The use of a warehouse is associated with services that can enhance the organization’s revenue growth, and the justification for the use is that the profits from sales will exceed the costs associated with its usage.

The use of a warehouse is associated with services that can enhance the organization’s revenue growth, and the justification for the use is that the profits from sales will exceed the costs associated with its usage. The benefits of using a warehouse can be quantified and equally justified by the total reduced cost of logistics (Bowersox,2019). According to Ackerman, the costs associated with warehousing can be divided in four major categories: handling, storage, general administrative expenses, and operational expenses (Ackerman, 2017). Handling are expenses associated with the product movement, that is in and out of the warehouse. These expenses include the receiving, stowing, loading, and in certain cases, repackaging, refurbishing damaged products. Additional costs associated with handling are the utilization of machinery used to move the products, whether is acquisition, maintenance, repair, or depreciation. Storage costs refer to costs associated to the products occupying the warehouse and are calculated as monthly expenses. Cost associated with the operation administration include insurance, taxes, support personnel, information technology and supplies. The last major category of costs associated with warehousing are the general administrative expenses that include the nonoperating support, such as management staff, and office costs (Ackerman, 2017). Both containers have their specific use purpose. The choice of whether one container is preferred over the other, depends entirely on the product being transported and the circumstances. For example, the rigid containers are used for the transportation of passengers and freight. Rigid containers protect the products from damage and pilferage during transportation and handling. Non-rigid containers do not provide complete protection through complete enclosure. The nonrigid unitization refers to stacking boxes on a pallet for example and rope tying it down. This method is common for products that cannot get damaged easily, such as groceries. According to research by Smithers, global packaging market recorded in increase of 6.8% between 2013 and 2018. The growth has been registered mostly from the less developed markets where people moved into urban area adopting the western lifestyle. The move came with an increase in demand for packaged goods, increasing the focus on plastic waste, and plastic packaging has come under heavy scrutiny (Smithers, 2019). I believe airlines will continue to improve the packaging methods to align their operations with the sustainable movement of maintaining a green earth!