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Warehousing – Types, Capabilities and Traits

A warehouse is a commercial building used for storage of products while warehousing is the process of proper storage and dealing with of goods and cargo utilizing scientific strategies within the warehouse and making them available conveniently when needed. In right this moment’s scenario, warehousing is considered as one of the essential aspect of trade.

Want for warehousing

Some commodities are produced in a particular season only. To make sure their low season availability, warehousing is needed.

Some products are produced throughout the year however their demand is seasonal. Warehousing is vital in such cases.

For the businesses which opt for giant scale production and bulk provide, warehouse is an unavoidable factor.

Warehousing help companies guarantee quick provide of products in demand.

Production of products and their movement of products are necessary for the businesses for continuous production of goods.

Warehousing is also essential for value stabilization. For vital goods, the Authorities stores them within the warehouses and management its provide in the market as per the worth fluctuations.

Another vital need of warehousing is for bulk breaking. Consider a trade agent who imports items from a country for a large number of consumers in his own country. He first takes the products to his warehouse and break it into small parts for provide to the buyers.

When it involves value saving, warehousing helps the traders with cross docking. All the goods are consolidated in the warehouse and then stuffed into containers as per their destination. This is very helpful for small traders who export low quantity of goods.

Main capabilities of a warehouse

Storage of goods

Protection of products

Risk bearing



Grading and branding


Types of warehouses

Private Warehouses These are owned by the producers or traders/distributors. Private warehouses are used to store solely owned goods. These are normally desirered by farmers near their fields, wholesalers/distributors/retailers close to their territory, producers near their factories, exporters/importers near ports. Private warehouses offer higher management over movement and storage of goods and less chances of error. Along with this, product specific storage strategies may be opted in private warehouses. Then again, higher operation prices and inflexibility in storing totally different products are the foremost disadvantages of private warehouses

Public Warehouses These warehouses are meant to be used by general public. Anyone can store their goods in public warehouses for a nominal rent. These warehouses can be private or state owned. In case a private firm desires to start a public warehouse, it has to compulsorily obtain a license from the government. Besides this, the operations of these warehouses are additionally regulated by government agencies. These warehouses are less costly and more price effective. They are versatile sufficient to store totally different kinds of products. Public warehouses provide higher utilization of cash as the user pays only for the area occupied. However public warehouses are usually not considered goods when it involves such items which require particular dealing with techniques. Also the probabilities of error are more right here due to widespread storage of all goods.

Government warehouses The government warehouses are owned, managed and ruled by Central or State government. They can be utilized by both private corporations and government companies for storage of goods. They are thus also considered a form of public warehouses owned by government. Government warehouses supply better security and safety of goods due to high involvement of government. They’re very less costly but require considerable paper work to be done.

Traits of a super warehouse

It should be conveniently located close to highways, railway stations, air ports, sea ports etc. for loading and unloading of goods.

Mechanical appliances needs to be there to lift, load and unload goods.

It must be spacious enough.

Food storage warehouses should have sufficient facilities to forestall food from perishing.

Proper arrangement to save items from sunlight, dust, rain, moisture and pests must be available.

Ample parking house needs to be there to facilitate quick and easy loading and unloading of goods.

Security arrangements should be strict and around the clock.

Trendy and tested firefighting equipment should be put in within the premises.

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