Choosing the right type of warehouses for your business is essential. To select one, you must consider factors like your business requirements, industry, and location. Warehouse storage is very important for any kind of business, as it indirectly determines your customer satisfaction.
The relationship between you and your customers can be strengthened when you choose the right type of warehouse. Your choice will impact the speed of your shipping and hence. order fulfillment. When you fulfill more orders on time, customers will be more satisfied. and this creates loyal and happy customers.
In this article you will learn the different types of warehousesand how they can help your business.
Distribution Centre as A Warehouses
Distribution centers are spaces that are vast in size as compared to other warehouses. Because of the large space, these centers have huge quantities of goods transferred at a faster rate. The goods keep coming in from different suppliers and they need to be quickly moved and delivered to the various customers before the next shipment comes in.
These centers play a crucial role in the entire supply chain as the quick and responsible shipping of the goods is dependent on them. Humans alone cannot perform the faster movement of goods, and therefore, computer control is used for higher regulation. This increases the efficiency of work and improves the shipping standards.
Often the transportation centers are very close to distribution centers because warehouses services as a whole can be done in less time. When it comes to perishable products, goods must be delivered within a day.
Government warehouses, also called public warehouses, are owned by governmental bodies. Public warehouses are a great option for start-ups and small businesses that are not in a state to buy their own warehouse but need to store their goods. Private companies though must pay a certain amount of rent to the government when they store their goods in this type of warehouse storage.
Such warehouses help small businesses when they have to manage the overflow of commodities until they buy their own warehouse, and the affordability of these warehouses is good enough for start-ups to rent for a short period.
These types of warehouses were an initiative by the government to enhance industry and trade in the country and generate profit. For example, during wedding seasons there is a huge demand for storehouses to stock all the requirements. A small-scale owner will not buy a private warehouses, but instead rent a public storage space for a short period.
Any type of retailer, manufacturer, exporter or importer can utilize this type of space.
Unlike a public warehouses, private warehouses are owned properties by huge retailers, wholesalers, corporations, distributors or manufacturers. Many e-commerce marketplaces own their private warehouses to stock their commodities. The private companies buy products in large quantities just to store them in the stock houses and when the season comes, they are delivered to the customers in a systematic manner.
Private warehouses are good for established large businesses because they require a lot of investment, manual as well as monetary-wise. Private warehouses are a good idea for planned businesses that have a long-term strategy and they know that investing in one will be beneficial.
Imported goods are stored at bonded warehouses for a certain amount of time. The storage of these goods is paid for by paying duties. When these goods are being exported internationally, they don’t have to pay any duties, and liabilities are cancelled. Whereas when goods are being imported, the taxes and other charges are paid for by the proprietor.
Benefits of such warehouses are:
- When goods are not bought locally and are exported in the foreign markets, the duties may be exempted.
- Since the charges are collected only when the goods are being taken out, business owners can save money.
- Different types of products can be stored.
- Many bonded warehouses collaborate with the freight brokers or companies which eases the hassle they have to go through with the whole shipping process of the product.
- Temperature controlling Warehouses
The temperature controlling warehouses are one of the best benefits of technological advancement. In the past, it might have seemed impossible to transfer perishable goods from one country to another, but due to today’s warehouses fresh perishable goods are being transferred without affecting the quality of the food.
There are many cold containers and trucks which transfer valuable food items from place to place without losing its quality. In this case, cold storage warehouses are of great importance for the proper storage of food during logistics. However, having a cold-storage warehouse is possible only for established businesses because their maintenance can be expensive.
In the technological era, today we have warehouses that are smart and use Artificial Intelligence as tools for storage. Everything that happens in the warehouse is controlled by a machine. From the packaging process to the final stage of transporting and shipping to the customer, everything is automated. Manual supervision is very minimal and everything is operated through technology.
Huge E-commerce companies like Amazon use this kind of warehousing to limit human error while fulfilling their orders. Therefore, many people choose these platforms as they do a great job of satisfying the end customer.
Each warehouse has a different purpose. Make sure you have your short term as well as long-term distribution goals in mind while selecting a warehouse.
If you are a perishable goods business owner, then having a distribution center as your warehouse can be a good choice. For a business that is well established and has a bigger distribution process choosing a private warehouse is a better option. Lastly, if you have frequent international trade then having a bonded warehouse is a good idea to ease the international shipping process.
- Posted by admin
- On June 17, 2020