Private Warehousing is used by a company often it will be a manufacturing company- to store their own product. The company pays all of the costs associated with it. They may choose to keep the product on-site or off. When he expanded the Ford Motor Company, Henry Ford began sourcing his own steel. Meanwhile, he had to find a place to store it. Choosing to keep everything under one company name, he simply expanded his own company to handle warehousing.
Public Warehousing is storage of a product by an outside third-party. They take on the responsibility of inventory and handling for a cost. They are in charge of the equipment maintenance, personnel training, and maintenance of the building. Public warehousing space is available for anyone to store just about anything. This is typically a setup with a monthly rate per square footage. Public warehousing is like renting an apartment on a month to month basis. This works especially well for short-term overflow or supply and demand changes for seasonal swings.
There are not really any add-on services to offer at this level. Every customer is different and you can discuss anything you need with the warehousing representative. The fee schedule should be straightforward. If you are confused in any way, address it in the beginning. Public warehousing is typically on a first come, first serve basis. You will need to make alternate arrangements to store your product in case the warehouse is full. There is also flexibility in financial aspects. If you are currently storing a thousand square feet of goods and next month you are down to two hundred, you will only have to pay for what you are using.
Contract warehousing is great for businesses that constantly fluctuate in volume. Regardless of the current holdings of the space, the square footage is contracted to you. If pallets need to be shifted, a fulfillment setup or quality checks need to be performed, then investing in contracted warehouse space is a must. The scope of what needs to be done can be discussed when the contract is created.
At the creation of the contract, the length of the contract will be discussed. The length of the contract depends on many factors and every warehouse is different. Ask plenty of questions to make sure that you are getting what you need.
Food warehouses have categories of their own:
- Dry storage warehouse- provides a clean, dry environment for foods such as rice, oats, and grain that requires no refrigeration.
- Frozen food storage warehouses- designed to handle perishable foods that require freezing. Warehouses must constantly maintain freezing temperature make sure that frozen foods stay that way.
- Refrigerated warehouse- ensures that products that need to be kept at a certain temperature remain at that temperature.
Food grade warehouses are more heavily regulated and maintained than your run of the mill warehouse. Some even argue that if you really want to keep your products safe, you should make the investment for non-food storage.
If you need a storage solution and are not sure how much space or what type of space you will need, contact a warehousing agent in your area today.