functions of warehousing

Summary – It is a commercial space in which products and materials are systematically stored or kept to increase the supply chain. Most big companies use warehouses to store good ad products for future tasks. Several functions of warehouses are used for the loading and unloading of goods or products from airports, seaports, or railways. Warehouses are commonly used for storing goods including spare parts, raw materials, packing materials, and many more for big companies. Several important functions of warehouses are to offer space for storing goods or products, to protect materials from theft and unfavorable weather conditions, and many more, which are beneficial for companies.

10 Most Important Functions of Warehouses

There are 10 most important functions of warehouses are discussed below –

1.Protect Goods or Products-

Warehouses help in protecting goods or materials from theft, damage, and loss. It also protects materials from unfavorable weather conditions including rain, cyclones, wind, and many more. Several big companies install security cameras and security guards to protect raw materials from theft.

2.Provide Space to Store Goods-

It is one of the most important warehouse logistics functions in big companies. The main function of warehouses is to offer space for storing goods including equipment, raw materials, and many more. Big warehouses have enough space to store goods which helps in reducing waste as it provides safe or secure storage of products that a company does not sell immediately.

3.Offer Top Quality Products-

Big companies may do quality inspections for their products by warehouse staff that provides top quality products to their clients which is beneficial for companies. The main work of warehouse staff is to make sure that the inventory quality matches the quality that is demanded by their clients or customers.

4.Maintain Records of Goods or Materials-

The main function of warehouses is to maintain records of goods or products through paperwork including packing lists, shipping items, and invoices after purchasing materials and delivering products to clients. The main responsibility of warehouse staff is the documentation is complete and accurate before dispatching products or materials.

5.Financing-

It is inventory financing which includes raising finance from a lender or bank and using inventory from warehouses as a warranty for this loan. Proper paperwork helps in financing warehouses as receipts of the deposit of products in warehouses are very important evidence.

6.Movement of Goods-

Warehouses also offer a safe or secure place for the loading and unloading of goods or products. It also involves moving goods, in several directions including outbound goods, inbound goods, and goods transferal. Big companies may be capable of improving the efficiency of the movement of goods by implementing contemporary warehouse management software.

7.Stock Counts

Most companies conduct daily regular stock counts for checking manually the amount of inventory or goods in their warehouses at any given time. Sometimes the staff of warehouses combines these counts with perpetual inventory management systems to offer an accurate view of the inventory of any company.

8.Pest Control

It is another main functions of warehouse management to kill insects that may cause damage to any goods or products. The main responsibility of warehouse staff is to protect goods or materials from insects or pests through pesticides that may avoid any losses or damage to products.

9.Cross Docking-

it is a procedure of transferring goods or products from inbound to outbound transport without storing them in warehouses that may help in reducing inventory costs and improving customer service by lowering delivery time to clients and is beneficial for companies to earn more money.

10.Price Stabilization-

Big companies store goods or products in their warehouses for future tasks. But if the price of goods rises then companies sell their goods for more profit and when the cost of products of products reduces it is the best time for organizations to purchase. It can help in stabilizing the price of goods throughout the year.

Conclusions

In this blog, we can conclude that the functions of warehouses are very beneficial for companies. The important objectives of warehousing are to maintain records of goods, provide space for storing extra products, protect materials from theft or unfavorable weather conditions, and many more. If you will open any shop or company in the future then you should make or buy a warehouse to store your goods to improve efficiency and productivity.

Frequently Asked Questions (FAQs)