Private Warehousing or proprietary warehousing is the separate storage facility that is established and maintained by large companies or single manufacturing units. These warehouses are supervised and operated as a separate unit within a company.
The private warehouses are constructed on-site and off-site locations depending upon the requirements. For a company, these warehouses are the fixed corporate investment in building, land and equipment.
Types of private warehouses:
On-site warehouse :
The on-site warehouses are established at a centralized location or can be independently constructed at different manufacturing facilities.
Off-site warehouse :
These warehouses are situated closely to marketing areas and are used for the storage of on-site inventory. These serves as the distribution center for finished goods.
- The clients are facilitated with various tax as well as intangible benefits
- Cost less in long term
- Better availability and use of human resources