Warehouse Types PDF

Facility Ownerships Decisions on facility ownerships – private facilities, public facilities, or contract facilities – should be made based on the organization’s expertise vs. scope of tasks required & financial resources relative to the number and size of facilities needed. Types of Warehouse : 1....

Facility Ownerships Decisions on facility ownerships – private facilities, public facilities, or contract facilities – should be made based on the organization’s expertise vs. scope of tasks required & financial resources relative to the number and size of facilities needed. Types of Warehouse : 1. Public warehouse 2. Private warehouse 3. Contract warehouse 4. Bonded warehouse 5. Government warehouse 6. Co-operative warehouse 1  Public Warehouses  Available for companies to hire (Eg: 3PL, 4PL)  Overheads gets distributed over a large customer base  Offers expertise in management since warehousing is their core business. Key Advantages :  Conservation of capital  Use of space to meet peak requirements  Reduced risk  Economies of scale  Flexibility  Tax advantages  Specific knowledge of storage and handling costs Disadvantages :  Effective communication may be difficult because of system incompatibility  Specialized services may not always be available.  Space may not be available on demand.  Private Warehouse  Owned and operated by the large business firm  Used for their own distribution activities Key Advantages :  Control  Flexibility  Less costly  Better use of Human resources  Tax benefits  Intangible benefits  Contract Warehouse  Handle shipping, receiving and storage on contract basis.  Clients should be committed to a specific period of time.  Clients pay for storage and material handling.  Bonded Warehouse  Licensed by the government to accept imported goods for storage before payment of customs duties.  Can act as a distribution center for duty free stores.  Storage area for goods in transit  Goods are under the supervision of customs officers. Benefits:  Avoid the need to pay duties for goods on transit  Goods owners avoid losses due to inflation form time the goods enter the country to the time they are sold.  Minimizes the risk of paying taxes for products that may not be sold at all.  Government Warehouse  Owned control and managed by the government, public corporation or local authorities  Usually located closed to a sea port  Cooperative Warehouse  Owned managed and control by cooperative societies  Provides warehousing facilities at the most economic rates of their society.