Contract warehouse

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A contract warehouse is a warehouse that handles shipping, receiving, and storage of products on a contract basis. Contract warehouses will generally require a client to commit to a specific period of time (generally in years) for the services. Contracts may or may not require clients to purchase or subsidize storage and material handling equipment. Fees for contract warehouses may be transaction and storage based, fixed, cost plus, or any combination. See also public warehouse and third party logistics.[1]

References

  1. http://www.inventoryops.com/dictionary.htm