Warehousing l

Marketing S.S.S 2 Second Term

WEEK 1

Warehousing l

Performance Objectives

Students should be able to:

1.Define warehousing

2. List the functions of warehousing

Content

i. Meaning of Warehousing

ii. Functions of Warehousing

  

Warehousing

Warehousing could be described as as a logistic function of an organization's ability to provide a high level of customer service. It is the marketing effort of holding products until they are ready to be sold. The success of warehousing is a product of good and careful organisational planning, competency of staff in charge, good market analysis and forecasting economic indices. It must be noted that good customer service is the desired end result of virtually all business activities of which warehousing is important/determining factor.

Functions of Warehousing

1. It helps to preserve products.

2. It helps to conserve products in a time of surplus.

3. It helps to guide hoarding of products by 'glutton/selfish' businessmen.

4. It helps to hold products until they are ready to be sold.

5. It helps to control the artificial scarcity of products.

6. It serves as a source of incomes to other class of people e.g logistics, estate agents and brokers.

7. It creates jobs for many unemployed people.

8. It helps in inventory control i.e. the attempt made by the organisation to hold the lowest level of inventory that still enables it to meet customer demand.

9. It helps to stabilise the economy.

10. It helps to checkmate smuggling.