Advantages of a Public Warehouse

By | June 13, 2017

The advantages of a public warehouse are:

  1. Storage facilities can be availed at desired locations as and when required, and at a known cost.
  2. The goods can be despatched to the warehouses with the warehousemen as the consignee for the clearance of the goods at the railhead and transportation to the warehouse.
  3. The goods can be delivered or despatched to the nominees/allottees of the depositor.
  4. The warehouseman does entire inventory management, and the depositor is completely free from these costs and botherations.
  5. The goods are handled properly and preserved scientifically by the trained technical personnel without any damage or deterioration during handling and storage.
  6. The goods can also be insured against all risks like fire, flood, thefts, etc. at nominal cost and the depositor is indemnified against such losses.
  7. The goods can be kept in the public warehouses till the market price is found remunerative enough for the disposal of goods and, thus, distress sale can be avoided.
  8. Advance can be obtained against the pledge of the warehouse receipt from banks.
  9. Uncertainties in the availability of raw materials or finished products due to supply dislocation are avoided.
  10. Public warehouse helps in the physical distribution of goods like food grains, fertilizers, public distribution items, consumer goods, etc. and therefore helps in marketing of products.
  11. The public warehouse can also be used for grading, standardization, and packing of goods if the arrangement is on dedicated and a long term usage basis.