What Are the Different Types of Warehouses?

If you’re looking for a facility to store your goods through warehousing services, there are several warehouses that you can use based on your specific storage needs. The type of storage space selected can affect order fulfillment capabilities and mean the difference between losing business and satisfying your customers. Some businesses may require smaller spaces in the short-term while others may need a larger space with full automation. Others may want a warehouse to serve as their distribution or fulfillment center, which will handle processing, picking, packaging, and shipping.

These are the different types of warehouses you can use for storing products of all types and use as your distribution hubs. Depending on your needs, you can determine which will work for your business and help you maintain both cost-effectiveness and productivity.

Distribution Warehouses

If you want a warehouse to serve as your distribution center, you can do so with distribution warehouses used to store and distribute a large number of goods. Distribution center warehouses often contain goods from more than one manufacturer and sell these products to retailers. Goods are stored for a brief period of time, often only for several days before distribution.

Distribution centers are integral to supply chains, which means it’s crucial for businesses to properly establish them. With the help of ample distribution warehouse space and efficient operations, you can meet the needs of many customers.

Climate-Controlled Warehouses

Climate-controlled warehouses are popular for storing and shipping perishable goods. These warehouses can feature humidity and temperature controls, with applications including storage for products such as flowers that require a certain level of humidity or frozen foods requiring freezers.

Regardless of the type of perishable, you’ll need to use these warehouses to avoid spoilage and ensure that retailers can sell resell these goods.

Shared Warehouses

Whether you require a short-term or long-term warehousing solution, public shared warehouses are ideal if you don’t need to use an entire warehouse. Retailers and manufacturers can use these by renting out a certain amount of space in a warehouse to store goods for a short or long period of time. One use for these types of warehouses is for storing overflow until you can afford a larger private warehouse or another warehouse in addition to your current warehouse. Shared warehousing is also good for seasonal businesses or instances of low volume.

Dedicated Warehouses

Unlike shared warehouses, dedicated warehouses are warehouses that a single manufacturer or retailer owns. These warehouses often require sufficient investment to construct and maintain. They can also appear on- or off-site and are ideal for companies that are able to make a larger financial investment in product storage. These warehouses are also ideal if you expect your inventory to rapidly grow and anticipate the need for larger warehouse space.

Automated Warehouses

If you require a highly efficient storage option that’s capable of quickly fulfilling orders and moving goods, automated warehouses are often a good choice. This type of warehouse utilizes order tracking software to efficiently store, move, and receive goods, with equipment such as racking, pallets, and forklifts used to move items throughout the warehouse. Wholesale distribution software can also help minimize human error and further increase efficiency.

Bonded Warehouses

Bonded warehouses are used to store goods that are imported prior to making customs duties payments. Companies using bonded warehouses receive bonds from authorities when renting these spaces to help make sure they don’t experience financial loss when products are released.

Businesses using bonded warehouses to store goods don’t need to pay any duties until they release their items. Companies are also allowed to store restricted items in these warehouses until they’ve completed the proper paperwork. It’s also possible to use bonded warehouses for long periods of time.

In short, if you’re an importer of foreign goods, you can use bonded warehouses to store these items until buyers are found.

Fulfillment Center Warehouses

Fulfillment centers are third-party (3PL) warehouses used for eCommerce businesses that contain systems for processing, product selection, packing, and shipping to fulfill online orders. A large number of eCommerce businesses rely on outsourced fulfillment centers to meet their operational needs when storing and shipping products, which helps eliminate the need to have and maintain their own warehouse.

These are the main types of warehouses you can choose for your business based on your specific requirements.

Benefits of Outsourced Warehousing

Regardless of the type of warehouse you’re considering, you can benefit from outsourcing your warehousing operations. With the right services behind your business, you can reduce expenses, increase flexibility, and take advantage of the latest warehousing management technology to maintain efficacy across all of your warehousing operations.

Whether you’re a smaller business looking to grow or an established expanding business, outsourced warehousing can give you what you need to thrive.

Comments are closed.