What comes to your mind when you hear the word warehouse? Well! You might say a warehouse is a building for storing goods. Manufacturing businesses, import and export houses, wholesalers, transport companies, and even e-commerce businesses use warehouses. However, did you know there are numerous kinds of warehouses that cater to specific business needs?

Yes, a warehouse is not just limited to being a storage facility, it is rather an essential element of the supply chain. Hence, choosing the best one for your particular business demands should be a top priority for you. The factors that you should keep in mind while looking for the right type of warehouse structures are supply chain, target market, funds, and the characteristics of the product itself. Following are the various forms of warehouses that you could choose from:

1. Private warehouse

A private warehouse is a specially designed storage facility run and controlled by manufacturers, traders, and resellers, who exclusively use it for their distribution activities. Such warehouses are ideal for:

  • Farmers- to store the produce in the vicinity of their fields
  • Wholesalers and retailers- storage that is close to their selling centers.
  • Manufacturers- to store goods near the production units

Fixed costs such as insurance, capital, interests, and taxes as well as variable expenses such as operational costs are never out of the picture. This may sound like an expensive affair, but we can assure you a properly put private warehouse is worth every penny. Some advantages of making private warehouses are:

  • They are long term business solutions that eventually control costs.
  • They offer optimum utilization of a business resource

2. Public Warehouses:

Public warehouses allow private companies to store goods on rent. These warehouses are mainly used by small business owners like manufacturers, producers, exporters, and importers. A public warehouse is a storage facility a business can use to store its products. These facilities more often than not also provide services like physical inventory counts, inventory management as well as shipping assistance.

The public warehouse costs or rentals are usually determined as per the number of stored goods, the extent of warehouse space consumed, and the other services that your business uses. When you use a public warehouse, you don’t have to invest in-

  • warehouse staff
  • inventory software
  • warehouse equipment

3. Bonded Warehouse

Owned, managed and controlled by the state and private agencies, bonded warehouses are used to store imported goods. These agencies can store your imported goods in their warehouses before paying the import duty. Bonded warehouses are mostly located near ports and border areas to curb sales of imported goods into the market without paying the taxes. Taxes for the Bonded warehouses are subject to two types:

  • Excise duty
  • Custom duty

4. Co-operative Warehouses

Co-operative Warehouses are held, operated and managed by Co-operative societies like farmer or winery co-operatives. These warehouses do not target profits, instead, their purpose is to help all the members of the cooperative society. These storage facilities offer economical rates exclusively to their members only. Experts like AW Structures provide great warehouse supplies to make excellent warehouses.

5. Smart Warehouse

Just like a smartphone, a smart warehouse too is automated and makes use of Artificial Intelligence (AI). All processes like storage, fulfillment process and management are performed by software, robots, and drones. Rapidly becoming popular, smart warehouses find most of their consumers from the e-commerce industry.

6. Distribution center

A distribution center is a large setup or a storage space, which is built to cater to specific time requirements. They allow fast transportation of massive volumes within a short period.

This kind of storage facility is the ideal storage for businesses that need swift shifting of goods within the supply chain. Distribution centers specialize in receiving and distributing large inventory to resellers and retailers quickly.

Food and other perishable items’ producers trust their goods with distribution centers’ facility because:

  • They allow swift distribution, sometimes as fast as within a day.
  • Distribution centers are affordable to rent.
  • They cater to product-specific needs.

We hope the article was helpful enough to clear your mind on the right warehouse-type for you. Let us know if you have any sort of queries.

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