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 Warehousing is the act of storing goods that will be sold or distributed later. While a small home-based business may be storing products in a spare Seville, commercial space, warehouse, shopping center, business, premises in transfer, parking, industrial warehouseroom, basement, or garage, larger businesses generally own or rent space in a building that is specifically designed for storage.

Warehouse in front of distribution center

You may hear that "warehouse" and "distribution center" are used interchangeably, but technically, a warehouse does not provide anything other than storage. A distribution center, on the other hand, stores the product but also fulfills the orders.

Storage items

Whether the purpose is strictly warehousing or warehousing plus order fulfillment, warehouses use specific items that help manufacturers, distributors, and retailers monitor inventory and store it safely. An overview of the basic elements includes:

Shelving and shelving systems that offer maximum storage capacity and easy access to the product.

A climate control system for the product being stored. This is particularly important for frozen products or those that require refrigeration, including certain pharmaceutical or laboratory products, and others that degrade if exposed to too much heat.

Inventory control software that tells the product owner, who is not necessarily the building owner, where all the individual units are in the system at all times.

Equipment that can move products from point A to point B: forklifts, pallet trucks, containers that hold products for orders, and conveyor belts, for example.

Shipping supplies for order fulfillment.

People who load products in a warehouse and others ("pickers") who fill orders in a true distribution center, in addition to those who manage the installation and operation.

Security to protect stored products.

Access to cost-effective transportation to bring products in or out as orders are fulfilled. That often means easy access to interstates, railroads, or airports.

The storage business

Warehousing and everything that goes with it is part of a sophisticated industry known as logistics management. Logistics includes procurement, inventory management, and distribution. It falls under the umbrella of supply chain, which also includes product development, marketing, sales, and other disciplines related to products.

Warehouses include plant warehouses, regional warehouses, and local warehouses. They can be owned by the supplier or intermediaries, such as wholesalers, or they can be public deposits. The latter offer a general service to their public that includes the provision of storage space and warehouse services. Some warehouses specialize in the types of services they offer and the products they stock.

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