Essential functions of a warehouse
Warehousing entails many vital processes of operations, maintenance, and transportation. The prime agenda of a warehouse is to undertake and accomplish various things; in fact something much more than just storage of products and goods. With the ever-increasing demands for production and distribution of commodities, the requirement for warehouses has also escalated. With special commodity warehouses and refrigerated warehouses to institutional warehouses, these services are indispensable and also in huge demand.
Let us discuss some of the basic functions of warehousing in a bit more detail.
Storage
The most basic function of a warehouse is being able to store stocks in huge amounts. The duration to hold the goods depends on the enterprise or an individual. In some cases a warehouse requires to hold articles for longer periods of time to suit the demands of the customer. On the other hand, a warehouse holding items that may expire soon like meat need to be held in proper refrigerating conditions.
Protection
Another basic function required for warehousing is the protection of the goods. Warehouses are strong buildings that protect the products from heat, wind, dust etc. For example, if a warehouse stores tobacco, it needs to make sure that moisture doesn’t affect the lot.
Risk Bearing
A warehouse is responsible for the goods once it accepts it on paper from its clients. The facility has to assume all the risk incurred during the period a warehouse holds them. Unforeseen circumstances like a default in the machinery can damage or destroy commodities which will be held responsible against the warehouse’s accounts.
Price Balancing
Warehousing provides a very beneficial function to businesses. It holds the commodities owned by a company or a firm for prolonged periods of time; till the prices of the commodities stabilizes. The cause for such problems can be surplus or deficit in demand and supply which are really hard to influence owing to the market structure. This is also the reason why most warehouse owners like to buy logistics space for lease for better price balancing.
Financing
A depositor can store goods in a particular warehouse and receive a proof of deposit in the form of a slip. With the issuance of a warehouse-keeper’s warrant, a businessman can draw a loan on the owned goods stored at the warehouse. Alternatively, the entrepreneurs are eligible for a loan from banks or other financial institutions with the warrant as security and the goods in custody of the warehouse. Some warehousing firms also provide advances of money to the depositors.
Processing
In some cases, raw materials or unfinished goods are stocked at warehouses. Assembling unfinished goods or holding fruits till they ripen are ensured by warehouse places. The provision of such functions is undertaken by a select few facilities.
Transportation
Moving the products or commodities is a hefty business. The best warehousing provides comprehensive logistics services including transportation of goods. The operational costs are substantial and warehousing plays a significant role in reducing them. Transportation of commodities requires great management and it can affect a company’s turn over if not done properly. It is feasible for the warehouse to provide transportation for bulk orders.
Grading & Packaging
The kind and variety of products stored at a warehouse is usually diverse. It is very important for a warehouse to classify the products according to necessary parameters and store them accordingly. Some such facilities also provide packaging services to its clients. These services assist in the sale, handling of the commodities, and reduce costs and save time.
Let us discuss some of the basic functions of warehousing in a bit more detail.
Storage
The most basic function of a warehouse is being able to store stocks in huge amounts. The duration to hold the goods depends on the enterprise or an individual. In some cases a warehouse requires to hold articles for longer periods of time to suit the demands of the customer. On the other hand, a warehouse holding items that may expire soon like meat need to be held in proper refrigerating conditions.
Protection
Another basic function required for warehousing is the protection of the goods. Warehouses are strong buildings that protect the products from heat, wind, dust etc. For example, if a warehouse stores tobacco, it needs to make sure that moisture doesn’t affect the lot.
Risk Bearing
A warehouse is responsible for the goods once it accepts it on paper from its clients. The facility has to assume all the risk incurred during the period a warehouse holds them. Unforeseen circumstances like a default in the machinery can damage or destroy commodities which will be held responsible against the warehouse’s accounts.
Price Balancing
Warehousing provides a very beneficial function to businesses. It holds the commodities owned by a company or a firm for prolonged periods of time; till the prices of the commodities stabilizes. The cause for such problems can be surplus or deficit in demand and supply which are really hard to influence owing to the market structure. This is also the reason why most warehouse owners like to buy logistics space for lease for better price balancing.
Financing
A depositor can store goods in a particular warehouse and receive a proof of deposit in the form of a slip. With the issuance of a warehouse-keeper’s warrant, a businessman can draw a loan on the owned goods stored at the warehouse. Alternatively, the entrepreneurs are eligible for a loan from banks or other financial institutions with the warrant as security and the goods in custody of the warehouse. Some warehousing firms also provide advances of money to the depositors.
Processing
In some cases, raw materials or unfinished goods are stocked at warehouses. Assembling unfinished goods or holding fruits till they ripen are ensured by warehouse places. The provision of such functions is undertaken by a select few facilities.
Transportation
Moving the products or commodities is a hefty business. The best warehousing provides comprehensive logistics services including transportation of goods. The operational costs are substantial and warehousing plays a significant role in reducing them. Transportation of commodities requires great management and it can affect a company’s turn over if not done properly. It is feasible for the warehouse to provide transportation for bulk orders.
Grading & Packaging
The kind and variety of products stored at a warehouse is usually diverse. It is very important for a warehouse to classify the products according to necessary parameters and store them accordingly. Some such facilities also provide packaging services to its clients. These services assist in the sale, handling of the commodities, and reduce costs and save time.
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