Warehouses usually perform the following functions:
Procurement is the very first step in warehousing. Under this step, goods are received, unloaded and moved to pre-receipt inspection point and for accounting purpose.
Sorting is a step in which items are received in bulk are sorted out item-wise for its better storage and easy identification. Heavy and big sized items are kept separate.
(iii) Breaking (dividing):
Under breaking, items received in bulk are broken down into smaller portions and packed separately to cater the requirements of various retail outlets and customers.
After sorting and dividing, items are stored with proper identification and location so as to take them out as and when required. Bin location cards are used for this purpose. Big retailers also use computers and merchandise based software packages to locate, identify and maintain accounting of the items.
(v) Making items available for consignment/shipment:
In warehouses, goods are stored for short period, as per the orders from retail outlets or customers, goods are dispatched to the destinations.
(vi) Material handling:
Material handling is a part of physical distribution system consisting of proper handling equipments used for loading, unloading, lifting and moving goods from one place to another.
In order to promote sales, some warehouses display products.
(viii) Inventory control:
It includes procuring goods and keeping proper records of the goods. Warehouses are also responsible for inspection, maintenance and accounting of goods to avoid them from theft and unforeseen mishaps. Proper accounting results in avoiding large fluctuations in inventory levels.
Certain goods are not to be consumed in the form they are produced. It requires processing to make them consumable. For instance, fruits are ripened, timber is seasoned, wheat is crushed, paddy is polished and juices are filtered etc. Some warehouses also perform these activities as per the demand from the owners.
(x) Grading and branding:
Some warehouses perform the functions of grading and branding of goods on the behalf of the producers, wholesalers or the importer of goods. Besides usual activities, some warehouses provide mixing, blending and packaging assistance for the convenience of handling and sale.
In few cases, warehouses provide transportation facility to big depositors. It collects goods from the factories and sends these goods to the place of delivery on the request of the depositors.