A storage building meant to protect the value and the size of stored products is referred to as a warehouse.The reasons as to why a warehouse is required are due to the period intermission between the manufacture of goods and their intake. Sometimes you have to store your goods in a warehouse until the consumers demand for them, this is called warehousing.Basically, warehousing help the business man to create time utility by bridging the gap between the production of goods and their consumption. Essential benefits of warehousing are shown below.
Warehouse helps in risk reducing risk. Safekeeping of your goods can be done in a warehouse.For example the perishable goods can be preserved in storage that are cold.When you keep your goods in a warehouse, you minimize the risk of goods damage, theft or fire. Goods stored in a warehouse helps avoid all the risks since it is insured. A compensation can be done to you by the company if you get your goods damaged.
Warehousing provides a good opportunity for packing and grading of goods.Some goods have to be processed or even conditioned in order to be fit for human use. A warehouse that is modernized provides facilities that help in processing, packing, and grading of the available goods, for sale purposes.
Financing is another benefit that is gotten from warehousing. All the goods that has been stored for you by the warehouse have to be written in a receipt. By the use of the receipt issued to you concerning the number of goods you have in the warehouse, you can use it to borrow them some money with your goods acting as the security.
Warehousing provide the advantage of price stabilization. The violent brought about by the decrease in goods price is overcome by storing your goods in a warehouse to help you wait until the price stabilizes. When you take your goods in the warehouse, you are assured of their regular supply to the market.
When you have excess stock go for warehousing. A good store for excess products is a warehouse. A warehouse preserves the good very well until they are demanded by the customers.The goods that are not needed immediately by the customers, they can be kept in the warehouse so as to meet the demand in the future.
Time convenience is created by warehousing, by letting a gap exist between production of goods and their use. Thing demanded by the customers are always available due to the presence of warehousing for storage.For example the raincoats, umbrella are not produced throughout the year since their demand is seasonal.