Warehousing is something which means preserving and holding commodities until they are in demand by the customers. Generally, there is often a gap between the manufacturing and consumption of commodities and to fulfill this gap, warehouses creates time utility.
The need for storing the goods is so much that upon the customers demand, the goods should be available to the buyers. A specific proportion of goods when produced are stored at every stage during the marketing process. For having a successful order fulfillment in New Zealand, the retail goods and commodities should be in perfect condition and subsequently, arrangements for that should be made. Having a warehouse enables business owners to produce throughout the year and to sell their goods when they are demanded and required by the customers.
Benefits of Warehouses
The number one benefit of having a warehouse is that raw materials require storage area which leads to a mass manufacturing of goods on a continuous basis. Sometimes, these goods are stored in warehouse due to an anticipation of increase in prices.
A warehouse is known to create time utility by meeting the gap of manufacturing of goods as well as consumption of goods. It helps in making the goods ready and available as and when required by the customers. Some of the commodities are product throughout the year but are only demanded at specific times for example; umbrella, heater, wool and raincoat etc.
Store of Surplus Goods
Goods that are produced in surplus or are made in excess quantities cannot be wasted or thrown away. It is due to this reason they require some safe space to be kept. For such reasons, the excess goods and commodities are to be kept at a warehouse until they are demanded by the people.
Minimization of Risk
Warehouses are often used as a storage units for produced goods because they are meant to provide minimization from risks such as theft, robbery, fire, exploration and other types of crimes. The goods that are kept in the warehouses are mostly insured hence, the risk is majorly minimized. In case of loss or any damage, the owner can get full refund and compensation by the insurance company.
Need for warehouses also occurs due to the fact that some goods are only required on seasonal basis but are produced throughout the year. It is due to this reason, warehouse facilities come in handy and facilitated production and storage on a massive level. Businesses that are known for large scale production and have products that are highly in demand are usually the ones that require the use of warehouses on a regular basis.