Benefits of Warehousing

Shipment consolidation for lowest possible transportation rate and reduced congestion
Breaking the bulk – receive combined customer orders from manufacturers and ships them to individual customers
Postponement of final production by doing packaging or labeling
Stockpiling for maintaining inventory buffer to address seasonal storage
Service benefits
- Spot stocking – specific products are stored against orders usually for seasonal sales
- Assortment – stocking product combinations against future orders
- Mixing – large shipment with preferred combination of each product
- Production support – have safety stocks, supply materials economically
- Market presence factor – local warehouse deliver to market