What Is a Warehouse Service?
warehouse is a large building or facility used for the storage and distribution of goods and materials. Warehouses receive products from various suppliers or manufacturers, store them, and then redistribute them to retailers, other businesses, or directly to consumers. The goods may differ from raw materials, manufactured goods or even buffer stock depending on the role of the warehouse in the typical business supply chain. Warehousing Companies in India may buy or lease areas or building to offer warehouse services.
Types of Services Provided by Warehouse?
When selecting a warehousing and logistics company in India, one should understand the basic uses of availing a warehouse service.
Storage & Safeguarding
Warehouses provide a secure and controlled environment for storing products, raw materials, and finished goods. Warehouses protect goods from external factors such as weather, theft, and damage. External factors may affect demand and supply, and stocking of products in warehouses can help in overcoming shortages or unforeseen market circumstances.
Consolidation & Transportation
Using a warehouse service can leverage consolidation opportunities because larger shipments often result in lower per-unit transportation costs. A 3PL company provides logistic and warehouse services along with transportation service options for ease in movement, instance, and eCommerce fulfillment services.
Inventory management:
Tracking stock amounts, keeping an eye on the movement of items into and out of the building, and managing inventory levels are all made possible by warehouses.
Order fulfillment:
Orders placed by customers or retailers are processed and fulfilled from the inventory stored in the warehouse. The goal of order fulfillment is to ensure that customers receive their orders accurately, on time, and in good condition. It helps contributing to a positive customer experience and building brand loyalty.
Value-Added Services
Value-added services (VAS) refer to additional services or enhancements provided beyond the basic storage and handling of goods in a warehouse or supply chain. The warehouse can fulfill services such as packaging, processing, branding, kitting, assembling, labeling, and customization, all tailored to the end-user’s needs.
Warehouse Management Systems (WMS)
Smart Warehouses now have management systems where information about inbound, outbound, storage is recorded. This helps to gain accurate inventory insights and important information for the purpose of making informed decisions. Smart warehousing is basically the replacement of warehouse operational tasks with computers and machines which were earlier done by humans.
Roles of Warehouses in Typical Supply Chain Management
Warehouses play vital roles in typical supply chain management. Here are some of the key functions:
1. Inventory management and control:
- Warehouses serve as a central point for receiving, storing, and distributing inventory.
- They help maintain optimal inventory levels by managing the flow of goods between suppliers and customers.
- Inventory tracking and record-keeping are essential functions of warehouses.
2. Consolidation and distribution:
- Warehouses consolidate products from multiple suppliers, making it easier to distribute them efficiently to various locations.
- They act as distribution hubs, facilitating the timely delivery of goods to retailers, wholesalers, or end customers.
3. Buffer stock and demand management:
- Warehouses hold buffer stock or safety stock to ensure product availability and mitigate potential supply chain disruptions.
- They help manage fluctuations in demand by maintaining sufficient stock levels to meet customer requirements.
4. Value-added services:
- Warehouses can provide value-added services such as product customization, packaging, labeling, kitting, or light assembly.
- These services help streamline the supply chain and enhance customer satisfaction.
5. Cross-docking:
- Warehouses can facilitate cross-docking operations, where incoming goods are directly transferred to outbound transportation without being stored.
- Cross-docking reduces handling and storage costs while improving delivery times.
6. Order processing and fulfillment:
- Warehouses play a critical role in processing and fulfilling customer orders efficiently.
- They ensure that the right products are picked, packed, and shipped to the correct destinations in a timely manner.
7. Return management:
- Warehouses handle the reverse logistics process, including receiving and processing returned products from customers.
- Proper return management helps maintain inventory accuracy and enables the resale or disposal of returned goods.
8. Cost optimization:
- Warehouses contribute to cost optimization by consolidating shipments, reducing transportation costs, and minimizing inventory carrying costs.
- Efficient warehouse operations can significantly impact the overall supply chain costs.
Types of Warehouses and What Type of Services They Provide
Private Warehouse –
They are privately owned by corporations, manufacturers, traders or resellers through capital investment by owners for their own use. E-commerce giants frequently operate their own private logistic warehouse, utilizing them to store and distribute products during seasonal demand or to fulfill long-term needs.
Public Warehouses –
These are the government warehouses. Small businesses or e-commerce startups who don’t want to invest in a private warehouse might use these warehouses for short-term needs. Businesses commonly use these warehouses to store low-risk finished goods and for eCommerce warehousing purposes.
Distribution Centers –
Distribution centers are like hubs where products are stored temporarily before they’re sent to stores or directly to customers. They receive products from manufacturers, sort them, and then send them out efficiently to the right places. Distribution centers are usually located closer to the end-customer and also provide value-added-services like picking and packing, labeling, assembling, kitting, etc.
Bonded Warehouses –
Bonded warehouses or customs bonded warehouses are places where imported goods are stored before the import duty is paid. Custom Bonded warehouses managed by Private companies or government arthurites.
The reason for using bonded warehouses is to keep track of taxes on goods. Companies can’t access the goods stored in these warehouses without paying the required excise or customs duties. Bonded warehouses located near ports to ensure proper management and tax compliance.
Cold Storage –
Cold storages specifically cater to temperature-sensitive items like medicine, perishable foods, and plants to preserve their freshness. Keeping these iteams fresh and protecting them from damage or spoiling from heat or humidity is the main goal of cold storage. The refrigeration systems in these warehouses are capable of maintaining particular temperature ranges that are appropriate for various product categories.
Smart Warehouses –
Smart warehousing uses AI and modern infrastructure to eliminate human error. The infrastructure involves high level racking infrastructure and material handling equipment. Smart warehousing also involves WMS for information transfer to guide proper resource planning for the top management.
AAJ Supply Chain Management pioneers in setting up large scale, multi-client facilities laced with racks systems built using German technology to handle pallet, case and piece storage in all major metropolitan cities of the country.
Being the leading warehouse storage company in India, we provide customizable space, Wi-Fi enabled warehousing, modern racking, bulk handling equipment, 24/7 security and CCTV, modern barcoding system along with our own warehousing software.
AAJ Supply Chain Management
