commercial

Building for storage

of goods

Warehouses are used by

manufacturers

importers

exporters,

wholesalers,
wholesalers,

transport businesses,

customs etc.

Warehouse building

They are usually large plain

buildings in industrial areas of
cities and towns and villages.

Loading docks

They usually have loading

docks to load and unload
goods from trucks.

Directly loading & unloading

Sometimes warehouses are

designed for the loading and
unloading of goods directly
from railways, airports,
airports or
seaports.

They often have cranes

and forklifts for moving goods

Pallet racks
International
organization for
standardization
- ISO

Stored goods can included

Any
raw materials,
packing materials,
spare parts,
components, or
finished
finished goods associated with
agriculture, manufacturing and
production.

Ownership Point of View

Private
Public

Private - Meaning

The warehouses which are

owned and managed by the
manufacturers or traders to
store, exclusively, their own
stock of goods are known as
private warehouses.

Private
Generally these warehouses are constructed by
the farmers near their fields,
by wholesalers and retailers near their business
centres and
by manufacturers near their factories.
The design and the facilities provided therein
are according to the nature of products to be
stored

Public - meaning

The warehouses which are

run to store goods of the
general public are known as
public warehouses

Public

Any one can store his goods in

these
warehouses on payment of rent.
License from government
Government regulates the
functions.

Government - Meaning

These warehouses are owned,

managed and controlled by
central or state governments or
public corporations or local
authorities.

Examples

Central Warehousing Corporation of India, State

Warehousing Corporation and
Food Corporation of India

Custom duty point of view

Custom duty paid

Bonded

Custom Duty

"means the customs

procedure under which
imported goods are stored
under customs control in a
designated place (a customs
warehouse)

Custom

without
without payment of
import duties and
taxes...

Custom

Storage in customs
warehouses should [also] be
allowed for goods which are
entitled to repayment of
import duties and taxes
when exported.

Custom Duty
The custom duty in India is
regulated by Custom Act of 1962
This duty is imposed on imported
or exported goods in the country
Most imported duty hampers
illegal import or export

Bonded
Owned, managed and controlled
Private or Public agencies.
Pvt obtain licence from government
Store imported goods duty pending

Bonded

Also called customs warehouse

Owned by dock authorities
found near airports

Co-operative
operative Warehouses
These warehouses are owned,
managed and controlled by coco
operative societies.
They provide warehousing facilities at
the most economical rates to the
members of their society.

Characteristics of Ideal
Warehouses
located at a convenient place
Mechanical appliances Loading & Unloading
Adequate space
cold storage facilities.

Characteristics
Proper arrangement - sunlight, rain, wind, dust,
moisture and pests.
Sufficient parking space loading and
unloading
Round the clock security
latest fire-fighting
fighting equipments

Utility point of view

General
Special

Seasonal Production

Seasonal Demand

Large Scale Production

Quick Supply

Continuous Production

Prize Stabilization

Storage of goods

Time of their production or purchase till their

consumption

Protection of goods

Risk Bearing

Financing

Financing
Receipt as a proof
Warehouse keepers warrant
Document title
Helps to obtain loans
Warehouses also help in financing
short term

Processing

Commodities not consumed in

their exact form
Paddy polishing
Fruits ripened
Warehouses provide services

Grading and branding

Done on behalf of the

manufacturer
Mixing, blending and
packaging of goods

Transportation

Collection and sending of goods

Advantages
Protection and preservation of
goods
Regular flow of goods
Continuity of production
Convenient location
Easy handling

Advantages

Useful for small businessmen

Creation of employment
Facilitates sales of goods
Availability of finance
Reduces risk of loss