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Warehousing: Helps in Financing Private Warehouse

When goods are deposited in the warehouse, the warehouse provides Warehouse Deposit Receipt Private warehouses comprise those kind of warehouses which are owned or leased by a company or
(WDR). This WDR can be used as a security to raise loans or advances. The WDR is endorsable organization for its own private use to store its own goods. These type of warehouses are generally
used by companies with long term stable warehousing needs. Large retail companies like Big
and can be traded. In India WDR is used in case of agricultural commidites and certain specified Bazaar or Reliance, large E-commerce companies like Flipkart, large FMCG or FMCD companies
warehouses are authorized to issue WDR which are accepted by Banks for Loan purposes. tend to build private warehouses.

In case of Imports, Bonded Warehouse can be stored to imported goods and defer the duty payment. Private warehouses allow the owning company a large amount of control and flexibility in running
The custom duties will be required to be paid only on withdrawal from the bonded warehouse. their operations. They can build automation and mechanization within the warehouse taking long
term view. These private warehouses are firmly wedded to the company’s supply chain strategy and
1.5 Various types of warehouses long term planning.

There are various ways of classifying the Warehouses: Public Warehouse

1. On the basis on ownership Public Warehouses are those warehouses which are owned by organization like Government,
cooperatives, private sector companies or individuals. The space in the public warehouse can be
2. On the basis of products being stored used by any other organization by paying a fee for usage of space.

3. On the basis of special Services Central Warehousing corporation (CWC) is the largest Government sector public warehousing
company. It mainly offers space for storage of agricultural produce.
4. On the basis on temperature
Several warehouses and logistics parks have been built by built by private sector and individuals
5. On the basis of Construction who offer space for rental charges. Companies like Indo Space are dedicatedly into building
warehouses and offering space to clients.
6. On the basis on the Structure
Public warehousing offers benefits like flexibility in changing the location, no large capital
1.5.1 Classification of warehouses based on the ownership investments, ease in changing the location, scalability, no fived cost, minimal risk and economies
of scale.

As outsourcing in supply chain is gaining momentum, more and more companies are moving from
On the basic of a private warehouse set up to a public warehouse set up.

Ownership 1.5.2 Classification of warehouses based on the Products being stored

On the basic of
Products being stored

Hazardous
Spare parts
Public Private Commodity Bulk Warehouses Warehouses Warehouses General Mercandise
Warehouse
Warehouses
warehouses Warehouses
Commodity Warehouses:

These warehouses are constituted for storing commodities like wheat, rice, sugar, lentils, tobacco,
cotton, etc. Non-food commodities like jute, fertilizers, wood pulp etc. The material is stored