Any business that deals with physical products will need warehousing; it’s ubiquitous in industries of all kinds and involves processing, storing and dispatching products from toys to car parts. But what is warehousing and why is it so important?
At LTS Global Solutions, we’ve been providing industry-leading logistics and warehousing services for more than a quarter of a century. We’ve put together this complete guide to warehousing, covering what it is and its role in the supply chain.
What is Warehousing?
Warehousing is a vital step in the supply chain. It involves receiving, inspecting, organising, storing, picking and dispatching goods for shipping. After physical goods are manufactured, they’re often shipped to a warehouse for storage and redistribution.
Modern warehousing services also often include additional services such as packing, labelling and preparing orders for customers, which is often referred to as fulfilment or e-commerce fulfilment.
Why is Warehousing Important?
Now we’ve covered what warehousing is, let’s discuss why it’s so important. Warehousing provides safe storage for goods after production and makes them ready for quick dispatch and distribution. It aids the stable and secure management of stock and reduces delays in the supply chain.
Additionally, warehousing allows companies to store large volumes of goods closer to customers, cutting down on transport times and costs. Being able to store goods in high volumes also enables stock to be produced in large quantities and gives manufacturers and customers the pricing benefits that come with economies of scale.
More advanced warehousing operations provide live stock updates and advanced inventory control, enabling manufacturers to respond quickly to shifting demand.
The Essential Role of Warehousing in a High-Performing Supply Chain
So, what is warehousing’s role in a high-performing supply chain? Warehousing forms a crucial link in any supply chain, and properly optimised warehousing makes use of the latest technology to create a structured environment where goods can pass through with minimal friction.
Careful placement of warehouses supports multi-channel fulfilment and makes it easier to plan distribution routes, simplifying the supply chain and reducing costs. The use of advanced technology also allows manufacturers to plan better and ensures a more consistent service throughout.
Warehousing for E-commerce
Warehousing is a crucial component in most e-commerce operations. Many e-commerce businesses specialise in designing and producing their products and have limited experience in effective logistics. Additionally, they may lack storage space, which is an expensive commodity for many businesses.
Warehousing and e-commerce fulfilment allow e-commerce businesses to outsource their product storage and order fulfilment. This enables them to focus on their core operations while improving customer experiences with faster deliveries and simplified returns. Read our blog for more information on warehousing for ecommerce.
Warehouse Processes Explained
The warehousing process is made up of several distinct yet interlinked steps, each as important as the last:
01 – Receiving
Goods arrive at the warehouse. Shipments are checked against delivery documentation to ensure everything is correct and accounted for.
02 – Inspection and Quality Control
After receiving the goods, warehouse staff will inspect them for damage to check that they’ve not been impacted during shipping and are ready for their next step.
03 – Put Away
Once their condition is confirmed, goods are organised and stored in appropriate locations throughout the warehouse.
04 – Storage
Goods are kept in storage and rotated if necessary. For sensitive items, such as those with expiry dates, storage conditions like temperature may be monitored too.
05 – Inventory Management
Stock levels and item locations are monitored and tracked to ensure that order picking is as efficient as possible.
06 – Order Picking
As orders come in, warehouse staff carefully pick the required items, ensuring records and stock levels are updated as they go.
07 – Packing
After picking, items are checked one last time, packaged up ready for dispatch and labelled for delivery.
08 – Shipping and Dispatch
Once they’re ready, packaged and labelled orders are handed to a courier or loaded onto vehicles for delivery.
09 – Returns Handling
If customers are unhappy with their orders, they will be returned to the warehouse via a courier, assessed and either sorted for storage or flagged as faulty.
Types of Warehouses
Public Warehouse
A public warehouse is a facility operated by a third-party provider on behalf of any number of clients, such as our warehouses at LTS.
Private Warehouse
Private warehouses are owned and operated by one company for their own purposes, usually larger manufacturers with consistent demand.
Bonded Warehouse
These warehouses are government-authorised storage facilities for keeping goods before customs duties are paid.
Distribution Centre
A distribution centre is focused on quick processing and distribution of goods, and less on storage.
Smart or Automated Warehouse
These are technology-driven operations with minimal human involvement, designed to reduce labour costs and improve efficiency. Read more about automation in warehousing with our helpful blog.
Cold Storage Warehouse
Cold storage or ambient storage warehouses are temperature monitored facilities for storing sensitive goods such as food and drink. At LTS, we offer ambient storage solutions for products such as dry packaged goods and bottled drinks.
Benefits of Warehousing
Warehousing, and specifically outsourced warehousing, has a range of benefits that make it an ideal solution for businesses of all kinds:
- Cost Efficiency – Using a third-party warehousing provider removes the need for investment in large storage facilities, meaning you only pay for the space you need.
- Scalability – Third-party logistics is scalable, meaning it can be expanded or reduced as your needs change over time.
- Operational Expertise – Logistics companies are specialists in what they do and can offer expert insights and improvements that deliver greater value.
- Access to Technology – Dedicated providers will invest more heavily in the latest logistics technology, enabling you to benefit from real-time stock updates and inventory tracking.
- Geographic Reach – A third-party logistics provider will usually have a broad geographical reach, allowing you to cost-effectively ship your products to more locations. For example, at LTS we operate in a variety of areas across the globe.
- Risk Reduction – Outsourcing your warehousing and logistics transfers responsibility for legal compliance, staffing, maintenance and equipment to a third party that’s better prepared to handle them.
- Freedom to Focus on Core Activities – The final benefit is time. Logistics takes a lot of it, and outsourcing your warehousing allows you the time to focus on your core activities.
Key Considerations When Choosing a Warehouse
Location
When selecting a warehouse location, it’s important to consider your customer base. If you primarily serve a specific region, choose a warehouse close to your customers. However, if you serve a broader area, it’s best to select a central location with easy access to major transport links.
At LTS, we chose Birmingham for our site, placing our warehouse in the centre of the UK and at the intersection of some the country’s biggest transport networks.
Technology
Efficiency in modern logistics means making use of the latest technology, and it’s important to choose a warehouse that integrates smart solutions. Getting live updates on stock levels allows you to respond more accurately to shifting demand and seasonal spikes.
Learn more about warehouse management systems in our blog post.
Customer Service
Your warehousing provider is going to form a crucial part of your supply chain, so you need to know they’re going to respond proactively to any issues and that you’ll be able to get hold of them if you need to.
Check that a prospective provider has the customer service resources necessary to provide support if you ever have an issue.
Why Choose LTS for Warehousing and Storage
Now you understand what warehousing is and why it’s so important, where can you go for a reliable third-party provider?
At LTS Global Solutions, we offer a range of logistics services, including long and short-term warehousing, pallet storage and food warehousing in modern facilities. Our integrated logistics facility provides a range of secure storage options from simple storage to full 360˚ fulfilment including returns.
Our facility is perfectly connected to serve UK and international customers. We are in a strategic position at the heart of the UK’s national motorway network and have an on-site intermodal rail freight terminal linking to three seaports and the Channel Tunnel.
We also have the capacity to handle large, oversized goods, as well as fragile items. With our advanced tracking, you’ll have real-time information about your inventory, and we offer a range of add-on services such as import and export, bulk collections and onward distribution via our own fleet.
To get a quote, call us today on 0121 753 0800, email us at info@ltsglobalsolutions.com or fill out our contact form.
