What is Warehousing?


What is Warehousing?

Warehousing is when you purchase goods from a manufacturer and store them before they are shipped to another location for fulfillment. You may store these goods in a warehouse, spare room, or other facilities. This all depends on how much stock you have, and how big your business is. If you’ve a small business your warehousing option doesn’t need to include transport access.

What Are The Functions of Warehousing?

The main function of a warehouse is to store products or goods before moving them to another location. But there can be some secondary functions of warehousing that enhance a warehouse’s space.

Shipment Hub

When warehouses are placed in a very strategic location, these can become shipping hubs that receive shipments until they can be moved to other storage facilities across the country.

Assembly Line

Where products are delivered by the manufacturer in several pieces, companies can allot areas within their warehouse to assemble products for retailers or customers.

Rental Storage Space

Whether sales are down, or you possess a warehouse that is too big for your stock at the moment, renting space in your warehouse to other businesses is a good option for you if you have space. 

What Are The Types of Warehousing?

Warehousing comes in many shapes and sizes including the following:

  1. Private Warehouses: Owned by private entities to store their own products or equipment.
  2. Public Warehouses: Owned by a government and semi-state body. They are available for rent by private firms to store goods.
  3. Co-Operative Warehouses: Owned by a co-operative where private firms can rent space for storage.
  4. Distribution Centres: Distribution centers receive shipments of goods and move them fast from A to B. 

What Are The Advantages of Warehousing?

Apart from the storage of products, warehousing has many advantages that are not initially apparent. These include:

Improved Inventory Accuracy: Knowing how much inventory you have and how much you have moved means you can plan for the future more precisely.

Reduced Overhead Cost: As you improve the running of a warehouse you can invest more in further development and reduction of costs. 

Better Staffing Levels: Understanding how busy your business will be over a period of time will allow you to plan your staffing needs accordingly.

Protection of Goods: Having a storage facility that fits the needs of your goods it so important to a business. If you have perishable goods that require refrigeration you need to ensure that your warehouse lives up to this standard. 

Central Location: When you source a warehouse close to a customer or manufacturing hub, you can ensure better transit of goods, decreasing the time it takes to move products between places. 

Superior Flow of Goods: The better flow of goods from manufacturer to end consumer is brought about by understanding the best layout of your warehouse and how to store goods optimally to move them fast.

What Are The Elements of Warehousing?

Warehousing can be much more than the storage of goods. It can be a fulfillment center, an assembly line, and so much more. With this in mind, there are a few elements of warehousing that can help with storage, transport, and protection of goods. These include:

  • Storage Systems to ensure maximum storage of goods and easy access at all times.
  • Climate Control for goods that require cooler or warmer environments.
  • Inventory Management Software to keep track of inventory coming in and out of your warehouses.
  • Sufficient Staff to keep processes moving according to plans.
  • Transportation and Moving Equipment to deliver and transport goods to and from the warehouse.
  • Ample Security to keep the warehouse safe even at downtimes. 

What is Warehouse Logistics?

Warehouse logistics is the management, planning, and organization of operations within a warehouse. This includes managing space, planning shipments, and organizing information so that the warehouse operates to the best of its abilities. It is important to strive for better warehouse logistics so that you can offer customers better delivery times, and drive down costs where possible. 

Warehouse vs. Distribution Center

Even though the words ‘warehousing’ and ‘distribution centers’ can be used interchangeably, they are not the same thing. Not all warehouses are distribution centers, but all distribution centers are warehouses. Warehouses act as storage hubs for products, while distribution centers store and fulfill orders in the same space. It is important to know this difference when thinking about upgrading your warehousing options. 

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