Reasons why a producer may need to have their own warehouse are;
- To enjoy complete control of operations in the warehouse
- To design it to match their specific needs
- In order to install special handling, storage and protection facilities which may not be available with a public warehouse
- To avoid being tied down by rigid procedure of receiving and issuing of goods as is the case with public warehouses
- In the long run, the cost of building own warehouse will be cheaper than the hiring of space in a public warehouse
- The owner exercises full control and makes major decisions without having to consult any one.