Warehousing: Walking Out of Its Four Corners

image source: www.durasteel.net

In starting up own business, there are several things to consider to become successful. Aside from the usual things needed like capital, manpower and business strategies, how you are able to take care of the resources you have is also important. Have you ever considered a warehouse for rent or have thought of building one for your own? Well, both will do depending on the situation you have at hand. However, warehousing affects not only the your own business but the whole commercial industry.

Warehousing is basically means storing goods until the time that they will be released to the market for consumption. It may be considered as a measure a business owners could do, but it as well acts as a balancing instrument between producers and consumers.

Let’s see how renting a warehouse plays its role in the supply and demand chain:

Price Equilibrium

More than just being a mere storage of goods, warehouse for rent balances the goods’ prices within specific period of time. In a country like Philippines where typhoons pay us visits yearly, production of fresh goods and raw materials becomes uncertain. Farmers have good harvest for several months and then lose them all to typhoons. Generally, production is affected by uncertain weather. So, what do you think will happen whenever there is no harvest? Supply will decrease while the demand (according to the population) will remain the same or will increase. This is why there are warehouses for rent to store goods and products in; to balance the prices whenever supply decreases. If there is nothing stored and saved for scenarios like this, there is more likely a bigger possibility that we’ll end up importing products from other countries (which really happens) and suffer inflation.

Inventory

Boxing, unboxing, categorizing, alphabetizing, arranging by expiration—inventory is confusing. Picture a reseller who had bought fresh goods from the farm and directly sold it to the market without sorting the raw from the ripe? He’s going to need to end the day with all the stocks sold else, everything left will end up as loses. But, what if he had rented a warehouse and gave some time to do inventory? It could be easier. Keeping a record of everything you have (resources and expenses) is important for you to determine whether you’re gaining or losing with your business.

Product Safety

Warehouses are specifically made for storing raw materials and even finished products. In that sense, there is an assurance that the products will remain in good quality. The contract for a warehouse for rent is also an assurance for the business owners that their goods will be taken of good care of. The logistics company handling the warehousing of the products will also be able to track shipping. Keeping a record helps a business cycle run smoothly, and product safety builds a company’s name.

A warehouse, rent or owned, helps not only one business but improves a lot of aspects in the community. It stands only at one side of the cycle, but there are great things in store for you with warehouses, you just have to know how to make use of the facilities optimally.

For warehouse and truck for lease, you can visit: Safehouse Storage Philippines