DIFFERENT TYPES OF WAREHOUSES

TYPES OF WAREHOUSES:

The concept of warehousing is one of the most important aspects of any business. Warehouses are large structures wherein raw materials or finished goods are stored and distributed for sale. There are a variety of warehouses as it has a lot of diversifications. They come in different sizes, with various features and in a range of locations and with distinct business structures. Before making any decisions to select a particular warehouse, you must take a closer look at the different types of warehouses to make an informed decision. We will discuss everything about the different types of warehouses and the one that is right for your business.

 

PRIVATE WAREHOUSES PUBLIC WAREHOUSES SMART WAREHOUSES
BONDED WAREHOUSES CONSOLIDATED WAREHOUSES COOPERATIVE WAREHOUSES
GOVERNMENT WAREHOUSES DISTRIBUTION CENTRES COLD STORAGE WAREHOUSES

Private Warehouses

These kinds of warehouses are controlled by an individual or large companies to fulfil their own storage needs. This type of warehouse is managed by a company that is also involved in other aspects of the distribution channel. It is not open to the general public and is a better choice for many retail and e-commerce businesses.

Public Warehouses

Public warehouses provide short or long-term storage solutions to the public or companies on rent or a specific charge. It may be controlled by an individual or cooperative society. It works under a license from the government in accordance with guided rules and regulations. Public warehouses are basically located near the railways, highways and waterways.

Smart Warehouses

This type of warehouse is mostly run by e-commerce companies through Artificial Intelligence (AI). The whole process from storage, fulfilment, and management is automated. Automation refers here to the use of the software through which the company manages the task from packing and shipping. Big brands like Amazon and Alibaba use smart warehouses that make order fulfilment less prone to error. Hence, there is no need to worry about the management.

Bonded Warehouses

Bonded warehouses are licensed by the government to accept imported goods for storage until their custom duty has been paid/cleared. The customs authorities have full control over the work of this kind of warehouse. The warehouse keeper is required to give an undertaking or Bond that it will not allow the goods to be removed without the consent of customs authorities. It means that the goods cannot be withdrawn without paying the customs duty.

Consolidated Warehouses

This type of warehouse has a third-party storage facility. They take small shipments from different suppliers and group them together into one truck and deliver at the same geographical location. These warehouses are the best economical way of order fulfilment, especially for small businesses and new start-ups.

Cooperative Warehouses

Cooperative warehouses are owned, managed, and controlled by cooperative societies. They mainly provide warehousing facilities at the most economical rates. These types of warehouses are very useful for farmers, traders and the general public because the purpose behind running such warehouses is to drive profits and be a help to their members.

Government Warehouses

These types of warehouses are owned, managed, and controlled by the central and state government or public authorities. When any company or seller chooses to store goods in the government warehouse, they shall be subject to rent and other charges prescribed by the government. If the seller is unable to pay their rent within the due time, the government has the authority to recover the rent by disposing of their goods.

Distribution Centres

Distribution centres are warehouses that have larger space than any other warehouses. These warehouses store goods from multiple suppliers in a larger quantity but for a very short time period. These centres provide computerized control, which makes the movement of goods quick, fast and reliable. In order to minimize delivery time, these storage facilities are found near the transportation centres. In the case of some food and perishable items, goods are stored in the centre for less than a day.

Cold Storage Warehouses

When it comes to temperature-sensitive products, cold storage is a warehouse type that stores items at a low temperature to protect them and be utilized in the future. This type of storage is required for medicines, perishable goods, foods, plants, candles, personal care products etc.

 

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