Warehousing involves keeping goods and materials in a secure and systematic way until they are required for distribution, sale, or additional production. Warehousing has an important role to play in the supply chain since it ensures there is a smooth flow of products from producers to consumers. A warehouse serves as a focal point where one can receive, store, and send out goods according to demand.
The main functions of warehousing are to store, manage inventory, and protect the goods from damage, theft, or degradation. It also assists in ensuring that there is a consistent level of supply of the products, particularly during periods of fluctuating season demand. Additional services like packaging, marking, and quality control are offered in some warehouses that further improve efficiency.
The benefits of warehousing are remarkable for enterprises. It provides uninterrupted supply of products, cuts transportation costs by allowing bulk storage, and secures goods. Warehousing also assists enterprises in achieving price stability since products can be stocked when the supply is in excess and outflow when demand increases. Additionally, it enhances customer satisfaction since delivery is made on time and there is constant supply of product.