Know The Different Types Of Warehouses

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Warehousing refers to storage of goods and items with a certain purpose of preservation of goods till the time the consignment is released to the consumer. Therefore warehouses are particularly huge storage structures to safeguard the quantity as well as quality of products stored. The requirement of warehouse storage emerges in occasions when there is a gap between the actual production and market consumption of goods.

There are various types of warehouses suitable for different businessmen and purposes:

  • Private Warehouses
  • Public Warehouses
  • Bonded warehouses

Private Warehouses

These are dedicated and self owned warehouses of large enterprises and manufactures. Maintaining these kinds of warehouses requires a lot of expenditure on behalf of the companies who store their own goods in these private company owned warehouse. Private warehouses are particularly licensed to private business owners or manufacturers. Thus in these warehouses only those items can be stored that are imported on behalf or by the owner of the warehouse.

Public Warehouses

Public warehouses are meant for general usage by the public against a particular amount of charge. These can be owned by a single businessman or even by a cooperative society. A public warehouse is popularly known as a ‘duty paid warehouse’. These are licensed by the government for public usage. Generally these are located near public locations like railway junctions; bus stands or markets so that they can be readily accessed.

Bonded Warehouses

Bonded warehouses are controlled and monitored by the government directly or by the customs authorities. These are built and licensed by the government particularly to stock goods rather imported goods until their custom duties are cleared. Since these warehouses deal with imported goods, these warehouses are built near ports in general.

All these types of warehouses are meant for different usage types by different section of users. Therefore different types helps different segments of the market with their storage capacities.


Choosing The Right Warehouse For Storage And Logistics Management

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While trying to book a warehouse for your company’s storage needs, there are things that you need to check with the warehouse. There are calculations to be made about funding, the amount you want to invest on storage and warehouse rents, and the time span for which you would need the warehouse space. These are some indispensible calculations and factors that need to be kept in mind by the people, handling the accounts and management of a company.

When you should choose a government warehouse

The first thing that you would like to calculate is that for how much time you would need a warehouse. Depending on that you will decide what kind of warehouse you will rent or lease for your project or storage. There are different types of warehouses, and you will choose one depending on the facilities. If you are just keen on keeping your goods till you clear the customs, then the cheapest option would be the government warehouses close to the ports.
They are good enough for short span good storage and cheap logistics, though reliability on logistics management and goods handling can be questionable, as because most small business or exporters prefers these warehouses for easy transfer of their goods, and thus the bulk goods seldom allow them for extra cautious and super reliable goods handling.

Choosing a public warehouse

Definitely you won’t own a warehouse unless you are a business tycoon, therefore talking or thinking about private warehouses is useless. However if you still have some decent space to manage your storage, then you can temporarily use a small place in your premises. But while talking of warehouses, a small place would not do, and you will need a bigger place, and thus would have to go for a rental in a public warehouse.

Public warehouses, since owned by different companies have their own rules and terms, and these set of terms and conditions will differ from one public warehouse to another. But there lies the trick; to choose a warehouse which will be good enough from all respects. You would always want to keep tour goods in a place where it would cost you cheap or reasonably, will have all needed facilities, like climate conditioning, and other artificial conditioning, and would be sufficient with their equipment and infrastructure to manage your logistics too.

Unless you are a very big company with your own warehouse and logistics management system, you would like to get these services from a well operated public warehouse. Therefore it’s always good to do these researches before you make a contract for lease or rental with a warehouse.

How your choice is governed by budget

The budget factor governs the choice quite much. If you are tight on budget, you would have to look for a minimalist package, and may not expect many facilities other than simple storage of the goods. But with a decent investment, which you should ideally do for best condition and handling of goods, it’s wise to buy a contract or package where the warehouse will take responsibility of your logistics management too, making you invest for the whole thing at one vendor only instead of two separate investments.

After you make the choice and select your warehouse, you should take proper receipts and contract notes from them in pen and papers to avoid future problems with regard to goods handling. Often legal problems arise when you have damaged goods, and it often remains undetected where the damage happened; in the storage section or in transit. A proper contract with insurance will make it easier for you to claim for an insurance settlement in case you suffer damages with your goods in any way.


Selecting A Warehouse To Minimize Logistic Costs

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While talking of warehousing your goods, you must be very sure that the warehouse is located at a convenient distance from the mode of transport which you would be availing the most for your business. This is very important to help you keep your logistics cost the minimum.
A lion’s share portions of a business’ funds are invested on the logistics, and therefore most business owners do try to find a solution to that. There are several ways to bring down the cost of the logistics. Among the many effective ways, the control on warehousing can be a real good effort to minimize costs.

Choosing a warehouse close to the mode of transport

Good public warehouses are situated close to ports, airports, highways and railway stations. That’s because you avail one or the other route to transfer the goods, and opt either for shipping or air transfer or transfer through trucks, or through trains. In all the cases the positions of the warehouses have great importance. The closer they would be to the mode of transport, the easier it would be for the business to transfer the goods, and the costlier the warehouses would also be for offering these facilities.

However, thinking of the cost effectiveness in the longer run, its best to select a warehouse closest to the mode of transport. It may charge you more, but your logistics charges would be minimum as the distance between the warehouse and the port or station would decrease. Again the chances of poor handling of goods, and damage to goods due to such reasons would increase similarly, as the goods would be transferred through shorter distances.

Other factors affecting warehouse rentals

Warehouses close to the airport would be of a higher rate naturally. That’s because a warehouse close to airport would deal with goods which will be transferred exclusively by air, and would be high priced and high logistics paid items. Again a warehouse close to the highway and railways station would be of lesser rentals, as goods passed through these modes of transport are comparatively of lesser value.

If you are planning to lower your logistics costs, then you would need a warehouse not only close to the mode of transport, but also close to your business or factory. A warehouse in the midway would also be a good option in that case. The more you save on logistics and storage, the more you would be able to invest on other sides of your business and prosper.