Large scale retailer’s warehouse. Image credit www.restaurantdepot.com
ZIMSEC O Level Commerce Notes: Aids to Trade: Warehousing
Warehousing
- Enables the safe storage of:
- raw materials
- equipment and machinery
- finished goods
- partly finished goods
- spare parts
- goods in transit.
- Enables raw materials to be ordered ahead of demand.
- Enables continuous production of goods.
- Enable goods to be produced ahead of demand.
- Stores seasonal goods.
- Prevents shortages or evens out flow of goods.
- Protects goods from weather elements such as rain or heat.
- Stores imported goods in bonded warehouses until duty has been paid.
- Goods in bonded warehouses can be sold in bon or in small quantities thus saving on working capital.
- Stores goods in entrepot trade.
- Allows packaging, branding, grading and blending but goods are not manufactured.
- Prevents price fluctuations.
- Allows bulk purchasing.
- Preserves perishables in refrigerated warehouses.
- Allows goods to mature or ripen such as wine, fruits and spirits.
- Reduces risks such as theft and damage.
To access more topics go to the Commerce Notes page
