Warehousing Definition

Logistics Term

What’s Warehousing ?

Warehousing is storing goods in a facility or a warehouse before they’re distributed or sold. It involves storing and protecting goods in an organized manner. That makes it easy to know the item’s location, arrival date, and quantity of goods available. Warehousing involves a high volume of goods that are constantly moved either in the warehouse or to the client. In addition, warehousing is used for price stabilization. That means the price of goods falls when there’s a high supply and increase when hoarded. This way, suppliers can control the market price. 

Warehousing can be done through private warehouses owned and operated by large manufacturers and merchants,  public warehouses that provide storage to the general public at a cost, and bonded warehouses licensed by the government and located near ports providing storage of goods until the custom duty is paid. Warehousing makes packaging and grading easy and fast. In addition, surplus goods are stored until they’re needed in the future. 

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