Before understanding the different types of warehousing, it is important to know what the two basic types of warehouses actually are.
- Private warehouses: Owned and operated by the channel suppliers and manufacturers for their own activities. Usually these warehouses are owned by big manufacturers, due to the huge capital required to construct a warehouse.
- Public warehouses are owned by business establishments who provide warehousing for a fee to companies that do not have their own. They can also be operated by cooperatives. A public warehouse requires a license from the government to operate in accordance with the rules and regulations set out for such a business.