WAREHOUSING
MANUFACTURE’S WAREHOUSE/DEPOTS:
The protection given to goods from the time they are produced
until when they are needed by consumers.
IMPORTANCE OF WAREHOUSING
 It protects goods from damage due to bad weather /theft
therefore reduced chances of loss to the business.
 It helps to stabilize prices by preventing either shortage
or excess developing on the market hence efficient
budgeting
 Ensure a regular supply of goods to customers hence
customer satisfaction.
 Help the business to be able to produce/buy in large
quantities thereby enjoys economies of scale.
 It provides space necessary for the preparation of
goods for sale by repackaging, branding labeling and
blending.
 It provides space for the display of goods for customers
to inspect the goods before buying them.
TYPES OF WAREHOUSES AND THEIR USES
1. COLD STORAGE WAREHOUSE: A form of
specialist warehouse used mainly for the storage of
perishables like fruits and vegetables, fresh milk, meat
etc. they enable perishables to be exported throughout
the world without the fear that they would go bad on
transit.
2.
These are warehouses used by manufactures to store
raw materials, components, tools and machinery
necessary for production to take place and also for
storing finished products before selling them.
3. BUILDERS TOOL SHED: A temporary warehouse
used by builders/construction companies to keep their
tools/equipment, building materials, site rations as well
as their uniforms and protective clothing.
4. PUBLIC SECTOR WAREHOUSE: large depots used
by government departments and parastatal bodies to
store their supplies and government strategic reserves.
E.g. the central Medical Stores used by ministry of
health to store medical supplies,
Silos used by Botswana Agricultural marketing boards
to store grains
5. SEAPORT AND AIRPORT AUTHORITY
WAREHOUSE: Warehousing facilities provided by
port authorities to facilitate the worldwide distribution
of goods in international trade by storing goods while
on transit awaiting customs clearance and transport.
6. WHOLESALE WAREHOUSE: Warehouses used by
wholesalers to store their goods, break the bulk and
prepare the goods for sale.
7. LARGE SCALE RETAILER’S WAREHOUSE:
Warehouses used by large scale retailers to store their
goods in order to supply to the branches after buying
1
 them in bulk through their central purchasing
department.
8. BONDED WAREHOUSES: Warehouses used for
storage of dutiable goods on which duty has not yet
been paid. They are under the control of BURS
department
 They are important as they help economize the
working capital of traders as those who do not
have enough working capital may sell their
goods while still in bond in order to avoid the
payment of duties.
 Goods may also be prepared for sale while on
bond.
Bonded warehouses may be preferred to other types of
warehouses when:
 The imported goods are dutiable and the trader does not
have sufficient capital to pay the duties immediately.
 The goods imported are not required immediately and
they therefore need to be stored under the control of the
customs authorities without payment of duties until
they are removed.
 The goods are to be re-exported on which in which case
the importer would not have to pay duty.
 The goods need to be prepared for sale
bottling/packaging/blending/labeling.
 The trader does not have the correct license in place for
the imported goods and needs time to obtain them.
DOCUMENTS USED IN WAREHOUSING
 Bill of sight: A form from customs authorities giving
an importer permission to examine imported goods in
the presence of a customs officer.
 Warehouse warrant: a form used to claim goods from
a warehouse after payment of duties.
 Goods inward declaration: a document showing
details of goods delivered to the warehouse.
 Goods outward note: a document showing details of
goods leaving a warehouse.
 Packaging note: a note giving details of items
contained in each box/carton.