WAREHOUSING

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    A process in which different businesses store their goods in a warehouse

     

    A place where goods are stored

     

    • Function of Warehouses:

     

    • Enable production to be carried on continuously
    • Stabilize the prices of goods by maintaining a regular supply
    • Enables a regular supply of goods
    • Enables preparation of goods for sale
    • Provides a place for display of goods
    • Protects the goods from harsh weather, theft etc

     

    • Types of Warehouses:

     

    1. Bonded Warehouse:

     

    • Located at ports, air ports, border crossings etc.
    • Owned by government
    • Store items on which duty is yet to be paid
    • Government charges a fee for this storage, depending upon the length of time the items are stored

     

    1. Cold Storage Warehouse:

     

    • For perishable fruit items e.g. fruit, fish, flowers
    • Refrigeration facility available at large scale
    • This enables the product to be enabled in off season and thus maintain a reliable supply

     

    1. Large Scale Retailers’ Regional Distribution Centre:

     

    • Main storage areas where businesses store their goods which are ready for export etc
    • Repacking is done here – sometimes wholesalers buy in bulk and sell in smaller quantities so repacking is required
    • Protects goods against theft, inclement weather etc