Importance of Warehousing are as follows : 

1. Seasonal Production : Several commodities such as rice, wheat, sugar, etc., are produced during a particular season but they are consumed throughout the year. For example, potato is produced mostly in winter season but is demanded throughout the year. Perishable products like vegetables, fruits, eggs, butter etc. are stored in cold storage to make them available to consumers throughout the year. 

2. Production in Anticipation of Demand : Factory goods are generally produced in anticipation of future demand. All the goods are not sold off as and when they are produced. They have to be kept in warehouses until the demand is created. Manufacturers store goods for wholesalers, wholesalers store goods for retailers and retailers store goods for consumers. Thus, need for warehousing arises at every stage in the process of marketing. 

3. Storage of Raw Materials : Manufacturers have to store raw materials in order to ensure uninterrupted or regular production. Raw material prices are low dining certain seasons. Manufacturers buy them in bulk and store them for use throughout the year. 

4. Seasonal Demand : Some products such as electric fans, coolers, umbrellas, rain coats, woollen cloth, etc., are demanded in a particular season. But they are produced throughout the year. Such products have to be stored in warehouses so that the demand during the particular season can be met. 

5. Stability in Prices : It is necessary to store goods to avoid violent fluctuations in prices. Producers and merchants can secure better prices by storing goods in warehouses.