Warehouse is a storage structure constructed for the protection of the quality and quantity of the stored produce. The need for a warehouse arises due to the time gap between production and consumption of products. Warehousing or storage refers to the holding and preservation of goods until they are dispatched to the consumers. By bridging this gap, storage creates time utility. There is a need for storing the goods so as to make them available to buyers as and when required. Storage enables a firm to carry on production in anticipation of demand in future. Warehouses enable the businessmen to carry on production throughout the year and sell their products, whenever there is adequate demand. Need for warehouses arise also because some goods are produced only in a particular season but are demanded throughout the year. Similarly, certain products are produced throughout the year but demanded only during a particular season.

Benefit Of Warehousing
Warehouses enable storage of goods when their supply exceeds demand and by releasing them when the demand is more than immediate productions. This on one hand ensures a regular supply of goods in the market and on the other hand it helps to stabilize prices by matching supply with demand.

Warehouses provide for safe custody of goods. Businessmen can thus minimize the risks to goods from loss, damage, fire, theft etc. Perishable products can be preserved in cold storage. Also, the goods kept in a warehouse are generally insured.

A warehouse provides facilities for processing, packing, blending, grading etc, of the goods for the purpose of sale. The prospective buyers can inspect the goods kept in a warehouse.