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7 Types of Business Warehouses According to Their Functions

Table of Content

Types of Warehouses

In managing the distribution process, a business warehouse's existence will help you keep stock of goods. You also don't need to buy it right away because now, many warehouse owners rent it out at affordable rates.

The Role of Warehouse in a Business

The role of a business warehouse is not just a place to store goods. With the status of goods as products that will determine business success, warehouse selection will significantly impact quality. So, it would be best if you did not carelessly rent it.

Then, what can you do in the warehouse besides storing goods? Business warehouses are used for sorting, processing, and packing goods. Without a warehouse, you will find managing the production and consumption cycle difficult. As a result, customers will not receive the goods on time and, worse, your business reputation.

Then, the business warehouse is also helpful for those of you who manage seasonal businesses. The reason is that when running this type of business, the number of consumer demands tends to continue even though the supply of goods is decreasing. 

In this case, the advantage of a business warehouse is to put excess stock that you can sell when the production period is sluggish. So, your Profits will also remain stable.

Based on their function, warehouses are divided into seven types, including:

1. Raw Materials Warehouse

Most companies and businesses generally have one building to store raw materials. They will put these materials after the production stage is complete. 

This warehouse also stores raw materials such as building materials and other commodities like rubber.

2. Semi-finished Goods Warehouse

In this case, semi-finished goods are still in the manufacturing process. 

However, warehouse rental rates for semi-finished goods are more expensive because the labeling process takes extra time and effort.

3. Warehouse of Produced Materials

A warehouse of manufactured materials is a business warehouse where you can choose to store manufactured goods. The rental price is also cheaper because these goods are generally ready to be distributed to customers.

4. Sorting Center Warehouse 

Companies that run mail and parcel delivery services use this type of warehouse. The goods will be collected in the warehouse and then sorted according to the postal code or zone. 

After that, we will consolidate the goods before being sent to the destination address.

5. Transit Center Warehouse 

The function of the warehouse for this business is almost the same as the sorting warehouse because it accepts goods that come from various places. Furthermore, the goods will be combined and sent to consumers or forwarded to other production processes.

6. Cross Docking Warehouse

If you haven't heard of it, the role of this warehouse is to process goods with fast turnover. Goods stored in cross-docking warehouses will usually be sold on a short day, especially for items that expire quickly.

7. Public Interest Warehouse

Also known as Bulog warehouse, this type of warehouse is managed by the state to store rice. Meanwhile, the army can use the public interest warehouse to store necessities for victims of natural disasters.

5 Tips for Choosing the Right Storage Warehouse

Types of Warehouses

No less important than sales activities is the operation of the warehouse for storing goods. It must meet many essential warehouse criteria, from warehouse capacity and location to ease access. 

What do you need to consider when choosing and renting a warehouse for your business stock storage? 

Check out the following tips:

1. Features, Services, and Technology

Various warehouses have now been equipped with many advanced features and services along with the times. 

It means that the current warehouse is not only limited to a large room for storing goods, like a warehouse for storing goods at home.

Don't have enough capital to invest in a warehouse with the latest modern features, services, and technology? No need to worry because now there are many warehouse rental service providers to store goods that you can use. So, you only need to pay the rent according to your business needs.

2. Warehouse Staff

Once you decide to rent or even buy a warehouse area, you must also consider the costs associated with operating the warehouse. For example, labor costs for warehouse staff and overhead costs to ensure the warehouse continues working, such as electricity bills.

Of course, the costs you need also need to be adjusted to the operational time of the warehouse. Will the warehouse operate 24 hours a day or not? If not, you'll also need to pay for labor for 24-hour warehouse security.

3. Security

Of course, you also need to consider the safety factor before you decide to buy or rent a warehouse to store goods. This security is not only concerned with protection from the risk of theft. 

You also need to consider the safety of the quality of the goods you will store there, especially if the products you are selling are goods that require specific storage procedures.

4. Stock Storage Needs

Another important consideration in choosing a warehouse is how much stock storage your business needs. Not only from the volume, but you also need to consider the shelf needs, warehouse area, and store layout. 

Because depending on what items you will be storing, there may be types of things that should not hold close together.

5. Location

Another important consideration in choosing a warehouse is located. Then, how to select a warehouse location? Basically, in determining the location of the warehouse, you need to determine how much transportation costs to and from the warehouse you want, as well as the transit time and travel required. 

And suppose you also provide direct delivery services to customers or do not use other shipping services. In that case, you also need to consider the time it takes for delivery from the warehouse.

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