for delicate products such as flowers in dirt-free facilities in these warehouses. e. Automated Warehouses Automated facilities which can handle several hundreds of kilograms of product Warehousing Development and Regulatory Authority(WRDA) To develop and regulate the warehousing industry in India, Warehousing Development and Regulatory Authority was established under the Warehousing (Development and Regulation) Act, . Its objective is to improve the storage capacity in the country and also help producers, farmers and consumers get a better deal by cutting the intermediaries and wastages.
commerce - - . . PM when there is a demand. Thus the consumers get the commodities regularly even during the off-season periods.
(iv) Business Finance Based on the goods deposited in a warehouse, the depositor can get finance from banks and other financial institutions by showing the receipt issued by the warehouse keeper. (v) Risk bearing In case of damage to the goods, warehouse keeper compensates the loss caused to the owner of the goods. Thus, warehouses bear the loss of risk involved in storage of goods. (vi) Preparation for sale Modern warehouses undertake the functions of sorting, packing and labelling for the purpose of making the goods suitable for marketing.
Hence warehousing is needed for making the goods suitable for sale. (vii) Widening the marketing area A manufacturer can sell the goods to different marketing areas by establishing branch warehouses or taking the service of rental warehouses at the required places. Thus warehousing widens the market for the goods. (viii) Value added services Warehouses also provide certain value added services, such as in transit mixing, grading, packaging and labelling.
Sometimes, goods are repacked and labelled again at the time of inspection by prospective buyers. . Advantages and Drawbacks of Warehousing Advantages . It safeguards the stock of the merchants who do not have storing place.
. Warehouses reduce distribution cost of the traders by storing the goods in bulk and allow the trader to take the goods in small lots to his shop. . It helps in selection of channel of distribution.
The producer will prefer whether to appoint a wholesaler or retailer. .