We need warehouses in a variety of different situations. One of them is to consolidate our raw material supply. So, let's imagine a company that has two plants and three raw materials suppliers. Now we could shift from those raw material suppliers directly into both of our plans and it'll be fine, but there is a better way and that is to use a warehouse in between them that receives raw materials from the three suppliers and then ships out, assembling assortments as needed. N