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All You Need To Know About Warehousing

What is Warehousing?

Warehousing, generally, as the name suggests, occurs when a person and/or business puts away merchandise they intend to trade or allocate at a later date.  A home-based or small business might warehouse products in a garage, basement, or spare room while a large business might professionally warehouse merchandise in a rented of purchased space or a building. 


Types of Warehouses

Most people are familiar with the commercial storage facilities they see along the roads that friends or perhaps businesses utilize.  There are, however, other types. Essentially, there are five as follows:

·         Public Warehouse.  A Public Warehouse is an independent company that leases space for a certain time, mostly on a month-to-month basis, and some even provide fee-based services (cold storage, shipping, logistics).  These include the kinds most people see along the roads.  Anyone can use them.  Vendorswho manage their own individual storage facilities sometimes seek extra storage space when their facilities reach maximum capacity or when they arrange a special, oversized purchase. For instance, a retailer may order additional merchandise for an upcoming sales promotion or for an upcoming holiday sale where a certain product is to be offered at an extremely low price.

·         Private Warehouse.  Large companies and single manufacturers mostly own Private Warehouses and use them for their own distribution interests. For example, a major retail chain may own a few district warehouses, all of which supply their own stores.  Or, a wholesaler might manage a warehouse where it receives and distributes merchandise.  In these cases, the owner maintains complete control over costs and decisions.  Such are the benefits. 

·         Automated Warehouse.  Technology has allowed warehouses to progress to the point where only a handful of people are needed to run an entire facility.  Additional services include advanced computer proficiency, voice directed operations, robotics, and conveyor belt transferring, just to note the basics.  In fact, several warehouses use machines to take care of all physical deliveryneeds, including the movements of pallets and retrieval of merchandise.

·         Distribution Center.  Such a warehouse usually serves as a temporary stopover for product that a customer orders.  The supplier ships the product to the Distribution Center, which then quickly ships it out to the customer.  Oftentimes, and especially with food and perishable goods, product that arrives in the morning is usually distributed by the day’s end.

·         Climate-Controlled Warehouse.  These types of warehouses handle items that require special maintenance, such as food, which may require cold temperatures or freezing conditions; flowers, which may require low temperatures and delicate handling; antiques and paintings, which require low temperatures and controlled humidity; or a any combination of conditions for certain equipment or perishables.

Making sure you get the right warehouse for your merchandise makes all the difference.  

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