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Think about the business cycle. It is a continuous process as products come as raw materials and go out as finished goods. Now at several levels some of the goods have to be stored. Several manufacturing units do not store the goods in-house for several reasons. One is the lack of space and other is safety issues. In addition, it increases the need for manpower. It is simpler and easier for them to store it elsewhere where someone else is maintaining it for them. The next level where production companies would need warehousing is for the finished goods.
For examples, take a brewery company where thousands of bottles are filled every day. Here the company would need warehousing at two levels -- one is to store the empty bottles and the other is to store the finished bottles. This is where it needs warehousing for the finishes products. Before that beer needs to be brewed which would mean that in the process where the raw material is converted into finished product, there is a lot of time taken for storage. Beer has to be stored for a while before it can be called a finished product. So, the warehousing need is tremendous in this industry.
The future of warehousing industry would depend on understanding that just how much is the need and then trying to cater to those needs by expanding their services. In addition, the inventory system also needs to be well organized so that the warehouse knows when to put forth an order for things that are short.
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Study Of Future Warehousing Needs
