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Warehousing (Functions of warehouses (Financing (a) When goods are…
Warehousing
Meaning of Warehousing
Warehousing means holding or preserving goods in huge quantities from the time of their purchase or production till their actual use or sale.
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Types of Warehouses
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Ex: Central Warehousing Corporation of India, State Warehousing Corporation, Food Corporation of India
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Functions of warehouses
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a) When goods are deposited in any warehouse, the depositor gets a receipt which acts as a proof of the goods in store.
b) This receipt can be used as a security to obtain loans and advances from the banks and other financial institutions.
a) Certain commodities are not consumed in the form they are produced. Processing is required to make them consumable.
b) Example - Paddy is polished, timber is seasoned, and fruits are ripened etc., Sometimes warehouses also undertake these activities on behalf of the owners.
a) The warehouse keeper may also undertake to perform the functions of grading and branding of goods on behalf of the manufacturer, wholesaler or the importer of goods.
b) He may provide facilities for mixing, blending, and packaging of goods for convenience in handling and sale.
a) In some cases, warehouses provide transport arrangement to the bulk depositors.
b) It collects goods from place of production and also sends goods to the place of delivery on request of the depositors.