The Different Types of Warehousing and Figuring Out Which One is Best for You

  • 2 min read

Although warehousing may initially seem straight-forward and uncomplicated, there are actually a number of different considerations that businesses need to consider. This includes determining what type of warehouse is best for them and their products.

Fortunately, ISS is here to break it down with our guide to the different types of warehouses and how to figure out which is best for you.

Private Warehouses

As the name suggests, private warehouses are privately owned by wholesalers, distributors, or manufacturers. These include:

  • Warehouses owned and managed by wholesalers and retailers
  • Warehouses rented out by retailers
  • Warehouses located near a farmer’s agriculture field
  • Warehouses constructed by a manufacturer’s production unit
  • Warehouses owned or leased by wholesalers.

Private warehouses are generally more expensive than other warehousing options. They do, however, boast the benefits of added security, and greater long-term potential.

Public Warehouses

Public warehouses are government-owned distribution centres. They are often leased out to smaller businesses that don’t have the financial ability to purchase or rent a private warehouse.

Public warehouses are a great option for new and small businesses, and for short-term distribution projects. Most public warehousing space is utilised by manufacturers, producers, exporters, and importers who are affiliated with franchises.

Bonded Storage Centres

Bonded storage centres (or bonded warehouses) are warehouses that can store imported goods before customs duties are required to be paid on them. Companies storing goods in bonded storage centres don’t have to pay any duties until their items are released and can store restricted goods until their proper paperwork is complete.

These warehouses are perfect for importers as they can keep their items duty-free until they find buyers. They also have reputations as secure and safe storage spaces for goods, making them ideal for businesses that don’t have private warehouses.

Co-Operative Warehouses

This is your most economical type of warehousing system. Co-operative warehouses are run by co-operative societies, which are voluntary organisations. Co-operative organisations don’t earn a profit, so they don’t charge heavy rental fees for distribution.

Smart Warehouses

Smart warehouses are warehouses where all processes are managed and automated with artificial intelligence. Automation typically includes everything from software for management, to robots and drones performing tasks like packing, weighing, transporting, and storing goods.

These warehouses are pricier; however they make order fulfilment quick and less prone to human error.

Distribution Facilities

Distribution centres provide computerised control, which makes the movement of goods fast, reliable, and easy. Goods are shipped to the handling facility the morning of the operation, then quickly moved to a nearby distribution centre.

This is the best facility to conduct business operations when there is a large, urgent order of perishable items that need to be shipped.

Determining which type of warehousing facility is best for you ultimately comes down to the type of products you are shipping, how much you need to ship, and your budget.

Before selecting your warehouse, we recommend you give ISS a call. We’ll be able to point you in the right direction and help you find the most cost-effective and appropriate warehouse for your business.