Know About Advantages of Warehousing

Warehousing is significant for any kind of product based industries or businesses, like manufacturing, assembling, retailing, etc. For different types of industries, different types of warehouses are used depending on the needs. Whether the industry is large, medium or small, warehousing is advantageous to the industry concerned.

The following are the different advantages that industries can accrue from warehousing:

  • For storing the goods: Once goods are manufactured, they need to go to the market. As the goods are sold depending on the demand, they have to be stored effectively in a warehouse. They have to be stored under appropriate conditions as required by quality control. This is possible by using the latest technologies of storing. Thus, warehouses are useful for maintaining the goods and they avoid damages to the goods.
  • For producing the goods continuously: Warehouses are also used to store the raw materials required for production of goods. As the raw materials are stored in the warehouses, the final goods can be produced easily without any delay in the process of procurement of raw materials.
  • Regular supply of the goods: Most crops produced are seasonal. Farmers and the wholesalers will find it useful to store these type of seasonal goods in warehouses, so as to supply them all through the year. This ensures continuity of the supply of the goods. It also helps in supplying consumer durables as per the demand avoiding scarcity.
  • Location of the storage: Warehouses are generally located near the places where there is adequate amount of transportation. In most of the cases, these warehouses are placed close to the industries, which in turn reduce the cost of transportation.
  • Beneficial for small businesses: Small businesses find warehouses extremely useful as they cannot afford to loose customers at the time of heavy demand. This applies not only for storage of final goods, but also for raw materials, as delay in any stage of manufacturing process may stop the entire production process which may cost small businesses a huge amount. Moreover, frequent delivery and procurement of final goods and raw materials, will also lead to higher transportation costs, which may trouble the small businesses greatly. Instead, it is advised to store these materials in warehouses and use them whenever needed.
  • Effective handling: Now-a-days, the warehouses are operated using mechanical appliances which can easily handle the goods. Thus, heavy and bulky goods are handled easily without any breakage. This reduces the handling costs and also reduces the wastage of labor.
  • Losses are reduced: The goods which are stored in the warehouses, are well guarded and they get insured. If there is any damage because of fire hazards, compensations will be issued regarding losses occurred in the warehouses.
  • Creation of employment: Warehousing involves a wide variety of work which requires workforce ranging from unskilled to semiskilled and highly skilled laborers. Thus, warehousing generates jobs, which of course depends upon the skills of labor.

Warehousing is an effective practice in the process of manufacturing and maintenance of goods. Hence, it should be considered as a valuable cost-saving option, rather than an expenditure by businesses.