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A warehouse is really a commercial building that is basically intended for storage of merchandise. It’s an establishment for safe custody of items. It enables a businessman to carry out production all year round by storing raw materials and inventory. It lets them sell their items when there is adequate demand. By serving the fundamental reason for storage, a warehouse helps in performing various functions beneficial to a company:
1. Regulates production
Unprocessed trash may be stored in a warehouse which ensures continuity of production. A business can transport out uninterrupted mass production if it has got the facility for storage.
2. Helps in catering to future demands
Warehouses will also be employed to store goods as a way to cater to future demands. Sometimes when goods are produced there might stop adequate interest in them. It helps to hold them and still provide them during future demands.
3. Enables Time Utility
Storage of merchandise inside a warehouse enables the producer of products to supply goods in the market when essential for market. This can be useful for items that are seasonal in demand. It assists to when certain items are needed in many areas however are produced only in specific regions.
4. Helps with price stabilization
Prices of products fall when their supply exceeds their demand. Having a storage facility enables the producer to deal with the costs by releasing goods so that the supply meets the demand. This ensures method of getting goods for the market in accordance with the demand. This, subsequently, helps in stabilizing prices.
5. Supplies a safe storage for goods
Perishable products may be preserved in the cold storage within a warehouse. Goods saved in a warehouse are safe from hazards of theft, fire or virtually any damage. Merchandise is also insured.
6. Packing and grading facilities provided
Warehouses provide facilities for packing, processing, blending, etc from the warehouse. This allows the maker to provide goods inside a form that’s ready to buy. Prospective buyers may even check out the warehouse to check such products.
You can find three varieties of warehouses:
These are run by big business houses.
It is of a businessman or a co-operative society. It is rented over to the general public who are required safe-keeping.
They are licensed warehouses, where, imported items are stored till custom duty is paid. They are generally located near ports. They’re run by Government or work within the control over customs authorities.
Storage inside a warehouse helps an enterprise in manufacture and maintenance of goods. Hence, it’s cost saving and beneficial to an enterprise ultimately.
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