Warehousing – Types, Functions and Traits

Warehousing – Types, Functions and Traits

A warehouse is a commercial building used for storage of goods while warehousing is the process of proper storage and handling of products and cargo using scientific strategies in the warehouse and making them available conveniently when needed. In in the present day’s scenario, warehousing is considered as one of the crucial important side of trade.

Need for warehousing

Some commodities are produced in a particular season only. To make sure their low season availability, warehousing is needed.
Some products are produced all year long but their demand is seasonal. Warehousing is important in such cases.
For the businesses which go for giant scale production and bulk provide, warehouse is an unavoidable factor.
Warehousing assist firms ensure quick provide of goods in demand.
Production of products and their movement of goods are necessary for the businesses for steady production of goods.
Warehousing is also vital for worth stabilization. For needed items, the Authorities stores them in the warehouses and management its supply within the market as per the worth fluctuations.
One other essential need of warehousing is for bulk breaking. Consider a trade agent who imports goods from a country for a big number of patrons in his own country. He first takes the goods to his warehouse and break it into small parts for provide to the buyers.
When it involves value saving, warehousing helps the traders with cross docking. All the goods are consolidated within the warehouse and then stuffed into containers as per their destination. This is particularly helpful for small traders who export low quantity of goods.
Main capabilities of a warehouse

Storage of products
Protection of goods
Risk bearing
Financing
Processing
Grading and branding
Transportation
Types of warehouses

Private Warehouses These are owned by the producers or traders/distributors. Private warehouses are used to store exclusively owned goods. These are normally favorred by farmers close to their fields, wholesalers/distributors/retailers near their territory, producers close to their factories, exporters/importers near ports. Private warehouses offer better management over movement and storage of goods and less chances of error. Alongside with this, product specific storage methods may be opted in private warehouses. However, higher operation costs and inflexibility in storing different products are the foremost disadvantages of private warehouses
Public Warehouses These warehouses are meant for use by normal public. Anyone can store their items in public warehouses for a nominal rent. These warehouses can be private or state owned. In case a private company needs to start a public warehouse, it has to compulsorily acquire a license from the government. Besides this, the operations of these warehouses are also regulated by government agencies. These warehouses are less costly and more cost effective. They’re versatile sufficient to store totally different kinds of products. Public warehouses supply better utilization of money as the user pays only for the house occupied. But public warehouses will not be considered goods when it comes to such items which require particular dealing with techniques. Additionally the possibilities of error are more here due to common storage of all goods.
Government warehouses The federal government warehouses are owned, managed and ruled by Central or State government. They can be used by each private firms and government businesses for storage of goods. They’re thus additionally considered a form of public warehouses owned by government. Government warehouses supply better security and safety of goods because of high involvement of government. They’re very less expensive but require considerable paper work to be done.
Characteristics of a great warehouse

It needs to be conveniently positioned near highways, railway stations, air ports, sea ports etc. for loading and unloading of goods.
Mechanical home equipment needs to be there to lift, load and unload goods.
It ought to be spacious enough.
Meals storage warehouses should have enough facilities to prevent food from perishing.
Proper arrangement to save lots of items from sunlight, dust, rain, moisture and pests should be available.
Adequate parking space ought to be there to facilitate quick and simple loading and unloading of goods.
Security arrangements needs to be strict and round the clock.
Modern and tested firepreventing equipment must be put in in the premises.

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