Disadvantages of public warehouses

Business studies study module
  • The hirer is denied the opportunity to physically handle the goods and is forced to compete for attention with other hirers of the warehouse. If the hirer had his/her own warehouse, he/she would have absolute authority on the goods and therefore enjoy individual attention.
  • The hirer may lose contact with his/her customers since they get goods from a rented warehouse, away from the hirers premises
  • The hirer may get poor services or miss space altogether during peak seasons due to stiff competition for the same facility.
  • Documentation involving receipt and release of goods in a public warehouse is likely to be a long and complicated procedure due to the large number of clients involved.
  • Continued renting of space can even be more expensive than constructing one’s own warehouse in the long run
  • Public warehouses are sometimes situated far away from the hirer’s premises unlike private ones which are usually within the vicinity of the owner’s premises.
  • The operations of a general merchandise public warehouse are difficult to automatic because different kinds of goods need different methods and equipment to handle them.

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