What You Should Be Knowing About Warehousing

In today’s world, there is a lot of importance of warehouses but before we get any further, it is important to know what exactly a warehouse is and why is it used by many people.

A warehouse is used as a storage unit where goods in bulk quantities are stored. They are also often referred to as an assumption of responsibility for storing goods. With having a storage house or a warehouse where goods are kept throughout the year and used whenever required, it creates time utility.

Functions of Warehouse

Let’s discuss the functions that come with having a 3pl warehousing New Zealand.


The main functions of having a warehouse is storage. Commodities and goods which are bulk or excess in quantities require a place to be stored. These good are those which do not require immediate use but may be required later in use upon demand against which they need to be kept somewhere for the time being.

Price Stabilization

When it comes to price stabilization, warehouses play a major role there. When the prices of goods decrease and subsequently, the demand of the goods increase, which is when the goods that are stored in the storage units or warehouses are required the most. Visit https://www.npfulfilment.co.nz/our-services/pick-and-pack/ for pick and pack.

Risk Bearing

When the goods are stored at some place for the purpose of storage, they are exposed to various risks such as deterioration, theft, fire, exploration etc. however, a warehouse is constructed in such a manner where these risks are minimized and as a result, they keep your goods safe and sound. A person who is the warehouse keeper is responsible to make sure that the goods are kept safe and it is his duty to safeguard them from any sort of risks. For any damage or loss of the goods, the keeper shall be held responsible or liable to the owner of the commodities.


If an owner wants to obtain loan or any sort of financing for his business or any other act, he or she can keep their warehouse as a guarantee to the financial institution against which the bank can provide them with the loan. In case, the owner defaults or goes bankrupt, the bank can obtain or recover their loss from the warehouse. In such situations, a warehouse acts as a source of financing for people who want to meet their business operations.

Grading and Packing

Lastly, one of the most common functions of having a warehouse is that they can be used for providing the facilities of processing, packing and grading of goods and materials. These goods can be packed as per the requirements provided by the owner of the warehouse.

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