{"id":10138,"date":"2021-01-01T17:12:07","date_gmt":"2021-01-01T11:42:07","guid":{"rendered":"https:\/\/businessjargons.com\/?p=10138"},"modified":"2021-01-08T09:51:47","modified_gmt":"2021-01-08T04:21:47","slug":"warehousing","status":"publish","type":"post","link":"https:\/\/businessjargons.com\/warehousing.html","title":{"rendered":"Warehousing"},"content":{"rendered":"

Definition<\/strong>: Warehousing can be defined as the systematic process of storing and preserving goods on a large scale in a warehouse, godown and facility from the moment goods are produced, and making them available when they are demanded, i.e. for sale, distribution and consumption.<\/p>\n

Warehousing encompasses making proper arrangements so as to keep the goods safe, i.e. in an appropriate condition and ready to sale. This service is used by a number of people such as manufacturers, distributors, suppliers, transporters, importers and exporters.<\/p>\n

Need for Warehousing<\/h2>\n

The points given below will state the needs for warehousing:\"need-for-warehousing\"<\/a><\/p>\n

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  1. The production of goods is undertaken in anticipation of demand<\/strong>, which makes it necessary to keep a stock of goods until it fetches demand. In this way, warehousing assists in providing proper storage to the surplus stock.<\/li>\n
  2. We all know that there are various vegetables, fruits, and grains which are produced in a particular season<\/strong>, however, they are demanded throughout the year. For that also storage and preservation of commodities become significant, which makes it available, throughout the year.<\/li>\n
  3. For some goods, there is a seasonal demand<\/strong>, such as raincoat, woollen clothes, umbrellas, coolers, etc. but they are produced continuously throughout the year. Hence, in the offseason, these items require storage.<\/li>\n
  4. Storage of goods is also necessary to stabilize the price<\/strong> of the goods in the market. Surplus stock of goods should be stored in order to prevent fall in prices. Further, whenever the goods are demanded or there is a shortage, then they are released from the warehouse, so as to control the rise in prices. This ensures equilibrium in supply and demand<\/strong>.<\/li>\n
  5. To ensure ongoing and uninterrupted production<\/strong>, stock of goods needs to be maintained, for which warehousing is a must.<\/li>\n
  6. Traders like wholesalers and retailers also maintain stock with them so as to avoid shortage<\/strong> and also to ensure a continuous supply of goods to their customers.<\/li>\n
  7. There are certain commodities which require storage for curing and processing<\/strong>. As well as, there are some goods which are sold at higher prices when they are preserved for a longer duration.<\/li>\n<\/ol>\n

    Think of a case when production and distribution of goods occur simultaneously, then there comes a situation when there is a time gap between the production and distribution. In this way, warehousing service comes into the picture, which facilitates time and place utility, by supplying the goods at the right place, in the right time and in the right quantity.<\/p>\n

    Functions of Warehousing<\/h2>\n

    The functions of warehousing are given hereunder:\"functions-of-warehousing\"<\/a><\/p>\n