About private warehouse

What is Private Warehouse?

Private warehouse are owned by the company they are being used and Operated as a department in the company. They are mainly used by manufacturing companies because these companies need a lot of things to store such as raw material, semi-finished goods, finished goods and spare parts for the manufacturing machines. Moreover, they are used to store the dangerous products steel gasoline which some public warehouse prefer not to handle.

Advantages and of private warehouse
-Can store more equipment- as the company own the warehouse it can store everything until the warehouse is full.
-Do not need to pay rental fees
-Full control over warehousing operation

Disadvantages of private warehouse
-High start-up cost-the company have to use a lot of money in building the warehouse.
-High maintenance cost-when the warehouse is repaired or upgraded the company have to pay all the cost.
-High labour cost-the company have to hire more labour to manage the warehouse operation