Warehouse is a large building in which goods, raw materials, or commodities are stored.

Importance of Warehouses

  1. Protection of goods against climatic conditions.
  2. Protection from theft.
  3. Producers can store raw material for future production.
  4. Surplus created can be stored before being finally sold.
  5. Shortages in the market can be avoided.
  6. Price fluctuations can be minimized.
  7. International trade is not possible without warehousing.
  8. Traders can keep their cargos in bonded warehouses, before they pay the duty.
  9. Plays important role when demand for products or the time of production is seasonal.
  10. Provides place for display of goods.

Types of Warehouses

Retailers Warehouse/Depots

Wholesalers Warehouse

Cash and Cary Warehouses

Cold Storages

Regional Distribution Centers

Manufacturers Warehouse

Public Warehouses

Bonded Warehouses

Difference between Bonded and Ordinary Warehouses

  Bonded Warehouses Ordinary Warehouses
1. Located near ports. No specific location.
2. Controlled by custom authority. Controlled by the owners.
3. Stores dutiable goods Store finished goods and raw materials.
4. Dutiable goods can not be removed until the duty is paid. Free movement of goods in and out.
5. Owned by government, Owned by private sector.