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Warehousing – Types, Features 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 methods within the warehouse and making them available conveniently when needed. In right this moment’s situation, warehousing is considered as one of the crucial vital 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 all year long but their demand is seasonal. Warehousing is important in such cases.

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

Warehousing assist companies ensure quick supply of products in demand.

Production of goods and their movement of goods are essential for the companies for steady production of goods.

Warehousing can be important for price stabilization. For needed goods, the Authorities stores them in the warehouses and control its supply within the market as per the value fluctuations.

One other vital need of warehousing is for bulk breaking. Consider a trade agent who imports goods 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 supply to the buyers.

When it comes to 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 particularly beneficial for small traders who export low quantity of goods.

Major features of a warehouse

Storage of products

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 completely owned goods. These are often favorred by farmers close to their fields, wholesalers/distributors/retailers near their territory, manufacturers close to their factories, exporters/importers close to ports. Private warehouses supply better management over movement and storage of products and less possibilities of error. Alongside with this, product specific storage strategies might be opted in private warehouses. On the other hand, higher operation prices and inflexibility in storing completely different products are the key disadvantages of private warehouses

Public Warehouses These warehouses are meant to be used by common public. Anybody can store their items in public warehouses for a nominal rent. These warehouses can be private or state owned. In case a private company needs to start a public warehouse, it has to compulsorily acquire a license from the government. Besides this, the operations of those warehouses are additionally regulated by government agencies. These warehouses are less costly and more price effective. They’re flexible enough to store totally different kinds of products. Public warehouses offer better utilization of money because the person pays only for the area occupied. But public warehouses usually are not considered items when it comes to such items which require particular dealing with techniques. Additionally the probabilities of error are more right here because of widespread storage of all goods.

Authorities warehouses The government warehouses are owned, managed and governed by Central or State government. They can be used by both private corporations and authorities companies for storage of goods. They are thus also considered a form of public warehouses owned by government. Authorities warehouses supply better security and safety of goods resulting from high involvement of government. They are very less costly but require considerable paper work to be done.

Characteristics of a great warehouse

It needs to be conveniently situated 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 ought to be spacious enough.

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

Proper arrangement to save lots of goods from sunlight, dust, rain, moisture and pests ought to be available.

Ample parking space ought to be there to facilitate quick and easy loading and unloading of goods.

Security arrangements needs to be strict and round the clock.

Trendy and tested firepreventing equipment ought to be installed within the premises.

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