Warehousing is intrinsically tied to logistics, but it might be something you’ve yet to come across.
Here, we explain the role of warehousing in freight forwarding and how it can help your business.
What Is Warehousing?
Warehousing describes the temporary storage of freight goods during the shipping process before they reach their end destination. It is a really important part of supply chain management because it prevents the flow of goods from being interrupted and reduces the risk of delays and other service issues.
A warehouse itself is an enormous space that can be rented for long or short term to provide secure storage for consignments. There are warehouses all over the UK, Europe and the rest of the world, meaning shippers can utilise these spaces wherever they need.
Warehouses can be used to store most types of goods, no matter the size. However, this excludes perishable foods that require temperature-controlled environments or hazardous goods.
The Different Types Of Warehousing
There are different types of warehouses. Here are three common terms you’ll come across.
Public
Storage space in public warehouses can be hired by anyone at all. Space is generally rented according to the square footage of the goods themselves, and rates and agreements vary from one warehouse to another.
Private
As you might have guessed, private warehouses are private!
They’re privately owned, usually by big retailers, and used to store their extra inventory. Private warehousing involves huge capital investment but tends to work out as extremely cost-effective because companies can utilise the space when they prepare for seasonal demands.
Only the goods of the company that owns it are stored in a privately owned warehouse. A good example is the massive retailer Amazon.
Contract
Contract warehousing might be the perfect solution for companies that can’t or don’t want to build or buy warehouse space.
A contract warehouse stores goods on behalf of a company. It’s a bit like when you put your personal belongings in storage during a house move. Both the company and the warehouse enter a contract that describes the terms of the agreement, including fee structure and length of stay, though this may be extended or renewed at the warehouse owner’s discretion.
Contract warehouses can also perform many other services, including but not limited to, handling, packing, labelling and fulfilment.
How Does A Freight Forwarder Use Warehousing?
Freight forwarders just like us can take care of your warehousing arrangements so that you don’t have to worry about it.
Have you got goods coming from all over the world and need somewhere to gather them? Are you stashing goods ahead of the seasonal rush because you’re a savvy shipper, but you’re running out of room to store them? Shipping large goods that simply have nowhere else to go? Then a warehouse is your new best friend.
The Benefits Of Warehousing
When you use warehousing to enhance your operations, you can expect to benefit from these advantages.
Cost-Saving
Utilising space in a warehouse means you can buy more products at a cheaper rate as well as pay for fewer rounds of transportation.
It’s cheaper for you to use a freight forwarder for sourcing great warehousing solutions than it is to get your own. That’s because freight forwarders have brilliant connections throughout the industry and can often get their hands on better rates.
Risk Reduction
Warehouses are super secure and feature highly managed tracking systems that keep an eye on the movement of goods. In a warehouse, your cargo is under lock and key until you need it.
Speed
Accessing your goods is far quicker when they’re stored nearby, and the location of your warehouse can help streamline the shipping process. It even enables you to pick, package and label your goods faster, making it easier to keep customers happy and compete in the wider market.
Increased Capacity
When you’ve got the space to store them, you can import more goods and keep them safe until they’re needed. Buying in bulk means stock levels remain consistent, organising transportation is cheaper, and profits stay high.
Top Customer Service
Great warehousing means you can deliver goods quicker, maintain a more accurate inventory and provide better tracking for your customers. Including warehousing as part of your supply chain directly influences your ability to put the customer first and keep them happy.
Warehousing Plays A Crucial Role In Supply Chain Management
It might not be the first thing you think about when planning how to get your products from their place of origin to their final destination… But efficient, well-located warehousing can make all the difference to a successful shipment.
Using a freight forwarder that provides a warehousing management service means you can take advantage of their great rates and enjoy complete peace of mind that your cargo is reliably stored.
Are you getting ahead of the game and buying in bulk before the seasonal rush? Perhaps it’s not warehousing but another shipping worry that’s on your mind. Get in touch with Millennium today to find out how we can help.