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In practice it is desirable to used both private and public warehousing according to the products and customer based. Also private warehouses need not owned. They may be rented or leased with or without material handling and other office equipments.

In a public warehouse the warehouseman’s integrity is the only security for the owner of the goods. A public warehouseman is responsible for the protection of the quality and quantity of the goods entrusted to him. He is not interested in the ownership or the use of goods, and is responsible for the goods only as a bailee. He is expected to packers and movers magarpatta pune take care of the goods as a man of normal prudence. He is an ideal third party between the buyer and the seller between the borrower and the lender. A warehouse receipt for goods is accepted for sale or for borrowing. Thus the warehouses renders physical support to trading.

Normally goods

Trader or a private warehouse of a firm are a part of the general assets of the trader. They are not a separate entity. An additional Rs. 1,00,000/- worth of goods might swell the inventory of the trader but it does not correspondingly increase his ability to borrow. If additional Rs. 1,00,000/- worth of goods ware stored in a warehouse they can be used as collateral for borrowing. In the warehouse the goods of one owner are segregated from those of other owners. The borrower has no control over these goods. They cannot be used sold or even handled by the borrower without the previous and written permission of the bank. Thus it becomes a perfect security for a loan. It is specifically insured beyond the reach of attachment or legal process.

There is less risk of fire in a warehouse than in a factory. Accordingly insurance rates for goods in a warehouse are lower. Moreover there is a practical guarantee against the temptation of a hard – pressed dealer or manufacturer to set fire to his establishment to convert the goods which otherwise cannot be sold in to cash. In order to ensure that such an eventuality does not arise organizations like banks insists that borrowers store their goods in public warehouse. For this purpose they offer concessional margins and rates of interest.

Location of warehouse

It is apparent that no seller can be equally near all customers or prospective customers. The space and time also impose significant limitation on the packers and movers in magarpatta pune

movement of goods from seller to buyer. In consequence the location of the seller’s production and distribution facilities in relation to those of customers is an important decision making process.

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