A private warehouse, also known as a proprietary warehouse, is a storage facility owned by the same business that makes the products or materials stored there. Many large companies operate their own warehouses as a separate division within their company.
Private warehouses offer companies the most control over choices of personnel, equipment and security and can possibly save a company money in the long run. However, building or purchasing a private warehouse requires a significant amount of capital. Additionally, the costs of maintaining the facility, paying property taxes, hiring and training personnel, paying liability insurance and providing safety training to warehouse employees are all considerations that a company must factor in before settling on a private warehouse.