Storage facility is, basically, a storage structure erected for protecting the amount and quality of the stored products. The need for a warehousing occurs from the time interval between the production and utilization of goods. Storage or warehousing can be looked as holding and preserving goods till the time on their being dispatched to the consumers. Warehousing assists create time utility by bridging the space between production and consumption.
Moreover, warehousing or storage must avail the goods for consumers as and as required. Also, warehousing helps the businessman to continue year round production and sell them in times in adequate demand. Another factor contributing to the need of warehousing is the season when a particular product is produced and the demand towards the product all through the year.
The various models of warehouses include:
• Private warehouses which are owned and operated by more developed merchants and manufacturers to fulfill their storage requirements consistently.
• Public warehouses include an expert business establishment that creates warehousing facilities to the common public rather than a certain charge.
• Bonded warehouses are those licensed via the Government to admit imported goods for storage until the custom duty is paid off. These are almost always located near the ports and are operated either via the Government or by custom authorities.
The key features of warehousing which make it even more very important are:
• Warehousing is helpful in storing goods after the demand is less than the supply along with helps you release goods when the interest exceeds the immediate production. This feature of warehousing is helpful in regulating supply of goods and also stabilizing prices by harmonizing demand with give.
• Warehousing is helpful in safe and even secure supervision of goods. This enables those businessmen to curtail various risks like the loss, fire, theft, and damage of goods. In addition, goods in a warehouse are usually covered by insurance.
• Warehousing avails for you the comforts for processing, blending, packing, grading etc, of goods to get sale. The potential buyers can also do an inspection of the goods stored at a warehouse.
• Warehousing is quite safe mode in storing goods as a receipt is provided to the owner of these goods. The owner can also have a very good money loan against the security of goods through endorsement in this particular receipt.
A businessman can pay customs duty on installments by storing the imported goods with the custody of a bonded warehouse.