Bonded Warehouses:
They may be situated anywhere but they are found mainly at seaports, dry ports and airports.They are used to store dutiable goods on which duty is not paid.
Importance:
1.Importer can postpone payment of duty
2.Entrepot trade can take place without payment of duty.
3.Bonded warehouses located in cities and towns are important to producers of dutiable goods such as beer which is brewed for sale in the home market.
Cold Storage Warehouses:
These are temperature controlled warehouses that help to preserve perishable foods for long periods.
Importance:
1.Seasonal goods can be stored so that they are available in good condition to meet the demand throughout the year.
2.Countries that have export based on perishables like fish and fish products need them to ensure exports of high quality items in large quantities when demand rises.
3. General wholesalers can increase turnover by extending the wide range of goods that they offer to small-scale retailers by having a freezer section in the store.
Cash and Carry Warehouses:
These are warehouses owned by the Cash and Carry wholesalers and are regarded as wholesale supermarkets.They are important to small scale retailers,helping them to survive competition from large retailers.Self service is provided.No credit and delivery services are provided so goods are bought at competitive prices which can then be passed on to the consumer.
Advantages to wholesaler:
1.More trade from small retailers.
2.Can attract other businesses
3.May sell directly to consumers who get membership cards.
4.No problems of cash flow and bad debts.
Disadvantages to wholesaler:
1.Long working hours
2.High capital investment.
3.Large amount of cash at hand is difficult to handle.There is danger of theft.
Advantages to small scale retailers:
1.Competitive prices
2.Immediate access.
3.Retailer can obtain goods to meet sudden rise in demand and unexpected change in consumer tastes.
4.Less storage space required.
5.Less time wastage on administrative work.
6.Retailer can travel anytime he wants as there are long working hours.
Disadvantages to small retailers:
1.No delivery service.Retailer has to own or hire transport.
2.It may not be convenient for retailer to leave shop and restock when there is scarcity and more demand from customers.
3.No credit is given.Retailer must have funds to make immediate payment.
Manufacturer's warehouse:
It will be used to store raw material,components and finished goods awaiting sale or transport.
Importance:
1.Manufacturer can produce before demand rises
2.Store goods for his factory shop.
3.If the manufacturer serves all parts of a country,regional warehouses may be set up to serve particular areas.
4.Seasonal goods can be produced throughout the year.
5.Imported parts have to be here before usage by car assembly factories.
RDC:
They are used by large retailers to supply businesses as well as online shop.They are very large warehouses,usually situated at busy road junctions where major highways meet.
Importance:
1.Easy access for manufacturer
2.Constant supply.
3.Reduces the expenses of retailer
Other warehouses:
Primary producers e.g farmers have silos and barns to store fertilizers,machinery,food,oil etc.
Transport companies have warehouses where imported goods are stored before transported to importer.
Public warehouses are used to store illegal imported goods.
General warehouses provided by Port Authority for goods awaiting export or imported goods awaiting transport that are not subject to payment of customs duties.
They may be situated anywhere but they are found mainly at seaports, dry ports and airports.They are used to store dutiable goods on which duty is not paid.
Importance:
1.Importer can postpone payment of duty
2.Entrepot trade can take place without payment of duty.
3.Bonded warehouses located in cities and towns are important to producers of dutiable goods such as beer which is brewed for sale in the home market.
Cold Storage Warehouses:
These are temperature controlled warehouses that help to preserve perishable foods for long periods.
Importance:
1.Seasonal goods can be stored so that they are available in good condition to meet the demand throughout the year.
2.Countries that have export based on perishables like fish and fish products need them to ensure exports of high quality items in large quantities when demand rises.
3. General wholesalers can increase turnover by extending the wide range of goods that they offer to small-scale retailers by having a freezer section in the store.
Cash and Carry Warehouses:
These are warehouses owned by the Cash and Carry wholesalers and are regarded as wholesale supermarkets.They are important to small scale retailers,helping them to survive competition from large retailers.Self service is provided.No credit and delivery services are provided so goods are bought at competitive prices which can then be passed on to the consumer.
Advantages to wholesaler:
1.More trade from small retailers.
2.Can attract other businesses
3.May sell directly to consumers who get membership cards.
4.No problems of cash flow and bad debts.
Disadvantages to wholesaler:
1.Long working hours
2.High capital investment.
3.Large amount of cash at hand is difficult to handle.There is danger of theft.
Advantages to small scale retailers:
1.Competitive prices
2.Immediate access.
3.Retailer can obtain goods to meet sudden rise in demand and unexpected change in consumer tastes.
4.Less storage space required.
5.Less time wastage on administrative work.
6.Retailer can travel anytime he wants as there are long working hours.
Disadvantages to small retailers:
1.No delivery service.Retailer has to own or hire transport.
2.It may not be convenient for retailer to leave shop and restock when there is scarcity and more demand from customers.
3.No credit is given.Retailer must have funds to make immediate payment.
Manufacturer's warehouse:
It will be used to store raw material,components and finished goods awaiting sale or transport.
Importance:
1.Manufacturer can produce before demand rises
2.Store goods for his factory shop.
3.If the manufacturer serves all parts of a country,regional warehouses may be set up to serve particular areas.
4.Seasonal goods can be produced throughout the year.
5.Imported parts have to be here before usage by car assembly factories.
RDC:
They are used by large retailers to supply businesses as well as online shop.They are very large warehouses,usually situated at busy road junctions where major highways meet.
Importance:
1.Easy access for manufacturer
2.Constant supply.
3.Reduces the expenses of retailer
Other warehouses:
Primary producers e.g farmers have silos and barns to store fertilizers,machinery,food,oil etc.
Transport companies have warehouses where imported goods are stored before transported to importer.
Public warehouses are used to store illegal imported goods.
General warehouses provided by Port Authority for goods awaiting export or imported goods awaiting transport that are not subject to payment of customs duties.
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