• Special commodity warehouse is designed to handle bulk material or items with special handling considerations, such as tires or clothing.
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Public Warehouse…
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Public Warehouse…
• General merchandise warehouse is designed to handIe general package commodities such as paper,metal material, and mechanical and electrical products.
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Contract Warehouse
• Contract warehousing combines the best characteristics of both private and public operations.
• (1)Contract warehouse operations can provide benefits of expertise, flexibility, and economies of scale by sharing management, labor, equipment, and information resources across a number of clients.
• Refrigerated warehouse (either frozen or chilled) handles and maintains food, medical items, and chemical products with special temperature requirements.
• (2) high fixed cost
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Public Warehouse
• On the basis of the range of specialized operations performed, public warehouses are classified as
– (1) general merchandise warehouse, – (2) refrigerated warehouse, – (3) special commodity warehouse, – (4) bonded warehouse, and – (5) household goods and furniture warehouse .
• (3)Public warehousing offers flexibility in that it is easy to change the location, size, and number of facilities, allowing a firm to quickly respond to supplier, customer, and seasonal demands.
• Often it is not possible to find a warehouse for lease that fits the exact requirements of a firm.
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The benefits of Private Warehouse
• The major benefits of private warehousing include control, flexibility, cost, and other intangible benefits.
Warehousing management
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Private Warehouse
• A private warehouse is operated by the firm owning the product.
• The actual facility, however, may be owned or leased.
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Drawbacks of private warehouse
• (1)When management performance is judged according to return on investment (ROI), the use of private warehousing needs high and steady demand volumes
• (2)When management performance is judged according to return on investment (ROI), the use of public warehousing can substantially increase enterprise return.
• (1)Private warehouses provide more control since the enterprise has absolute decisionmaking authority over all activities and priorities in the facility.
• Bonded warehouse is licensed by the government to store goods prior to payment of taxes or duties.
• Finally, a household goods or furniture warehouse is designed to handle and store large, bulky items such as appliances and furniture.
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The benefits of Public Warehouse
• (1)From a financial perspective, public warehousing may have a lower variable cost than comparable privately operated facilities.