Question

What are demerits of Public warehouse?

Answer 1

Demerits of Public warehouse include;

• The hirer is denied the opportunity to physical handle the goods which forces him to compete for attention with other hirers.
• The hirer may loose contact with his consumer since they get goods from rented warehouse away from the hire's premises.
• The hirer may get poor services during peak seasons due to stiff competition for same facility.
• Continued renting of space can be even more expensive than constructing one's own warehouse.
• They cause inconvenience to the hirer since is located away from the hirer's premises unlike private which is located within the same vicinity.