This importance’s cut across the producers, traders and consumers.
- It ensures steady supply of goods into the market since they are stored in a warehouse and released when the market needs them.
- It ensures no surplus or shortage of goods. It enables surplus goods to be stored and supplies them when in shortage.
- It ensures protection of goods – It has storage facilities that protect the goods from physical damage and adverse weather conditions.
- It facilitates mass production – It enables producers to produce large quantities of their goods due to the presence of a storage facility.
- It enhances stability of prices in the market – This is achieved through regular supply of goods in the market throughout the year therefore no surplus or shortage.
- It ensures storage of goods produced far away from the markets – This is because every country requires goods produced in other parts of the world.
- It ensures storage of seasonally required good e.g. umbrellas and gumboots-It enables manufacturers of such goods to produce these goods in advance and store them awaiting the season required.
- It ensures storage of raw materials – Manufacturers usually require large quantities of raw materials which are normally stored in a warehouse.
- It buffers stocks. The government is able to store foods e.g. grains which are then released into the market in case of a shortfall.
- Reduced costs – Availability of private warehouses enables manufacturers, importers and exporters to access warehousing services when the need arises without owing one.
- Preparation of goods – Most large scale retailer’s package, grade, blend and sort out their goods in warehouse awaiting sale.
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