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What are the Different Types of Warehousing?

When storing items or goods, you should consider renting a warehouse for safe and secure storage. However, you should also consider different factors when choosing the type of storage space best suited for your needs. The type of warehousing you select may impact the capability to fulfill orders on time and satisfy customers. Therefore, it’s crucial to spend enough time giving thought to the warehouse you need.

To help you choose the best type of warehouse for your business, we have provided this blog. In it, we will discuss the different warehousing types available. Additionally, we will also explore which types fit which unique need. Keep reading to choose the right warehousing solution for your business!

What is Warehousing?

Warehousing is not only simple storage. It also includes other functions, such as the identifying, receiving, assembling, holding, and packaging of goods and products. Warehouses are also responsible for the management of goods until they have been collected.

What are the Functions of Warehousing?

Regardless of the type of warehousing you choose in Toronto, here are the basic functions you should expect:

Storage

It is the primary and main function of any warehousing. It merely means storing surplus goods and awaiting the distribution process to the clients and customers.

Stabilization of Price

Warehousing also increases holding times for goods. If prices have fallen, the manufacturer may choose to wait until they’ve stabilized to put their items back on to the market.

Risk minimization

Most warehouses are built and designed in such a way as to avoid damage, deterioration of the products within and theft. Some warehouses feature climate control and high security to protect the goods and commodities.

Packing and Grading

Some warehouses also provide packing and grading services for different items. However, the manufacturer has to give the specifications of the products. The warehousing service only provides these services as long as the goods await distribution.

What are the Basic Types of Warehousing?

Before understanding the common types of warehousing, it is crucial to know the two basic divisions for warehouses.

Private Warehouses

Private warehouses are owned and operated by the manufacturers and channel suppliers for their tasks. These warehouses are usually owned by big manufacturers, due to the huge capital required to build a warehouse.

Public Warehouses

On the other hand, public warehouses are owned by business establishments that provide warehousing (for a fee) to companies that do not have theirs. However, a public warehouse needs a license from the government. 

Now the common types of warehousing services include: 

Distribution Center

Distribution centers or warehouses are used to store and sell a huge number of goods. Usually, distribution centers store goods and items from various manufacturers that, in turn, sell to retailers/customers. 

Products are typically stored for a short time. In some cases, it is stored days at a time. This type of warehousing is the main part of the supply chain, so it’s crucial to set it up properly. Having a smoothly run supply chain can allow you to serve a huge number of customers better.

Climate-controlled Warehouse

Climate-controlled warehouses are a popular warehousing service in Toronto. It is used to store and ship perishable goods. These warehouses range from humidity-controlled environments to freezers that store frozen foods. Whatever the type of perishable products, these warehouses are the best ones to keep your fast-moving goods at the required temperature.

Automated Warehouse

Under warehousing, automated warehouses are considered highly efficient and quick-moving. Automated warehousing uses order tracking software to receive, store and transport products. 

Also, it uses modern equipment such as racking, forklifts and pallets to move items quickly within the warehouse. With the right wholesale distribution software, there is less incidence of human error. Apart from that, the ability to receive and ship goods becomes more efficient.

Fulfillment Center

As a third-party (3PL) warehouse, a fulfillment center is used to order processing, packaging, and shipping products for eCommerce partners. Nowadays, many eCommerce merchants use fulfillment centers to outsource their storage and shipping of products. In this type of warehousing, sellers ship goods to the fulfillment center. When an order is placed, the fulfillment center moves out the order. Therefore, this minimizes the need for growing eCommerce retailers to maintain their warehouse.

Private Warehouse

Private warehouses are also known as proprietary warehousing. These facilities demand an upfront capital investment to construct and maintain. Also this warehousing service is typically owned by large retail corporations that privately store products. It may be built on-site near the manufacturing site or can be off-site. Finally, it is ideal for established companies that are willing to make a financial investment in the storage of their products and goods.

Public Warehouse

A public warehouse is an excellent choice for corporations or companies with short-term warehousing needs. For example, if a retailer or manufacturer runs out of space to store products, a viable option is a public warehouse. 

It is where you can rent space to save your overflowing goods and items for a short time. This type of warehousing facility is ideal as it allows you to deal with an overflow of goods. You can store products until you know you are ready for an additional warehouse.

What is the Difference Between Warehousing and Logistics?

Warehousing and logistics are two different things with similar functions when it comes to the supply chain. All types of warehousing involve the safe storage of products and inventory.

On the other hand, logistics is a complex process that involves the management of the entire flow of products, from the manufacturer to the end consumer. It includes actions like warehousing, production, packaging, material handling, inventory, security, transportation, and flow of information. In Toronto, this warehousing service is a vital component of supply chain management.

Conclusion

Regardless of the type of warehousing service you choose, consider both your short-term and long-term cargo distribution needs. As you grow your business, you may end up selecting a fulfillment center or public warehouse. If you’re an established business with the capital available and demand already on the rise, you should consider a private warehouse.

All Freight Shipping provides excellent warehousing and cross-docking services to offer you more options. You can get warehousing services that incorporate a high level of flexibility in pricing, scheduling and freight. Call us at 647-691-5535 or email us at info@allfreightshipping.com to get a FREE QUOTE. 

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