Functions of Ware housing?

Introduction: -Warehouses preserve goods on a large scale in a systematic and 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. There are many other functions in addition to these basic functions which are as follows:

Definition: -A warehouse is defined as "an establishment for the storage or accumulation of goods".

1.       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.


2.       Protection of goods: -a warehouse provides protection to goods from loss or damage due to heat, wind, dust, etc. it makes special arrangements for different products according to their nature. It also helps to reduce the losses due to spoilage or wastage during storage.


3.       Financing: -When goods are kept in a warehouse, the depositor gets a receipt which acts as a proof about the deposit of goods. The warehouse, also issues a document in favour of the owner of goods which is called a warehouse-keeper's warrant. The warehouse warrant and receipt is negotiable instrument and can be negotiated. Thus the owner of the goods can raise finance from banks, financial institution, etc.


4.       Risk-bearing: -The entire responsibility of the goods stored in the warehouse is passed to the warehouse keeper, once the goods are handed over to him for storage. Thus, the risk of loss or damage to goods in storage is borne by the warehouse-keeper. Therefore, these types of warehouses take all the precautions to prevent the goods from any loss.


5.       Grading and Branding: - Warehouses also perform the functions of grading and branding of goods on behalf of the manufacturer, wholesaler and the importer of goods. It also provides facilities for packaging of goods for the convenience of handling.


6.       Processing: -Certain commodities are not consumed in the form they are produced. Processing is required to make them consumable. E.g. paddy (rice) is polished, timber is seasoned (to make good condition), and fruits are ripened (mature), etc. sometimes warehouses undertake these activities on behalf of the owners.



7.       Transportation: -Warehouses can provide transport facility to the bulk depositors. It collects goods from the place of production and also sends goods to the place of delivery on the request of the depositors.




8.       Time and place utility: - Warehouses create time utility by preserving the goods till it is demanded. It also creates place utility by providing the goods at the place, where they are required.