It helps to make products available in sufficient quantities to meet urgent needs. The government also stores essential commodities for adverse situations. This includes the storage of essential grains and vegetables like wheat, rice, pulses, onion, etc. This happens because some goods are procured in a particular season but their demand is evenly spread throughout the year. Such goods are stored in warehousing facilities at the time of their production or harvest and released into the market during the off-season when they are not produced. This helps to stabilize their price so that the price of an essential commodity does not rise beyond a reasonable level. So, it can be concluded that storage plays a healthy role in the economy by keeping control of prices and ensuring the availability of goods at all times.
Another major cause of concern in storage relates to the security of goods. Theft of goods is common in warehouses. It can happen through outside people or through employees of the warehouse itself.
This is because production and consumption of goods do not take place at same point in time. Goods need to be stored for such a period of time in a safe and good environment. Warehouses contain big spaces where goods are kept in large quantities.
Warehouses mean the activity through which goods are stored in large storage units for their sale in the future. Warehousing facilities are made keeping in mind the nature of goods to be stored. These facilities play an important part in any business or other non-profit activities.
Fire is the most common and biggest risk in the storage of goods. This can happen because of defective wiring, inflammable nature of goods, high temperatures, etc. The damage happens on a large scale as goods are tightly kept together in large quantities.
For many companies, goods sit in warehouses before they are sold. In this lesson, we'll look at how companies keep track of their inventory in warehouses using warehouse management systems.