This is the essential part of warehousing. Surplus commodities that don't seem to be required at once are often hold on in warehouses. They'll be equipped as and once required by the customer.

Warehouses play a vital role within the method of worth stabilization. It's achieved by the creation of your time utility by storage. Fall within the costs of products once their offer is in abundance and rise in their costs throughout the slack season area unit avoided.

When the products area unit hold on in warehouses they're exposed to several risks within the style of thievery, deterioration, exploration, fire etc. Warehouses area unit made in such some way on minimize these risks. Contract of delivery operates once the products area unit hold on in warehouse. A warehouse keeper has got to take the care of the products and safeguard them against numerous risks. For any loss or harm sustained by product, warehouse keeper shall be prone to the owner of the products.

Loans are often raised from the warehouse keeper against the products hold on by the owner. Product act as security for the warehouse keeper. Similarly, banks and different monetary establishments additionally advance loans against warehouse receipts. during this manner, storage acts as a supply of finance for the businessmen for meeting business operations

Warehouses these days offer the facilities of packing, process and grading of products. product are often packed in convenient sizes as per the directions of the owner.