Communication, transport and warehousing

Communication services link a business with its suppliers, customers and staff.

• Postal services offer financial facilities (the post office savings schemes such as PPF, Kisan Vikas Patra, National Savings Certificates and deposits) and mail facilities (letters, parcels, registered post and insured post), as well as speed post, money transfer and more.
• Telecom services include cellular mobile services, fixed line services, cable services, VSAT (satellite communication, useful for reaching remote areas) and DTH (direct-to-home broadcasting by satellite).

Transport carries goods from where they are made to where they are needed, so it removes the hindrance of place. India still needs better roads and ports so that goods can move faster and more cheaply.

A warehouse is a place where goods are stored until they are needed, so warehousing removes the hindrance of time. Types of warehouses:

• Private: owned by a business for its own goods.
• Public: run by a licensed operator, and open to any trader who pays a charge.
• Bonded: licensed by the government to store imported goods before the customs duty is paid.
• Government: owned and run by the government.
• Cooperative: owned and run by cooperative societies for their members.

Functions of warehousing:

• Consolidation: collecting goods from several producers and sending them on to one customer together.
• Break the bulk: dividing a large quantity into smaller lots to suit different customers.
• Stock piling: storing seasonal goods (such as crops harvested once a year) to supply them all year.
• Value added services: packing, grading, labelling.
• Price stabilisation: releasing goods when they are scarce keeps prices steady.
• Financing: owners can borrow against the warehouse receipt for their goods.