TYPES OF WAREHOUSING:-
1. Private Warehouses:
These are owned and managed by the channel suppliers (manufacturers/traders) and resellers and are used exclusively for their own distribution activities.
Examples:
(a) Warehouses constructed by farmers/producers near their fields/places of work.
(b) Warehouses owned and managed by wholesalers and retailers close to their selling centers.
(c) Warehouses constructed by manufacturers near their production units.
(d) Warehouses taken on rent by retail stores.
(e) Retailers may have several regional warehouses to cater to the needs of their stores.
(f) Warehouses owned/leased by a wholesaler where it stores and distributes. Maintaining private warehouses involves fixed as well as variable costs. Examples of fixed costs are basically the investments made in terms of insurance, capital, interests, and taxes. The variable costs, on the other hand, include maintenance costs and operating costs.
Therefore, due to large expenses, private companies prefer to have the assistance of public warehouses and will go for private warehouses under the following situations:
(i) Wide presence and firm commitment in the region and necessity to have a permanent base in an area.
(ii) Considering long term strategic advantage
(iii) Scope of optimum utilization is assured for long periods.
(iv) To build an advantage over competitors.
2. Public Warehouses:
These warehouses are owned by the government and semi-government bodies and are made available to private firms to store goods on payment of rent. The public warehouses are usually set up to help small traders who are not in a position to have their own warehouses due to financial constraints.
Therefore, to promote trade and industry, central or state governments come forward to cater to such storage needs of traders/retailers. Anyone can avail of these facilities to solve its short-term distribution needs. Retailers sometimes due to increased sales even find their private warehouses insufficient if their facilities have reached capacity or if they are making a special, huge purchase of products for some reason.
For example, before festivals or before marriage seasons, retailers may order extra merchandise to avoid ‘out of stock situations. These warehouses are typically regulated by government bodies. Costs incurred by the private firms for the use of public warehouses are considered a variable. These warehouses are mainly used by manufacturers/producers, exporters, and importers.
3. Bonded Storage:
These warehouses are owned, managed, and controlled by the government as well as private agencies. Bonded warehouses are storage facilities used to store imported goods for which import duty is still to be paid. The bonded warehouses run by private agencies have to obtain a license from the government.
In actuality, this enables the government bodies to hold control over private firms to pay their taxes on time. Without paying duties, importers cannot take over or open the goods. Globally, it has been seen that these warehouses are found near the ports and are usually owned by dock authorities. Bonded warehouses are subject to two types of taxes: (a) Excise duty and (b) Custom duty.
4. Co-operative Warehouses:
As the very name implies, these warehouses are owned, managed, and controlled by cooperative societies. These societies provide storage facilities at the most economical rates to their members only. The basic purpose to run such warehouses is not to earn profit but to help their members.
5. Distribution Centres:
This type of storage facility usually has large space, which enables fast movement of large quantities of stores for a short period. While, on the other hand, conventional warehouses hold goods for a long time, say 2 months or 1 year.
These warehouses basically by nature, serve as points in the distribution system at which goods are procured from different suppliers and quickly transferred to various customers. These centers provide computerized control, which makes the movement of goods quick, fast and reliable.
To minimize delivery time, these storage facilities are found close to transportation centers. In some cases, distribution centers handle the goods for less than a day such as in the case of fast foods or perishable products. Most of the goods enter in the early morning (dawn time) and is transferred/distributed by the evening time
Climate-Controlled Warehouse
Warehouses handle storage of many types of products including those that need special handlings, such as freezers for storing frozen products, humidity-controlled environments for delicate products, including produce or flowers, and dirt-free facilities for handling highly sensitive computer products.
Distribution Center
There are some warehouses where product storage is considered a very temporary activity. These warehouses serve as points in the distribution system at which products are received from many suppliers and quickly shipped out to many customers. In some cases, such as with distribution centers handling perishable food (e.g., produce), most of the product enters in the early morning and is distributed by the end of the day.
let's check the various types of warehousing.
· Public Warehouses - These are popular in India but they resulted in poor working efficiency. They are provided by central and state governments to ensure the storage of essential items needed in the future.
· Private Warehouses - These are usually owned and maintained by the same firm or the channel suppliers. They ensure a sound communication system between the production center and warehousing units.
· Contract Warehouses - These types of warehouses are a hybrid of the best qualities from the public and private warehousing. Contract warehousing facilities are a win-win situation for both the owner and clients as they have contributed to each other for their business.
· Automated Warehouses - They can handle a large number of small orders with the fully automated facility where few people are needed to handle large storage activity.
· Climate Controlled Warehouse - These warehouses can handle the storage of many types of products needed special handling conditions such as freezers for frozen products and humidity-controlled environments for delicate products like flowers, drugs, etc.
· Distribution Centre - In these distribution centers, goods (like milk, bread, vegetables, fruits, fish, and meat products) are received in bulk at night and shipped in small crates to several places.
· Bonded warehouses:
These warehouses are owned, managed, and controlled by the government as well as private agencies. Bonded warehouses are storage facilities used to store imported goods for which import duty is still to be paid. The bonded warehouses run by private agencies have to obtain a license from the government.
In actuality, this enables the government bodies to hold control over private firms to pay their taxes on time. Without paying duties, importers cannot take over or open the goods. Globally, it has been seen that these warehouses are found near the ports and are usually owned by dock authorities. Bonded warehouses are subject to two types of taxes: (a) Excise duty and (b) Custom duty.
. Co-operative Warehouses:
As the very name implies, these warehouses are owned, managed, and controlled by cooperative societies. These societies provide storage facilities at the most economical rates to their members only. The basic purpose to run such warehouses is not to earn profit but to help their members.
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