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(b) Break the bulk: The warehouse performs the function of dividing the bulk quantity of goods
received from the production plants into smaller quantities. These smaller quantities are then
transported according to the requirements of clients to their places of business.
(c) Stock piling: The next function of warehousing is the seasonal storage of goods to select
businesses. Goods or raw materials which are not required immediately for sale or manufacturing
are stored in warehouses. They are made available to business depending on customers demand.
Agricultural products which are harvested at specific times with subsequent consumption
throughout the year also need to be stored and released in lots.
(d) Value added services: Certain value added services are also provided by the warehouses,
such as in transit mixing, packaging and labelling. Goods sometimes need to be opened and
repackaged and labelled again at the time of inspection by prospective buyers. Grading according
to quantity and dividing goods in smaller lots is another function.
(e) Price stabilisation: By adjusting the supply of goods with the demand situation, warehousing
performs the function of stabilising prices. Thus, prices are controlled when supply is increasing
and demand is slack and vice versa.
(f) Financing: Warehouse owners advance money to the owners on security of goods and further
supply goods on credit terms to customers.