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When it comes to this mode of transportation, there is more than one kind of
vehicle necessary to take the goods to their final destination, by the use of trucks,
trains, ships, airplanes or some other mean of transport for the delivery.
Warehousing is the act of storing goods that will be sold or distributed later. While a
small, home-based business might be warehousing products in a spare room,
basement, or garage, larger businesses typically own or rent space in a building that is
specifically designed for storage.
Functions of Warehousing means the wide ranges of ctivities, which are associated
with the physical distribution of goods from the end of the production line to the
final consumers. These activities include purchasing of goods, inventory
management, storage, materials handling, protective packing and transportation.
Storage of goods
Protection of goods
Risk bearing
Financing
Processing
Grading and branding
Transportation
Warehousing is the act of storing goods that will be sold or distributed later. While a
small, home-based business might be warehousing products in a spare room,
basement, or garage, larger businesses typically own or rent space in a building that is
specifically designed for storage.
Types of warehouses
1. Private Warehouses
These are generally owned by the manufacturers or traders or distributors and are
used to store exclusively owned goods as well as usually preferred by farmers near
their fields, wholesalers or distributors or retailers near their territory, manufacturers
near their factories, exporters or importers near ports. Private warehouses offer
better control over movement and storage of goods and there is less chances of
error. Beside these, product specific storage techniques can be opted in private
warehouses.
2. Public Warehouses
These warehouses are for use by general public and anyone can store their goods in
public warehouses by paying very reasonable rent. These warehouses can be either
private or state owned. In case a private company wants to start a public warehouse,
it has to obtain a license from the government. Moreover, the operations of these
public warehouses are regulated and monitored by government agencies. These
warehouses are very cost effective. They are flexible enough to store several kinds of
products. Public warehouses offer better value of money as the user pays only for
the space they occupy.
3. Government warehouses
The government warehouses are owned, managed and governed by Central or State
government. They can be used by both private companies and government agencies
for storage of goods. They are therefore also considered a form of public
warehouses owned by government. Government warehouses provide better security
and safety of goods as there is direct involvement of government. They are least
expensive but require considerable paper work to be done.
What is the role of warehousing?
The main function of a warehouse is to store products or goods before moving them
to another location. But there can be some secondary functions of warehousing that
enhance a warehouse's space.