Types of warehouses

Business studies study module

Warehouses can be broadly classified into three namely:

  1. Private warehouses
  2. Public warehouses
  3. Bonded warehoused

Private warehouses

These are warehouses that are owned private individuals/organizations for the purpose of storing their own goods only. They include:

  1. Wholesalers warehouses
  2. Producers warehouses
  3. Retailers warehouses.

Wholesalers warehouses

These are warehouses for storing the wholesalers’ goods as they await distribution or sale. They need warehouses because they buy goods in bulk from producers and store them until they are needed retailers.

-The wholesalers warehouses also act as showrooms i.e. they display their goods in the warehouse.

-These warehouses also enable the wholesalers to prepare their goods for sale e.g. branding, blending, packing and sorting may be carried out in the warehouse

Producers warehouses;

-These warehouses are owned producers and they are for storing goods prior to their demand.

-The producers may be manufactures of finished goods or farmers

-Such warehouses are built near the manufactures factories or the farmers production points.

-Manufactures who export may locate some warehouses near ports through which they export e.g Mumias sugar warehouse, Bamburi Portland cement warehouse e.t.c

Retailers warehouses

Some large-retailers such as chain stores and supermarkets own warehouses for storing their large stores

-It becomes necessary for such business to have warehousing facilities due to their large and bulky purchases dictated the nature of their business

-Goods are distributed from their warehouses to the retail outlets or to the branches

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