194 Principles of Marketing
• Bonded warehouse: Bonded warehouse is a special type of warehouse that is operated under
special legal framework. For example, once the product is stored, it is insured against loss. The
warehouses run by Port Trusts of India are of this type, where importers store the products, for
which a custom duty is to be paid, and when the payment is clear, the products are reshipped to
the destinations without entering the country.
A number of factors such as cost, amount of product to be moved, nature of the product, skill
required to handle the product and desired control on ownership authority determine the choice of
warehouse ownership.
■ Location of warehouse: A warehouse may be a centralized one located ...