Meaning & Functions of Warehousing.
Warehousing aids in equalizing supplies over a period of time. It renders invaluable service to community by performing important functions which are given below:
i. It provides the facility of storage for goods. So the basic function of warehouse is to provide storage facility. By ensuring storing, it provides time utility for the products.
ii. It strikes a judicious balance between the forces like demand and supply and thereby helps in building stabilized price for the product. The goods stored are brought from warehouse at the time of increased demand.
iii. Warehouse facilitates borrowing from banks and other financial institutions. The goods lying in the warehouse serve as security for short-term loan.
iv. It is helpful in stabilizing the prices of the product because it always tries to equate demand with supply.
v. It provides protection to goods against fire, insects, pilferage and thefts. It helps in keeping goods away from sun, rain and dust and thereby it saves goods from deterioration.