The Importance of Warehousing in a Logistics System

by Virtu R. Ecommerce Outsourcing Expert

Warehouses or fulfillment centers are nothing but the place which is used for storing goods. Fulfillment center consumes much of the time and it is a main responsibility that has to be worked out with planning and dedication. There are only three types of warehouses. They are as follows.

Types of warehouses:

-        Public warehouses

-        Private warehouses

-        Bonded warehouses

Public warehouses are very vital for the agricultural fields and they are used for marketing purposes. The government has also established various public warehouses and they can be used by the local people. There are charges that should be paid for using them. The public warehouses are also called as duty-paid warehouses.

Private warehouses are established by people who run factories, etc. They are owned by them and they use it for storing their goods and various other purposes. There are various branches that are maintained by the owner of the fulfillment center in various parts of the country in order to build the network with the dealers and also for the marketing purposes.

Bonded warehouses are for the imported goods and it needs a license for establishing it and also running it. These bonded fulfillment centers are usually near the ports and are controlled by the customs authorities. They are also controlled by the government people. There has to be a bond made for dispatching and also for delivering goods from the bonded warehouses.

Benefits:

There are various benefits of storehouses. If a business is run successfully, there is a wide scope that it will be producing more goods in good quantities. Maintaining the goods until it is sold in a good condition is also important. Therefore, these warehouses are of great benefits for such businesses.

• ·        Fulfillment centers help the manufacturer to keep the production on a regular basis. Whether it is raw or finished, the goods are stored in the warehouses.

• ·        The warehouses help the manufacturers maintain the gap between the consumption and the production of goods.

• ·        Fulfillment centers are used for storing the surplus stocks that can be used in the future.

• ·        Fulfillment centers also stabilize the prices of the goods by supplying the goods when it is in more demand.

• ·        Fulfillment centers have a very less risk for the loss or the damage of their goods. Their products are stored with good care and there is minimal chance for any loss due to the damage of the goods.

• ·        Fulfillment centers which are modern provide various facilities such as blending, grading, packing etc to the manufacturers.

·        There is also a great support in finance for the warehouse users.

Importance:

The fulfillment centers are very important in order to store the goods until the products are dispatched to the customers. Since there is a time gap between the productions of the goods until the consumption, there are chances that the products might get damaged or lose its quality. In order to rule out the risk of such loss, it is important for the manufacturers to have warehouses for storing the goods in a very good condition. Check out Virtu retail, which offers all the services mentioned above.

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Created on Dec 31st 1969 18:00. Viewed 0 times.

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