Advantages of public warehouses
Answer Text: Advantages of public warehouses-A public warehouse serves a number of customers that deal with the same product. It assembles the small orders from these customers and places one order for all of them. This enables them to enjoy economies of large scale buying and delivery of goods to a warehouse.-Goods stored in a public warehouse may be sold without their physical movement from the warehouse.-Traders can rent space to store their goods-Traders do not have to construct their own warehouses/do not have to tie up capital in storage buildings and handling equipment.-Goods are insured against risks such as damage by fire and theft-A trader may get a short term loan from the warehousing firm by using the goods held as collateral security.-Apart from the handling, sorting and documentation of goods additional services such as bottling, bagging and repairs of damaged goods can be offered by public warehouses.
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