(i) Enables the wholesaler to pool up stock in anticipation of high seasonal demand.
(ii) Can purchase stock in bulk and hence accrue the economies of scale.
(iii) Assurance of space all the time since there is no competition.
(iv) Affords security/ safety to the goods from theft/ damage/ loss.
(v) Allows the distributor enough time to plan for the distribution of goods.
(vi) Goods can be tested and checked if still in good conditions before use/ sale.
(vii) Goods not fully manufactured may be completed in a private warehouse for example, branding and packing.
(viii) Allows continuous supply of goods in the market.
maurice.mutuku answered the question on July 19, 2017 at 13:08
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