Business Support Services

Warehousing

Holding or preserving goods in huge quantities from the time of their purchase or production till their actual use or sale. Thus, it creates time utility by bridging the time gap between production and consumption of goods. It’s providing storage facilities at various places to meet seasonal variations in demand.

Types of Warehouses

  • Private Warehouses: Owned and operated by the manufacturers or traders to store exclusively their own stock of goods.

  • Public Warehouses: Independent unit which stores goods of other firms.

  • Government Warehouses: Owned, managed and controlled by the government.

  • Bonded Warehouses: To store imported goods for which import duty is yet to be paid.

  • Co-operative Warehouses: Provide warehousing facilities at the most economical rates.

Functions of Warehouses

  • Storage of Goods: To store goods properly till they are required for use, consumption or sale.

  • Protection of Goods: Protection to goods from loss or damage due to heat, dust, wind and moisture, etc.

  • Risk Bearing: Takes all precautions to ensure their safety.

  • Financing: Used as a security to obtain loans and advances from the banks and other financial institutions.

  • Processing: Required to make them consumable. For example, paddy is polished, timber is seasoned, and fruits are ripened, etc.

  • Value Added Services: Undertake to perform the functions of grading and branding of goods on behalf of the manufacturer, wholesaler or the importer of goods

  • Transportation: Provide transport arrangement to the bulk depositors.

Explore NIOS Notes