Whether you’re a business owner or manufacturer, it’s important to understand the ins and outs of warehouse storage. Upon first glance, it can be easy to assume that warehousing falls into a similar category as personal storage. In reality, it’s a very particular portion of the supply chain process that requires full knowledge of product manufacturing.
Between storage, order fulfillment, and transportation, your goods require careful management. Warehousing includes inventory management, team members, and logistics. Whether you’re new to the process, or a seasoned business owner, it’s always good to be informed about current warehousing practices. Here’s a definitive guide to warehouse storage for all business owners and manufacturers.
Warehousing
The general definition of warehousing refers to the act of purchasing goods from a manufacturer and storing them in a safe place before they’re transported to another location. Warehouses can cover a wide range of spaces including facilities, designated warehouse buildings, and spare rooms.
Warehouses can vary in size depending on the size of a business and its logistics. For example, a small business may not need as big of a warehouse to store their goods. However, larger stocks may require more space and designated transport access. Overall, warehousing is an essential part of the supply chain process, making it important to fully optimize one’s space.
Business-to-Business (B2B)
Business-to-Business, or B2b, refers to transactions between other businesses. In the case of warehousing, this typically involves other manufacturers or wholesalers. As the name implies, B2B occurs between other companies rather than consumers. B2B is a very important part of the supply chain since one company will purchase materials that are necessary for the manufacturing process.
Compare this to B2C, which is in reference to Business-to-Consumer. Unlike B2B, B2C transactions occur between businesses to other consumers. Overall, B2B transactions are commonly utilized by auto manufacturers, industrial cleanup companies, and property management businesses.
Warehouse Storage vs. Self-Storage
As a whole, warehouse storage is more commonly used by businesses while self-storage is designed for consumers. This isn’t to say that businesses can’t use self-storage, it’s just that these spaces aren’t designed for the transaction and manufacturing of goods. Warehouses are designed to accommodate business needs, especially products that need to be transported.
To elaborate even further, warehouses and self-storage differ in three primary ways: security, size, and cost. Warehouses are often built to protect certain goods and services from damage, particularly if they need to be in a certain climate. While self-storage can offer these services as well, they’re not usually large enough to carry all of a business’s products. Finally, warehousing is much more expensive than self-storage since they’re designed for business purposes, not personal possessions.
Distribution Centers
Understanding warehouse storage also means being able to differentiate between warehousing and distribution centers. While they’re often spoken in tandem, distribution centers are a very different kind of manufacturing center. In summary, warehouses are used for storage while distribution centers are primarily for order fulfillment.
Sometimes, distribution centers are built into warehouses. But, this doesn’t mean they serve the same purpose. For example, the warehouse section of a building would be used for storage and protection of goods. Meanwhile, the distribution center would be in charge of completing orders and preparing them for shipment.
Benefits of Warehouse Storage
When looking at warehousing as a whole, it can seem straightforward and easy to understand. Even so, there are advantages of storing your goods at a warehouse that aren’t initially apparent. On the surface, warehouse storage gives your goods a safe and convenient place to be until they need to be transported to consumers. In reality, the benefits of warehousing go far beyond storage.
Centralized Location
Choosing an optimal storage location can make or break a business. A centrally located warehouse storage facility can simplify the manufacturing process and ensure the safety of your products. To choose a centralized warehouse, it’s important to think about where your customers are and the location of the nearest manufacturing hub.
A centralized warehouse can help the overall business when it comes to affordability and the need for team members. Essentially, warehouse centralization reduces the cost of operations, the number of needed facilities, and the amount of inventory a business needs to carry. Overall, a centralized warehouse optimizes the entire manufacturing process.
Supply Protection
It’s important to choose a warehouse that fits the needs of your business and its goods. Do your products require refrigeration? Are they fragile? Analyzing the needs of your goods will be an essential part of your business. An optimal warehouse will accommodate your products in a reliable and professional manner.
Improved Employment
Get to know your business and the amount of products you’ll be manufacturing and selling. Depending on how much your company is growing and how busy you’ve been, you’ll need to increase the amount of employees within the warehouse. A warehouse can help you plan ahead and make sure your staff keeps up with the demand of your products.
Inventory Accuracy
An efficient warehouse can help you get an idea of how much inventory you have and plan ahead for future transactions. For example, implementing a warehouse management system can help with scheduling, shipments, and order fulfillment. This can also help you get an idea of how many more team members to hire, what kind of equipment you need, and tasks that need to be completed.
Better Flow of Goods
Warehouse layout may not seem like a major priority, but it can actually be very beneficial for your business. A proper layout can mean an increase in productivity. When there’s better productivity, the manufacturing process becomes more efficient. A better flow of goods means your manufactured goods reach your consumers in an efficient manner.
Warehouse Functions
The general function of a warehouse is to store and protect goods until they’re ready for transportation. Even so, warehouses can also serve as centers for related services that go beyond storage. As previously mentioned, there are several advantages to warehousing. Even so, there are also functions that can be included with warehousing that will also benefit your business.
Shipping
Strategic warehouse locations usually become shipping hubs. This is because of the convenience of their location. Businessowners can temporarily and/or permanently store their products in a warehouse that’s close to manufacturers and consumers. They’ll be safe at the centralized location until it’s time for transportation.
Assembly Lines
Sometimes, a manufacturer will deliver products in several pieces. When this happens, businessowners can determine which pieces will go to certain areas of the warehouse. From there, products can be assembled in specific locations of the warehouse before reaching consumers. Warehouses with assembly lines are great for products that come with a lot of intricate parts.
Rental Storage Space
Some warehouses include the convenience of rentable space. This can be helpful if you need to store away certain items for a temporary period of time. Business may be slow or the warehouse may not suit the needs of your goods. Until then, you can rent out a space in a warehouse for temporary storage until you’ve decided on a permanent location.
Warehouse Purposes
Warehouses can vary in size and shape depending on their purpose. Some warehouses specialize in storing specific pieces of merchandise while others involve a certain portion of the supply chain process.
As their name implies, private warehouses refer to individually owned facilities that store their own equipment. In contrast, public warehouses offer their services to the general public since they’re usually owned by the government or semi-state body. As a review, distribution centers specialize in making sure products get to their designated location. Finally, co-operative warehouses refer to facilities that are co-owned and offer rentable spaces.
Warehouse Logistics
Warehouse logistics refer to what happens behind the scenes. Logistics can include the planning, organization, and management of warehouse operations. Improved warehousing logistics ensures positive customer satisfaction and complete operating efficiency. Since warehousing is a vital part of the supply chain, operations need to be at their highest level.
Logistics cover a wide range of warehousing specialties. For example, managing space can mean the difference between an increased workflow and decreased efficiency. Logistics can also mean improved organization of information and planning shipments. Fully optimized logistics result in faster delivery times and improved affordability.
Warehouse Supply Shortages in Boston
It should be noted that there is a current supply chain disruption that’s negatively impacting every portion of the process, including warehousing. When managing your business, including your selected warehouse, make sure to keep customers informed. This is particularly affecting the Boston Metro, resulting in increased prices of goods.
The supply chain includes everything from cargo ships to delivery trucks. On top of that, a shortage of employees is making it difficult to manufacture goods within warehouses. When this happens, products aren’t made in a timely manner and fail to reach customers in a convenient manner.
While much of this is out of the control of business owners, this makes it even more important to contain your warehouse management within a rented space. It’s no longer realistic to try and handle logistics of a privately owned warehouse. Instead, consider renting out warehouse space to increase affordability and manufacturing efficiency.
OnDemand Storage
OnDemand Storage prides itself on being one of Boston’s best storage and logistics services. We make it a priority to simplify warehouse storage and the supply chain process. Overall, the convenience of OnDemand storage is what makes us one of the best warehouses in Boston. Whether you’re in need of logistics service or a safe place to store your goods, we’ve got you covered!
Boston Warehouse Storage
OnDemand storage serves the states of Massachusetts, New York, and Connecticut. Our warehouse services are flexible, clean, and convenient for anyone in need of storage. Our secure and climate controlled warehouse storage facilities are designed to serve residents and business owners alike.
Not only that, our full-service storage solutions allow businesses and individuals to schedule deliveries to and from our warehouse. With OnDemand storage, businesses save time and money since they don’t need to rely on their own warehouse space.
Long-Term Residential Storage
Our climate controlled and convenient storage warehouses are specifically designed for business owners. Along with optimal logistics services, our warehouses help businesses manage space without the risk of losing affordability. With transparent pricing and convenient communication, OnDemand Storage pairs you with an account manager to make sure your products are always secure.
Pickup and Delivery
OnDemand storage offers unique pickup and delivery services for your convenience. Essentially, your storage comes to you. With the help of our experienced team, your items get transported directly to you or moved to a different location. With OnDemand Storage, you no longer have to worry about the transportation of business-related items. We’re happy to help make storage as seamless as possible so you can focus on improving your business. Contact us today to learn more about our warehouse services!
