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Need and Importance of Warehousing

Need and Importance of Warehousing

Warehousing is the process of properly storing and handling goods that will be distributed or sold later in warehouses. Warehouses are large commercial structures where products are safely stored ahead of time. This process plays an important role in ensuring a smooth and consistent flow of goods or other materials, avoiding shortages.

Warehouses provide a convenient location for organizing and controlling all products, resulting in increased productivity and lower overall costs. It assists businesses in meeting customer orders on time. By bridging the gap between the production and consumption time periods, the warehousing process creates time utility.

Apart from being used for storage, the warehouse is also used for packaging and product grading. Warehouses reduce price fluctuations by holding products when their supply exceeds demand in the market and releasing them when demand exceeds regular supply. Public warehouses, private warehouses, and bonded warehouses are the three main types of warehouses.

Needs of Warehousing                   

Need of Warehousing can be well understood from the points given below:

1.       Seasonal Manufacturing: Warehouses are required to store products that are produced on a seasonal basis. Many products, such as agricultural products, are only produced and harvested during a specific time period. Because these products are in high demand throughout the year, it is necessary to store them.


2.       Production on a large scale: Due to the presence of large warehouses, businesses are able to concentrate more effectively on their production activities. They don't have to worry about preserving and storing the products they make. All surplus goods are safely stored in warehouses until a demand for them arises.


3.       Quick Availability: Warehouses aid in the delivery of all required products to customers in a timely manner. These can be found in various parts of the country and in close proximity to where they are consumed. It ensures that products are delivered quickly and without any delays.


4.       Production on a regular basis: Raw materials are required for businesses to continue operating without interruption. Warehouses provide space for bulk storage of raw materials, which aids in the regular supply of raw materials to businesses.


5.       Demand during the Season: Seasonally, certain goods, such as winter or summer clothing, are in high demand. To meet these high demands, these products must be produced throughout the year. The warehouse aids in the storage and distribution of these products as demand arises.


6.       Processing and Packaging: In addition to storage, warehousing also offers packing and processing services. They are in charge of properly packing goods, processing orders, and shipping them out.


Importance of Warehousing

Importance of warehousing is as follows:

1.       Provides space for storage: All surplus goods produced by businesses are stored in warehouses until demand for them arises. Warehouses' most important and primary function is to store goods.


2.       Improved Inventory Control: Warehouses serve as a central storage location for all of a company's goods. It aids and facilitates the tracking of all goods so that any surplus or deficiency of any product can be handled promptly by the company.


3.       Provide Safety of Products: Warehouse owners are in charge of goods that are sent to warehouses for storage by businesses. Warehouses keep goods safe and secure, protecting them from damage, fire, theft, and other threats.


4.       Facilitates Consistent Production: Warehouses aid in the management of business operations. It maintains a steady supply of all required raw materials by storing and preserving large quantities in bulk.


5.       It helps to keep product prices stable: Another benefit provided by warehouses is the reduction of price irregularities. Warehouses help to keep goods prices stable by ensuring adequate supply in the market. It accomplishes this by keeping goods on hand when supply exceeds demand in the market, and releasing them when supply falls short of demand.


6.       Improves Customer Service: Warehouses contribute to increased customer satisfaction and a better shopping experience. It streamlines the product distribution process and ensures that customers receive their orders quickly. Warehouses strive to provide customers with guaranteed on-time delivery, which makes them happy.

  Kantipath, Kathmandu, Nepal

 P. O. Box No: 26182

 Tel: +977 15320150, 15320160

 Cell : +977 9802073809/833