A process in which different businesses store their goods in a warehouse
A place where goods are stored
- Function of Warehouses:
- Enable production to be carried on continuously
- Stabilize the prices of goods by maintaining a regular supply
- Enables a regular supply of goods
- Enables preparation of goods for sale
- Provides a place for display of goods
- Protects the goods from harsh weather, theft etc
- Types of Warehouses:
- Bonded Warehouse:
- Located at ports, air ports, border crossings etc.
- Owned by government
- Store items on which duty is yet to be paid
- Government charges a fee for this storage, depending upon the length of time the items are stored
- Cold Storage Warehouse:
- For perishable fruit items e.g. fruit, fish, flowers
- Refrigeration facility available at large scale
- This enables the product to be enabled in off season and thus maintain a reliable supply
- Large Scale Retailers’ Regional Distribution Centre:
- Main storage areas where businesses store their goods which are ready for export etc
- Repacking is done here – sometimes wholesalers buy in bulk and sell in smaller quantities so repacking is required
- Protects goods against theft, inclement weather etc