What is a warehouse and advantages and disadvantages

Warehouse advantages and disadvantages-WH Blog-08

“A warehouse is a safe place where arrangements are made to keep the goods safe.” That is, a warehouse is an installation for storage of goods at storage. Nowadays there is so much rivalry in business that production has to be protected by producing goods ahead of time or ahead of demand. Now there are some advantages  and disadvantages of warehouse as well.

In warehouses, not only the finished goods are kept, but also the materials for making goods, so that the factories continue to get the material regularly, similarly, the traders also ask for the goods and keep them in their warehouse in anticipation. demand. Therefore, it can be said that under today’s production and trading system it is very important to have a warehouse.

The following facilities are available from the warehouse – let’s see

(1) Benefits to the manufacturer

(A) Demand for productive goods due to proper arrangement of warehouse Before making the goods, they are kept in their warehouse and kept safe.

(B) By having a warehouse facility, producers also buy goods at cheaper rates in season and make goods gradually.

By doing this, production expenditure is reduced and goods can be sold in the market at cheap prices.

(C) The supply of an item being abrupt in the market is also easily met can be done.

Warehouse Profit to merchant

(A) Due to the convenience of the warehouse, merchants already stock the goods

(B) When a businessman does not have his own warehouse or his warehouse is small, then he keeps his goods in the rented warehouse. In this way, they increase the business without having a warehouse.

(C) Sometimes the trader also takes a loan on the security of the warehouse.

(D) This is of great help to foreign trade merchants as the import facility at the ports is not promptly paid to the traders in respect of the goods imported.

(E) With the arrangement of warehouse, the merchant can save himself from unnecessary expenses. If a businessman imports any goods with the idea of re-export and There is no arrangement for a warehouse at the port, then in the absence of a warehouse, he has to ship the goods from the ports to his warehouse and then send it to the port for export.

Other Advantages of Warehouse

(A) Warehouse performs an important function of price control. If goods in trade If the supply is high, then keeping some stock in the warehouse can prevent the price level from falling below.

Similarly, the demand for goods increases, the price level increases.
To prevent from, goods can be sent slowly to the warehouse. Thus, this stocking system protects traders from the dangers of price changes.

(B) If the retail trader opens his shop near the warehouse, he One can sell goods to consumers at a low cost. On the contrary, if the warehouse is not there, they have to take a big shop and thus the cost of running the shop increases, so that it also affects the value of the goods.

Disadvantages of Warehouse – Following are the Disadvantages of the warehouse

(1) If a situation arises that the goods remain unfit for storage, Then all the collected things will start going to waste and there is a possibility of heavy loss due to this.

(2) If the warehouse is not in a safe place then even if there is a slight mistake The goods collected in the warehouse can be destroyed in minutes and the producer and The trader may have to bear considerable losses.

I hope you like this information, if you like it,  Advantages and disadvantage of Warehousing Protection and Preservation of goods – Warehouse provides necessary facilities to · Regular flow of goods · iii. Continuity in …Warehousing benefits typically outweigh the cons, however, below are some issues you may find when outsourcing your warehousing.
Determining Which Type of Warehouse You Need. …

  • Less Control.
  • Significantly Lower Investments.
  • Safety, Security, and Insurance.
  • Location and Distribution.
  • Flexibility and Scalability.
  • Lower Risks

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