Problems and Opportunities for Warehouse Keepers
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A REPORT ON THE NATIONAL ASSOCIATION OF WAREHOUSE KEEPERS' CONFERENCE, By S. BUCKLEY, ASSOC. INST. T.
THE increasing demand of industry for more of its distribution problems to be taken over by professional experts is providing greater opportunities for progressive warehouse keepers with adequate expertise and equipment. But recent or impending legislation Can affect the work of the warehouse keeper, so necessitating a wider knowledge of the relevant acts and regulations. Accordingly, an allied range of topics was discussed at the conference of the National Association of Warehouse Keepers held at Harrogate last week. The subjects included security, pest control, materials handling and training and packing. As reported in "The Commercial Motor" last week, the need for security measures to be highly organized and handled by trained specialists was emphasized in a paper given by Mr. J. Rhodes, of Securicor Ltd., Leeds.
Pest control was then explained by Mr, F. Snowdon, of Rentokil Laboratories Ltd., London. Two films were shOwn depicting the rat menace to storage and handling of food, and also the renovating of old premises. Mr. Snowdon then elaborated on Clause 16 of the Association's conditions of carriage relative to the Prevention of Damage by Pests Act of 1949, or other statutory requirements.
Food Infestation
This clause states that any expense or loss incurred by the warehouse keeper in connection with any infestation in food or in any other goods likely to come into contact with food shall be paid by the customer for whom such infested foods or goods were stored or carried. Nevertheless, Mr. Snowdon continued, this clause did not absolve a member from keeping his warehouse free from pest, as the 1949 Act placed the responsibility for dealing. with pests "fairly and squarely" on the owner or occupier of premises. Consequently, it was both s prudent and necessary that warehouse keepers provided a pest-control service to inspect and treat their premises at regular intervals. The risk was that either the Ministry or a local authority would direct or order certain pest-control work to be carried out because of infested foodstuffs which .could well have been infested before arrival on the premises.
Annual Charge
Commenting on the cost of employing professional service for pest control, Mr. Snowdon said this was basically determined by individual circumstances. But as an ex-ample the service was recently provided at a former tram shed when the annual charge was £48. which included regular inspections and treatment
B20 throughout the year, with additional calls if necessary.
The implications for warehouse keepers of the Weights and Measures Act of 1963 were then explained by Mr. Lewis Kaye, chief inspector of Weights and Measures, East Riding County Council. At the outset, relative to general conditions of carriage, he emphasized that these were private contracts and• could in no way take the place of or restrict statutory requirements. No one could contract out of legislation and many aspects governing the storage, distribution and sale of goods—particularly food—was of direct concern to warehouse keepers as well as to the actual owners or sellers of such goods.
The first part of the Weights and Measures Act of 1963 was concerned with units and standards of measurements, said Mr. Kaye, and was aimed at providing a greater degree of accuracy and uniformity not only for national trade and research, but also in international trading. In post-war years many prepacked foods were required to be marked with a statement of weight and the 1963 Act amended and extended these provisions, so giving a more comprehensive system of weights and measures than had ever previously existed.
Weights and Measures The Act was in six parts,. with 66 sections and 10 relating schedules with Provision for the Board of Trade to keep it up to date with amending •orders as required. Part 1 dealt with units and standards and Part 2 governed the weighing or measuring in trade. Part 3 was new and required an attendant at a public weighing machine to hold a certificate from the chief inspector of weights and measures to show that he had sufficient knowledge for the proper performance of his duties. This part also imposed cer tain obligations on these attendants to do their job fairly and properly and to keep records. Drivers requiring vehicles to be weighed were required to give their names and addresses to the weighman and such details of the vehicle and load as to identify it. Mr. Kaye commented that it would be interesting to see if these certificated weighmen commanded the respect and standing of predecessors.
As applying to members of the alsociation, Part 4 was "the meat of the Act" and considerably extended the weights and measures laws. It was headed "Regulation of certain transactions in goods "—and it did just that, but in a very complex manner. Principles were laid down detailing control over a wide variety of specific goods to be found in schedules to the Act. Once controls were applied to any of these goods it became an offence for any person to contravene them and penalties were imposed in respect of infringements.
Because prepacked goods were a main concern of warehouse keepers Mr. Kaye elaborated on the relevant requirements. Whilst many members would handle the full range of goods to which controls were applied, Mr. Kaye assumed that such goods would come to members In the packet in which they would eventually be handed on—in normal eireumstances—to retailers. Mr. Kaye here interposed to say that sale by retail had been defined as sales to persons buying for their own use or consumption as distinct from persons buying for resale in the course of trade.
When members were making deliveries to the shops it was clearly wholesale, he went on, but where they were taking goods to local councils, canteens and other such customers who were going to use the goods themselves, even in the manufacture of other goods, then it became a retail side. Accordingly, warehouse keepers could then be acting as retailers.
When goods were prepacked in advance ready for retail sales in a container they were subject to inspection and all the requirements of the Act and schedules. Section 22 (2) (b) gave a defence to persons who had goods in their possession only in the course of
carriage of the goods for reward. But once taken into sfore them the warehouse keeper would not be a haulier and so would not be exempt under this section. Therefore, he could be held responsible for complying with many aspects of the Act and schedules. Particularly did this apply to deterioration, contamination or loss of weight or quantity through improper storage or handling: for example, through faulty rotation of
• stocks.
There were many safeguards and
• defences open to traders found in contravention of the requirements, said Mr. Kaye, but the Act specifically, placed responsibility on those in possession" of the goods. In some cases this could be the owners—namely, the warehouse keepers' clients, warehouse keepers as agents of those clients, or even the warehouse keepers' employees.
• Weigl-Mi and measures inspectors had powers to visit the premises of warehouse keepers and check goods. In the event of contraventions, depending upon the circumstances, proceedings could be taken against the owners of the goods or directly against the possessors. Even Where proceedings were taken against the owners, the Act provided for them to charge the actual offender, which could be the warehouse keeper or his employees. • Where wholesale sales of fruit and vegetables were concerned, there were requirements for providing facilities for weighing goods at the request of buyers. This would normally apply at wholesale markets and at the place of growing— the farms or market gardens—but if warehouse keepers were handling this .type of goods it was an aspect requiring consideration.
Regarding responsibilities arising from section 22 as could apply to warehouse keepers, Mr. Kaye said that where any Perssim had in • his possession goods required to he marked in any manner and either the goods were not so marked or Were of -less weight or measure than Stated, that person could be held to be guilty of an offence. There were several safeguards and defences open to warehouse keepers and provision for relying on warranties given by the supplier or packer of. the goods. But these would be Valid only if it could be proved that the goods were in the same state as when the warehouse keePer received them. It was up to him to take all reasbnahle
precautions against committ ing an offence.
Sale of Goods Act
• Replying to subsequent questions, and irs particular to a consensus of conference opinion that it was unfair that warehouse keepers, being neither buyers nor sellers, cciuld be held responsible for infringements, Mr. Kaye referred tp the Sale of Goods Act. Sale took place when the goods were actually appropriated and, in the case of a warehouse, when the goods for Mr. Smith • in the High Street" were separated from the bulk.
stocks. In such a procedure it was the warehouse keeper who determined which lot was to be delivered to that particular shop. In a closing comment on this paper, Mr. H. F. Marks, chairman of the Association, who presided throughout the conference, reminded members that warehouse keepers were more and more being called upon to break up stocks and, as a result; their responsibilities in this context were increasing. It underlined the value of a trade association such as the N.A.W.K. to ascertain the legal requirements, of intricate legislation and advise members accordingly.
Educational Policy
The difficulties of devising an educational policy appropriate to such an all embracing subject as materials handling Was commented on by Mr. A. W. Fawke, Layeock: Engineering Ltd., Sheffield. As deputy national chairman of the Institute of Materials Handling, he disclosed that it -bad taken 10 years to propound an educational programme for the..Instittite. Because the subject had applications to every type of material, he said it would be useless wasting .a student's time on the technicalities of handling a particular type of material with which throughout his life he would never be concerned. They had accordingly allowed for theses to be presented by students on their own particular subject which would subsequently be evaluated by a specialist in that field.
Warehouse keepers would find themselves in a similar position in that they too handled every type of material, so that any educational system they applied would have lb be equally flexible. Whilst offering the co-operationof the Institute. Mr. Fawke acknowledged that the Institute would also benefit by obtaining a new angle from a closely related industry. In similar circumstances they had found co-operation of mutual benefit when deali-ng with the Institute of Packing and Institute of Export.
Non-Productive The application of materials handling probably offered more scope for improvement than any other aspect of industrial activity. In some instances as much as 95 per cent of the time involved in the movement' could be considered non-productive. The application of materials handling could reduce costs, save space and reduce or eliminate damage with an associated reduction in waste. Allied to the reduction in the amount of human labour required, was an improvement in dignity.
When introducing mechanical handling. Mr. Fawke emphasized that it was important to sell the idea to the labourers who were going to be directly affected. Withih the Institute, whilst a national educational policy had been devised, it was not the function of the education committee to direct the regional divisions, he said. but only to advise. It was up to the Institute's local officers to contact educational heads in their
district in the carrying out of an educational programme. Their greatest achievement had been the establishment of a fellowship at the College of Aeronautics at Cranfield, which Mr. Fawke claimed was the first of its type in the world. To finance the fellowship the Institute had gone first to the manufacturers and a sum of 02.000 was already available.
.Handling Technique The need for modern materials handling was stressed -by a fellow council member of the Institute of Materials Handling, Mr. 12: G. Winton, LancingBagnall Ltd., Basingstoke. The distinction between materials handling and Mechanical handling was that the former was concerned with the technique of arranging work to reduce Movement as much as possible. The remainder left' to be moved had to be done so as efficiently as possible. leading to the use of mechanical handling. The shortage and expense of labour was increasingly causing more and more attention to be given to this subject.
Relative to the importance of materials handling this factor could account for from 15 per cent to 85 per cent Of the total manufacturing cost according to the industry concerned. A reduction in handling could therefore be expected to give an immediate return on investments. The look and construction of a building was too often given far more attention than its main purpose. The layout of a factory or warehouse should -be determined in parallel with the design of the building.
Unit Load Benefits to be derived from the correct application of the unit load principle were several, said Mr. Winton. There was a cheaper direct cost of handling with maximum use of cubic space available in storage areas. There was quicker loading and unloading with faster turnround of vehicles. The unit load tended tself to easier and quicker stock control and deterred pilfering. Product damage was reduced by the elimination of manual handling of individual Pieces, Whilst packaging costs were reduced.. There was a reduction in materials handling accidents, particularly injuries such as damaged fingers and strained backs. which could result in lost time for the worker.
It was imperative that a thorough and detailed analysis of all movements and the functions which linked movement should be made before suitable equipment could be selected. This was particularly important following the considerable advances made recently in many types of handling equipment now available. Where existing buildings had to be adapted, including multi-storey buildings, conventional slow-speed lifts with manual handling could e replaced with auto
matic receipt and discharge inter-floor vertical conveyors.
Work of a Specialist
With the wider application of materials handling there was the realization that skilled industrial engineers able to plan and implement materials handling systems were urgently needed. A vicechairman of the British Railways Board, Mr. S. E. Raymond, said recently: "Materials handling must now be regarded as a full-time work of a specialist" This view underlined the need for training in this field at all levels, and the establishment of a residential course at Cranfield was noteworthy Iii that it was fully booked for some time ahead.
Opportunities open to warehouse keepers to extend their profitable activities were outlined in a paper prepared by Mr. George Evan Cook and read in his absence, because of injury, by the chairman, Mr. H. F. Marks. At the outset Mr. Evan Cook insisted that unless members had a packing shop attached to their organization they were missing opportunities. Many of the manufactured goods they handled—merchandise of all classes—were only economically suited to production line packing, whether in cartons or wood cases. Whilst bottles could be picked up mechanically, 24 or more at a time, and placed into packages at a cost which could not be improved upon, there were many other items which had to be preserved and enclosed for storage and despatch by more traditional methods. Many such manufacturers emplqed Old Bill" surrounded with boxes and other impedimenta of packing and despatch. The sales manager would insist that he was doing a good job, but had little knowledge of the real cost of the operation. Moreover, "Old Bill" was oecupying valuable production space.
If the warehouse keeper's customer was a manufacturer, particularly of highly priced products, he was losing an appreciable amount of production turnover by not using the whole of his available space for .manufacture. He would be well advised to consider passing this operation over to a competent packer.
Economical Basis
But it was not work which members should enter into lightly. To do it on an economical basis the right plant had to be installed, which could cost many thousands of pounds according to the demands and speed of operation with power-driven conveyors, nailing machines. spraying plant for preservatives and other necessary tools. Boxes, however, could usually be bought cheaper than one could produce them. All handling plant must be flexible and easily adaptable from one commodity to another and even to liquids. One firm of distributors cartoned soft drinks for theatre and cinemas.
Much thought -had to be given to the design of the pack. Sometimes this was carried out by the manufacturer but it did not follow that a designer of precision machinery or electronic equipment could design a suitable packing case: "Far from it Mr. Cook commented.
Contract Packing
Consideration should be given to "contract packing ". and there were firms already ,specializing in this. Some preservation and protection might be necessary before the product left the manufacturing area. Speed of turnout of packed products was often the essence of the contract where this class of operation was concerned. If members were being called upon to produce packaged articles for a national "push ", stocks of goods ready for despatch would have to be built up. Many commodities were built to "stay put" and consequently many of the interior components were only lightly fastened. Legs and • supports were only sufficient for the jobs they had to do in operation. Transformers and chokes had caused more headaches than enough by becoming adrift.
When packing metal Mr. Cook said
that he rarely used wood wool and never used hardwood or chips. Further advice was that he never wrapped in bituminous waterproof paper unless in waxed paper first. For runs of the same article special racks and plants could be devised. It was his experience that a person with a mechanical engineer's background made a good packaging engineer. He always advocated calling in the packaging engineer at the design stage of a product, particularly when export was intended. By so doing much shipping space and freight costs frequently could be saved.
The principal guest at the conference dinner was Mr. R. C: Balfour, agent of the Leeds Branch of the Bank of England. Commenting on the national economic situation immediately following the Budget announcements the same.day. Mr. Balfour said that one of the mysteries in the situation was why productivity did not increase as much as it should. In the future better use of manpower must be made with repercussions in all indusstiles. Elaborating on the work done by warehouse keepers and their contribution to the natjonal economy through the storage and distribution services they provided, Mr. Balfour suggested an extension to that service. With the need for greater exports he asked if the warehouse keepers could not provide a service in, say, Holland and so deliver this country's products from such a base to the whole of the Common Market countries.