A warehouse is a commercial building used for storage of items while warehousing is the process of proper storage and handling of goods and shipment using scientific methods in the warehouse and making them accessible easily available as required. In the modern scenario, warehousing is regarded as probably the most vital aspect of the trade.
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Need for warehousing
1)Various items are produced in a certain season only. To make certain of their off-season availability, warehousing is needed.
2)Some items are produced all year long but their demand is seasonal. Warehousing is vital in such instances.
3)Those firms which choose extensive production and bulk supply, a warehouse is definitely an inevitable component.
4)Warehousing help organizations to ensure a speedy supply of goods in demand.
5)Production of commodities and their movement is significant for the companies for the constant production of goods.
6)Warehousing can also be essential for cost leveling. For necessary products, the Government stores them in the warehouses and controls its supply in the market as per the price variances.
7)Another fundamental need of warehousing is for volume breaking. Take into consideration a business broker who imports commodities from a nation for a great number of purchasers in his own country. He first takes the goods to his storage place and breaks it into small parts for supply to the buyers.
8)With regards to price saving, warehousing assists the traders with cross-docking. All the items are consolidated in the warehouse and after that crammed into containers depending on their location. This is especially good for small traders that export a low quantity of products.
Major functions of a warehouse
Storage of items
Security of merchandise
Risk bearing
Financing
Processing
Grading and branding
Transportation
Different types of warehouses
1.Personal Warehouses These are properties of the manufacturers or traders/distributors. Private warehouses are employed to store solely owned goods. These are generally sought after by farm owners around their fields, wholesalers/distributors/retailers in the vicinity of their region, manufacturers close to their factories, exporters/importers near ports. Personal warehouses provide much better power over movement and safe-keeping of products and much fewer probabilities of mistake. Additionally, product-specific storage techniques might be opted in personalized warehouses. Alternatively, greater operation costs and inflexibility in storing various goods are the major disadvantages of personal warehouses
2. Public Warehouses These warehouses are meant for use by the general population. Everyone can store their goods in public warehouses for a nominal price. These warehouses may be personal or state-owned. In case a private corporation wants to begin a public warehouse, it must compulsorily obtain a license from the government. Aside from this, the procedures of these warehouses are also controlled by government agencies. These warehouses are less expensive and a lot more cost-effective. They are flexible enough to keep different varieties of goods. Public warehouses offer better usage of funds as the consumer pays just for the space occupied. But public warehouses usually are not considered products when it comes to such goods which require exclusive handling techniques. Also, the possibilities of error tend to be more here because of the common storage of all commodities.
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3. Government warehouses The government warehouses are owned, managed and governed by Central or Local government. They can be employed by both private corporations and government agencies for the storage of products. They are thus also considered a kind of public warehouses owned by the government. Government warehouses offer better security and safety of merchandise because of the high participation of government. They are really very lower priced but call for substantial paperwork to be done.
Characteristics of an ideal warehouse
It should be conveniently situated near freeways, railway stations, airports, seaports, etc. for loading and unloading of items.
Mechanical appliances need to be present to be able to lift, load in addition to unload items.
It should be spacious enough.
Food storage warehouses need sufficient facilities to stop food items from perishing.
Adequate arrangement to protect merchandise from sunlight, dust, rain, moisture, and pests needs to be available.
Suitable parking space should be present to facilitate quick and simple loading and unloading of products.
Safety arrangements must be strict and at any hour.
Modern and proven firefighting gear must be set up in the property.
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