Warehouses play a vital role in any supply chain. They provide a safe and organised space for storing goods, processing, and fulfilling customer orders. Warehouses are also essential to inventory management as they allow for easy tracking of inventory and movement of goods, ensuring proper stock levels at all times.

Warehouses aid in the efficient movement of goods and promote the supply chain’s overall efficacy. This makes them a phenomenal option for investments as the logistic industry never goes out of style . However, this is not all! While the primary purpose of warehouses is to store goods, they can be multi-purpose storage units whose function extends far beyond storing goods. Continue reading for six reasons why you should need to invest in warehouses in Kolkata. 

What is Warehousing?

Before we dive into the six reasons why warehouses make for an incredible investment, let’s first understand what warehousing is. Warehousing refers to the process of storing goods in bulk to be sold or distributed in the future. 

Warehouses are vital to logistics and supply chain management and mainly serve as storage spaces. However, they support many different business operations, including inventory control and management, processing goods, and order fulfilment. You can find versatile and strategically located warehouses for sale in Kolkata by contacting Ganesh Complex.

Six Reasons to Invest in Warehouses

Warehouses are more than just storage spaces. With proper utilisation, they can provide incredible ROI. Let’s explore the top six reasons to invest in warehouses in detail.

Storage

The primary function of warehouses in Kolkata is to store physical goods, equipment, raw materials, and other items. Storage is of two types— planned storage and extended storage. Planned storage is used to meet regular customer demand. In contrast, extended storage is additional storage maintained over planned storage to meet  seasonal demands, promotional campaigns, and speculative purchases. 

Safety and Security

Warehouses protect goods and prevent loss, wastage, theft, and damage from weather conditions like heat, moisture, wind, and dust. Goods are safeguarded by employing security staff and installing security systems and fire alarms. By installing fire extinguishers and storing flammable materials in a safe place, ensuring proper waste management, and employing fire-fighting devices, you can significantly curb losses occurring due to fires. The safety and security provided by warehouses make them a highly valued investment.

Warehouse Financing

Warehouses can also be used to obtain loans. Unlike unsecured loans or short-term working capital financing, warehouse financing is a secured loan with flexible terms, making it a popular choice for small businesses and manufacturers. You can obtain a loan using the warehouse goods that are otherwise kept idle as security or collateral for the loan. 

Stabilising Market Price

Warehouses in Kolkata play a pivotal role in stabilising market prices that directly impact business revenue. This is achieved by matching supply with demand. Warehouses curb fierce price fluctuations by storing goods when the supply exceeds demand and releasing goods when the demand bounces back to its original or higher level. 

Enriched Services

Enriched services are becoming increasingly popular in modern warehouses thanks to its numerous advantages. Moreover, value-added services enable businesses to concentrate on core business activities and lower costs by taking the burden of these services off their shoulders. These services include:

Customisation: Re-branding, grading, labelling, stamping, bundling, barcode printing, quality control, disposal, insurance, etc.

Processing: Making goods consumable through processing them, for example, processing coffee beans, seasoning timber, fruit ripening, etc.

Movement of Goods

Ensuring the seamless movement of goods and order fulfilment is one of the regular functions of warehouses in Kolkata. This enables improved inventory control by accurately tracking inbound activity, transfer of goods, order picking, and outbound activity. 

Inbound activity: Unloading goods at the warehouse.

Transfer: Transfer goods from the inbound area to the storage area.

Order picking: Picking the ordered product and transferring it to the shipment area.

Outbound activity: Inspecting and loading the ordered goods for shipping.

Conclusion

Warehouses are primarily used to store goods and prevent theft and damage by fires or weather conditions. However, they are also used to secure warehouse financing, stabilise market prices, provide enriched services, and facilitate the movement of goods. The multifaceted advantages of warehouses make them a phenomenal investment option with high ROI. 

To find strategically located warehouses for sale in Kolkata, contact Ganesh Complex, Eastern India’s top-rated warehouse and industrial plot provider.