Question

Answer the following question:

What is warehousing? Explain different types of warehouses.

Answer 1

Introduction: -Warehouse is a storage structure constructed for the protection of the quality and quantity of the stored goods. A businessman has to keep different kinds of goods, so there is always a need for different types of warehouses, which are as follows.

1. Private warehousing: Private warehousing is owned and managed by the manufacturers or traders to store their own goods. Big business firms that need large storage capacity on a regular basis construct their warehouses. Generally, these warehouses areconstructed by farmers near their fields, by wholesalers and retailers near their business areas and by manufacturers near their factories to store their products.
2. Public/commercial warehouses: This type of warehouses is established to provide storage facilities to the general public for payment of certain fees. It may be owned by an individual, partnership firm, company, etc. these warehouses have to obtain a license from the government. They are generally located near railway stations, highways, airports, seaports, etc.
3. Government warehouses: These warehouses are owned, managed and controlled by Central and State government or public corporations or local authorities. It is difficult for the small traders, farmers, businessmen, etc. to own a warehouse, so these government warehouses assist them in storing their goods at a nominal charge.
4. Bonded Warehouses: Bonded warehouses are licensed by the government for storing imported goods until the custom duty is not paid. They are located near the ports. They are either operated by the government or custom authorities. The goods are held in bond and cannot be withdrawn without paying the customs duty. Such warehouses are very useful to importer and exporters
5. Duty paid warehouses: If an importer faces any problem in the transportation of goods, after making payment of duty, then goods can be stored at Duty Paid Warehouses. All duty paid warehouses are public warehouses that are available to all the importers whether big or small. These warehouses are more helpful for some businessman, who re-exports the goods.
6. Co-operative warehouses: These warehouses are owned, managed and controlled by the co-operative societies. They provide warehousing facilities in rural areas. These types of warehouses are very useful for farmers and traders. They provide warehousing facilities at the most economical rates to the members of the society and also to the public.