Importance of Warehousing

Warehouse is, literally, a storage structure set up to protect the quantity and quality of the stored merchandise. The requirement for a warehousing occurs due to time interval between the production and consumption of product. Storage or warehousing can be defined as a area holding and conserving product up until the time of their being dispatched to the customers. Warehousing allows you to create time utility by bridging the gap between production and utilization.


Moreover, warehousing or storage is necessary to avail the products for final consumer as and when required. Also, warehousing assists the business owner to continue year round production and sell them during adequate desire. Another factor adding to the need of warehousing is the time when a specific product is produced and the demand for that product throughout the year.

The different types of warehouses include:

• Private warehouses that are managed by well developed wholesalers and manufacturers to meet their storage needs consistently.

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• Public warehouses provide an expert business establishment that provides warehousing facilities to the common community instead of a particular price.


• Bonded warehouses are the ones licensed by the Government to admit imported goods for storage until the custom duty is paid off. These are generally positioned nearby the ports and are run either through the Federal government or by custom authorities.

The many benefits of warehousing which make it even more useful are:

• Warehousing is helpful in stocking merchandise when the requirement is lower than the supply as well as assists you to release items as soon as the demand surpasses the immediate production. This feature of warehousing is useful in controlling supply of product besides stabilizing costs by harmonizing demand with supply.

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• Warehousing is helpful in safe and secure guidance of merchandise. This enables the businessmen to cut various risks like loss, fire, theft, and damage of merchandise. In addition, merchandise inside a warehouse are often insured.

• Warehousing avails for you the services for processing, blending, packing, grading etc, of merchandise intended for sale. The potential consumers can also execute a check mark of the product stored in a storage facility.

• Warehousing is fairly secure mode of retaining goods as a receipt is supplied to the person who owns these goods. The owner may also have a money loan against the security of items through endorsement on this receipt.

A businessman can pay customs duty in regular installments by stocking the imported goods in the custody of the bonded warehouse.