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Functions of Warehousing

The warehousing functions are:
  1. Consolidation: The warehouses receive and consolidate, materials/goods from different production plants and preserve them to be removed by one single owner.
  2. Break the Bulk: They divide the bulk quantities received from a production plant into various small quantities and then transport according to the requirements of clients to their places of business.
  3. Stock Piling: It's the seasonal storage of goods for select business. The goods which are not required immediately for the manufacture or sale are stored. They are made available according to the customers demands. For example, agricultural goods are harvested only during the season but they are needed for consumption throughout the year and are hence stored.
  4. Value Added Services: Transit mixing, packaging and labeling are certain other services provided. Goods are sometimes opened and repacked according to the requirements
Central Warehousing Corporation
Presently, a central government undertaking CWC i.e., Central Warehousing Corporation has been providing these services for businessmen across the nation. Certain private warehouses like TCI, Shanker International, Blue Dart, DHL etc., also provide cargo facilities of transportation along with warehousing.

Another function is grading according to the quantity dividing into smaller packs.
  1. Price Stablisation: They stablise the prices by adjusting the sales demands by removing the good only when required and not allowed to flood the market. Thus, prices are stablised when the demand increases with less supply of goods and vice versa.
  2. Financing: Warehouse owners give some money as advance to the owners for the security of goods and further supply goods on creditable terms to customers.
Key Terms
Business services Insurance Subrogation Fire insurance.
Banking Insurable interest Contribution Marine insurance.
e-Banking Indemnity Mitigation Telecom services.
Commercial banks Proximate cause Life insurance Warehousing.

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