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Meaning and importance of warehousing.

Answer Text:
WAREHOUSING
Meaning and importance of warehousing.
Warehouse:
-This is a building or a part of a building where goods are received and stored until need arises for them.
Warehousing
-This is the process of receiving goods into a warehouse, protecting such
goods against all types of hazards and releasing them to users when need arises for them.
There are three distinct stages in warehousing process namely:
a).Receiving goods into a warehouse
b).Storing them
c).Releasing them to users
Importance of warehousing to Business
-Steady/continuous flow of goods: Producers can produce and store goods awaiting demand through warehousing
-Stability in prices: Warehousing ensures that there is no surplus or shortage of goods.
-Security: Warehousing ensures that goods are protected against physical damage and adverse weather conditions.
-Continuous/uninterrupted production schedules: Manufactures are able to buy raw materials in large quantities and store them awaiting their need to arise. This prevents interruption of the production process because of lack of raw materials
-Preparation of goods for sale: While in the warehouse, goods can be
prepared for sale e.g. they can be blended, packed, graded or sorted out.
-Sale of goods: Goods may be sold while still in the warehouse. If sold while still in a bonded warehouse, duty passes to the buyer
-Specialisation: Warehousing encourages specialization in production and distribution. Producers concentrate on producing while distributors store the goods for sale to the customers.