Functions of Warehousing
1. Proper Storage:
The storage of goods is the basic work of warehousing. Warehouses perform their duties to bridge the gap between demand and supply. The necessity of stage arises when the man is able to produce surplus goods. In fact storage provides protection to the owners against loss due to damage, leakage and breakage of goods.
2. Stability in Price:
A warehouse keeps and saves the surplus product and releases the same at the time of deficiency to keep equilibrium between demand and supply of the product. This can help in maintaining the price level throughout the market.
3. Sampling:
Before purchasing, a purchaser can inspect the stock in warehouse. Thus it
helps purchaser to buy goods of good quality. The warehouse-keepers take
representative samples for showing them to the prospective buyers.
4.Judicious Supply:
The production may be seasonal or regular and its demand may also be regular or seasonal. In both cases the supply of stock must be regular. The warehousing is a right step in this direction. The problem of shortage of goods does not arise in the presence of warehouse.
5.Risk Bearing:
The goods lying in storage may be lost or damaged by natural or personal reasons. The owners of goods can shift their risk on warehouse-keepers. The proper storage of goods protects them from heat, sun and dust.
6. Proper Protection to Goods:
Warehouses are designed to give proper protection to the goods stored
therein. Different goods require different types of protection eg. from cold, heat,
moisture, diseases, fire and thieves etc.
7. Reduce Transport Cost:
Transport Company can charge full amount for one trip even the goods are in small lots. The warehouses help the small traders to reduce their transport charges on shipment of goods because goods can be loaded fully. It also reduces the cost of loading and unloading.
8. Packing and Loading:
The owner of the goods can ask the warehouses-keeper to pack the goods for safe delivery. He also performs loading and unloading functions through automatic machines or manual labour.
9.Grading and Labeling:
The warehouse-keepers apply different standards for grading the products.
Classification of goods removes the confusion Dfa Ho of buyers. Warehouse-keepers also
label the products after grading.
10.Processing and Curing:
Some goods are kept in warehouses for processing or curing purposes for bringing these things into proper useable form. The fruits are kept for ripening. whereas coffee seeds and tobacco for processing.
