The functions of Warehouse are:
(i) Storage: This is the main function of warehousing. Surplus products which are not needed instantly can be stored in warehouses. They can be delivered as and when required by the consumers.
(ii) Price Stabilisation: Warehouses play a vital role in the process of price stabilisation. It is attained by the creation of time utility by warehousing. Drop in the prices of products when their supply is in large quantities and increases in their prices during the slow season are avoided.
(iii) Risk Bearing: When the products are stored in warehouses they are subjected to various risks in the form of deterioration, theft, exploration, fire etc. Warehouses are built in such a way as to reduce these risks. Contract of bailment functions when the products are stored in warehouses. warehouse keeper must take the sensible care of the products and safeguard warehouse keeper must take the sensible care of the products and safeguard goods, the warehouse keeper will be liable to the owner of the goods.
(iv) Financing: Loans shall be raised from the warehouse keeper against the products stored by the owner. Products act as security for the warehouse keeper. Also, banks and financial institutions provide advance loans against warehouse receipts. In this way, warehousing acts as a source of finance for the companies for meeting business operations.
(v) Financing: Loans shall be raised from the warehouse keeper against the products stored by the owner. Products act as security for the warehouse keeper. Also, banks and financial institutions provide advance loans against warehouse receipts. In this way, warehousing acts as a source of finance for the companies for meeting business operations.
(vi) Grading and Packing: Warehouses currently provide the facilities of processing, packing, and grading of products. Products can be packed in suitable sizes as per the directions of the owner.
