If you put Storage Items near Workbenches anything inside the Storage item (Cloth Storage, Spider Storage, Cloud Storage only) counts as if it was in the workbench for crafting. You can see blue lines connecting the workbench to the storage if it is close enough.what makes it useful other than having more slot than the wood chest?
So basically you can put all your wood in a storage and all Workbenches connected to it with blue lines can use the Wood for crafting.