warehousing in business

MEANING: This is concerned with all activities that help in storing goods until they are demanded in order to ensure uninterrupted and regular supply

Warehousing is the storage of goods until they are need

WAREHOUSE: This is a storehouse or place where goods are stored or kept until they are needed.


  1. Total operating cost
  2. Nearness to the factory
  3. Means of transportation
  4. Availability of basic social amenities
  5. Cost of rent age or construction of warehouse

6 Nearness to the consumers

7 Nature of the product

8 Distribution centres


  1. Provision of storage facilities

2 .Ensuring price stability

3 .Provision of employment opportunities

4 .Sources of revenue

5 .keeping goods ahead of demand

6 provision of security for goods

Checking of smuggling

8 .makes seasonally goods available

9 .Facilitates prepackaging

10 .Creates place utility


1 .STATE WAREHOUSE: This is a government owned warehouse where seized goods are kept until they are sold. It is a store where smuggled goods seized by the customs authorities are kept.

2 MANUFACTURER WAREHOUSE: This is a ware house owned and equipped by the producer at the factory site or depot in order to store his products until they are sold.

3 .WHOLESALE WAREHOUSE: This type of warehouse is owned and managed by the wholesaler for storing wide range of products purchased from various producers.

4 .BONDED WAREHOUSE: This is a warehouse located beside the port and approved by the customs for the temporary storage of dutiable goods on which duties have not been paid.

NOTE: BONDED WAREHOUSE is under the supervision of the custom authority .

5 PULIC WAREHOUSE: This is owned and managed by individuals or firms who do not make use of their warehouse but rent it out to others for keeping their goods.


1 .CUSTOMS DRAWBACK:It is a term ,which means refunding duty paid on re-exported goods .When duty has been paid on goods that are later to be re-exported .It is possible to claim a refund of duty known as customs draw back.

  1. IMPORT DUTIES: These are taxes imposed on goods entering a country .

3 .DELIVERY ORDER: This is a document issued by the owner of goods stored in a warehouse entitling the person whose name appears on it to collect the goods specified

4 .DOCK WARRANT: It is a document issued by the custom authority to persons who deposit goods with them .It is issued only when duties have been paid.It is a document of title

5 .EXCISE DUTY: These are taxes imposed on home produced goods .It may be imposed either to raise revenue or to check the consumption of certain commodities.