Storage or Warehousing: Important Marketing Function - QS Study
QS Study

Storage or Warehousing:

A warehouse may be defined as a place used for the storage or gathering of goods. The function of storage can be carried out successful with the help of warehouses used for storing the goods. Usually there is a time breach between the production or procurement of goods and their sale or utilize. It may be because of unbalanced demand for the products such as in the case of cloths/ garments or Jackets or there may be unbalanced supply because of seasonal production such as in the case of agricultural products (rice, wheat, cotton, etc.).

In order to keep flat flow of products in the market, there is a need for appropriate storage of the products.

Benefits from Warehouses:

Regular production: Raw materials need to be stored to enable mass production to be carried on continuously.

Time utility: A warehouse creates time utility by bringing the time gap between the production and consumption of goods.

Store of surplus goods: Basically, a warehouse acts as a store of surplus goods which are not needed immediately.

Price stabilization: Warehouses reduce violent fluctuations in prices by storing goods when their supply exceeds demand and by releasing them when the demand is more than immediate productions.

Minimization of risk: Warehouses provide for the safe custody of goods. Perishable products can be preserved in cold storage.

Further, there is a need for storage of sufficient accumulation of goods to protect against unavoidable delays in delivery or to meet out contingencies in the demand. In the procedure of marketing, the purpose of storage is performed by dissimilar agencies such as manufacturers, wholesalers and retailers.