Producers, traders, manufacturers, etc have to store their goods in warehouses. Goods are produced well in advance according to the demand of customers but they are stored in warehouses till they are actually sold in the market. In this way, warehousing creates time utility on one hand and meanwhile offers certain marketing services also such as grading, packaging, labelling, etc. Thus, it can rightly be said that warehouses helps in the marketing of goods.
The need and importance of warehousing will be clear from the following points
(i) Warehouses protect the goods from loss and damage.
(ii) Warehouses store the surplus of goods and help in regulating the supplies of goods according to the demand.
(iii) Warehouses help the industrialists to produce the goods on large scale as they don’t bother the
problem of storage because of the presence of warehouses.
(iv) Warehouses also help in getting the financial aid from hank as the receipt of warehouse can he used as a collateral security to borrow money from banks.