Warehousing is an essential part of any manufacturing business. If this is a field you are looking to get into, then you must understand the different types of warehousing that currently exist. You also need to know how they operate. Keep reading for a comprehensive introduction.
Private Warehouses
Private warehouses are owned by suppliers and used exclusively for their operating activities. In these situations, the supplier is entirely responsible for the warehouse. This arrangement can be costly, so suppliers will only use private warehouses if it is cost-effective for their enterprise. The supplier will often choose to use a private warehouse in the following situations:
- To build a competitive advantage
- A strong base in a geographic region requiring permanent investment
- It will be useful for an extended period
Public Warehouses
These warehouses are owned by the government or government-affiliated organizations. Private firms may use these facilities if they pay rent. These warehouses are useful to small firms and companies who may not have the financial means to own their own warehouses outright. Governments often provide these warehouses to stimulate industry in a particular area
Bonded Storage
These warehouses are owned and managed either by the government or by private entities. They are mainly used to store imported products that have not yet had duty paid on them. If a private company manages them, then that organization must obtain a license from the government.
You will most commonly find these types of warehouses near ports. These holding centers ensure that all proper taxes are paid before the goods continue to their final destination. Imported products are subject to excise taxes as well as custom duty.
Co-operative Warehouses
Co-operative organizations own these types of warehouses. These societies allow only their members to rent space for an economical rate. Most of these warehouses are merely run to advance their member businesses rather than to make a profit themselves.
Distribution Centers
There is one main difference between a distribution center and many of the other kinds of warehouses on this list. Distribution centers are only designed to hold products for a short amount of time. Conversely, warehouses may house goods for upwards of a year or two. Distribution centers are designed to move large numbers of products efficiently to get them from point A to point B promptly.
These centers are usually found near transportation hubs so that the stored products can quickly make their way to their final destination. When dealing with perishable goods, the distribution center may house these materials for less than a day before they are on the move again.
Want to Learn More?
Now that you have a better idea of the types of warehousing that exists, you are ready to make some educated decisions for your company. We don’t expect you to glean everything you need to know from an introductory article, so we encourage you to speak with one of our warehouse storage experts today. We will be happy to answer any remaining questions you may have and help you make the best choice for your business
