Topics: Inventory, Warehouse, Transport Pages: 9 (2434 words) Published: February 15, 2013

Warehousing is the storage of goods for profit. The physical location, the warehouse, is a storage facility that receives goods and products for the eventual distribution to consumers or other businesses. A warehouse is a commercial building for storage of goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. They are usually large plain buildings in industrial areas of cities and towns. They usually have loading docks to load and unload goods from trucks. Sometimes warehouses are designed for the loading and unloading of goods directly from railways, airports, or seaports. They often have cranes and forklifts for moving goods, which are usually placed on ISO standard pallets loaded into pallet racks. A warehouse is a location with adequate facilities where volume shipment are received from a production centre, broken down, reassembled into combinations representing a particular order or orders, and shipped to the customer’s location or locations. A warehouse is also called a distribution center. Warehouse management is the process of coordinating the incoming goods, the subsequent storage and tracking of the goods, and finally, the distribution of the goods to their proper destinations.

Warehousing refers to the activities involving storage of goods on a large-scale in a systematic and orderly manner and making them available conveniently when needed. In other words, warehousing means holding or preserving goods in huge quantities from the time of their purchase or production till their actual use or sale.


Adequate arrangements are required to be made in the warehouses so as to keep the goods in proper conditions. Any warehouse is said be an ideal warehouse if it possesses certain characteristics, which are given below: i. Warehouse should be located at a convenient place near highways, railway stations, airports and seaports where goods can be loaded and unloaded easily. ii. Mechanical appliances should be there to loading and unloading the goods. This reduces the wastages in handling and also minimises handling costs. iii. Adequate space should be available inside the building to keep the goods in proper order. iv. Ware houses meant for preservation of perishable items like fruits, vegetables, eggs and butter etc. should have cold storage facilities. v. Proper arrangement should be there to protect the goods from sunlight, rain, wind, dust, moisture and pests. vi. Sufficient parking space should be there inside the premises to facilitate easy and quick loading and unloading of goods. vii. Round the clock security arrangement should be there to avoid theft of goods. viii. The building should be fitted with latest fire-fighting equipments to avoid loss of goods due to fire.


Warehouses preserve goods on a large-scale in a systematic and in an orderly manner. They provide protection to goods against heat, wind, storm, moisture, etc. and also cut down losses due to spoilage, wastage etc. This is the basic function of every warehouse. In addition to this, warehouses also perform a variety of other functions. Warehouses perform the following functions:

i. Storage of goods:
The basic function of warehouses is to store large stock of goods. These goods are stored from the time of their production or purchase till their consumption or use. ii. Protection of goods:
A warehouse provides protection to goods from loss or damage due to heat, dust, wind and moisture, etc. It makes special arrangements for different products according to their nature. It cuts down losses due to spoilage and wastage during storage. iii. Risk bearing:

Warehouses take over the risks incidental to storage of goods. Once goods are handed over to the warehouse-keeper for storage, the responsibility of these goods passes on to the warehouse-keeper. Thus, the risk...
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