A warehouse is a storage structure designed to protect both the worth and the amount of the products that are stored. The time interval between the production and consumption of goods is the reason as why a warehouse is required by a businessman.Warehousing is then defined as the holding and preserving of goods till the time they are distributed to the customers.Basically, warehousing help the business man to create time utility by bridging the gap between the production of goods and their consumption. Essential benefits of warehousing are shown below.
Warehousing helps in minimization of risk. When your goods are in a warehouse you are assured that they are safe.For example the perishable goods can be preserved in storage that are cold. The risk of goods to be stolen, to catch fire and being damaged are minimized by storing them in a warehouse.This is because all the goods that are stored in a warehouse are normally insured.In case the owner finds his goods lost or damaged, he or she can get a full compensation of the goods from the insurance company.
The great opportunity for packing and grading is provided by the warehouse. There are quite a number of goods that has to be processed for them to be fit for human use.A warehouse that is modernized provides facilities that help in processing, packing, and grading of the available goods, for sale purposes.
Warehousing is providing an advantage of Financing.This is because most of the warehouses today are providing a receipt of all the goods that have been stored for him in the storeroom. By the use of the receipt issued to you concerning the number of goods you have in the warehouse, you can use it to borrow them some money with your goods acting as the security.
Another great advantage of warehousing is price stabilization. The violent brought about by the decrease in goods price is overcome by storing your goods in a warehouse to help you wait until the price stabilizes.Warehousing ensures that there are regular supplies of the goods in the market.
Having a warehouse is more beneficial especially when you have excess goods with you.A warehouse mostly acts as a good store of excess goods. A warehouse preserves the good very well until they are demanded by the customers. Goods that can be used in future can be stored in a warehouse until the time the consumers will demand on them.
It is through warehousing that time utility is created by building a production and consumption of goods.It makes the things available to the customers every time they demand for them. Things like umbrellas are stored in the warehouse until their demand occurs since their usage is seasonal.