Importance Of Warehousing
Warehouse is, basically, a storage structure erected for protecting the quantity and quality of the stored products. The need for a warehousing occurs due to the time interval between the production and consumption of goods. Storage or warehousing can be defined as holding and preserving goods till the time of their being dispatched to the consumers. Warehousing helps you create time utility by bridging the gap between production and consumption.
Moreover, warehousing or storage is required to avail the goods for consumers as and when required. Also, warehousing helps the businessman to continue all year round production and sell them in times of adequate demand. Another factor contributing to the need of warehousing is the season in which a particular product is produced and the demand for that product all through the year.
The different types of warehouses include:
• Private warehouses which are owned and operated by well established merchants and manufacturers to fulfill their storage requirements on a regular basis.
• Public warehouses include an expert business establishment that provides warehousing facilities to the common public in lieu of a certain charge.
• Bonded warehouses are those licensed by the Government to admit imported goods for storage until the custom duty is paid off. These are usually located near the ports and are operated either by the Government or by custom authorities.
The key benefits of warehousing which make it even more important are:
• Warehousing is helpful in storing goods when the demand is less than the supply and also helps you release goods when the demand exceeds the immediate production. This feature of warehousing is helpful in regulating supply of goods in addition to stabilizing prices by harmonizing demand with supply.
• Warehousing is helpful in safe and secure supervision of goods. This enables the businessmen to curtail various risks like loss, fire, theft, and damage of goods. Besides, goods in a warehouse are usually insured.
• Warehousing avails for you the facilities for processing, blending, packing, grading etc, of goods meant for sale. The potential buyers can also carry out an inspection of the goods stored in a warehouse.
• Warehousing is quite safe mode of storing goods as a receipt is provided to the owner of these goods. The owner can also have a money loan against the security of goods through endorsement on this receipt.
A businessman can pay customs duty in installments by storing the imported goods in the custody of a bonded warehouse.
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