What is private warehouse and public warehouse?

  Private Warehouse - This type of warehouse is owned and operated by a company that is also involved in other aspects of the distribution channel. For instance, a major retail chain may have several regional warehouses supplying their stores or a wholesaler will operate a warehouse at which it receives and distributes products.

Public Warehouse - The public warehouse is essentially space that can be leased to solve short-term distribution needs. Retailers that operate their own private warehouses may occasionally seek additional storage space if their facilities have reached capacity or if they are making a special, large purchase of products. For example, retailers may order extra merchandise to prepare for in-store sales or order a large volume of a product that is offered at a low promotional price by a supplier.

There are several reasons which make a company select a public warehouse over a private one or vice versus. Many small or middle sized businesses do not have the extra monies to have their own storage facility, so their best and/ or only choice for their overstocked merchandise is to contract a 3rd party warehouse facility. This gives them the opportunity for growth and/ or expansion while at the same time the extra space needed with a warehouse staff available to properly man this inventory. However, large corporations, such as Wall Mart and Kmart have the revenue available to have their own warehouses, thus keeping its revenue, from the initial supply to the process of distribution, in- house. They have their own trucks that transport goods from one location to another, etc. The above reasons for using a public or private warehouse have to do with the size of the company needing the storage and its amount of revenue on hand that can be used to either lease a public facility or own a private one. This factor makes all of the difference. 

1.  Private Warehouse: storage facility owned by the firm whose goods are stored in it.

2. Public Warehouse:  Storage facility that offers its services to all firms and persons. 

Public warehousing

Warehouse is owned and operated by a third party

Charges in particular for type of services used

Mainly for short-term usage

 

Private warehousing

Also known as proprietary warehousing

Operated as a division within a company

On-site and off-site warehousing

Substantial corporate fixed investment in land, building, and equipment

 

A public warehouse, is also know as a Logistic 3rd party material storage on Hire temporary  basis. Which is call as short term storage availability system.  

Private Warehouse, is fully owned by the sponser to keep their own material. As a stock and control their material. For example construction material / Super Markets FMGS material. 

A public warehouse is available for hire on a variable term basis and oftentimes will have multiple customers' products at a time. Some are specialized to deal with specific items or functions. Private warehouses are operated by the company that owns the product being stored within the warehouse. The company does not necessarily own the building (though the larger companies may choose to buy the building and land also) but does own all the products that come in and go out.

 

Private warehouse  - Propitiatory warehouse

 

Public Warehouse - operated by 3pl partners

Agree with all expert answers

 

Public warehouses can be a 3pl warehouse where a 3pl company would do all the activities for the product including handling, storing, transportation, documentation etc..

 

A Private is owned by a 2pl company who distribute or store the products/Materials for themselves. In 2pl, the warehouse will be completely operated by the company itself.

 What is Public warehousing?

l       Warehouse is owned and operated by a third party

l       Charges in particular for type of services used

l       Mainly for short-term usage

 

What is Private warehousing?

l       Also known as proprietary warehousing

l       Operated as a division within a company

l       On-site* and off-site** warehousing

l       Substantial corporate fixed investment in land, building, and equipment

 

What is Contract warehousing?

l       A variation of public warehousing

l       A long-term contract and/or services

l       Warehouse is owned and operated by a third party

l       Customized services/space over a long term

l       A trade-off between location flexibility for assured space over the contract period and a lower price that is usually lower than warehousing rates

l       Contact for either an entire building or for a defined, fixed portion of square-foot or cubic-foot space

The private warehouse is a storage facility that is mostly owned by big companies or single manufacturing units. It is also known as proprietary warehousing and can be operated as a separate division within a company.

 

 

A public warehouse is a business that provides storage to multiple businesses on a short or long-term basis. The public storage warehouse typically owns its own equipment and staff to manage the operations of the facility