Wholesalers serve the purpose of reducing the burden of manufacturers by taking delivery of goods as soon as they are produced in the factory and storing them in their own godowns. This eliminates the need for manufacturers to arrange for storage facilities for finished products. By storing goods until they are demanded, wholesalers provide time utility.

Furthermore, warehousing facilitates continuity of production. Wholesalers purchase goods when produced and store them until retailers or consumers demand them, allowing production to run smoothly throughout the year. This also relieves retailers of the necessity to maintain large stocks of articles.