In case of loss or damage to the goods, the owner of goods can get full compensation from the insurance company. As a business owner, you have different options, including private, public, and bonded warehouses. How do you determine the right time to replenish your stock and raw materials? The warehouse is required to give an undertaking or ‘Bond’ that it will not allow the goods to be removed without the consent of the custom authorities. Your warehouse is an important part of your customers’ buying experience. Warehouses provide for the safe custody of goods. You don’t need to fulfill orders from your production facility. Inventory quality control systems help to monitor the shelf life and expiration dates of your materials. They are located near the ports. These warehouses are well constructed and guarded round the clock to ensure safe custody of goods. Warehouse management is essential to any logistics system, which is an essential part of supply chain management. It is achieved by the creation of time utility by warehousing. Generally, there is a time gap between the production and consumption of products. In fact, there are a number of benefits that a warehouse offers. In a similar light, storage can effectively manage supply and demand. You can easily identify fast-moving and slow-moving products depending on your order history. Now, as we understand importance of warehousing in supply chain network, let us start focusing on warehouse design. Of course, you can expect this storage service to cost more than regular storage. When customers place their orders, all they’re concerned with is the delivery of their products. With better storage management, it’s possible to monitor your production quality, too. Ideally, when choosing a warehouse, you want to look at a location that will make the most sense for your operations. Bonded warehouses are licensed by the government to accept imported goods for storage until the payment of custom duty. Warehousing facilitates production and distribution on a large scale. In case he wishes to export the goods, he need not pay customs duty. When customers place their orders, all they’re concerned with is the delivery of their products. The goods stored in bonded warehouses cannot be interfered by the owner without the permission of customs authorities. The Importance of Warehousing in a Logistics System. Fall in the prices of goods when their supply is in abundance and rise in their prices during the slack season are avoided. An effective warehouse tracking system also allows you to work with your vendors and suppliers to identify and minimize defective raw materials. You can utilize cold storage and refrigeration to avoid product spoilage. Disclaimer 9. When the goods are stored in warehouses they are exposed to many risks in the form of theft, deterioration, exploration, fire etc. In addition, the product’s organization influences shipping times. Keep on reading to find out! Do you have any question regarding warehousing and courier services? It has to work under a license from the government in accordance with the prescribed rules and regulations. Generally, there is a time gap between the production and consumption of products. A centralized location for all your storage needs help to reduce the production gap. Basically, a warehouse acts as a store of surplus goods which are not needed immediately. This means you can receive, store, distribute, and ship products with much ease to save time and cost. At Harrisburg Logistics (dbs Advanced Install), we offer different services, including warehouse facilities, where you can store your goods and fulfill your orders. Importance of Warehousing In the Development of Trade and Commerce. Since businesses need to remain competitive, the economic benefits produced by a warehouse that is running efficiently will positively impact the profitability of the entire process. Today, a warehouse is not simply a storage facility. As a small business, you don’t need to have Amazon-like facilities to hit your sales targets. Prohibited Content 3. Warehouses ensure a regular supply of goods in the market. There are also … Goods which are not required immediately can be stored in a warehouse to meet the demand in future. Warehouses nowadays provide the facilities of packing, processing and grading of goods. Holiday and shopping seasons, such as Christmas and Black Friday, are famous for their high sales numbers. Certain products have to be conditioned or processed to make them fit for human use, e.g., coffee, tobacco, etc. Storage enables a firm to carry on production in anticipation of demand in future. This helps to create time utility as goods are only released when they are needed. The prospective buyers can inspect the goods kept in a warehouse. Warehouses enable manufacturers to produce goods in anticipation of demand in future. Content Guidelines 2. In some countries, warehouse authorities advance money against the goods deposited in the warehouse. Public warehouses are very important in the marketing of agricultural products and therefore the government is encouraging the establishment of public warehouses in the cooperative sector. Goods lying in a bonded warehouse can be packaged, graded and branded for the purpose of sale. Logistical management system includes warehousing and warehouse management. Warehousing: Function, Benefits and Types of Warehousing! Such enterprises can meet their storage needs easily and economically by making use of the public warehouses, without heavy investment. As products arrive at the warehouse, the responsibility for the products will transfer to the personnel in the warehouse. A warehouse also provides safe custody of perishable goods. A public warehouse enables a businessman to serve his customers quickly and economically by carrying regional stocks near the important trading centres or markets of two countries. © Copyright 2020 - Herwood inc. All Rights Reserved. There is need for storing the goods so as to make them available to buyers as and when required. Workers can easily identify and remove stocks before they expire. A public warehouse is also known as duty-paid warehouse.