Essential Facts About Public Warehousing

Public warehousing refers to the process of storing products and goods on legitimate public warehouses

. A public warehouse actually refers to a warehouse which mainly focuses on storing the goods and products of the general public. Everyone can store their items in this establishment as long as they can pay the specified rental fee. In order for this business to operate, it requires government license. The government also works in regulating the operations and functions of the said warehouses. These establishments are actually useful for almost all wholesalers, manufacturers, importers, exporters, government agencies and any other individuals who have a large quantity of items that can no longer be stored in their premise.

If you are currently in search of a public warehouse, then it is advisable for you to consider the legitimacy of the firm before choosing. It is also important for you to determine the factors that can affect storage cost. These include the interest on the capital which is primarily used in buying the warehousing site, interest on funds used in buying the furniture, repair and maintenance cost, building and equipment depreciation, insurance, variable costs for every unit which is processed and handled and the size and weight of your container. You have to determine how much it will cost you to store your items in a specific warehouse so you will know if it fits your budget.

It should also be noted that public warehousing is more beneficial than the other types of warehouses. One of these advantages is that it is generally less expensive. Storing your items in a public warehouse only requires you to pay for the specific amount of space that you need. This allows you to earn huge savings since you no longer need to acquire and run a distribution system which needs a building and costly features and technology to help you in managing your supply and distribution. You can use your savings in boosting the profitability of your business through proper human resource development, marketing and research and development.

You will also enjoy the fact that public warehouses are positioned strategically, making them easily accessible and available. These are also flexible enough so you have a hundred percent assurance that they can meet the majority of your space requirements. Other advantages include well distributed warehousing cost, flexibility, offers adequate space to effectively handle peak requirements, reduced operational risks, offers tax advantages and offers more dedicated resources. A public warehouse is also a good choice because of its close proximity to customers.

It should be noted, however, that there are also disadvantages to public warehousing. Among these are communication problems because of system incompatibility. There are also instances when specialized services and adequate space will not become instantly available for end users whenever they are needed. Still, it is safe to assume that the benefits of public warehouses outweigh their disadvantages since these warehouses will always be among the most cost-effective solutions for seasonal distribution programs, effective inventory and product storage, supply chains requiring numerous distribution points and product overflow which usually exists in distribution centers.

by: Susan J Morris

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