A warehouse is a commercial building used for storage of goods while warehousing is the process of proper storage and dealing with of goods and cargo using scientific methods within the warehouse and making them available conveniently when needed. In as we speak’s scenario, warehousing is considered as one of the vital essential side of trade.
Want for warehousing
Some commodities are produced in a particular season only. To make sure their off-season availability, warehousing is needed.
Some products are produced all year long but their demand is seasonal. Warehousing is essential in such cases.
For the businesses which go for large scale production and bulk supply, warehouse is an unavoidable factor.
Warehousing assist firms ensure quick supply of goods in demand.
Production of products and their movement of products are important for the businesses for steady production of goods.
Warehousing is also vital for worth stabilization. For obligatory items, the Government stores them within the warehouses and control its provide in the market as per the price fluctuations.
Another essential want of warehousing is for bulk breaking. Consider a trade agent who imports goods from a country for a large number of consumers in his own country. He first takes the products to his warehouse and break it into small parts for provide to the buyers.
When it involves price saving, warehousing helps the traders with cross docking. All the products are consolidated within the warehouse and then stuffed into containers as per their destination. This is very useful for small traders who export low quantity of goods.
Major 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 manufacturers or traders/distributors. Private warehouses are used to store completely owned goods. These are normally desirered by farmers near their fields, wholesalers/distributors/retailers near their territory, manufacturers near their factories, exporters/importers close to ports. Private warehouses offer better control over movement and storage of products and less chances of error. Alongside with this, product particular storage techniques may be opted in private warehouses. On the other hand, higher operation prices and inflexibility in storing totally different products are the foremost disadvantages of private warehouses
Public Warehouses These warehouses are meant to be used by normal public. Anyone can store their items in public warehouses for a nominal rent. These warehouses could be private or state owned. In case a private company desires to start a public warehouse, it has to compulsorily acquire a license from the government. Besides this, the operations of these warehouses are additionally regulated by authorities agencies. These warehouses are less expensive and more cost effective. They’re flexible enough to store different kinds of products. Public warehouses offer higher utilization of cash as the user pays only for the area occupied. But public warehouses should not considered items when it comes to such items which require particular dealing with techniques. Additionally the probabilities of error are more here as a result of frequent storage of all goods.
Authorities warehouses The federal government warehouses are owned, managed and governed by Central or State government. They can be utilized by each private firms and authorities businesses for storage of goods. They are thus additionally considered a form of public warehouses owned by government. Government warehouses offer higher security and safety of goods due to high involvement of government. They are very less costly however require considerable paper work to be done.
Characteristics of a really perfect warehouse
It should be conveniently located close to highways, railway stations, air ports, sea ports etc. for loading and unloading of goods.
Mechanical home equipment should be there to lift, load and unload goods.
It should be spacious enough.
Meals storage warehouses ought to have enough facilities to forestall food from perishing.
Proper arrangement to avoid wasting goods from sunlight, mud, rain, moisture and pests should be available.
Enough parking house ought to be there to facilitate quick and straightforward loading and unloading of goods.
Security arrangements needs to be strict and around the clock.
Modern and tested firefighting equipment should be installed in the premises.
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