Warehousing — Types, Functions and Characteristics

A warehouse can be a commercial building used for storage of merchandise while warehousing is the procedure of great storage and handling of items and cargo using scientific methods from the warehouse and causing them to be available conveniently when needed. In the current scenario, warehousing is considered as the most important factor of trade.

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Dependence on warehousing

Some commodities are produced in a particular season only. To make sure their off-season availability, warehousing should be used.
Some merchandise is produced all through the year on the other hand demand is seasonal. Warehousing is important in such instances.
For that companies which choose large scale production and bulk supply, warehouse is definitely an unavoidable factor.
Warehousing help companies ensure quick method of getting goods sought after.

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Output of goods in addition to their movement of items are important for your companies for continuous production of goods.
Warehousing is additionally essential for price stabilization. For necessary goods, the Government stores them in the warehouses and control its supply available in the market as reported by the price fluctuations.
Another essential necessity of warehousing is good for bulk breaking. Think about a trade agent who imports goods from your country for the many buyers as part of his 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. Every one of the merchandise is consolidated within the warehouse then stuffed into containers as per their destination. Almost all of the therapeutic for small traders who export low volume of goods.
Major functions of an warehouse

Storage of goods
Protection of products
Risk bearing
Grading and branding
Varieties of warehouses

Private Warehouses These are belonging to the manufacturers or traders/distributors. Private warehouses are utilized to store exclusively owned goods. These are typically desired by farmers near their fields, wholesalers/distributors/retailers near their territory, manufacturers near their factories, exporters/importers near ports. Private warehouses offer better control over movement and storage of items and fewer chances of error. In addition to this, product specific storage techniques might be signed up private warehouses. Conversely, higher operation costs and inflexibility in storing different merchandise is the major disadvantages of private warehouses
Public Warehouses These warehouses aim at use by average person. Anyone can store their goods in public areas warehouses to get a nominal rent. These warehouses can be private or state owned. When a private company wants to start a public warehouse, it has to compulsorily obtain a license in the government. Besides this, the operations of the warehouses are also regulated by government agencies. These warehouses are less expensive and more cost effective. They may be flexible enough to save different types of products. Public warehouses offer better utilization of money because the user pays limited to the room occupied. But public warehouses aren’t considered goods in relation to such goods which require special handling techniques. And also the chances of error are more here on account of common storage coming from all goods.
Government warehouses The federal government warehouses are owned, managed and controlled by Central or State. They can be employed by both private companies and government agencies for storage of items. These are thus also considered a sort of public warehouses of government. Government warehouses offer better security of items as a result of high involvement of presidency. They are very less expensive but require considerable documents being done.
Characteristics associated with an ideal warehouse

It needs to be conveniently located near highways, railway stations, air ports, sea ports etc. for loading and unloading of products.
Mechanical appliances should be there to lift, load and unload goods.
It needs to be spacious enough.
Food storage warehouses must have enough facilities in order to avoid food from perishing.
Proper arrangement to save lots of goods from sunlight, dust, rain, moisture and pests ought to be available.
Sufficient parking space ought to be there to facilitate simple and fast loading and unloading of items.
Security arrangements must be strict and round the clock.
Modern and tested firefighting equipment ought to be installed in the premises.