Importance of warehousing

 Warehousing is an important part of the logistics and supply chain in India. For the businesses that deal with import, export, manufacture or transport of goods, the warehouse is an essential requirement. For a layman, warehousing may only involve storing the finished goods, while the warehousing also involves the outbound function of packing and shipping. Well-Organized warehousing economically benefits both the business and customers. The warehouse allows the business to get better control over their inventory and makes sure their customers receive the products on time hence resulting in higher profits. Warehousing helps the business in saving their money and boosting their productivity.

Some of the benefits that warehousing offers to the business-

1. Inventory control and management- Warehouses gives a centralized location for the finished goods and make it simple to track and manage a large amount of inventory for the business. The investment in the warehouse will be worthwhile as it will help the business to store, ship, and distribute their products very efficiently. If the product ordered by the customer is out of stock business owners will know it right away and they will be able to furnish alternative options to the customers instead of leaving them to wait for several days or weeks.

2. Effective packing and processing- Warehouses provides business all the necessary equipment and supplies it needs for storing, moving, packing, and processing the orders from the customers. Pallet racks, loading docks, packing materials and all the required equipment for business. Through warehouses, businesses are enabled with the system of organizing the package and grading of goods according to the needs of the customers and legal requirements.  This reduces the logistical cost and increases flexibility.

3. Excellent customer service- Every business aims at keeping their customers happy and satisfied. This will be possible if you deliver their orders on time. Warehousing helps the business in keeping its customers satisfied by allowing it to make timely delivery and optimize its distribution. This further results in increasing labor productivity. Warehousing also helps in reducing errors and damage during the process of order fulfillment. 

4. Stabilization of prices- Demand for goods and services depends on various factors such as government policies, customer’s income, climatic conditions, employment rates, and various others. Warehouses allow the business to store its product and save it for the time when the demand for the product rises. This ensures price stabilization and also reduces revenue losses.

Sometimes it may happen that small businesses may not have enough space to store their product and they can’t buy warehouse space as huge warehouse facilities are generally expensive. In such situations, they can opt for warehouse spaces for rent. This option is cost-effective and efficiently fulfills the immediate need for warehouse space.