Warehousing is the process of storing goods in a warehouse after obtaining them from a manufacturer. While in the warehouse, the goods are inventoried, organized, and managed until orders are fulfilled and shipped out. Most large companies use warehouses to handle inventory around the country, so shipping times are faster and there are fewer obstacles to meeting delivery requirements. Smaller companies may have their own warehouse, or may hire an outside company for warehousing. Very small businesses may use their office space or a home garage or basement for storing goods.
Warehouses vs. Distribution Centers
Warehouses and distribution centers are different elements of business logistics. A warehouse typically provides nothing more than storage, while a distribution center offers storage and also packages products, manages inventory, and fulfills orders and deliveries.
Crucial Elements of a Warehouse
Whether a warehouse is used chiefly for storage or also functions as a distribution center, it should contain crucial elements that facilitate efficiency, safety, and accuracy:
- Shelving and rack systems
- Climate control system
- Inventory control software
- Equipment to move products, such as forklifts, pallet jacks, and bins
- Shipping supplies
- Warehouse staff
- Security
- Cost-effective transportation and delivery vehicles
Warehousing & Logistics
Warehousing is a primary element of logistics management. Logistics includes obtaining, management, storing, and distributing goods and products. All businesses that buy, sell, and ship products should have a streamlined, robust logistics management approach.
Types & Functions of Warehouses
The four primary types of warehouses are private warehouses, public warehouses, co-op warehouses, and distribution centers. Each one should fulfill the basic functions of warehousing:
- Streamlining the shipping process
- Supporting the supply chain
- Managing inventory
- Enabling climate control
- Maintaining quality control
Advantages of Warehousing
Whether your company has its own warehouse or you hire an outside company for your warehousing needs, a warehouse has distinct advantages:
- Storage organization
- Labor management
- Cost-efficiency
- Security
- Faster shipping and delivery times
- Easy handling of returns
What to Consider When Looking for a Warehouse
If you’re looking for a warehouse for your company, the first factor you should consider is the cost. You will need to build the cost into your budget. Next, you will want to consider location. If you are a large company that ships all over the country, you may want to consider a warehousing company that operates in multiple states so you can have your products closer to each region you service. Then you want to evaluate their shipping and delivery services. Find out how fast they are able to deliver products, what their logistics management program is like, what their transportation fleet consists of, and where they deliver. Finally, you should consider your company’s future needs as well. You want scalable warehousing services that will grow along with your company.
If your company no longer has the space to handle its own warehousing in Tucson or the Metro Phoenix area, contact us at Xcel Delivery Services. We offer robust, efficient warehousing and fleet solutions for businesses of all sizes, across all industries. Whether you need short-term help or a permanent solution, we can design a customized plan to meet your needs and goals. We offer customizable and scalable warehousing, distribution, and cross-docking services. To learn more, call us today or contact us online.
