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 Form 2 Business Studies: Warehousing online lessons

Disadvantages of public warehouses

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Answer Text:
Disadvantages of public warehouses
-The hirer is denied the opportunity to physically handle the goods and is forced to compete for attention with other hirers of the warehouse.
-The hirer may lose contact with his/her customers since they get goods from a rented warehouse, away from the hirers premises
-The hirer may get poor services or miss space altogether during peak seasons due to stiff competition for the same facility
-Documentation involving receipt and release of goods in a public warehouse is likely to be a long and complicated procedure due to the large number of clients involved.
-Continued renting of space can even be more expensive than constructing one‟s own warehouse in the long run
-Public warehouses are sometimes situated far away from the hirer‟s premises unlike private ones which are usually within the vicinity of the owner‟s premises.
-The operations of a general merchandise public warehouse are difficult to automatic because different kinds of goods need different methods and equipment to handle them.


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