Warehousing can be defined as the systematic process of storing and preserving goods on a large scale in a warehouse, godown and making them available when they are demanded, i.e. for sale, distribution, and consumption.
This service is used by a number of people such as manufacturers, distributors, suppliers, transporters, importers, and exporters. Warehousing encompasses making proper arrangements so as to keep the goods safe, i.e. in an appropriate condition and ready to sell. To know why there is a need for warehousing services, you can read more.
The production of goods is undertaken in anticipation of demand, which makes it necessary to keep a stock of goods until it fetches demand. In this way, warehousing assists in providing proper storage to the surplus stock.
We all know that there are various vegetables, fruits, and grains that are produced in a particular season, however, they are demanded throughout the year. For that also storage and preservation of commodities become significant, which makes it available, throughout the year.
Storage of goods is also necessary to stabilize the price of the goods in the market. Surplus stock of goods should be stored in order to prevent fall in prices. Further, whenever the goods are demanded or there is a shortage, then they are released from the warehouse, so as to control the rise in prices. This ensures equilibrium in supply and demand.