Warehouse is actually a storage place where people accumulate various kind of goods. These goods are then used for different purposes. The major functionality that the warehouse provides is of storing the good in such manner that it creates time utility. Time utility means that storing the goods for the time period when these are not required and then releasing these in to the market at the time when these are high in demand. However, the basic function of the warehouse is of storage. But there are some other associated functions as well which are listed below

Stabling the prices in the market:

Time utility which is mentioned earlier is achieved by the warehousing Auckland and it is used to introduce stability in the prices. It works in a manner that whenever there is shortage of some item in the market at some time then the people who already have these items stored in their warehouse releases these items in the market. This is how the warehousing helps in reducing the prices when there is shortage of the item.  

Bearing of the Risk:

However, the warehousing and reliable order fulfilment has its many benefits but there are many risks involved in this business as well. When the goods are stored in the warehouse, it is not known that for exactly how much time will these be stored here. Not only this, but these goods have to go through under many circumstances which could be deterioration, exploration and fire. Apart from this, the stock in the warehouse has always a risk of the theft. But the warehouses are designed in such a way that these risks are minimized, these are secured against all the fire and weather conditions and these are designed to maintain the temperature. Although, the person who is storing the goods in the warehouse is not actually the owner of the warehouse but he usually rents the warehouse and the person who has the responsibility of keeping the goods safe is known as the warehouse keeper. Not necessarily the person who is warehouse keeper is the owner as well. But in case of any loss of the stock or any damage to the goods, he is the person who will be held responsible and will compensate the loss of the goods to the person who was actually the owner of the goods. 

Financing:

There is another form of the warehousing in which the person stores his goods and items in the warehouse as a security and in return the warehouse keeper gives him loan. On the return of the loan these goods are given back to person. In this way, warehousing is not only just for typical store and release products but are also used for financing of the business.