The following purposes are served by the wholesalers providing warehousing facilities:

a. The wholesalers purchase goods in bulk from the manufacturers, store and distribute them to the retailers in smaller quantities.

b. This bulk purchase allows the manufacturing to undertake large scale production without worrying about the storage problems.

c. The warehouses are usually situated closer to the center of the distribution, which is why they are called the place of utility.

d. The general functions of warehouses include collection, storage, and distribution.

e. They also help to facilitate the marketing of the products.