Types Of Warehouses


What Is Warehouse?

Warehousing is the process of storing goods which are to be distributed later. A warehouse is defined as any place which is used in the accumulation of goods.

Types Of Warehouses

  1. Public Warehouses
  2. Private Warehouses
  3. Bonded Warehouses
  4. Smart Warehouses
  5. Consolidated Warehouses
  6. Cooperative Warehouses
  7. Government Warehouses
  8. Distribution Centers
  • Public Warehouses
    Public warehouses are owned by governmental bodies and made available to private sector companies as compared to different types of warehouses.
    Public warehouses can be lent for both business and personal use. If you’re an SMB owner and want to store your goods for a short period of time, a public warehouse can be a great option as compared to other types of warehouses.
    Although typically not that advanced technologically like different types of data warehouses, they’re generally the most affordable and accessible option and thus a solid choice for eCommerce startups and SMBs as compared to private warehouses.
  • Private Warehouses
    A private warehouse is a warehouse that is privately owned by wholesalers, distributors, or manufacturers. Large retail and online marketplaces also have their own privately-owned warehouses.
    Although generally more expensive than public warehouses, private warehouses can still be a great option for eCommerce SMBs if they need a major, long-term strategic presence in an important region 一 in comparison to different types of warehouses in the supply chain. Though the capital investment is pricier than other warehouses, private warehouses still remain a great warehouse option.
  • Bonded Warehouses
    A bonded warehouse is a type of warehouse that can store imported goods before customs duties are required to be paid on them. Authorities give companies using their bonds when they rent space with them to ensure they don’t face monetary loss at the time their products are released.
    Plus, companies storing goods in them don’t have to pay any duties until their items are released. You can also store restricted items in them until their proper paperwork is complete. A bonded warehouse also offers facilities to store items for extended periods of time.
    Such types of warehouses in the supply chain are perfect for importers as they can keep their items duty-free until they find buyers. They also have reputations as secure and safe storage spaces for goods, making them ideal for eCommerce businesses that specialize in cross-border training in comparison to different types of warehouses.
  • Smart Warehouses
    A smart warehouse is a type of warehouse where the storage, fulfillment process, and management are automated with AI. Automation typically includes everything from software for management to robots and drones performing tasks like packing, weighing, transporting, and storing goods.
    Corporations like Amazon and Alibaba use huge smart types of warehouses that make order fulfillment quick and less prone to human error. With smart warehouses, there’s no need to worry about warehouse management.
  • Consolidated Warehouses
    A consolidated warehouse is another type of warehouse that takes small shipments from different suppliers and groups them together into larger shipments before distributing them to buyers. The catch is that all the shipments are intended for the same geographical location.
    Overall, though, consolidated warehouses are a very economical way of order fulfillment, especially for small businesses and new startups in comparison to different types of warehouses in the supply chain.
    The capital investment and volume of inventory required to use consolidated warehouses are fairly small too, making them a great option for eCommerce SMBs just getting off the ground.
  • Cooperative Warehouses
    A cooperative warehouse is a warehouse that is owned and run by cooperative organizations like a farmer or winery co-op. Both co-op members and those outside the co-op can store goods at these facilities, though co-op members benefit from reduced rates with these types of warehouses.
    Though this is a different type of warehouse management, cooperative warehouses can be a great option for cooperative organizations.
  • Government Warehouses
    These types of warehouses in the supply chain are directly owned and controlled by the government, such as seaport storage facilities.
    Typically, government warehouses charge fairly affordable rates. However, if a business is unable to pay their rent within the due time, the government has the authority to recover their rent by disposing of their goods.
  • Distribution Centers
    A distribution center is a storage space that is usually built with specific requirements in mind.
    The storage is used for temporary needs and items are shifted quickly within the supply chain. A large inventory is received and distributed to resellers and retailers within a short period of time.
    In the case of some food and perishable items, distribution centers items are often distributed within a day. Generally, distribution centers are affordable to rent in and can vary greatly depending on what types of products are being stored in them.

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