Introduction
A public warehouse is an entity owned by the government; however, it can be utilized by private users if they pay rent; its major aspect is the dependence on governmental control. An example of this type is Brite Logistics – the company that stores its own goods as well as puts up its warehouses for rent. Private warehousing belongs to suppliers and resellers who deal with distribution; the best instance is Amazon as it provides its spaces to different firms (Rudd, 2019). This type allows owners to attract stakeholders and make money.
Discussion
A contract warehouse is an entity responsible for storing the goods of a client that signed the agreement with the owner. The most essential part of this warehouse type is its agreement terms which enable one to establish a desired rental system. United Parcel Service in America is a contract warehouse because stores and ships its clients’ products. Finally, a cross-dock warehouse is a type of sortation center with minimal space (Rudd, 2019). Its most important aspect is the ever-growing flow of suppliers and retailers. Often, goods are received and shipped out within 24 hours; an example of this kind is Cross Dock America as this company allows for fast movement of goods within a day – from storage to shipment.
Any company involved in the supply chain should have a warehouse for several reasons. Primarily, it is necessary for storing goods in perfect condition as such places usually have engineering-wise construction and temperature systems. All products undergo inventory which lowers the chance of selling expired items (Rudd, 2019). It also allows for avoiding any theft incidents at the workplace. Keeping one’s product is better in a safe place since modern warehouses are supplied with decent security systems and are located in remote locations (Rudd, 2019). In addition, in case the goods cannot be delivered or distributed timely, the warehouse is a perfect solution.
Conclusion
Ultimately, it ensures improved customer service, which means that all clients may track the information regarding their parcel’s location. These are the major reasons why a company needs to obtain or rent a warehouse; otherwise, a manufacturer will have to face numerous storage-related issues.
Reference
Rudd, J. (2019). A practical guide to logistics. Kogan Page Publishers.