Warehousing or warehouse services are essential to supply chain management as they ensure good safety and faster deliveries. Many logistics companies today are on the go to incorporate these services into their work operations to automate logistics operations and increase productivity.
Since warehousing is essential to the whole supply chain and logistics management, we must understand its types. In this blog, we will explore the different types of warehouse services and how each offers specific advantages.
Different Types of Warehouse Services
You might be curious to know how your goods and inventory are kept safe and sound. It might seem like a large godown where the goods are simply kept and managed. No, it’s not as simple as it looks. Today, the godowns have been replaced by modern warehouses that are organized, clean, and aim for scalability. Now, there are different types of warehouse services that you can opt for according to your preferences. Some logistics companies offer you these services. Let us explore them one by one.
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Public Warehouse
A third-party logistics provider generally owns a public warehouse. This means it serves you as a 3PL warehouse. It is a type of warehouse that various businesses can use on a short or long-term basis. This means that companies can use these types of warehouses per their needs, which can last from a few months to several years. Public warehouses are ideal for businesses with seasonal or fluctuating demands as these charge based on storage duration, amount of goods, and other factors.
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Private Warehouse
In contrast to public warehouses, private warehouses are owned by a company division. Since the company division owns the private warehouse, it controls all operations and management. However, this control comes with a slight disadvantage. Getting a private warehouse will require you to invest heavily in its general maintenance, which is an expensive consideration. A private warehouse is a good option for businesses with a bigger budget and desires advanced control over a warehouse.
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Government Warehouse
Government warehouses are generally for public interests, such as emergency food reserves, public infrastructure projects, etc. Both public and private businesses can use these government-owned warehouses and offer enhanced security for certain types of goods. If you are looking for warehousing services with affordable rates and high-quality preservation, government warehouses are the ideal option.
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Cold Storage Warehouse
As the name suggests, a cold storage warehouse is used for storing temperature-controlled goods. Certain goods spoil or decay when not kept at a specific temperature, including poultry, meat, and dairy products. These warehouses ensure that such temperature-sensitive goods are safe and do not lose their shelf life. Therefore, cold storage warehouses are ideal for businesses with perishable inventory.
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On-Demand Warehouse
On-demand warehouses are ideal for similar businesses to store their goods together. Consider an example where a company sells certain goods during the winter down season. In this case, they would not require the warehouse space to keep their goods for those winter months. This space can be rented by another business that has an on-demand requirement to store goods. So, in this way, an on-demand warehouse benefits two companies with seasonal requirements.
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Consolidated Warehouse
Consolidated warehouses are applicable for shipments that must be transported at different locations. Suppose 500 shipments need to be delivered at various locations. Instead of providing all 500 shipments individually, these shipments can be kept group-wise as per their locations in a consolidation warehouse. In this way, the business can deliver all the shipments with less travel. However, the con of this warehouse type is that all the shipments can be consolidated only for a particular geographical area.
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Smart Warehouse
The concept of smart warehouses is becoming popular in the modern business world. A smart warehouse leverages the use of AI in the form of computers, machines, drones, and even robots. These machines and robots perform all the basic operations from packing to storing them efficiently. One significant advantage of smart warehouses is that they automate operations and reduce human error, thus saving labor costs.
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Distribution Centre
Distribution centers are affordable to rent and are often a fast way to deliver shipments. These centers are not simply for inventory management but usually serve shipment preparation and order fulfillment. They offer picking, packing, and timely shipping of goods and are more directed towards fast delivery rather than storage.
Wrapping Up
In this blog, we saw how the different types of 3PL warehouse services help you manage goods efficiently. Choosing the exemplary warehouse service for your business depends on your budget and specific needs. Renting a private warehouse would sound perfect if you want complete control over the warehouse and have a reasonable budget. If your business mostly has perishable goods, renting a cold storage warehouse is ideal.
So, it is always recommended to work with a third-party logistics partner who can help you find the exemplary carrier service to deliver goods per your requirements.