- The owner has full control over its operation and may make major decisions without having to consult anyone.
- The warehouse is designed to suit the specific needs of the organizations
- It enables special handling, storage and protection of goods having special facilities which may not be available in a public warehouse
- The owner is not tied down procedures of receiving and issuing goods unlike in public warehouse.
- The owner does not incur the cost of hiring space unlike with a public warehouse
- The operation can be easily automated because the goods to be received stored and dispatched are already known.
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