What are the 5 functions of warehouse

What are the 5 functions of warehouse?

The need for storage arises both for raw materials and finished products. Storage involves proper arrangement for preserving goods from the time they are purchased or produced till actual use. Here comes the role of dedicated warehousing services to play.

The storage done on a large scale and in a particular manner is called warehousing. Warehousing services hold and preserve the goods in huge quantities and in systematic manner from time of their purchase or production till the goods are actually used or sold.

Warehouse provides protection of goods against heat, storm, wind, moisture and more. The specialized warehousescut down the losses due to spoilage, wastage and more. However, warehousing services nowadays perform a variety of other functions. The main functions of warehouse are-

Warehousing and Distribution services in Canada
  1. Storage of goods: This is the basic function of the warehouse. A dedicated warehouse stores large stock of goods. The goods are stored under supervision of experts who protect them from damage, theft and other issues. The storage may be of two types-
  1. Planned storage: This refers to the estimated storage required to meet the regular customer demand.
    1. Extended storage: At times added storage arrangement above planned ones is imperative and various factors can cause it –
      1. Demand seasonality: Demand for the confectionery items rises drastically during holiday season, requiring storage space for that specific period.
      1. Promotional campaigns: Promotional campaigns like sales promotion can escalate sales to new heights and thus extra stock need to be kept to satisfy the expected higher demand for the product.
      1. Speculative purchase: At times goods are purchased in bulk due to lower price or higher price expectations in future and this needs more storage space in the warehouse.

The storage function of the warehouse streamlines the routine operations.

2. Protection of goods: A warehouse offers protection of goods from loss, theft, damage due to harsh weather conditions like heat, dust, wind and moisture etc. Warehousing services make special arrangements to safeguard different products as per their nature.

3. Movement of goods: It consists of –

  1. Inbound movement: Unloading of the goods received in the warehouse
    1. Transfer to storage: Transferring of goods from inbound area to storage area
    1. Order selecting: Choosing the item in the storage as per the order to be shipped and moved it in the shipment area.
    1. Outbound movement: Inspecting and loading the goods for shipment.

Dedicated warehouses have software systems that ensure seamless movement of the goods.

4. Value-added services: Value-added services help optimize supply chain management, generate high value and deliver products effectively to the customers. They include processing, kitting and product customization, grading and branding, re-packing, customization, stamping, labeling, barcode printing, order fulfillment, invoice printing, quality checking and goods disposal.

5. Information management: Warehouses keep the track of information about the goods and materials sent into the warehouse, stored and shipped out. Also, any added information is also recorded. The warehouse use cutting-edge software system to get accurate insights to ascertain availability of stock, its replenishment and processing needs. It maintains timely, precise and accurate data that help in making informed decisions.

Warehousing plays a significant role in the success of business. Professional warehousing services use the state-of-the-art method to ensure these functions take place efficiently.

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