What are the different types of warehouses a business can use? It's not as cut and dry as you might think. In fact, there are seven main types of warehouses a business can use. Knowing which type is best for your company is key to getting the most out of your warehouse space. Check out this blog post to learn more!
What Is A Warehouse?
When they hear the phrase " warehouse, " most people imagine a filthy, chilly, and gloomy facility packed with racks upon racks of cartons and containers when they hear the phrase "warehouse." The contemporary warehouse, in actuality, is a busy place that is clean, cheerful, and serves to keep our industry running.
When it comes to eCommerce, warehouses play a crucial role in order fulfillment. They provide more than simply storage space. Knowing the different types of warehouses can help you pick the best solutions for your eCommerce company's online growth. As a result, choosing the proper one is critical. Here are seven distinct types of warehouses that are currently in use.
1. Public Warehouses
A public warehouse is a self-contained business owned and run by someone else. Storage costs and incoming and outgoing transaction fees are used to determine prices in public warehousing.
2. Private Warehouses
A private warehouse is held and operated by wholesalers, dealers, or producers for their commercial purposes. Large merchants and internet businesses often use privately held warehouses.
Private warehouses are more costly than open warehouses. However, they can be an excellent choice for eCommerce SMBs that want a substantial, long-term economic footprint in a critical location.
3. Bonded Warehouses
Bonded warehouses can be held by the government or by giant corporations. A bonded warehouse is a facility where related commodities are kept until paid customs tax. Companies that store products are exempt from paying tariffs until their items are delivered to the customer. You can also use them to hold banned objects while their documentation is completed.
Importers would like such warehouses since they may hold their goods duty-free until they locate purchasers.
4. Consolidated Warehouses
Another warehouse is a consolidated warehouse, which receives small shipments from various suppliers and consolidates them into a more oversized cargo before delivering them to customers. These shipments are all intended for delivery to the exact location. It is the most cost-effective choice for startups and small enterprises because it is inexpensive to ship.
It is the most excellent solution for small-scale eCommerce firms because the investment and stock needed are relatively low. Consolidated warehouses do not require any upfront investment.
5. Smart Warehouses
A smart warehouse is one in which AI manages storage, order fulfillment, and inventory control. Automation can range from software solutions to robotics and drones that execute packaging, weighing, transporting, and storing items. Amazon, as well as Alibaba, for example, deploy massive smart warehouses to speed up order delivery and reduce the risk of human mistakes.
6. Cooperative Warehouses
Cooperative groups, such as family farmers or winery co-ops, own and manage suitable warehouses. Co-op users and non-co-op people can store products in such warehouses, but co-op members get discounted pricing.
7. Distribution Centers
A distribution center is a storage facility designed to meet specific needs. This sort of storage is utilized for short-term purposes, and things are swiftly moved across the supply chain. In a short amount of time, many goods are received and delivered to resellers and merchants.
There are many factors to consider when you're deciding what type of warehouse is best for your company. In this blog post, we'll explore seven different types and how they might be the right fit for your needs. Your business may use a combination of warehouses depending on where in the process you need storage space at any given time - from raw materials coming in all the way through finished products being shipped out! Whether you need a light industrial or heavy industrial facility, Coveyr has got it covered with our diverse range of 3PL services that include warehousing & distribution solutions. Get in touch today to see which option will work best for your business.