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All About Warehouse Storage

A warehouse is a commercial building which is basically meant for storage of goods. It’s an institution for safe custody of goods. It enables a businessman to carry out production all year long by storing raw materials and inventory. It enables them to sell their products when there’s adequate demand. By serving the essential purpose of storage, a warehouse helps in performing varied features beneficial to a business.

Benefits of a warehouse to a enterprise:

1. Regulates production

Raw materials could be stored in a warehouse which ensures continuity of production. A business can carry out uninterrupted mass production if it has the facility for storage.

2. Helps in catering to future demands

Warehouses are also used to store goods to be able to cater to future demands. Generally when goods are produced there is probably not adequate demand for them. It helps to store them and provide them at the time of future demands.

3. Enables Time Utility

Storage of products in a warehouse enables the producer of goods to provide goods within the market as and when required by the market. This is beneficial for goods which might be seasonal in demand. It also helps when sure products are required in many areas however are produced only in particular regions.

4. Helps in price stabilization

Costs of goods fall when their supply exceeds their demand. Having a storage facility enables the producer to handle the costs by releasing goods so that the availability meets the demand. This ensures provide of products to the market in response to the demand. This, in turn, helps in stabilizing prices.

5. Provides a safe storage for items

Perishable products may be preserved in a cold storage in a warehouse. Items stored in a warehouse are safe from risks of theft, fire or any kind of damage. Goods are also insured.

6. Packing and grading facilities provided

Warehouses provide facilities for packing, processing, blending, etc in the warehouse. This enables the manufacturer to present items in a form that’s ready for purchase. Prospective buyers may even visit the warehouse to check such products.

There are three types of warehouses:

Private:

These are owned and operated by big business houses.

Public:

It’s owned by a businessman or a co-operative society. It’s rented out to the general public who require storage space.

Bonded:

These are licensed warehouses, where, imported goods are stored till custom duty is paid. They’re generally positioned close to ports. They’re operated by Government or work under the management of customs authorities.

Storage in a warehouse helps a business in manufacture and maintenance of goods. Hence, it is value saving and useful to a enterprise in the lengthy run.

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