storage depot
A warehouse is a commercial building that is basically intended for the storage of merchandise. It is an establishment for the safe custody of merchandise. It allows an entrepreneur to carry out production throughout the year by storing raw materials and inventory. It allows them to sell their products when there is adequate demand. By serving the basic purpose of storage, a warehouse helps perform several beneficial functions for a business.
Benefits of a warehouse for a company:
1. Regulates production
Raw materials can be stored in a warehouse that guarantees the continuity of production. A company can carry out uninterrupted mass production if it has the facilities for storage.
2. Helps meet future demands
Warehouses are also used to store merchandise in order to meet future demands. Sometimes when goods are produced, there may not be adequate demand for them. It helps to store and stock them at the time of future demands.
3. Enable the time utility
Storage of goods in a warehouse enables the producer of goods to provide goods on the market when the market requires it. This is useful for goods that have a seasonal demand. It also helps when certain products are required in many areas but are produced only in specific regions.
4. Help in price stabilization
The prices of goods fall when their supply exceeds their demand. Having a storage facility allows the producer to manage prices by freeing up goods so that supply meets demand. This ensures the supply of goods to the market according to demand. This, in turn, helps stabilize prices.
5. Provides secure storage for merchandise.
Perishable products can be kept in a cold room in a warehouse. The goods stored in a warehouse are safe from risks of theft, fire or any type of damage. The goods are also insured.
6. Packing and sorting facilities provided
Warehouses provide facilities for packing, processing, blending, etc. in the store. This allows the manufacturer to present the products in a form that is ready for purchase. Potential buyers can even visit the store to check out such products.
There are three types of warehouses:
- Private:
- Audience:
- Guaranteed:
These are owned and operated by large commercial companies.
It is owned by an entrepreneur or a cooperative society. It is rented to the public that requires storage space.
These are licensed warehouses, where imported products are stored until customs duties are paid. They are generally found near ports. They are operated by the Government or work under the control of the customs authorities.
Warehouse storage assists a business in manufacturing and maintaining goods. Therefore, it is cost saving and beneficial for a company in the long run.