Advantages of Warehousing
1. Read the text.
2. Listen to the announcer and check your pronunciation.
3. Translate unknown words and try to remember them.
Warehousing offers many advantages to the business community. Whether it is industry or
trade, it provides a number of benefits which are listed below.
i. Protection and Preservation of goods - Warehouse provides necessary facilities to
the businessmen for storing their goods when they are not required for sale. It provides
protection to the stocks, ensures their safety and prevents wastage. It minimises losses
from breakage, deterioration in quality, spoilage etc. Warehouses usually adopt latest
technologies to avoid losses, as far as possible.
ii. Regular flow of goods - Many commodities like rice, wheat etc. are produced during
a particular season but are consumed throughout the year. Warehousing ensures regular
supply of such seasonal commodities throughout the year.
iii. Continuity in production - Warehouse enables the manufacturers to carry on
production continuously without bothering about the storage of raw materials. It helps
to provide seasonal raw material without any break, for production of finished goods.
iv. Convenient location - Warehouses are generally located at convenient places near
road, rail or waterways to facilitate movement of goods. Convenient location reduces
the cost of transportation.
v. Easy handling - Modern warehouses are generally fitted with mechanical appliances
to handle the goods. Heavy and bulky goods can be loaded and unloaded by using
modern machines, which reduces cost of handling such goods. Mechanical handling
also minimizes wastage during loading and unloading.
vi. Useful for small businessmen - Construction of own warehouse requires heavy
capital investment, which small businessmen cannot afford. In this situation, by paying
a nominal amount as rent, they can preserve their raw materials as well as finished
products in public warehouses.
vii. Creation of employment - Warehouses create employment opportunities both for
skilled and unskilled workers in every part of the country. It is a source of income for
the people, to improve their standards of living.
viii. Facilitates sale of goods - Various steps necessary for sale of goods such as inspection
of goods by the prospective buyers, grading, branding, packaging and labelling can
be carried on by the warehouses. Ownership of goods can be easily transferred to the
buyer by transferring the warehouse keeper’s warrant.
ix. Availability of finance - Loans can be easily raised from banks and other financial
institutions against the security of the warehouse-keeper’s warrant. In some cases
warehouses also provide advance to the depositors of goods on keeping the goods
x. Reduces risk of loss - Goods in warehouses are well guarded and preserved. The
warehouses can economically employ security staff to avoid theft, use insecticides for
preservation and provide cold storage facility for perishable items. They can instal
fire-fighting equipment to avoid fire. The goods stored can also be insured for
compensation in case of loss.
2. Listen to the announcer and check your pronunciation.
3. Translate unknown words and try to remember them.
Warehousing offers many advantages to the business community. Whether it is industry or
trade, it provides a number of benefits which are listed below.
i. Protection and Preservation of goods - Warehouse provides necessary facilities to
the businessmen for storing their goods when they are not required for sale. It provides
protection to the stocks, ensures their safety and prevents wastage. It minimises losses
from breakage, deterioration in quality, spoilage etc. Warehouses usually adopt latest
technologies to avoid losses, as far as possible.
ii. Regular flow of goods - Many commodities like rice, wheat etc. are produced during
a particular season but are consumed throughout the year. Warehousing ensures regular
supply of such seasonal commodities throughout the year.
iii. Continuity in production - Warehouse enables the manufacturers to carry on
production continuously without bothering about the storage of raw materials. It helps
to provide seasonal raw material without any break, for production of finished goods.
iv. Convenient location - Warehouses are generally located at convenient places near
road, rail or waterways to facilitate movement of goods. Convenient location reduces
the cost of transportation.
v. Easy handling - Modern warehouses are generally fitted with mechanical appliances
to handle the goods. Heavy and bulky goods can be loaded and unloaded by using
modern machines, which reduces cost of handling such goods. Mechanical handling
also minimizes wastage during loading and unloading.
vi. Useful for small businessmen - Construction of own warehouse requires heavy
capital investment, which small businessmen cannot afford. In this situation, by paying
a nominal amount as rent, they can preserve their raw materials as well as finished
products in public warehouses.
vii. Creation of employment - Warehouses create employment opportunities both for
skilled and unskilled workers in every part of the country. It is a source of income for
the people, to improve their standards of living.
viii. Facilitates sale of goods - Various steps necessary for sale of goods such as inspection
of goods by the prospective buyers, grading, branding, packaging and labelling can
be carried on by the warehouses. Ownership of goods can be easily transferred to the
buyer by transferring the warehouse keeper’s warrant.
ix. Availability of finance - Loans can be easily raised from banks and other financial
institutions against the security of the warehouse-keeper’s warrant. In some cases
warehouses also provide advance to the depositors of goods on keeping the goods
x. Reduces risk of loss - Goods in warehouses are well guarded and preserved. The
warehouses can economically employ security staff to avoid theft, use insecticides for
preservation and provide cold storage facility for perishable items. They can instal
fire-fighting equipment to avoid fire. The goods stored can also be insured for
compensation in case of loss.