TYPES AND BENEFITS OF WAREHOUSES
A place or a unit where goods are stored until they are ready to be shipped to the customer is known as a warehouse. Warehouses play an important role in enhancing organization, as they preserve goods which are later shipped to different locations; they also play a crucial role in creating demand and utility. Activities that are performed in a warehouse include identifying, holding and assembling of goods that are to be subsequently transported. There are different kinds of warehouses for different purposes. Below is a list that will guide you through the types of warehouses:-
1.PRIVATE WAREHOUSE
Manufacturers or merchants who require huge storage capacity for their high volume of goods and transport activities own private warehouses. Private warehouses are taken on lease or owned by the firm itself, and some of the firms who can afford it, build and maintain their own private warehouse space. Delhi has an abundance of private warehouses, especially in the outskirts of the city, since there is a lot of commercial activity in the city.
2.PUBLIC WAREHOUSE
These warehouses provide storage and accommodation facilities to the general public for a certain amount that has to be paid by the public to the government. It functions under a license given by the government. The rules and regulations given by the government have to be followed by the users of these warehouses.
Given the huge capital investment required for a warehouse, many business enterprises cannot afford to have their own warehouse, thus they make use of public warehouses. These warehouses are also very beneficial for small traders and manufacturers, as public warehouses provide them with storage facilities at low cost which they would not have been able to afford otherwise. Public warehouses are mostly located near railways and highways, and are very well constructed. These are also very important for marketing of agricultural products and that is why the government is encouraging the growth of public warehouses.
3.BONDED WAREHOUSES
Bonded warehouses play a very crucial role in imports and exports of a country, as these are licensed by the central government to keep custody of imported goods for storage, until the owner of these goods has paid off the custom duty due on them. These warehouses are both owned and operated by the government itself or work under the custom authorities. They are generally located near the ports.
The goods that are stored here cannot be taken by the owner without taking permission from the custom authorities. They are helpful to the owner as well, because if the owner is not able to pay the custom duty immediately, then the goods are stored in these bonded warehouses properly. Like the public warehouses, here also the goods are packaged and branded carefully.
Below are a few benefits of using warehouses:
•INCREASE IN PRODUCTIVITY
Warehouses allow raw materials to be stored, to facilitate mass production which can happen continuously over a period of time. This gives the manufacturer time, and thus allows him to produce goods only when they are in demand. A modern industrial space provides world class facilities to its users thereby increasing productivity.
•UTILISATION OF TIME
Some goods are produced throughout the year, while some are produced only when in demand. Warehouses help in creating time utility by providing a gap between production and consumption of goods.
•STORAGE
Warehouses are able to store the goods which are not required for sale immediately, many goods are made in bulk to meet the demands of the customers, but sometimes they may be in surplus and need to be stored safely until they are in demand. Such surplus goods may require a lot of warehouse space.
•HOLDING AND PACKAGING
Modern warehouses in today’s world provide all kind of facilities for the products they store. Many products before sale require some conditioning or processing as they may not be fit for use before that, so, facilities like packaging, grading, blending etc. are all available in such warehouses and the buyers or owners can even inspects the goods on their own.
1.PRIVATE WAREHOUSE
Manufacturers or merchants who require huge storage capacity for their high volume of goods and transport activities own private warehouses. Private warehouses are taken on lease or owned by the firm itself, and some of the firms who can afford it, build and maintain their own private warehouse space. Delhi has an abundance of private warehouses, especially in the outskirts of the city, since there is a lot of commercial activity in the city.
2.PUBLIC WAREHOUSE
These warehouses provide storage and accommodation facilities to the general public for a certain amount that has to be paid by the public to the government. It functions under a license given by the government. The rules and regulations given by the government have to be followed by the users of these warehouses.
Given the huge capital investment required for a warehouse, many business enterprises cannot afford to have their own warehouse, thus they make use of public warehouses. These warehouses are also very beneficial for small traders and manufacturers, as public warehouses provide them with storage facilities at low cost which they would not have been able to afford otherwise. Public warehouses are mostly located near railways and highways, and are very well constructed. These are also very important for marketing of agricultural products and that is why the government is encouraging the growth of public warehouses.
3.BONDED WAREHOUSES
Bonded warehouses play a very crucial role in imports and exports of a country, as these are licensed by the central government to keep custody of imported goods for storage, until the owner of these goods has paid off the custom duty due on them. These warehouses are both owned and operated by the government itself or work under the custom authorities. They are generally located near the ports.
The goods that are stored here cannot be taken by the owner without taking permission from the custom authorities. They are helpful to the owner as well, because if the owner is not able to pay the custom duty immediately, then the goods are stored in these bonded warehouses properly. Like the public warehouses, here also the goods are packaged and branded carefully.
Below are a few benefits of using warehouses:
•INCREASE IN PRODUCTIVITY
Warehouses allow raw materials to be stored, to facilitate mass production which can happen continuously over a period of time. This gives the manufacturer time, and thus allows him to produce goods only when they are in demand. A modern industrial space provides world class facilities to its users thereby increasing productivity.
•UTILISATION OF TIME
Some goods are produced throughout the year, while some are produced only when in demand. Warehouses help in creating time utility by providing a gap between production and consumption of goods.
•STORAGE
Warehouses are able to store the goods which are not required for sale immediately, many goods are made in bulk to meet the demands of the customers, but sometimes they may be in surplus and need to be stored safely until they are in demand. Such surplus goods may require a lot of warehouse space.
•HOLDING AND PACKAGING
Modern warehouses in today’s world provide all kind of facilities for the products they store. Many products before sale require some conditioning or processing as they may not be fit for use before that, so, facilities like packaging, grading, blending etc. are all available in such warehouses and the buyers or owners can even inspects the goods on their own.
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