Warehousing is an integral part to any logistics system. Warehousing is the process of storing goods on a large-scale in a systematic and orderly manner. Logistics is an important part of the supply chain system. Most people view a warehouse as a mere storage facility. The warehousing process as a whole plays a significant role in ensuring the entire supply chain system functions effectively.
The warehousing process offers a number of different benefits:
- Preservation – A warehouse provides the necessary facilities to business owners to require goods to be stored for a greater period of time. It provides protection to the goods, ensures their safety and prevents wastage. It minimises loss that may arise from breakage, deterioration in quality, spoilage etc. Warehouses usually adopt latest technologies to avoid losses, as far as possible. Flow of Goods – Some commodities such as rice or wheat are produced during certain seasons but are consumed throughout the year. Warehousing ensures that such products are supplied, regardless of the season.
- Location – Warehouses are generally situated at convenient places such as; near railway stations, roads, airports and as well as docks. Convenient locations reduce the cost of transporting goods. Surplus Goods – A warehouse may act as a facility to store goods which are not needed immediately. Often goods are produced in anticipation of demand, therefore if the goods are not yet demanded by the consumer they need to be stored properly.
- Risk – Warehouses provide for the safe storage of goods. Perishable goods can be conveniently stored in cold storage, keeping goods stored in warehouses may minimise the loss from damage, fire, theft, etc. since most goods that are stored in warehouses are insured. In case of loss or damage to the goods, the owner of goods can get full compensation from the insurance com