July 13, 2017

Types Of Warehouses

Storage system should be suitable and safe according to the nature of goods. The warehouses can be classified into three types: private warehouses, public warehouses and bonded warehouses.

1. Private Warehouses

The warehouses, which are established, owned and operated by big producers or business entrepreneurs investing their own capital, are called private warehouses. They keep their own products or purchased goods in warehouses until they are sold out. The big business firms, which deal in bulk quantity of goods: build their own warehouses for their own use. Producers, private companies, stockiest, agents, distributors, and wholesalers operate warehouse for private use.

The large firms, which transport goods or deal in bulk quantity, build their own warehouses. Departmental store, supermarket, multiple shops, cooperative societies may have their own warehouses. Such warehouses may be established and operated in center, regions, or different parts of a country according to the necessity and volume of business.

Such private warehouses may be established by the firms themselves or taken on hire. For establishing private warehouse, it is necessary to estimate its cost and do comparative analysis of the cost for operating it on rent. The firm needs to invest adequate capital for building such warehouse.

There are merits and demerits of private warehouse. As this type of warehouse is operated under personal control of the owner, it can provide various facilities, become safe and economical. Such warehouses are established at proper places, properly looked after, and controlled. They are merits of private warehouses. But such warehouse takes high amount of capital, it has no flexibility of place, it has limited physical facilities, vacant space cannot be given on rent etc. However, big business firms can earn operating efficiency skill, goodwill and profit through the use of their own warehouse.

 
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2. Public Warehouses

Since establishment and operation of warehouse needs a lot of capital, most of business firms cannot build private warehouse. It is also not necessary for some business firms to establish or operate their own warehouse, as quantity of the goods they deal in does not need big space for storage. For such firms public warehouses are used. Public warehouses provide space to producers or business firms for storing their goods on rent.

Public ware is the system of providing certain space of warehouse to producers, intermediaries, businessmen or firms to store their goods safe taking certain rent for certain period. AS industrial products can be stored safe in warehouses by paying certain charge, such warehouse is called 'duty paid warehouse'. So, the warehouse established and operated with the purpose of providing storage facility to producers, business men or firms taking certain charge or fee is known as public warehouse or duty pay warehouse.


Public warehouses are established as institution taking government permission. Such warehouses are established and operated at railway station, airport, seaports, major city areas and operated as public limited company and Government corporation.
Generally, public warehouses are big in size. So, business entrepreneurs and firms can get various facilities and benefits from such warehouses. As they are established nearby railways, airports, and seaports, it becomes easy to receive, supply and transport goods. Special equipment and machines can also be available to use in handling goods. Public warehouses are also safe and secure as arrangement of security guards is made to watch over such warehouse 24 hours. Public warehouses are less costly. The receipt given by warehouse authority is accepted as security by banks and financial companies to provide loan. Facilities for packaging, branding, grading, displaying, selling become available in such warehouses. In this way, the role of public warehouses is important in marketing.

3. Bounded Warehouses

Imported or other goods whose custom duty or government taxes have remained unpaid are stored in bounded warehouses. These type of warehouses are established taking government permission, operated and controlled by government rules and regulation. Generally, such warehouses are established in the vicinity of airports, railway stations and seaports.

Until the importer pays a custom duty and other taxes, the goods are kept in bounded warehouses. The owners can take out their goods in order of custom authority after payment of custom and taxes. An agreement is made between warehouse owner, concerned businessmen or firm and custom authority that the goods cannot be taken out from the warehouse until custom and other necessary taxes is paid off. Government taxes can be paid either on lump sum or installment basis. The goods can be taken out on the ratio of the payment of the tax and custom.