Businesses have various kinds of needs, but there is one thing they need in common: warehouses. Efficient logistics can make or break your operation; however, the right type of warehouse will give you something that will help you be sufficient in the long run, even down to savings. But how do you know which warehouse suits the best for your business? Let’s run down the different types of logistic warehouses so you’ll know where you can align it with your operational needs.
Private warehouses. These spaces are usually owned and operated by large companies with consistent inventory turnover, like retailers and manufacturers. Private warehouses give you the assurance that stocks are readily available. However, the downside of this is usually the overhead and maintenance costs that come with constant transporting and distributing goods.
Public warehouses. On the other hand, public warehouses are operated by third-party providers, and this type has been proven cost-effective because it gives small businesses a chance to scale up and operate smoothly without the overhead of owning such a facility. Other than having limited control over the operations of the warehouse, keep in mind that this type also becomes in demand during peak seasons.
Bonded warehouses. Bonded warehouses are facilities where you can store your goods imported from other countries and will be paid to customs when they are sold. This way, businesses can still operate without any tight financing but still be compliant within the regulations of their locality. Keep in mind that some localities have different regulations when it comes to these imported products and would require you to do additional paperwork and overhead fees.
Distribution centres. These warehouses are designed to swiftly receive, process, and ship goods, as their priority is to turn their products over as quickly as possible—and this type of delivery is what the customers prefer and the reason why e-commerce is thriving at such a rapid pace. However, in peak seasons, the operational demands will be high, and your inventory management should keep up with such demand.
Cold storage warehouses. This warehouse type is for businesses with perishable goods, as they need to maintain specific temperature conditions, especially food, medicines, and even flowers. This way, the product extends their lifespan and can be sold longer than the production date. This is also the reason why these storages have high operational costs, and depending on the goods, will require a different set of specialised equipment and management.
Smart warehouses. Smart warehouses are a new type of warehouse solution as they use automation and advanced technology to manage the inventory, such as AI-powered systems. This type of warehouse needs lesser-skilled workers to operate as robotics can provide faster and more accurate order processing. But this type of warehouse logistics works best for tech-driven companies only, as it will require sensitive management and a high initial investment.
How to Choose the Right Warehouse
Your business needs might not be the needs of other businesses. You may also have to research and look at the situation in the long term to seamlessly align your business operations with the warehouse type you choose.
