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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?