Differentiating Various Types of Warehouses Based on Their Utility

The warehouses are important for any business irrespective of the level at which it operates. The warehouses help both large and small scale businesses at various levels of their operations. Some of the major functions of the warehouses consist of storing excess goods, price stabilization and risk bearing. The warehouses can help in supplying goods to the clients at their preferred location and on time to help you in building your business’s reputation.

There are different types of warehouses which are classified on the basis of their utility. Here is a look at the different classifications:

1. Private warehouses

Private warehouses are constructed and owned by business enterprises. They are built to stock the surplus products produced by them. The private warehouse is exclusively used by enterprises and not meant for public use. There are only small numbers of private warehouses in Philippines because of the huge costs of construction as well as maintenance of the warehouses.

2. Public warehouses

Public warehouses are also known as duty paid warehouses. They are open to the public at large. Small and medium enterprises cannot afford a warehouse of their own which makes public warehouses the best option for them. They can use the storage facility by in exchange for paying the warehouse owners a small fee. One should consider several factors such as space, location, security and rent before opting for warehouse for lease. Most business enterprises today opt for a warehouse for rent to respond to the growing need of exporters for cost efficient import services facilities.

3. Bonded warehouses

Bonded warehouses are used for storing imported goods which have not been granted clearance. The clearance is usually delayed on account of the non-payment of the customs duty by the importer of goods. The bonded warehouses are located near ports for obvious reasons. Goods are not allowed to be removed from the warehouse till the payment of customs duty by the importer. They are operated by either private agencies or government but a strict control is imposed by the customs authorities on them.

4. Special commodity warehouses

These warehouses are built for storing special commodities such as tobacco, wheat, cotton and the likes. While selecting these types of warehouses, the nature of commodity plays an important role.

5. Cold storage warehouses

Cold storage warehouses are used for storing commodities which are perishable in nature, such as eggs, milk, or butter. These warehouses help in storing the goods longer without getting spoiled and make the supply of certain commodities possible throughout the year.

6. Institutional warehouses

Various bodies and institutions have their own warehouses to meet the growing demands of their business operations. These institutes and bodies include banks, railways, food corporations, and the likes.

Explore web for more information on warehouses for rent and how you can get the best deal at affordable prices.