After reading this article you will learn about:- 1. Meaning of Ware-Housing 2. Objectives of the Warehousing 3. Necessity 4. Functions.

Meaning of Ware-Housing:

In the word ‘ware-housing’, ‘ware’ means goods in the form of manufactured items, while ‘housing’ means a place for their safe keeping. Hence ‘ware-houses’ are go-downs which keep the goods and provide other related services. These warehouses, undertake to preserve the goods in a scientific and systematic manner so as to maintain, their original value, quality and usefulness.

Warehousing can be defined as that function which provides the proper space for the safe keeping of goods, provides a system to economically coordinate the necessary activities, facili­ties and manpower, and provides for the overall control of the entire operation.

Objectives of the Warehousing:

1. Maximum use of space.


2. Ready access to all items.

3. Efficient movement of goods.

4. Effective utilization of labour & equipment’s

5. Maximum protection of items


6. Good-house-keeping.

Necessity of Warehousing:

1. Goods are stored at one place from the time of production until they are demanded by the consumers.

2. In order to meet fluctuations in demand, warehouses act as a cushion.

3. In order to meet the demand promptly, it is necessary to have some goods ready in warehouse.


4. Certain items like umbrella, woolen items, desert coolers etc. are required in a par­ticular season. Such items are manufactured and stored in warehouses to meet the seasonal demands.

5. Warehouses are needed to preserve the goods and also to minimize the risk of damage due to natural factors.

Functions (Activities) of Ware-Housing:

1. Receiving to materials to be stored in the warehouses.

2. Identification and Sorting and maintaining the record of material


3. Dispatching the goods to the desired storage location.

4. Placing i.e., keeping the goods at their desired location, where they will be kept during custody.

5. Storage which means holding, protecting, and preserving the goods until they are required to be shipped.

6. Order picking means withdrawal of goods from storage.


7. Order accumulation. In this function, goods after being picked-up are accumulated to make up a specific order.

8. Packing. After accumulating the order, it is packed to provide protection during ship­ment.

9. Loading and shipping. After the goods are packed, they are kept in marshalling area awaiting loading and shipping.

10. Record keeping. This is the most important function and maintains the required record of all the above activities.