Warehousing - Types, Functions and Characteristics
A warehouse can be a commercial building utilized for storage of merchandise while warehousing is the procedure of a good storage and handling of goods and cargo using scientific methods inside the warehouse and causing them to be available conveniently if needed. In the current scenario, warehousing is recognized as the most essential requirement of trade.
Dependence on warehousing
Some commodities are made in the particular season only. To make sure their off-season availability, warehousing is required.
Some merchandise is produced throughout the year however demand is seasonal. Warehousing is essential in these cases.
For your companies which go for massive production and bulk supply, warehouse is definitely an unavoidable factor.
Warehousing help companies ensure quick availability of goods popular.
Manufacture of goods along with their movement of goods are essential for that companies for continuous output of goods.
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Warehousing can also be necessary for price stabilization. For necessary goods, the federal government stores them within the warehouses and control its supply in the market as per the price fluctuations.
Another critical need of warehousing is perfect for bulk breaking. Think about a trade agent who imports goods from your country for a great number of buyers in the own country. He first takes goods to his warehouse and break it into small parts for supply for the buyers.
With regards to cost saving, warehousing helps participants with cross docking. Each of the goods are consolidated in the warehouse and then stuffed into containers as per their destination. This is especially beneficial for small traders who export low amount of goods.
Major functions of a warehouse
Storage of items
Protection of goods
Grading and branding
Forms of warehouses
Private Warehouses They are belonging to they or traders/distributors. Private warehouses are used to store exclusively owned goods. These are usually desired by farmers near their fields, wholesalers/distributors/retailers near their territory, manufacturers near their factories, exporters/importers near ports. Private warehouses offer better treating movement and storage of items much less probability of error. And with this, product specific storage techniques could be opted in private warehouses. On the other hand, higher operation costs and inflexibility in storing different merchandise is the major disadvantages of personal warehouses
Public Warehouses These warehouses aim at use by average person. Everyone can store their items in public warehouses for any nominal rent. These warehouses could be private or state owned. If the private company really wants to take up a public warehouse, it must compulsorily get yourself a license from your government. Besides this, the operations of these warehouses can also be regulated by gov departments. These warehouses be cheaper plus much more cost effective. They are flexible enough to hold different types of products. Public warehouses offer better utilization of money since the user pays just for the space occupied. But public warehouses are not considered goods with regards to such goods which require special handling techniques. And also the odds of error tend to be here because of common storage coming from all goods.
Government warehouses Government entities warehouses are owned, managed and controlled by Central or State government. They may be used by both private companies and government departments for storage of goods. They may be thus also considered a type of public warehouses properties of government. Government warehouses offer better security and safety of products because of high involvement of government. They may be very less expensive but require considerable paperwork being done.
Characteristics of the ideal warehouse
It needs to be conveniently located near highways, railway stations, air ports, sea ports etc. for loading and unloading of goods.
Mechanical appliances ought to be there to lift, load and unload goods.
It needs to be spacious enough.
Food storage warehouses needs to have enough facilities in order to avoid food from perishing.
Proper arrangement to save goods from sunlight, dust, rain, moisture and pests must be available.
Sufficient parking space must be there to facilitate simple and fast loading and unloading of merchandise.
Security arrangements needs to be strict and round the clock.
Modern and tested firefighting equipment ought to be placed in the premises.