Marketing

Characteristics of Adequate Storage Facilities

Storage provides time utility to the marketing teams. They can reserve the goods elsewhere and can market the goods and services from nearest stores. This results on-time delivery of goods and increases customer satisfaction.

Characteristics of Adequate Storage Facilities

Adequate storage facilities have the following characteristics. :

1. Proper care of merchandise in storage

2. Storing at convenient points

3. Control of storage facilities.

(1) Care of Merchandise in Storage: Goods in storage should be properly cared for If they are not preserved in their original conditions they may not serve the purpose of the consumers. The goods should also be protected from various risks arising out of theft, burglary, fire, wind, water, cold, heat and natural deterioration. The goods when received for storage should be physically examined. The physical condition of the goods must also be determined by inspection on delivery and also from time to time during storage.

The proper storage of grain, for instance, many require special machinery for cleaning and conditioning. If it is not done, the grains may be spoiled due to excessive heat or collection of too much moisture. Special equipment is also necessary for satisfactory storage of perishable farm products and other food stuffs. When special equipment is installed, it provides refrigeration in warm weather and heat in cold weather. All products do not require same treatment in storage. There are some products which need special care with a view to conditioing them for use.

For example, tobacco and meats are cured, lumber is seasoned and bananas or tomotoes are harvested green and put into storage for ripening. All these require special storage facilities.

(2) Place of Storage: Effective marketing demands proper places for storage. Storage facilities should be arranged in such a way that they meet the requirements of all concerned with the production and marketing of the goods. The warehouse must be located so as to expedite the transportation of goods. Proper location of the warehouse is also necessary for making the goods available as security for the loans with which their storage is financed.

Goods which are destined to the centres of manufactures and consumption from the centres of production are usually stored near—(a) the transport facilities, (b) the factories in which they are processed, (c) the markets in which they are bought and sold, (d) the financial agencies which provide the funds invested in them, and

(e) large commercial centers where the means of transpor,  exchange and finance are concentrated.

The concentration of storage in central markets is also essential for facilitating the inspection and supervision of warehouses. Because they are important for proper care of the products. When the products are stored near to the agencies most directly involved, it results in effective accomplishment of supervision on a large scale.

Moreover, if the storage facilities are placed close to the central market, the need for storing products in large quantities near to the consumer is minimized because the goods for consumption can be quickly procured from the central markets. Also, when a considerable volume is stored centrally in one place, the mechanical devices can be econo-mically operated.

(3) Control of Storage Facilities : In the following page we shall discuss the kinds of storage or warehouses. Ware-houses may be private or public. Control of storage is particularly important in the case of public warehouses. Although the manufacturers, wholesalers and retailers have their own storage space, they also use public warehouse space. In the advanced countries, the farm products are usually stored in public warehouses after they reach the market.

For the purpose of providing storage service for others many warehouses are owned and operated by private companies in the central markets. The public warehouses which are situated in the wholesale centres usually store the raw materials for use of manufacturers.

The warehouses should be operated by firms which are reliable and can be depended on for the proper performance of storage functions. The title to the goods must be clear and rest in the proper hands. The title is usually given by way of warehouse receipts. Since the stocks of raw materials, foods and a substantial part of manufactured goods are stored by independent warehouses the control of public warehouse is important to the financing of marketing. The rates charged and the service rendered by public warehouses are commonly regulated by the state.

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