I (Meaning and importance of Exports) Unit Structure

82 
6.4 NECESSITY OF WAREHOUSING IN EXPORT 
MARKETING 
Warehousing is necessary and useful in export marketing. It 
is one important infrastructure facility required for large scale 
exporting. Warehousing facilities are required for manufacturing 
goods for export purpose. 
Warehousing in export marketing becomes a necessity for 
the following reasons: 
(a) 
Huge Quantities 
Export transactions are conducted in huge quantities. 
Naturally, such goods need to be stored in a proper manner before 
transportation. For this, warehousing facilities are necessary 
particularly at the port towns. 
(b) 
Just-In-Time supplies 
In several developed countries like Japan, USA etc., firms 
require, just-in-time supplies, such as auto components or parts. 
For example, Honda motors sign just-in-time supply contracts with 
its vendors. Therefore, the supplier need to have warehouses in the 
overseas markets to supply the components or parts on time to the 
foreign firms. 
(c) 
After-Sale
—Service Requirement 
In the case of engineering goods, exporters need to provide 
timely and efficient after-sale-service. Therefore, the exporters 
need to maintain a good stock of part or components in the 
overseas markets. Some times, exporters may have to replace 
quickly the entire product. Therefore, there is a need for 
warehousing of parts, components and the finished items. 
(d) 
Export Procedure 
Export procedure is lengthy. Here, pre-shipment inspection 
is necessary. In addition, customs formalities are required to be 
completed at the port town. Thereafter, goods are loaded in the 
ship for onward transportation. These steps in the export procedure 
are time consuming. During this period warehousing of export items 
is needed.