Importance of Warehousing

Importance of Warehousing

Large scale retailer's warehouse. Image credit www.restaurantdepot.com

Large scale retailer’s warehouse. Image credit www.restaurantdepot.com

ZIMSEC O Level Commerce Notes: Aids to Trade: Warehousing

Warehousing

  • Enables the safe storage of:
  • raw materials
  • equipment and machinery
  • finished goods
  • partly finished goods
  • spare parts
  • goods in transit.
  • Enables raw materials to be ordered ahead of demand.
  • Enables continuous production of goods.
  • Enable goods to be produced ahead of demand.
  • Stores seasonal goods.
  • Prevents shortages or evens out flow of goods.
  • Protects goods from weather elements such as rain or heat.
  • Stores imported goods in bonded warehouses until duty has been paid.
  • Goods in bonded warehouses can be sold in bon or in small quantities thus saving on working capital.
  • Stores goods in entrepot trade.
  • Allows packaging, branding, grading and blending but goods are not manufactured.
  • Prevents price fluctuations.
  • Allows bulk purchasing.
  • Preserves perishables in refrigerated warehouses.
  • Allows goods to mature or ripen such as wine, fruits and spirits.
  • Reduces risks such as theft and damage.

To access more topics go to the Commerce Notes page

By |2017-01-17T11:18:30+00:00August 7th, 2015|Notes, O Level Commerce Notes, Ordinary Level Notes|3 Comments

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He holds an Honours in Accountancy degree from the University of Zimbabwe. He is passionate about technology and its practical application in today's world.
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