What are the four basic functions of warehouse?

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January 8, 2024


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Warehousing is one of the most significant pillars of the supply chain. In the past warehouses were solely used for storing goods. However, modern warehouses have much wider functions. Apart from storing of the goods, warehouses are responsible for facilitating movement, price stabilization and more.

Modern warehouses are home for many key operations. It is the place where the goods arrive and are distributed. Here are some of the main functions of the warehouse one has to know to optimize its functionality.

  1. Storage of the goods: The original function of the warehouse is storage of the goods. Modern warehouses serve many purposes, storing of the goods remain a primary function. Warehouse is the place where the organization can store their goods, inventory, equipment and other items. Different warehouses store different goods. Some warehouses with temperature control elements store temperature sensitive products.
  2. Securing of goods: Warehouses prevent the spoilage of the goods. When certain products exposed to heat, wind and other environmental factors, they lose freshness. This costs organization a lot as these goods have to be thrown out. Apart from preventing goods from spoiling, warehouses protect them from theft. They are secure facilities where organizations can safely store the goods. Modern warehouses have cutting-edge safety measures like CCTV cameras to protect them from theft. They have specific temperature control equipments and storage facilities to store the specific goods and prevent them from spoilage or damage.
  3. Facilitate moment: The warehouse is the main hub for sending and receiving the goods. Many businesses use warehouse as the point of unloading and sending out products. It is important that movement of the products is seamless to allow organizations stick to schedules and consistently meet customer demand.
  4. Stabilizing prices: Keeping the products in warehouse can help businesses adjust supply to customer demand. This can prevent sharp and sporadic spike or dips in price that can do a lot of damage to the business. For instance, there is low market demand, one can use warehouse to store the goods safely. This will help goods to stay fresh and useable while demand is low. With an increase in demand, one can send out stored goods in good condition. Also, when there is too much supply of goods, the price drops. Businesses can prevent this by warehousing the products and prevent the sharp drop of the prices.
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Apart from the aforesaid main functions modern warehouse performs some added functions that include-

  • Additional processing: Warehouse also serves as a place to conduct value added services like kitting and assembling, packaging and more. This can increase their value; subsequently boost the revenue of the company. For instance, businesses can meet the demands of certain retailers with additional processing of the goods like labeling, quality checking, bundling and more.
  • Documentation: Warehouse serves as a hub for information. Here you can find documentation of which goods were shipped, what goods are in stock and any future deliveries that may come in future. This allows the warehouse in-charge to keep full track of operations and processes throughout the supply chain initiating in more organized operations, increased efficiency and productivity.

Modern warehouses serve many functions. They help businesses an ideal place for storage of goods and they are far more important to the success of the company.

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