Business

BEN SSEBUGUZI: Warehouse Systems helps to solve small quantities which are expensive to store

KAMPALA, UGANDA: Uganda is food secure because we have varied food menus unlike other countries in the world including our neighbors in the region. However, we don’t have enough sustainable stocks to feed our 41m people.

Agriculture is still integral to Uganda’s future. It is the country’s most important export sector, contributing nearly half of the total exports. So government started a robust strategy of warehouse receipt systems that improve our bulk storage and quality.

Use of warehouse Receipts System improves on quality because the warehouse operator only accepts goods that pass set standards, he/she pledges to produce the stored goods of the same quality (as earlier deposited) on demand, and he, therefore, has to ensure that only good quality goods are delivered for storage.

This means also that there has to be good storage infrastructure.

WRS users must note that small quantities are very expensive to store, so depositors will need to bulk so that they share the total costs of the operations/transactions (ie cost per unit is minimized with an increase in volumes/stocks). “RULE OF LARGE NUMBERS SECRET”

Ben Ssebuguzi is an economist and entrepreneur.

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