8 Main Functions of Warehouses


In this article, you will discover the importance and functions of warehouses. Warehousing plays an essential role in business. 


Warehousing is related to the storage of goods. Warehousing can be defined as a group of activities connected with the preserving of stored goods from the time of production till the time of consumption.
The warehouse can be defined as a group of activities connected with preserving and storing from the time of production till the time of consumption.


A warehouse is described as “an establishment for the storage or collection of goods.”

Why warehouse is important in business? 

Warehouse plays an important role in business. warehousing has been around for many decades and has helped businesses provide various storage needs. It creates inventory control, keeps price stabilization, risk-bearing, financing, grading and packing, transportation, time and place utility, and processing that’s why a warehouse is important. for more detail

Functions of Warehousing

The following are important functions of warehousing

1. Storage 

The primary function of warehousing is to provide storage facilities for surplus commodities that are not needed now. They can be provided as and when demanded by the customers. 

2. Price Stabilization

The second function of the warehouse is price stabilization. Warehouses play an essential role in the method of price stabilization. Warehouse decreases drastic fluctuations in costs by storing goods when their supply outpaces demand. It is produced by the production of time utility by warehousing. Normally, a large stock of goods is stored. Whenever there is a deficiency in the market, goods can be quickly provided by warehouses, Which avoids an increase in price due to demand.
price stabilization in warehouse

3. Risk bearing

When goods are preserved in a warehouse they are exposed to various uncertainties in the form of fire, deterioration, stealing, etc.  Warehouses are created in such a method that they decrease these risks.
 A warehouse owner has to take sensible care of the goods and safeguard them from several risks. For any loss or provided by goods, the warehouse keeper shall be responsible to the owner of the goods. The warehouse keeper had to pay if anything happen.

4. Financing

The fifth function of the warehouse is financing. Loans can be raised from financial institutions or from the warehouse keeper against the goods stored by the owner. Goods work as a protection for the warehouse keeper or for protection. When goods transferred to the warehouse 
In this way, warehousing serves as a cause of finance for the businessmen for meeting business operations. 

5. Grading and packing 

Nowadays warehouses give the facilities of packing, processing, and grading of goods Goods can be packed in suitable dimensions as per the guidance of the owner. 

6. Transportation

Nowadays warehouses give transport services to most clients. It stores goods from the point of production and also sends goods to the point of delivery at the call of the owner. 

7. Time and place utility

The seventh function of the warehouse is its creation time and place utility warehouse. The warehouse is located in a suitable place.  produce time utility by storing goods till they are demanded. It also produced place utility by producing the goods where they are needed. 

8 Main Functions of Warehouses

8. Processing

Several commodities are not used in the form they are produced. processing is needed to create them consumable. e.g fruit is ripened, paddy is polished, etc. Sometimes warehouses offer such activities at the request of owners. 
I hope you guys must have known the 8 Main Functions of Warehouses But still, if you see any need in this post, then please give your view in the comment box and help us to improve that deficiency, thanks.

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Faq on warehouse

1. What is the primary function of warehouses? 
Answer: Storage is the primary function of the warehouse.
2. Who provides finance to businessmen?
Answer: Warehouse keepers or financial institutions provide finance.