The benefits of Warehousing are: 

(i) Regular Production: Raw materials must be stored to facilitate mass production to be carried on uninterruptedly Occasionally, products are stored in expectation of a rise in prices. Warehouses support manufacturers to produce products in anticipation of future demand.

(ii) Time Utility: A warehouse generates time utility by bringing the time gap in the production and consumption of products. It supports making available the products each time demanded or required by the consumers. Some products are manufactured throughout the year, but its demand will be only in particular seasons, e.g., raincoat, wool, heater, umbrella, etc. by the same time, some products have demand throughout the year, but they are manufactured in certain region, e.g., rice, wheat, potatoes, etc. Goods like tobacco, rice, jaggery and liquor become valuable with the passage of time.

(iii) Store of Surplus Goods: A warehouse acts as a store of surplus products which are not required immediately. Products are often manufactured in anticipation of demand and required to be preserved appropriately until they are demanded by the consumers. Products which are not needed immediately can be stored in a warehouse to meet the future demand.

(iv) Price Stabilisation: Warehouses bring down violent fluctuations in prices by storing products when their supply exceeds demand and by issuing them when the demand is more than immediate production. Warehouses confirm a regular supply of products in the market. This pairing of supply with demand helps to stabilise prices.

(v) Minimization of Risk: Warehouses bring down violent fluctuations in prices by storing products when their supply exceeds demand and by issuing them when the demand is more than immediate production. Warehouses confirm a regular supply of products in the market. This pairing of supply with demand helps to stabilise prices.

(vi) Packing and Grading: Certain items must be processed or conditioned to make them fit for human use, e.g., tobacco, coffee, etc. A modern warehouse offers facilities for blending, processing, grading, packing, etc., of the products for the purpose of sale. The prospective purchasers can inspect the products kept in a ware-house.

(vii) Financing: Warehouses offer a receipt to the owner of products for the products kept in the warehouse. The owner may borrow against the security of goods by producing an endorsement on the warehouse receipt. In a few countries, warehouse organisations advance cash against the products deposited in the warehouse. By holding the imported products in a bonded warehouse, an importer can pay customs duty in instalments.