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Warehousing - Types, Capabilities 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 methods within the warehouse and making them available conveniently when needed. In in the present day's scenario, warehousing is considered as one of the important facet 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 throughout the year but their demand is seasonal. Warehousing is vital in such cases.
For the companies which opt for massive scale production and bulk provide, warehouse is an unavoidable factor.
Warehousing help companies ensure quick provide of products in demand.
Production of products and their movement of goods are important for the companies for continuous production of goods.
Warehousing can also be necessary for value stabilization. For necessary items, the Government stores them in the warehouses and control its provide within the market as per the worth fluctuations.
Another essential need of warehousing is for bulk breaking. Consider a trade agent who imports goods from a country for a big number of buyers in his own country. He first takes the products to his warehouse and break it into small parts for supply to the buyers.
When it involves value saving, warehousing helps the traders with cross docking. All the products are consolidated in the warehouse after which stuffed into containers as per their destination. This is particularly helpful for small traders who export low quantity of goods.
Major functions of a warehouse
Storage of products
Protection of products
Grading and branding
Types of warehouses
Private Warehouses These are owned by the manufacturers or traders/distributors. Private warehouses are used to store exclusively owned goods. These are often preferred by farmers close to their fields, wholesalers/distributors/retailers close to their territory, manufacturers close to their factories, exporters/importers near ports. Private warehouses supply better management over movement and storage of goods and less possibilities of error. Alongside with this, product specific storage strategies could be opted in private warehouses. However, higher operation costs and inflexibility in storing completely 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 goods in public warehouses for a nominal rent. These warehouses might be private or state owned. In case a private firm wants to start a public warehouse, it has to compulsorily receive a license from the government. Besides this, the operations of those warehouses are additionally regulated by authorities agencies. These warehouses are less costly and more value effective. They're flexible sufficient to store different kinds of products. Public warehouses provide higher utilization of cash as the consumer pays only for the house occupied. However public warehouses aren't considered items when it comes to such items which require special dealing with techniques. Also the possibilities of error are more right here because of common storage of all goods.
Government warehouses The government warehouses are owned, managed and governed by Central or State government. They can be utilized by both private companies and authorities businesses for storage of goods. They are thus also considered a form of public warehouses owned by government. Authorities warehouses offer higher security and safety of goods because of high involvement of government. They're very less expensive however require considerable paper work to be done.
Traits of a great warehouse
It needs to be conveniently located near highways, railway stations, air ports, sea ports etc. for loading and unloading of goods.
Mechanical appliances should be there to lift, load and unload goods.
It should be spacious enough.
Food storage warehouses ought to have enough facilities to stop meals from perishing.
Proper arrangement to save lots of goods from sunlight, mud, rain, moisture and pests should be available.
Sufficient parking house must be there to facilitate quick and easy loading and unloading of goods.
Security arrangements ought to be strict and round the clock.
Fashionable and tested firecombating equipment needs to be installed in the premises.
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