RTL Reliable Transportation More About Warehousing | Page 5

Importance of Warehousing In the
Development of Trade and Commerce
• Storage:
• Storage is the basic function of a warehouse. Products that are
surplus to the immediate market demand are usually stored in the
warehouse until when the demand for it by customers arises.
• Price Stabilization:
• Warehouses are major instruments in the pricing of commodities
in the market. This is achieved via the creation of time utility. That
is, a manufacturer can choose to store up products in the
warehouse when the product is much in circulation and releases it
when the product is limited in the market thus stabilizing the price
of the product.
• Risk-bearing:
• With warehousing, your goods are safe from certain storage risk
such as theft, deterioration, exploration, fire etc. This is because
these warehouses are built in a very formidable way thus reducing
to a bearable minimum the risk of theft and storage related
damages to goods.