Warehouse is a storage place where the goods are being stored. In turn, these goods are used by the manufacturers. There are different reasons for which the warehouses are being used.
- For storing the seasonal productions: Some of the crops are not being produced throughout the year. They are harvested according to the climatic conditions. So, one has to store the crops which are produced in one season. This is the case if we take the goods as the agricultural products. So, one has store the goods properly in the warehouses as the goods must be sufficient for all the seasons throughout the year. For supplying the goods whenever needed, warehouses are used.
- Large-Production Of goods: Now-a-days in order to meet the requirements of the customers in advance, so many manufacturing companies are producing the goods in well advance. The companies are planning to meet the future needs, so they are going for the large scale productions. Until all the produced goods are sold, they must be stored in the warehouses for effective storage.
- Store the Goods which are being demanded seasonally: Some of the goods are required only for one season. Suppose if we consider the accessories which are used seasonally like woolen clothes, rain coats etc., they are used only for a particular season. So, in order to store them, effective storage can be done by using the warehouses.
- For producing the goods continuously: For the continuous production of the goods, raw materials are to be supplied quickly. So, one cannot always transport all the raw materials after completion. So, a warehouse is needed for making the production faster by using the raw materials which are stored in the factories.
- For the fast supply: All the goods will have definite places for production. If we consider the agricultural goods, those are grown in some places, and while coming to the industrial goods those are manufactured at some places. All these goods whether they are agricultural or the industrial goods, all will be supplied throughout the country apart from the place of supply. In those cases, warehouses are needed for storing the goods, that can easily supply the goods.
- For maintaining the prices of the goods: For maintaining the prices of the goods also, warehouses are needed. Because warehouses can store sufficient quantities of the goods which leads to price stabilization. Because excess production will lead to decrement of the costs, where as the scarcity of the resources will lead to the increase in the price of the market. So, for avoiding this, warehouses are used for maintaining the cost of the goods.
These are some of the reasons why a warehouse is needed.