Warehousing was initially viewed as a provision of static unit for keeping and storing goods in a scientific and systematic manner so as to maintain their original quality, value and usefulness but now it is viewed as a logistical service that is making available the right quantity, at the right place, in the right time, in the right physical form at the right cost.
The various warehousing services are as follows:
(i) Consolidation ‘The warehouse receives and consolidates materials/goods from different production plants and dispatches the same to a particular customer on a single transportation shipment’.
(ii) Break the Bulk The warehouse divides the bulk quantity of goods received from the production plants into smaller quantities to be transported according to the requirements of clients to their places of business.
Goods or raw materials which are not required immediately for sale or manufacturing are stored in warehouses to be made available to business depending on customers demand. Agricultural products also need to be stored and released in lots as they are harvested at specific times in a year but are needed for consumption throughout the year.
(iv) Value Added Services Provision of value added services such as in transit mixing, packaging and labeling is also a function of modern warehousing. Goods sometimes need to be opened and repackaged and labeled again at the time of inspection by prospective buyers. Another function of modern warehouses is to grade goods according to quantity and divide goods in smaller lots.
(iv) Price Stabilization Warehousing performs the function of stabilizing prices by adjusting the supply of goods according to demand. Thus, prices are controlled from falling when supply is increasing and demand is slack and from rising in the reverse situation. Financing Warehouse owners provide loans to the owners on security of goods and further supply goods on credit terms to customers.
