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Warehouse
Definition
Difference between Warehouse and Godown
Functions of Warehouse
Advantages of warehousing
Warehousing refers to the activities involving storage of goods on a large-scale in a systematic and orderly manner and making them available conveniently when needed. In other words, warehousing means proper upkeep and preservation of goods in quantitative and qualitative terms from the time of their purchase or production till their actual use or sale.
Warehousing is an integral part of marketing and uplifting of the sales. Warehousing is needed for carrying over the agricultural as well as consumer produce from production periods to consuming periods. It enables the markets to ease the pressure during harvest season and to maintain uninterrupted supply during off season. Hence, it solves the problems of glut and scarcity, which are the usual problems in agricultural marketing.
Most of the agricultural produce are characterized by seasonal production. Consumption extends beyond season up to a year or even longer periods. Storability of an agricultural produce depends on its perishability. Perishability of the agriculture produce varies from crop to crop. Therefore, scientific warehousing implies devising such mechanism, which can reduce perishability and enhance storability without creating any side effects.
In economics parlance, warehousing implies value addition in commodity by enhancing its “Time Utility”. Marketing of the product involves purchase and sale of goods, its storage, movement and transfer of goods from one place to the other.
Under the Warehousing(Development and Regulation) Act, 2007, “warehouse” has been defined as any premises(including any protected place) confirming to all the requirements including manpower specified by the Authority by regulations wherein the warehouseman takes custody of the goods deposited by the depositor and includes a place of storage of goods under controlled conditions of temperature and humidity.
Warehousing, in its modern form, performs variety of functions, which are as follows:
Storage of goods – The basic function of warehouses is to store large stocks of goods and to ensure quality and quality of the product.
Protection of goods – A warehouse provides protection from loss or damage due to heat, dust, wind and moisture, etc. It makes special arrangements for different products according to their nature. It cuts down losses due to spoilage and wastage during storage by way of adopting scientific tools like fumigation, pest control, etc.
Undertaking the Risk – A warehouse takes over the risks incidental to storage of goods. Once goods are handed over to the warehouse-keeper for storage, the responsibility of these goods passes on the warehouse-keeper. Thus, the risk of loss or damage of goods in store is borne by the warehouse-keeper. Since it is bound to return the goods in good condition, the warehouse becomes responsible for any loss, theft or damage, etc. Thus, it takes all precautions to prevent any mishap.
Processing – Most of the agri produce are not consumed in the form they are produced. Processing is required to make them consumable. For example, paddy is polished, timber is seasoned, and fruits are ripened. Some warehouses undertake these activities on behalf of the owners.
Transportation – In some cases, warehouse provide transport arrangement to the bulk depositors. It collects goods from the place of production and also sends goods to the place of delivery on request of the depositors.
Warehousing offers the following advantages to the farmers, traders, processors and others associated with commodity trade and commerce:
Protection and Preservation of goods, minimizing loss from breakage, deterioration in quality, spoilage etc;
Regular flow of goods, working as a tool to maintain harmony in respect of supply of agri produce between arrival season and off season;
Continuity in production, working as a tool for ensuring uninterrupted supply of raw material and also to hold the buffer stock;
Convenient location, near to road, rail or waterways to facilitate movement of goods which in turn reduces the cost of transportation;
Easy handling, by providing mechanical appliances to handle heavy and bulky goods, which reduces cost of handling and also minimizes wastage during loading and unloading;
Generation of employment opportunity, both for skilled and unskilled workers in remote parts of the country.
Reduction in post harvest loss, by using scientific process of fumigation and other process.
Most of the time it has been seen that people are unable to differentiate between Warehouse and Godown. A Warehouse has got its’ own criteria which makes different from Godown. Somebody can convert any covered and / or open space on any floor into a godown by dumping / storing any product. But the above mentioned dumping / storing place cannot be treated as Warehouse.
In the Warehouse certain specific parameters has to be maintain which provides easy and fast handling of the stored cargo / goods. The plinth level to be constructed at a certain specific height, the floor of the warehouse to be constructed with some specific materials and type with a certain load bearing capacity, the clear height of the warehouse should be specific. There should be proper ventilation majors should be maintain at the time of operation inside the warehouse. It should be properly well equipped with proper equipments to protect the stored cargo / goods inside the warehouse from any untoward incidents. The warehouse should be constructed in such a fashion that modern equipments / machineries can be used inside the warehouse for storing and handling of the cargo / goods. The warehouse should be constructed in such a fashion that availability of natural light inside should be proper which reduces the consumption of electricity. Some basic facilities are required inside the warehouse for the staff and workers working in the warehouse should be there.
 
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