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Why may a producer need to have their own warehouse?

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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.