![]() It should also promote the flow of goods from one place to another without commotion.Ĭonsequently, there are five major components of a warehouse: receiving area, dynamic storage, static storage, shipping area, and staging area. Components of a warehouseĪn ideal warehouse is strategically designed to make it easy for all the above functions to operate seamlessly. Warehouses, therefore, ensure a steady supply of goods by matching demand with supply, thus helping to stabilise market prices. Similarly, you can release the goods when demand rises again since the prices will also go up. Prize stabilisationĪ warehouse helps you deal with violent price fluctuations to shield your business from suffering losses resulting from demand and supply.įor instance, you can store your goods for longer when the supply in the market exceeds demand, which often causes prices to fall. As a business owner, this takes the burden of performing such activities off your shoulder and allows you to focus on your business's core activities. Warehouses perform these services on behalf of the product owner at a fee. facilitating ripening of fruits and processing of coffee.īundling and customisation - customising and bundling products to suit specific market needs. Re-processing - making certain goods more consumable for the end user, e.g. Re-branding and grading - re-branding and grading products on behalf of the wholesaler. Repacking - re-sizing product packages or changing the packaging according to market requirements. Examples of value-addition services that take place in a warehouse include: Value additionĪ warehouse provides value addition to optimise supply chain management. If your business premises cannot secure your inventory sufficiently, the best option is to hire warehouse storage or set up your small warehouse. Perishable goods are often stored under cold storage facilities within the warehouse to secure them from going bad.Īdditionally, warehouses are guarded by security personnel to protect your goods from theft and fire-fighting equipment to prevent fire accidents. Since the storage conditions within a warehouse are regulated, goods that are sensitive to dust, wind, heat, cold, or moisture are also well cared for. Goods stored in a warehouse are safe from losses due to theft, vandalisation, or damage caused by unfavourable weather conditions. Planned storage - this involves carefully estimated timelines to meet customer demand.Įxtended storage - this involves prolonged storage due to demand seasonality and speculative purchase.Ī warehouse not only stores your goods but also ensures they are safe and secure. There are two types of storage in a warehouse: As a business owner, a warehouse helps you keep your stock safe and prevent the wastage of materials. Businesses utilise warehouses to store equipment, raw materials, finished products, packaging materials, safety stock, and machine components.Ī warehouse facilitates storage for such inventory from purchase or production until they are needed for use or sale. Storage is the primary function of a warehouse. The four main functions of a warehouse include: 1. Tips on setting up an efficient small warehouseĪ warehouse is a large space used to store goods and materials temporarily as they move from one vendor to another or from a vendor to the final consumer.īusiness entities that utilise warehouses include importers, exporters, wholesalers, and manufacturers.How to design and set up your warehouse layout.Other factors to consider when designing your warehouse layout.Four processes to keep in mind when designing your warehouse layout.Benefits of having a warehouse layout design.What’s a warehouse layout design, and why is it important?.This article provides an in-depth warehouse setup guide to make the whole process hassle-free for you. Setting up an efficient warehouse can be challenging, especially if it's your first time and you don’t know the procedures to follow. ![]() If you are planning to set up a warehouse to store your products or third-party products from manufacturers and wholesalers, you probably have more questions than answers.
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