Perks of Warehousing


‘Warehousing’ alludes to the act of storing goods that we want to sell or distribute later. While we can use small storerooms, garages or even our basement for small scale home-based businesses, the larger ones typically opt for rented buildings or spaces specially designed for storage. Warehousing and it’s related elements belong to a sophisticated industry known as Logistics management, which is a part of supply management and involves meeting the customer demand through storage, transportation, and movement of goods from source to destination, the process may also involve some value addition in terms of secondary packaging, assortment, kitting and activities of similar nature. To improve production workflow and to ensure soaring productivities, we need to improve the logistics and inventory management, in the best way possible. Manufacturers have always been looking for enhanced productivity, lower costs and fastest route 2 market which can be achieved by getting our warehouse storage under control.


Key Benefits of warehousing:

Production support:

Production support that has been inconsistent can prove to be a curse to the production lead at times. Warehousing comes to the rescue by providing space and transport logistics expertise to store goods until we need them. Whenever required the goods can be delivered quickly.

Time utility:

The time gap between production and consumption of goods can be minimized by warehousing as:-

  • various seasonal goods that have a demand all throughout the year like wheat, rice, potatoes, tobacco, vegetables can be procured and stored in the season of production/ availability
  • production of goods having seasonal demand can be spread over the year and made available when at the time of demand like wool, raincoat, umbrella
  • various goods that are produced only in certain regions
  • can be easily made available anytime.

Opportunities for expansion:

Warehousing provides relief from the restrictions imposed by the need to look after storage of materials, product parts, and finished goods. This, in turn, helps us to focus on the core business, that is, product development, and its expansion. The available space can be successfully utilized for product improvement if we outsource storage and distribution to a warehouse operator.

Packing and processing:

In addition to storing of products, a lot of items require secondary processing or conditioning in order to make them fit for human consumption, for example, coffee. Nowadays, warehouses provide a lot of facilities furthermore, that include processing, blending, packing, and shipping services as well as inventory management. The goods kept in the warehouse can be displayed and inspected by prospective buyers.

Price stabilization:

Warehouses ensure a stable supply of goods into the market by maintaining consistent stocks. This, in turn, helps to match supply with demands, thus stabilizing the prices. Since warehouses help in supplying demands of goods that exceed present productions, businesses can forecast their productions, profits, and losses easily.


The owner of the goods kept in the warehouse is provided with a receipt which he can produce and use the security of the goods for borrowing money. Thus using a warehouse proves to be a boon while in need of finances. This can be done by making an endorsement on the receipt. In addition to this, some warehouse authorities advance financial help against the goods stored in the warehouse. Warehouses also come up with facilities that are licensed by the government. This facility allows the businessman to pay customs duty in installments if he keeps his imported goods in bonded warehouses, which helps in conserving working capital.

Spot Stocking:

This warehousing technique is favored mostly by the agricultural sector and is used for meeting seasonal demands. Spot stocking is about having many (small) warehouses simultaneously in a specific range of key locations that are close to the markets. This effectively reduces transport time. This technique has a wide range of benefits that include minimizing the time gap between production and consumption and meeting the immediate demands of the customers.

Minimize Business risk:

Warehouses provide for the safe custody of the stored products as the goods are stored in the place which is specifically designed for storage and are generally insured for accidents. A warehouse necessarily has a loss prevention mechanism by way of round the clock security, controlled access, weatherproof buildings, sound building structure, and fire safety devices. In an unfortunate case of any loss by theft, fire or damage, the owner can get compensation from the insurance company. The warehouse also employs security staff to avoid theft, install fire extinguishers, use proper preservations and cold storage facilities for perishable goods and use insecticides for added safety.

Warehouses are CPUs of Consumerism

In addition to the above-mentioned benefits, warehousing renders the regular flow of goods and continuity of production. It creates employment and is really helpful for small businessmen who would otherwise have to spend a lot of money on building storage places.

The warehouses can be used for value addition, job creation and it is non polluting industry.

Warehouses provide all the latest technological facilities for storing goods when they are not required for sale. It ensures protection and safety to the stocks and prevents all kinds of wastage, breakage, spoilage, and deterioration in quality. Moreover, warehouses use mechanical handling of goods while loading and unloading them, which reduces the damage and handling cost. Hence using warehouses for business can dramatically increase productivity and can quickly boost up production workflow.

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