A producer produces the product but all the product is not shifted quickly to the hands of the customers. It takes some time, there are also some other factors which are responsible for warehousing like utility and demand.
Definition of Warehousing :-
Robert Hughes has defined it in following words, "Warehousing is a set of activities that are involved in receiving and storing of goods and preparing them for reshipment."
Keeping in view the various definitions we may say that warehousing is not only concerned with storage facility it is also involved in various other activities like receiving, identifying, holding, assembling and preparing available to meet the demand.
Types or Kinds of Warehousing :-
There are two kinds of warehousing public and private :
1. Private Warehousing :-
These are owned or leased by the firm. A firm has complete control over its activities. It is used when a firm has special storage and handling needs. A firm uses it when it product is moving to large areas. Private warehousing is used by the firm which has high volume of goods.
2. Public Warehousing :-
These are operated by the professionals. They provide the services to the large number of firms. They charge the fee from the firms. A firm may choose the warehousing, keeping in view the location and fright rates. There is no fixed investment involved in it. Fixed costs are widely distributed among users. In this case managerial control is limited.
Functions of Warehouses :-
Following are the important functions of warehousing :
1. Receiving of Goods :-
It is the basic important function of the warehouse. When goods are handed over by the producer, it accepts the goods and assumes the responsibility to deliver the goods. It issues the receipts of goods.
2. Preparation of Record :-
The warehouse keeper checks the items of each shipment and prepares the record. All the record is maintained properly to avoid any problem at the time of delivery.
3. Identification :-
After receiving the goods warehouse keeper marks the each items separately. He may use the code number or he may attach the tag for identification. Due to identification one can easily separate the goods of different firms.
4. Storing :-
It is the major function of warehousing. The goods are kept safely in warehouse. Today all types of fruits are available in each season due to the storing facility. There is a proper protection of goods like food crops in the warehouses.
5. Packing :-
Packing of goods facility is also available in the warehouses. If the owner of goods requires such facility, it is provided by the housekeeper. He packs the goods in reasonable way according the size and quantity of goods.
6. Information About Receipt :-
A warehouse keeper checks all the received goods and informs about the total record of the goods to the concerned department. At the time of need all the information's can be provided to the customers.
7. Breaking of Bulk :-
Generally goods are delivered in bulk to the warehouse keeper. If owner wants that it may be converted in to small quantity, he may asks the keeper. The keeper packs the goods according the requirements of the customer.
8. To Search the Goods :-
It is also very difficult job for the keeper to search the particular item of a particular firm from the warehouse. But he performs the job very efficiently and provides the goods to the owner whenever he demands.
9. Delivery of Goods :-
It is last important function of warehousing. When the shipment is packed its documents are checked and prepared. After checking it is loaded over the transport.