Warehousing

Warehousing involves the storage of produced or purchased goods in a designated location until they are required, ensuring a consistent and reliable supply. A warehouse serves as a storage facility for goods until they are needed.   Importance of Warehousing: Protection and Security: Ensures the safety of goods. Encourages Large Scale Production: Allows production ahead […]

Warehousing involves the storage of produced or purchased goods in a designated location until they are required, ensuring a consistent and reliable supply. A warehouse serves as a storage facility for goods until they are needed.

 

Importance of Warehousing:

  1. Protection and Security: Ensures the safety of goods.
  2. Encourages Large Scale Production: Allows production ahead of demand.
  3. Price Stability: Helps stabilize prices by reducing supply-related price fluctuations.
  4. Re-Packaging and Branding: Facilitates the re-packaging and branding of goods.
  5. Steady Supply: Ensures a constant and steady supply of goods throughout the year.
  6. Employment Opportunities: Creates jobs for warehouse keepers.
  7. Source of Income: Generates income for owners through rent and other means.
  8. Promotes Emancipator Purchases: Fosters liberated and informed buying decisions.

 

Types of Warehousing:

  1. Ordinary Warehouse: Stores goods for traders and manufacturers, including wholesalers, manufacturers, and public warehouses.
  2. Bonded Warehouse: Holds goods with unpaid customs duties until settled by owners, under Customs Authority supervision, often located near ports.
  3. State Warehouse (Queen’s or Government Warehouse): Stores seized contraband goods until auctioned to the public.

 

Usefulness of Bonded Warehouse in Foreign Trade:

  1. Security for Imported Goods: Provides safety for goods from other countries with unpaid duties.
  2. Time for Duty Payment: Allows importers adequate time to pay customs duties.
  3. Facilitates Foreign Trade: Supports smooth foreign trade operations.
  4. Inspection Period: Enables customs authorities to inspect goods and calculate import duties.
  5. Sales in Bond: Permits the sale of goods in bond, with the buyer settling import duties.
  6. Production Processes: Allows for branding and packaging while goods are still in bond.

 

Factors Considered in Siting a Warehouse:

  1. Location Proximity: Nearness to the factory, market, and distribution centres.
  2. Operating Costs: Consideration of running costs involved.
  3. Building or Renting Costs: Evaluation of the expenses for building or renting the warehouse.
  4. Transportation Mode: Determination of the transportation method to be employed.
  5. Consumer Buying Patterns: Understanding the purchasing behaviour of consumers.
  6. Infrastructure and Road Network: Availability of good road networks and essential infrastructure.
  7. Power Supply: Regular power supply, especially for frozen food items.
  8. Security and Safety: Presence of security measures for the warehouse.

 

Documents Used in Warehousing:

  1. Dock Warrant: A transferable document of title issued by warehouse authorities to depositors.
  2. Delivery Order: Document issued by a dock warrant holder to enable a third party to collect specified goods from the warehouse.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top