Warehousing is the deed of storing products or goods to distribute or sell it later. For warehousing, Big businesses with a large number of goods use big sheds, buildings, etc. whereas little or home-based businesses use lean rooms, basements, garages, etc.
Warehousing comes below the branch of logistics management. It is a sophisticated industry that includes acquisition, management of inventory, and distribution. This falls under the shelter of the supply chain which also involves marketing, goods development, sales, and any other goods-related projects. we will see types of warehouses and their importance.
A warehouse is known as “an establishment for the storage or collection of goods.”
why warehouse is important in business?
Warehouse plays important role in business. warehousing has been around for many decades, and it has helped businesses provide various storage needs. It creating inventory control, keep price stabilization, risk-bearing, financing, Grading and packing, Transportation, Time and place utility, processing that’s why a warehouse is important. for more detail – 7 Ways a Self-Storage Unit Can Benefit Your Business
We will discuss all Types of Warehouses management in detail
The private warehouses are controlled by individual or large companies to fulfill their own storage needs. Businesses that require big storage capacity on a regular basis and who can afford the money, construct and sustain their private warehouses a wholesaler or manufacturer may have a chain of their own warehouses in different parts of the country.
This type of warehouse is managed by a company that is also involved in other aspects of the distribution channel. For example, a larger retail chain may have different regional warehouses providing their stores or a wholesaler will manage a warehouse at which it collects and distributes products.
A public warehouse is a specializing company establishment that gives storage facilities to the common public for a specific charge. It may be controlled by an individual or a cooperative society. It works under a license from the government in accordance with guided rules and regulations. Public warehouses provide storage facilities to small manufacturers and merchants at an affordable cost. These warehouses are strongly constructed and observed round the clock to ensure the safekeeping of goods. Public warehouses are basically located near the railways, highways, and waterways.
For example, retailers may want the extra stock to prepare for in-store sales or order a high volume of stock that is given at a low promotional rate by a supplier.
Bonded warehouses are authorized by the government to accept imported products for storage until the payment of customs duty/Taxes. These warehouses work under the power of customs authorities. The warehouse owner is needed to give an undertaking or ‘bond’ that will not support the bond and cannot be removed without paying the customs duty. If an importer is not capable to pay customs duty quickly after the arrival of goods he can store the goods or product in a bonded warehouse. He can withdraw the goods/products in installments by paying the customs duty proportionately.
These bonded products are only stored for a short span of time, through which the duties and taxes should be given in full. Otherwise, the shipment is stolen and sold according to the laws of that country. Most of the time, however, they dispose of these shipments.
Duty paid warehouse
After making payment of duty then goods can be saved at this type of warehouse. All duty paid warehouses are public warehouses that are open to all importers. Duty paid warehouses benefit the importer as proper care of goods is taken, processing of goods can be taken like sorting, re-packing, etc. such warehouses are more beneficial for re-export of the goods. This type of warehouse is located near the port 7 duck area. It is controlled by public authorities. Surveillance is performed by
This type of warehouse is owned, controlled, and managed by government or public authorities. It is very tough for small farmers, businesses to have a warehouse, these government warehouses help them in storing their goods at low charges. State Warehousing Corporation (SWC), Central Warehousing Corporation of India (CWC), and Food Corporation of India having warehouses across various states and countries.
As the very name suggests, these warehouses are owned, run, and controlled by cooperative societies. These societies give storage facilities at the cheapest rates to their members only. The primary purpose to control such warehouses is not to make a profit but to support their members. This type of warehouse is very useful for farmers and traders and the common public.
Cold Storage Warehouses
Cold storage warehouses give facilities for which products get perishable like fruits, flowers, vegetables, dairy products, etc. Goods are stored and refrigerated at very low temperatures so as to protect them and be utilized in the future. because of cold storage warehouses, international trade has become possible.
for more details watch this video
So these were Types of Warehouses t that every businessman and commerce student should know. I hope you guys must have known the Types of Warehouses. I request all of your browsers that you also share this knowledge with your neighbors, relatives, your friends so that there will be awareness with us and everyone will profit a lot from it.
I need your help so that I can pass on more new information to you guys.
But still, if you see any need in this post of our Types of Warehouses, then please give your view in the comment box and help us to improve that deficiency, thanks.
Faq on warehouse
1. Who owns private warehouses?
Answer- The private warehouses are owned and controlled by individual or large companies to fulfill their own storage needs.
2. What is the full form of CWC?
Answer- Warehousing Corporation of India.
3. Who controls co-operative warehouses?
Answer- Co-operative warehouses are owned by co-operative societies.