Warehousing was initially viewed as a static unit for keeping and storing goods in a scientific and systematic manner so as to maintain their original quality, value, and usefulness. Today, warehouses have ceased to be mere storage service providers and have become logistical service providers in a cost-efficient manner, making available the right quantity at the right place and time.

The function of Break the bulk involves dividing the bulk quantity of goods received from production plants into smaller quantities. These smaller quantities are then transported according to the requirements of clients to their places of business.

Stock piling refers to the seasonal storage of goods for select businesses. Goods or raw materials which are not required immediately for sale or manufacturing are stored in warehouses. They are made available to business depending on customers' demand, such as agricultural products harvested at specific times with subsequent consumption throughout the year.

Value added services provided by warehouses include in transit mixing, packaging, and labelling. Goods sometimes need to be opened and repackaged and labelled again at the time of inspection by prospective buyers. Grading according to quantity and dividing goods in smaller lots is another function.

Price stabilisation is performed by adjusting the supply of goods with the demand situation. Thus, prices are controlled when supply is increasing and demand is slack and vice versa.

Financing is another service where warehouse owners advance money to the owners on security of goods and further supply goods on credit terms to customers.