Functions of Warehousing

•        Storage of goods.

The basic function of warehouse is to store large stock of goods. These goods are stored from the time of their production or purchase till their consumption or use.

•        Protection of goods.

A warehouse provides protection of goods from loss or damage due to heat, dust, wind and moisture etc. it makes special arrangements for different product according to their nature.

•        Risk bearing.

When the goods are stored in warehouses they are exposed to many risks in the form of theft, deterioration, exploration, fire etc. warehouses are constructed in such a way as to minimize these risks.

•       Financing.

When goods are deposited in any warehouse, the depositor gets a receipt, which act as a proof about the deposit of goods.

•        Processing.

Certain commodities are not consumed in the form they are produced. Processing is required to make them consumable.

•       Grading and branding.

Warehouses also perform the functions of grading and branding of goods on behalf of the manufacturer, wholesaler or the importer of goods. It also provides facilities for mixing, blending and packaging of goods for the convenience of handling and sale.

•       Transportation.

Warehouses provide transport arrangement to the bulk depositors. It collects goods from the place of production and also sends goods to the place of delivery on request of the depositors.

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