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1. High cost: where there is need to avoid high cost of constructing the warehouse.
2. No enough goods: where the trader may not be able to utilize the warehouse throughout the year / need to avoid off season cost.
3. Lack of qualified personnel: where traders may not be able to employ qualified personnel to man the warehouse.
4. No adequate space: where traders lack space to construct the warehouse.
5. Unfavorable government policy: where government policy does not allow construction of private warehouse.
6. Lack of equipment: where the trader may not be able to equip the warehouse with the equipment necessary for handling the goods.
7. Lengthy legal procedures where there is need to avoid lengthy legal procedures relating to construction of private warehouse.
joseph rimiru answered the question on January 1, 2018 at 06:58
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