Warehouse is a large building in which goods, raw materials, or commodities are stored.
Types of Warehouses
- To store bulk purchases for wholesaler or producer.
- Goods are packed and branded in warehouses.
- Retailers can purchase goods when they are cheap and can stock excess purchase.
- So that goods are always available to fill the space on shelves.
Use warehouses for blending, grading, packing and branding.
Store goods from variety of manufacturers.
To store bulk purchases from producer
Warehousing helps to stabilize prices
Cash and Cary Warehouses
Retailers can buy in small quantities.
Cheap because of bulk purchases, no credit facility and no delivery.
Special warehouse with refrigerating plants.
Perishable items can be stored.
Temperature can be set at will.
Insulation is done.
Regional Distribution Centers
Owned and maintained by large scale retailers and wholesalers.
Located close to a good road network.
Supermarkets/multiple chains/variety chains/franchise/chain of department
stores/hypermarkets mainly use regional distribution centers.
- Used to keep stock of finished goods and raw materials.
- Help producer to carry on production when there is shortage of raw material.
- Can help producer keep on production when there is less demand.
- Produced can get benefit of trade discount be purchasing raw material in bulk.
- Located in manufacturers production houses.
These are owned by public sector (government).
Different government agencies can stock their material.
Also available on rent to private sector.
Are owned by government and are under the control of custom authorities.
Dutiable goods are stored, on which duty is not yet paid.
Normally located on ports.
Traders have to pay the rent.
Grading, blending, packing, branding and sub-assembly can be done.
Trader can also sell the cargo and the new owner has to pay the duties.
Nothing can be taken out of warehouse without paying duty.
Trader can pay some of the duty can get proportional amount of cargo released.
Exporting can also be done without paying duty.
It enables government to collect custom duties.
Government gets information about the types of goods imported.