Break - Bulk Warehouse Customer B Customer C Customer A (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 through out 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 Central Warehousing Corporation At present a central government undertaking CWC i.e., Central Warehousing Corporation provides these services for businessmen across the country. Private warehousing companies like TCI, Shanker International, Blue Dart, DHL etc., are providing cargo facilities of both transportation and warehousing. 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 stablisation: 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.
Key Terms Business services Insurance Subrogation Fire insurance Banking Insurable interest Contribution Marine insurance e-Banking Indemnity Mitigation Telecom services Commercial banks Proximate cause Life insurance Warehousing SUMMARY Nature of services: Services are those separately identifiable, essentially intangible activities that provide satisfaction of wants, and are not necessarily linked to the sale of a product or another service. There are five basic features of services. These features also distinguish them from goods and are known as the five Is of services i.e., Intangibility, Inconsistency, Inseparability, Inventory (less), Involvement. Difference between services and goods: While goods are produced, services are performed.
A service is an act which cannot be taken home. What we can take home is the effect