Warehouse why its reqd ? Bulk Breaking Uncertain high in sales forecast Stock reqd in case of emergency But Why Only reqd is proper planning. Lets take a example Small amount of materials reqd Answer :- PTL service is there Need to distribute to large no of retailers Answer :- B to B service provider is there Seasonal Product Answer :- Make good Super stockiest who can lift the materials Uncertain Sales Answer :- Look after the competitor , or wrong planning, if monopoly customer need to wait. Bulk Breaking Answer :- Transporter warehouse ids there. Need to store for few days Answer :- Give detention, materials at vehicle only I am not against warehousing concept, nurture all alternative before indulging one Warehouse can lead to FIFO mismatch Extra rental cost Extra manpower cost Theft / pilferage Handling inefficiency leading to product damage Extra insurance coverage Electricity, local issue, ...