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WAREHOUSES (11,716 Views)

Importance of Storage Warehouses
By Jayesh Bagde 11,716 Views

Storage warehousing is of great importance to the fast developing businesses of today. It helps lessen the expense of companies in having to transport all the goods to different places. Storage warehouses serve as depots for merchandise or other parts for manufacturing companies.

Storage warehouses are basically commercial buildings used in storing goods or merchandise owned by different companies. These warehouses are generally used by companies involved in businesses. These businesses include exporting, importing, manufacturing, wholesaling, transporting, and many other industries that require large storage facilities. Storage buildings are often comprised of very wide areas that are mostly located in industrial zones.

Storage warehouses are equipped with cranes, forklifts, and container trucks which are used in loading and unloading cargos. Some of the modern storage warehouses are set with automated storage systems and would no longer require manpower inside the facility. Those storage warehouses that hold perishable goods are geared up with large refrigerators which keep the products safe and fresh. Most of these warehouses maximize vertical space measuring as high as 20 meters.

Goods and merchandise are stacked in ISO standard pallets and loaded on pallet racks. The pallets containing the products are moved through the use of high-tech automatic conveyors. The automated storage and retrieval machines are linked to a computer run by logistic automation software. Tracking of merchandise in storehouses is monitored through the employment of Warehouse Management System or WMS. WMS is a computer program which stores and retrieves database containing inventories and records of transactions of the warehouse. This computerized system is maintained and watched by logistic personnel.

With the introduction of Just In Time technique or JIT, the use of traditional storage warehouses have declined. JIT offers a much reduced processing of inventories by way of delivering directly the products and commodities to retailers. This is similar with automobile industries wherein the parts are directly delivered to the assembly plants. However, due to the offshore outsourcing, the distance between manufacturers and retailers is of another major concern. This demands at least one warehouse in every country or region of operation in order to cater to the expansion of the business.

The recent development of storage warehouses presents double purpose. Storage warehouses can now be manipulated as retail stores. The traditional high ceilings with decorative shelves are replaced with sturdy industrial racks. These racks encompass ready to sell items placed just below the racks while merchandises which are in pallets are usually stored on top of the shelves. In this way, one building can be used as warehouse and at the same time offers retailing that can save a lot of resources compared to having two separate buildings for each purpose.

Today, many exporters are using storage warehouses as a means to establish retail outlets for a particular region or country. This new system also facilitates in reducing the cost of products for the consumers and relatively increases the production sales. Warehousing is considered a great tool by many manufacturers in directly reaching consumers without the need of middle men or agencies. This saves manufacturers from additional fees, as well.

Storage warehouses are also furnished with many security features such as surveillance camera as well as burglar alarm. Some even employ security guards to secure the whole area of the facility. The majority of the storage warehouses are made up of metal building. All of the building's parts like beams, frames, walls, and roofs are made from high quality steel. With these materials, the structure is more flexible and can be modified easily in less time compared to warehouses made of wood or concrete.

Many storage warehouses are centrally located in areas adjacent to key destinations and where transportation is accessible. Warehouses owned by big businesses are often large enough to accommodate a good number of consumers in the country of operation. This allows them to easily distribute the goods without having to ship from country to country. Also, the development of the Internet has had a great influence on the system of warehousing. Internet-based stores do not need any physical point of selling but only require storage warehouse to gather all needed goods for the consumers.

Operators of storage warehouses are responsible for protecting all the products that have been deposited in their respective warehouses. The storage warehouse should have insurance, too. Prices of these services may vary depending on the point of location and service provided. Storage warehouses are sometimes leased for a year or longer depending on the clients. Some big companies build their own storage warehouses where their major market is located.



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