Warehousing Services and warehouse logistics are two completely different terms that are often mistaken as the same thing. However, logistics company and warehousing are interlinked with each other as both of them fulfill functions within the supply chain of a business.
What does warehousing Services mean?
Warehousing is the practice of storing goods and merchandise in a place before they are further sold or distributed. Whereas warehouse storage is the place where a product is stored by following a certain procedure so that it can be easily tracked at the time of distribution.
In the case of small-sized businesses, warehousing is done mainly in a basement or spare room of a house. There are also a number of businesses that prefer to rent warehouse storage for storing their goods instead of outsourcing the warehouse services.
But when it comes to the large and reputed businesses, they typically prefer to opt for warehouse services from a certain agency or company that takes care of this specific part solely. The sector of warehousing is a substantial part of a business and that is why large businesses prefer to outsource it to reduce the workload. Warehousing services include a large number of tasks including checking the goods at certain intervals to its storage, picking the order and handling returns.
What is Logistics Services?
Logistics Services is the complete management process of how a particular group of products or resources are collected, deposited and distributed to the customers or different places. In simpler words, it can be referred to as the flow of goods, which includes both raw materials, as well as the finished products, in and out of the warehouse. Warehouse logistics became a popular term among the companies and business sectors that mainly handle the manufacturing and shipment of the goods within the supply chain.
The logistics company is responsible for taking care of a number of tasks such as the integration of data, production, inventory, safety, packaging, internal transfer, transportation, and warehousing.
A major responsibility of these logistics companies is to tackle the end-to-end client requirements starting from the functions of a manufacturing unit to the final delivery of the goods. Logistics can be further broken into two major segments: inbound logistics and outbound logistics.
The inbound flow of goods includes the logistics related to the movement of goods and raw materials to the manufacturing companies, whereas the outbound flow of goods incorporates the logistics company assistance with the movement of finished products to the delivery point or to the consumers.
Difference between Warehousing Services and Logistics Services
Even though most of the maintenance actions of warehousing are considered to be a major portion of the logistics system, in the end, both of them are the two major components of supply chain management.
In other words, warehousing is the system of safe and secure storage, inventory, and other related works of the supply chain in a warehouse or building. Whereas logistics services cover the complete idea of transportation, warehousing, internal movement of the products, etc. Hence, warehousing is just a small part of the logistics of a supply chain.
How are warehousing and logistics interdependent from each other?
For getting the best outcomes from these two major segments of a supply chain, proper synchronization is extremely important for maintaining quality and productiveness. It is not as complicated as it seems. Rather, a planned schedule will let the complete process function smoothly without any glitches.
The main thing that needs to be controlled for maintaining the synchronization between them is to schedule the transportation and movement times according to the adequate number of workers available at different times of the day. For example, it is best to make note of times of shift changes so it doesn’t lead to pressures and unnecessary confusion among the workers.
The whole system can be affected by even a small problem in any of the procedures. Hence, proper synchronization will help you to save the costs of unnecessary manpower, time wastage and raw materials wastage, and you can easily use all your resources to the fullest.
When you have fewer employees, it may be more suitable to reduce the inbound flow of goods to help you deliver the finished product in an effective way, instead of missing the distribution deadline completely.
Even though there are not many differences between the two procedures, it is important to note that warehousing is a particular part of the complete system of warehouse logistics services. Therefore, proper synchronization and collaboration will lead to the stable operation of all the sections of a supply chain.
- Posted by admin
- On March 20, 2021