Imagine finding the best warehouse for your products in Singapore and hitting the ground running. There you are in Singapore ready to ship your goods from your proper warehouse to your loyal buyers who are waiting for their regular deliveries. The good news is you can find the right warehouse in Singapore if you know the types of warehouses. In this article, you’ll learn about a wide range of warehouses and their uses to help you find a dynamic one for your business. Let’s get started.

13 Types of Handy Warehouses in Singapore for Your Business

1. Traditional Company Owned or Leased Private Warehouses

As a private business, you can build and run a warehouse to keep your products. So, a private warehouse has fixed space and only stores your business’s goods.
Since you own it as an enterprise, it’s also called proprietary warehousing. You can build your private warehouse on-site near manufacturing or off-site.
Because companies have different operations, they also have different warehouses. If you’re into banking, railways, transport logistics, etc., you’ve to consider your unique needs when setting up your private warehouse.
Don’t want to build a warehouse to avoid all the construction costs? Then leasing a private warehouse is ideal for your business. Here are the easy steps of finding the right one for your business:
* Reach out to Real Estate Agents who advertise private warehouses on their websites
* Or check on their websites for vacant private warehouses
* Once you’re satisfied with the best space for your needs, arrange for viewing
* After this, you can sign the lease agreement that’ll ask for a 2-3 months security deposit
Please note that you can lease a warehouse ranging from 2000 sq ft to >100 000 sq ft. You can see that you should have a large capital amount to lease a private warehouse.
Your rent is based on $ PSF, for example, you can expect to fork out between $1.40 to $2.80 PSF. Besides, they’re labor and technology costs, including:
* Set-up fees- Cover DB Boards Installation, wiring shelves, etc.
* Insurance- Coverage for all-risks coverage and third-party insurance
* Utilities- Electricity and Internet
* Supplies- Pallets, packing boxes, etc.
* Security- Surveillance cameras and door access control to minimize theft
* Maintenance- Light’s maintenance is expensive in a high-ceiling warehouse
Owning or leasing a private warehouse has some pros, such as:
* Unit price per square feet is low
* Enables you to make other goods, e.g., packaging & branding
* You’ve 100% control of your goods and operations
But it has some cons, including:
* Space is fixed, becoming a problem if you’re business is growing
* You need to tie yourself to a rigid-long-term lease agreement
* Space remains unused during seasonal fluctuations, leading to increased sunk costs

2. Public Warehouse

If your company has short-term warehousing needs, a public warehouse is a perfect fit. You can use it as a temporary storage facility.
A public warehouse is open to the public and anyone can keep goods in this storage facility. Private individuals or businesses with a government license can own and run public warehouses.

Pros

* Provides storage facilities to small manufacturers and traders at a low cost
* Located near transportation hubs or intersections

Cons

* Need a government license to own and operate a public warehouse
* It’s a temporary storage facility

3. Customs Bonded Warehouse

The government or a private company can own and operate a customs bonded warehouse. With a government license, you can store uncleared imports owing to the non-payment of customs duty.
You can’t remove goods from the customs bonded warehouse before getting approval from the authorities.
Also, known as Zero-GST Warehouses, customs officials control their operations and function. Planning to use customs bonded warehouses? Note their pros and cons.

Pros

* You can brand products in the warehouse
* Can use them as collateral security to bank loans
* An importer can store goods even if they don’t have immediate cash to pay for them
* You can pay duty based on the product units you’ve removed from the warehouse

Cons

* The owner must follow customs’ rules on how to operate them
Besides customs bonded warehouses, you can also use the Singapore Customs Licensed Warehouse Scheme. The Singapore government okays and licenses some companies to operate these warehouses to store imports that pay duty.
You can keep products, such as liquor, tobacco, motor vehicles, petroleum, and biodiesel blends. One benefit of this is you can store goods as long as you want without having to pay Goods & Services Tax.
Check out these resources for licensed warehouses for different goods.
1. Licensed Premises for Liquor & Tobacco Products
2. Licensed Premises for Motor Vehicles
3. Licensed Premises for Zero-GST Goods
4. Licensed Premises for Petroleum Products
One thing to consider is you’ll pay customs duty there and then if you keep your freight in a non-bonded warehouse. The customs officials will also give you the green light to remove your products from the warehouse.
Customs agents also partner with certified customs bonded transportation and warehousing services. These agents receive and hold your imports or exports until you settle the customs bill.
Should you need to change your private storage facility into a bonded warehouse? It’s straightforward; apply to and then can get the go-ahead from the Singapore customs office.

Examples of Customs Controlled Warehouses

1. Free-Trade Zones (FTZ) Warehouse

The Singapore government has set aside these storage facilities to help you keep products for a particular time. When your goods are in the Free-Trade Zone (FTZ), you don’t pay duty unless you remove them for the local market.

2. Zero-GST Warehouse

Are you trading in non-dutiable commodities, such as crude oil & petroleum products, coffee, pepper, rubber, and base metal? The Zero-GST warehouse is the right place for storing these imports/exports.
The Singapore Customs authority will suspend the payment of Goods and Services (GST) on your products as long as they’re in Zero-GST Warehouse. Your cargo will pay tax if you ship them out for sale to local customers.
Also, note that if you move goods from one Zero-GST Warehouse to another, there’s zero GST tax. If you also want to make your existing warehouse a Zero-GST Warehouse, you can pay a license fee to Singapore Customs.

4. Distribution Centers

A manufacturer or a wholesaler can operate distribution centers to store and sell large quantities of goods. A distribution center is the best warehouse if you’re buying in bulk from multiple manufacturers and then reselling to retailers.
With a distribution center, you can receive and distribute large inventory to your customers. It’s a perfect storage place for keeping items that you need to move at rapid speed within your supply chain.
You can use a distribution center for food and perishables that you need to ship to your retailers within a day.

Pro

* A distribution center is affordable to rent

Con

* Offers temporary storage space

5. Warehouse for Special Commodities

You can use this type of warehouse for special commodities like tobacco, cotton, wool, and more. If you’re storing petrol and oil, vertical or cylindrical storage tanks are a must-have.
One pro of these special storage tanks is you can minimize product quality loss.

6. Cold Storage, Refrigerated, or Climate Controlled Warehouse

As the name suggests, you need these warehouses for keeping fresh and frozen perishables, fruit or vegetables, meat, seafood, etc. You can also store delicate items, such as flowers.

Pros

* Keep your fruit and vegetables fresh
* Preserve product quality
* Flowers will stay in top condition, making them resalable
* You can sell these perishables and frozen goods throughout the year
* Prevent damage from insects and bacteria
* Aids international trade

Con

* Expensive to maintain

7. Warehouses for Dangerous Goods and Hazardous Storage

You must have these warehouses if you want to store flammable liquids and chemicals kept in storage containers. For example, keep gas-based items in oxygen tanks or cylinders that you in turn secure in cages to prevent damage.
What are Dangerous Goods (DG)?
These are products or materials with corrosive, toxic, flammable, or explosive properties. If you expose them to too much heat, they can burn easily, explode, and even eat up your skin if they get into contact with it.
So, dangerous goods are harmful to your health and the surrounding environment if you don’t keep them in a proper place. Here are some common dangerous products that you can import and export in Singapore:
* Paint
* Mercury
* Bleach
* Pesticides
* Lighter liquid
* Hazardous chemicals
* Oil and gas
* Radioactive materials
* Arms, ammunition, flares, fireworks
* Some biotechnology products and biological specimens
Note that it’s crucial that you label, package, handle, and transport them according to the Singapore government guidelines.
You should also be guided by two acts: the Fire & Safety Act and the Environmental Protection & Management Act. These acts control the storage, transportation, importation, and use of dangerous products.
8. Consolidation Warehouses
Consolidation warehouses are helpful if you want to combine small shipments and then transport them to one destination into a single truckload. These products will be from different suppliers, but you’ll be distributing them to one geographical area.
E-commerce SMB(s) can find these storage facilities handy, especially if they’re handling high stock volumes. Here are some pros for using consolidation warehouses:

Pros

* Improves your supply chain performance while reducing costs
* Lessens transportation costs; you share them with other companies
* Can ship goods more often, boosting your sales
* Ships goods straight to your destination
* Sharing space with other companies leads to lower inventory levels, decreasing stock costs

Cons

* You have no control over space because you’re sharing it with other businesses
* Shared space limits the stock quantity you can deliver, affecting your supply of goods

9. Ramp-up Warehouse

Also, called a multi-story warehouse, you can find them in countries or places with little space for setting up a standard warehouse. Singapore is one example of a country that’s home to ramp-up warehouses.
You can gain access to a multi-story warehouse via a ramp-up or cargo lift. It’s because it consists of several floors, increasing your warehouse’s usable space per square feet or yard.

Pros

* Ramps lead to easy loading and unloading of your freight
* Vehicles can drive to the doorstep of the warehouse
* Ideal for businesses with frequent vehicle movement e.g., distributors, delivery companies & logistics firms
* Makes your operations efficient

Cons

* Only ideal in places with little space for constructing a traditional warehouse
* Need to install ramps

10. Automated Warehouse (AW)

If your aim in warehousing is to have more with less, then an automated warehouse is your good candidate. It involves technologies, such as robots and automated processes.
With an AW, you can use a few tech pieces to run your storage and retrieval system. You can blend these systems with a warehouse management system (WMS).
An automated warehouse also uses tracking software to receive, store, and move goods. You’ll need state-of-the-art equipment, such as forklifts, racking & pallets to move goods fast.
AW may also be called a smart warehouse if it has the following features:
* Automated storage and inventory management with AI
* Management software, robots & drones which perform tasks like packing, weighing and transporting, and storing goods
* Uses advanced warehouse analytics to let workers monitor key performance indicators (KPI) and make decisions based on data

Pros

* Increases productivity
* Simplifies operations
* Improves efficiency
* Reduces labor costs since the machines can do manual & repetitive tasks
* Lessens human error in receiving and shipping goods

Cons

* Expensive to set up, so you need a huge capital amount
* High maintenance costs
* Replaces labor, leading to joblessness

11. Halal Warehouse and Storage

Are you looking to supply the Muslim community with some products? You should have a halal warehouse to produce, store, and deliver halal products.
When it comes to storage, ensure that the halal goods you prepare, manufacture, process, and package don’t come into contact with haram. Haram involves foods that Muslims don’t eat, including carrion, pig, or animals with talons, claws, or fangs.
Make sure your storage premises follow strict halal sanitation and hygienic procedures. Also, when you deliver halal-certified products, you must observe Muslim law (the Hadith and Durham). It insists on using sparkling clean utensils and equipment.

4 Pros of Using Halal Delivery and Storage Services

1. Seal of Trust and Quality
Halal-certified logistics companies know how to handle products according to Muslim law. Working with them will attract loyal Muslim customers who are sensitive to health issues in your business.
Even non-Muslims may end up buying from your business.
2. Enlarges Your Market
You can also tap into the growing Halal market with a global value of about $1.75 trillion.
3. High Hygienic Standards
Muslim inspectors may visit your Halal delivery and storage premises when you invite them. If they certify your company to handle Halal products, customers will gain confidence in your business.
4. Marketing Tool for Café and Restaurants
Halal certification can make you win local and international halal food consumers. You can get the majority of buyers who prefer halal food, increasing your revenue and profit.
Certification shows that you’re committed to providing high-quality foods to your clients. Note that halal also cover packaging, handling, storage, transportation, etc.

12. 3rd Party Logistics Warehouse Providers

3rd party logistics warehousing is ideal for online and even offline businesses. Like traditional warehouses, they provide your business with storage to help you meet your orders and deliveries.
You can use these warehouses as a central place to distribute several brands and products from different companies. Some services you can expect to get from 3rd party logistics include:
* Transportation, fulfillment of orders, packing, picking, inventory forecasting, freight forwarding, cross-docking
* Can also offer a single service e.g., warehouse storage and shipping or several logistics
Logistic services may include:
* International Freight and Logistics
* Import and Export and Licensing Solutions
* Warehousing Services (Cold Storage and Bonded Warehouses)
* Local Delivery Services
* Direct Market Access and Marketing

13. Fulfillment Centers (FC)

It’s one example of a 3rd party warehouse that can handle your storage, order processing, picking, packing & shipping of e-commerce products.
With a fulfillment center, you as the seller ship goods to the storage facility. When your customers place an order, the FC then ships out the item to your buyer.
There’s a pro side to this arrangement. As an e-commerce retailer, there’s no need to own a warehouse, saving you on warehousing costs. You can also track your stock on the FC’s inventory management system.

The Bottom Line

Not sure what warehouse you need in Singapore? You’re spoilt for choice as there are several warehouses you can use to meet your customers’ needs. You can build or rent a private standard warehouse that has fixed space.
There’s also an option to use a public warehouse for temporary storage. Custom bonded warehouses are available for imports and exports. On top of this, you have Zero-GST and Free-Trade Zone warehouses. If you need a central place to manage your stock, distribution centers are ideal. Halal, consolidation, automated, 3rd party logistics warehouses, etc., are some of the storage facilities that can get you off the ground.

[cp_popup display=”inline” style_id=”576″ step_id = “1”][/cp_popup]

Grow Your Business in Singapore

How Urban Redevelopment Authority (URA) Helps you Grow Your Business in Singapore

In this article, you learn how URA will help your business grow. We’ll cover the following critical issues:
* URA Oversees Development in Singapore, and What You Can Do with Your Property
* Changing the Use of Your Property
* URA’s Business Opportunities for Industrial and Commercial Enterprises
* URA Handbooks with Crucial Guidelines

What Are the Types of Warehouses in Singapore for Your Business?

13 Types of Handy Warehouses in Singapore for Your Business

1. Traditional Company Owned or Leased Private Warehouses

2. Public Warehouse

Pros

Cons

3. Customs Bonded Warehouse

Pros

Cons

Examples of Customs Controlled Warehouses

1. Free-Trade Zones (FTZ) Warehouse

2. Zero-GST Warehouse

4. Distribution Centers

Pro

Con

5. Warehouse for Special Commodities

6. Cold Storage, Refrigerated, or Climate Controlled Warehouse

Pros

Con

7. Warehouses for Dangerous Goods and Hazardous Storage

Pros

Cons

9. Ramp-up Warehouse

Pros

Cons

10. Automated Warehouse (AW)

Pros

Cons

11. Halal Warehouse and Storage

4 Pros of Using Halal Delivery and Storage Services

12. 3rd Party Logistics Warehouse Providers

13. Fulfillment Centers (FC)

The Bottom Line

How Urban Redevelopment Authority (URA) Helps you Grow Your Business in Singapore

Rent Lease your next Factory Manufacturing Space in Singapore!

Rent Lease your next High-Tech High-Spec Workspace in Singapore!

Rent Lease your great Warehouse in Singapore!

David Hoicka

How to Rent Your Warehouses in Singapore