In addition to this, warehouses now-adays also perform a variety of other functions, which are as follows:
(i) Storage of goods: The basic function of warehouses is to store large stock of goods. These goods are stored from the time of their production or purchase till their consumption or use.
(ii) Protection of goods: A warehouse provides protection to goods from loss or damage due to heat, dust, wind and moisture, etc. It makes special preventive arrangements for different products according to their nature. It cuts down losses due to spoilage and wastage during storage.
(iii) Risk bearing: Warehouses take over the risks incidental to storage of goods. Once goods are handed over to the warehouse-keeper for storage, the responsibility of these goods passes on to the warehouse-keeper. Thus, the risk of loss or damage to goods in storage is borne by the warehouse keeper.
(iv) Financing: When goods are deposited in any warehouse, the depositor gets a receipt, which acts as a proof about the deposit of goods. The warehouses can also issue a document in favour of the owner of the goods, which is called warehouse-keeper’s warrant.
(v) Processing: Certain commodities are not consumed in the form they are produced. Processing is required to make them consumable. For example, paddy is polished, timber is seasoned, fruits are ripened, etc. Sometimes warehouses also undertake these activities on behalf of the owners.
(vi) Grading and branding: On request warehouses perform the functions of grading and branding of goods on behalf of the manufacturer, wholesaler or the importer of goods. Warehouses also provide facilities for mixing, blending and packaging of goods for the convenience of handling and sale.
(vii) Transportation: In some cases warehouses provide transport arrangements to the bulk depositors. It collects goods from the place of production and also sends goods to the place of delivery on request of the depositors.
