Self-Service
Self-service is when a shopper moves around the store, selects goods, places them in a receptacle, and pays at the pay-office. It benefits the retailer by requiring fewer shop assistants, increasing turnover (since customers pay immediately), and lowering wage costs. Consumers can handle and inspect goods before buying, and congestion is reduced by having multiple exit points — though it does increase the risk of theft.
Warehousing
Warehousing is the activity of storing goods until they are needed in the market. A warehouse is a large building used to store goods, raw materials, or commodities in anticipation of demand, and can be private or public.
Importance of Warehouses
They protect goods, provide storage, stabilise prices, ensure a constant supply of goods, generate employment, raise revenue, and facilitate repackaging.
Types of Warehouse
- Bonded warehouse: stores imported goods on which import duty hasn’t yet been paid; called a customs warehouse if government-owned, or a licensed warehouse if private. Goods can only be removed on presentation of customs warrants and payment of duty.
- Cash and carry warehouse: a self-service warehouse run by manufacturers or wholesalers, where retailers and consumers buy in bulk at low prices.
- Manufacturer’s warehouse: a depot for a manufacturer’s own products.
- Wholesale warehouse: owned by a wholesaler, holding goods from various manufacturers until demanded.
- Retail warehouse/depot: serves as a distribution centre for a large-scale retailer’s other stores.
- Cold store: a specialised warehouse for preserving perishable goods like fish, meat, and fruit.
- Public warehouse: stores durable and non-durable goods at various points in the country.
Documents Used in Warehousing
- Bill of sight: lets customs officials examine goods before shipping documents arrive.
- Dock warrant: issued to those who deposit goods in a warehouse; a transferable document of title.
- Delivery order: issued by a dock warrant holder, permitting a third party to collect part of the goods.
Problems in Operating a Warehouse
Inaccessibility, pilferage, a scarcity of qualified personnel, insufficient storage space, stock-outs, difficulties in stock valuation, and the deterioration or obsolescence of goods.
